95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
SB1999

 

Introduced 2/7/2008, by Sen. William R. Haine

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Creates the Department of Financial and Professional Regulation Act and amends various Acts. Implements and supersedes Executive Order 6 (2004). Abolishes the Department of Financial Institutions, the Department of Insurance, the Department of Professional Regulation, and the Office of Banks and Real Estate and transfers all of the functions of those agencies to the Department of Financial and Professional Regulation, which is created. Provides that the Secretary of Financial and Professional Regulation is the head of the new agency, and provides for 4 Directors, each of whom shall report to the Secretary and shall oversee the functions transferred from one of the abolished agencies to the new agency. Transfers the staffs, records, and unexpended funds of the abolished agencies to the Department of Financial and Professional Regulation. Makes conforming changes in other Acts. Authorizes transfers of moneys to the Professions Indirect Cost Fund from certain special funds that receive moneys from fees and fines associated with the licensing of regulated professions, trades, occupations, and industries by the Department of Financial and Professional Regulation. Effective immediately.


LRB095 14469 DRJ 40375 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB1999 LRB095 14469 DRJ 40375 b

1     AN ACT concerning the implementation of Executive Order 6
2 (2004).
 
3     Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
 
5     Section 1. Short title. This Act may be cited as the
6 Department of Financial and Professional Regulation Act.
 
7     Section 5. Effect. This Act, including all of the
8 amendatory provisions of this Act, implements and supersedes
9 Executive Order 6 (2004).
 
10     Section 10. Department of Financial and Professional
11 Regulation.
12     (a) The Department of Financial and Professional
13 Regulation is created.
14     (b) The Department of Financial and Professional
15 Regulation shall have as its head the Secretary of Financial
16 and Professional Regulation, who shall be responsible for all
17 of the Department's functions. The Governor shall appoint the
18 Secretary, by and with the advice and consent of the Senate.
19 Vacancies in the office of Secretary shall be filled as
20 provided in Section 5-605 of the Civil Administrative Code of
21 Illinois. The Secretary is entitled to an annual salary as set
22 by the Governor from time to time or as set by the Compensation

 

 

SB1999 - 2 - LRB095 14469 DRJ 40375 b

1 Review Board, whichever is greater.
2     (c) The Department of Financial and Professional
3 Regulation shall have 4 Directors, each of whom shall report to
4 the Secretary and shall oversee the functions transferred from
5 one of the agencies whose functions are transferred to the
6 Department under this Act. The Governor shall appoint the 4
7 Directors, by and with the advice and consent of the Senate.
8 The appointment of the 4 Directors is subject to Section 5-710
9 of the Civil Administrative Code of Illinois.
10     (d) The Department of Financial and Professional
11 Regulation shall also have such other assistants and deputies
12 as may be appropriate for the efficient operation of the
13 Department. None of those other assistants or deputies shall be
14 a State officer subject to Senate confirmation.
15     (e) The Secretary of Financial and Professional Regulation
16 shall create divisions and administrative units within the
17 Department of Financial and Professional Regulation and shall
18 assign functions, powers, duties, and personnel as may now or
19 in the future be required by State or federal law. The
20 Secretary may create other divisions and administrative units
21 and may assign other functions, powers, duties, and personnel
22 as may be necessary or desirable to carry out the functions and
23 responsibilities vested by law in the Department.
24     (f) Whenever the Secretary of Financial and Professional
25 Regulation is authorized to take any action or required by law
26 to consider or make findings, the Secretary may delegate or

 

 

SB1999 - 3 - LRB095 14469 DRJ 40375 b

1 appoint, in writing, a Director of Financial and Professional
2 Regulation or other officer or employee of the Department of
3 Financial and Professional Regulation to take that action or
4 make that finding. A Director of Financial and Professional
5 Regulation, in turn, may delegate or appoint, in writing, a
6 Department officer or employee assigned to functions overseen
7 by that Director to take that action or make that finding.
8     (g) The Department of Financial and Professional
9 Regulation is the successor agency to the Department of
10 Financial Institutions, the Department of Insurance, the
11 Department of Professional Regulation, and the Office of Banks
12 and Real Estate for purposes of the Successor Agency Act and
13 for purposes of Section 9b of the State Finance Act.
 
14     Section 15. Agencies abolished. The following agencies are
15 abolished:
16         (1) The Department of Financial Institutions.
17         (2) The Department of Insurance.
18         (3) The Department of Professional Regulation.
19         (4) The Office of Banks and Real Estate.
 
20     Section 20. Functions transferred.
21     (a) All of the functions of the Department of Financial
22 Institutions, the Department of Insurance, the Department of
23 Professional Regulation, and the Office of Banks and Real
24 Estate, and all of the powers and duties, including funding

 

 

SB1999 - 4 - LRB095 14469 DRJ 40375 b

1 mechanisms, associated with or related to those functions and
2 vested by law in one of those agencies or in any office,
3 division, council, committee, bureau, board, commission,
4 officer, employee, or other individual or entity associated
5 with one of those agencies, are transferred to the Department
6 of Financial and Professional Regulation.
7     (b) The functions, powers, and duties transferred to the
8 Department of Financial and Professional Regulation under this
9 Act are not affected by this Act, except that they shall be
10 carried out by the Department of Financial and Professional
11 Regulation on and after the effective date of this Act.
 
12     Section 25. Representation on boards or other entities.
13 When any provision of an Executive Order or Act provides for
14 the membership of the Director of Financial Institutions, the
15 Director of Insurance, the Director of Professional
16 Regulation, or the Commissioner of Banks and Real Estate on any
17 council, commission, board, or other entity, the Secretary of
18 Financial and Professional Regulation, or, at the Governor's
19 discretion, the appropriate Director of Financial and
20 Professional Regulation, or the designee of that person, shall
21 serve in that place. If more than one such person is required
22 by law to serve on any council, commission, board, or other
23 entity, then an equivalent number of representatives of the
24 Department of Financial and Professional Regulation shall so
25 serve.
 

 

 

SB1999 - 5 - LRB095 14469 DRJ 40375 b

1     Section 30. Employees transferred. The employees of the
2 Department of Financial Institutions, the Department of
3 Insurance, the Department of Professional Regulation, and the
4 Office of Banks and Real Estate engaged in performing the
5 functions of those agencies transferred to the Department of
6 Financial and Professional Regulation under this Act shall be
7 transferred to the Department of Financial and Professional
8 Regulation. The status and rights of those employees, and the
9 rights of the State of Illinois and its agencies, under the
10 Personnel Code and applicable collective bargaining agreements
11 or under any pension, retirement, or annuity plan are not
12 affected by that transfer or by any other provision of this
13 Act.
 
14     Section 35. Books and records transferred. All books,
15 records, papers, documents, property (real and personal),
16 contracts, and pending business pertaining to the powers and
17 duties transferred under this Act from the Department of
18 Financial Institutions, the Department of Insurance, the
19 Department of Professional Regulation, and the Office of Banks
20 and Real Estate to the Department of Financial and Professional
21 Regulation, including but not limited to material in electronic
22 or magnetic format and necessary computer hardware and
23 software, shall be delivered to the Department of Financial and
24 Professional Regulation.
 

 

 

SB1999 - 6 - LRB095 14469 DRJ 40375 b

1     Section 40. Unexpended moneys transferred. All unexpended
2 appropriations and balances and other moneys available for use
3 in connection with any of the functions transferred to the
4 Department of Financial and Professional Regulation under this
5 Act shall be transferred for use by that Department for the
6 exercise of those functions pursuant to the direction of the
7 Governor. Unexpended balances so transferred shall be expended
8 only for the purpose for which the appropriations were
9 originally made.
 
10     Section 45. Exercise of transferred powers; savings
11 provisions.
12     (a) The powers and duties related to the functions
13 transferred to the Department of Financial and Professional
14 Regulation under this Act are vested in and shall be exercised
15 by that Department. Each act done by the Department of
16 Financial and Professional Regulation or any of its officers,
17 employees, or agents in the exercise of those powers and duties
18 shall have the same legal effect as if done by the Department
19 of Financial Institutions, the Department of Insurance, the
20 Department of Professional Regulation, or the Office of Banks
21 and Real Estate, or the divisions, officers, employees, or
22 agents of those agencies.
23     (b) The transfer of functions to the Department of
24 Financial and Professional Regulation under this Act does not

 

 

SB1999 - 7 - LRB095 14469 DRJ 40375 b

1 invalidate any action taken by the Department of Financial
2 Institutions, the Department of Insurance, the Department of
3 Professional Regulation, or the Office of Banks and Real Estate
4 before the effective date of this Act.
5     (c) On and after the effective date of this Act, references
6 in any Act to the Department of Financial Institutions, the
7 Department of Insurance, the Department of Professional
8 Regulation, or the Office of Banks and Real Estate shall, in
9 appropriate contexts, be deemed to be references to the
10 Department of Financial and Professional Regulation.
11     (d) The transfer of functions to the Department of
12 Financial and Professional Regulation under this Act does not
13 affect the powers or duties of any registrant, licensee, or
14 regulated entity arising out of those transferred functions.
 
15     Section 50. Officers, employees, and agents; penalties.
16 Every officer, employee, and agent of the Department of
17 Financial and Professional Regulation is, for any offense,
18 subject to the same penalty or penalties, civil or criminal, as
19 are prescribed by the law in effect on the effective date of
20 Executive Order 6 (2004) for the same offense by any officer,
21 employee, or agent whose powers or duties are transferred under
22 this Act.
 
23     Section 55. Reports, notices, or papers. Whenever reports
24 or notices are required to be made or given or papers or

 

 

SB1999 - 8 - LRB095 14469 DRJ 40375 b

1 documents furnished or served by any person to or upon the
2 Department of Financial Institutions, the Department of
3 Insurance, the Department of Professional Regulation, or the
4 Office of Banks and Real Estate in connection with any function
5 transferred under this Act, the same shall be made, given,
6 furnished, or served in the same manner to or upon the
7 Department of Financial and Professional Regulation.
 
8     Section 60. Acts and actions unaffected by transfer. This
9 Act does not affect any act done, ratified, or canceled, or any
10 right occurring or established, before the effective date of
11 Executive Order 6 (2004) in connection with any function
12 transferred under this Act. This Act does not affect any action
13 or proceeding had or commenced before the effective date of
14 Executive Order 6 (2004) in an administrative, civil, or
15 criminal cause regarding the Department of Financial
16 Institutions, the Department of Insurance, the Department of
17 Professional Regulation, or the Office of Banks and Real
18 Estate, but any such action or proceeding may be prosecuted,
19 defended, or continued by the Department of Financial and
20 Professional Regulation.
 
21     Section 65. Rules.
22     (a) Any rule of the Department of Financial Institutions,
23 the Department of Insurance, the Department of Professional
24 Regulation, or the Office of Banks and Real Estate that (i)

 

 

SB1999 - 9 - LRB095 14469 DRJ 40375 b

1 relates to the functions transferred under this Act, (ii) was
2 in full force on the effective date of Executive Order 6
3 (2004), and (iii) was duly adopted by one of those agencies
4 shall become the rule of the Department of Financial and
5 Professional Regulation. This Act does not affect the legality
6 of any such rules contained in the Illinois Administrative
7 Code.
8     (b) Any proposed rule filed with the Secretary of State by
9 the Department of Financial Institutions, the Department of
10 Insurance, the Department of Professional Regulation, or the
11 Office of Banks and Real Estate that was pending in the
12 rulemaking process on the effective date of Executive Order 6
13 (2004) and that pertains to the functions transferred under
14 this Act shall be deemed to have been filed by the Department
15 of Financial and Professional Regulation.
16     (c) As soon as practicable after the effective date of this
17 Act, the Department of Financial and Professional Regulation
18 shall revise and clarify the rules transferred to it under this
19 Section to reflect the reorganization of powers and duties
20 effected by this Act, using the procedures for recodification
21 of rules available under the Illinois Administrative Procedure
22 Act, except that existing title, part, and section numbering
23 for the affected rules may be retained.
24     (d) All rulemaking authority of the Secretary of Financial
25 and Professional Regulation shall be exercised jointly by the
26 Secretary and the Director of Financial and Professional

 

 

SB1999 - 10 - LRB095 14469 DRJ 40375 b

1 Regulation assigned to oversee functions that are the subject
2 of the rule.
3     (e) The Department of Financial and Professional
4 Regulation may propose and adopt other rules, as necessary, to
5 consolidate and clarify the rules formerly administered by the
6 Office of Banks and Real Estate, the Department of Financial
7 Institutions, the Department of Insurance, or the Department of
8 Professional Regulation.
 
9     Section 9005. The Intergovernmental Cooperation Act is
10 amended by changing Section 6 as follows:
 
11     (5 ILCS 220/6)  (from Ch. 127, par. 746)
12     Sec. 6. Joint self-insurance. An intergovernmental
13 contract may, among other undertakings, authorize public
14 agencies to jointly self-insure and authorize each public
15 agency member of the contract to utilize its funds to pay to a
16 joint insurance pool its costs and reserves to protect, wholly
17 or partially, itself or any public agency member of the
18 contract against liability or loss in the designated insurable
19 area. A joint insurance pool shall have an annual audit
20 performed by an independent certified public accountant and
21 shall file an annual audited financial report with the
22 Secretary of Financial and Professional Regulation Director of
23 Insurance no later than 150 days after the end of the pool's
24 immediately preceding fiscal year. The Secretary of Financial

 

 

SB1999 - 11 - LRB095 14469 DRJ 40375 b

1 and Professional Regulation Director of Insurance shall issue
2 rules necessary to implement this audit and report requirement.
3 The rule shall establish the due date for filing the initial
4 annual audited financial report. Within 30 days after January
5 1, 1991, and within 30 days after each January 1 thereafter,
6 public agencies that are jointly self-insured to protect
7 against liability under the Workers' Compensation Act and the
8 Workers' Occupational Diseases Act shall file with the Illinois
9 Workers' Compensation Commission a report indicating an
10 election to self-insure.
11     For purposes of this Section, "public agency member" means
12 any public agency defined or created under this Act, any local
13 public entity as defined in Section 1-206 of the Local
14 Governmental and Governmental Employees Tort Immunity Act, and
15 any public agency, authority, instrumentality, council, board,
16 service region, district, unit, bureau, or, commission, or any
17 municipal corporation, college, or university, whether
18 corporate or otherwise, and any other local governmental body
19 or similar entity that is presently existing or created after
20 the effective date of this amendatory Act of the 92nd General
21 Assembly, whether or not specified in this Section. Only public
22 agency members with tax receipts, tax revenues, taxing
23 authority, or other resources sufficient to pay costs and to
24 service debt related to intergovernmental activities described
25 in this Section, or public agency members created by or as part
26 of a public agency with these powers, may enter into contracts

 

 

SB1999 - 12 - LRB095 14469 DRJ 40375 b

1 or otherwise associate among themselves as permitted in this
2 Section.
3     No joint insurance pool or other intergovernmental
4 cooperative offering health insurance shall interfere with the
5 statutory obligation of any public agency member to bargain
6 over or to reach agreement with a labor organization over a
7 mandatory subject of collective bargaining as those terms are
8 used in the Illinois Public Labor Relations Act. No
9 intergovernmental contract of insurance offering health
10 insurance shall limit the rights or obligations of public
11 agency members to engage in collective bargaining, and it shall
12 be unlawful for a joint insurance pool or other
13 intergovernmental cooperative offering health insurance to
14 discriminate against public agency members or otherwise
15 retaliate against such members for limiting their
16 participation in a joint insurance pool as a result of a
17 collective bargaining agreement.
18     It shall not be considered a violation of this Section for
19 an intergovernmental contract of insurance relating to health
20 insurance coverage, life insurance coverage, or both to permit
21 the pool or cooperative, if a member withdraws employees or
22 officers into a union-sponsored program, to re-price the costs
23 of benefits provided to the continuing employees or officers
24 based upon the same underwriting criteria used by that pool or
25 cooperative in the normal course of its business, but no member
26 shall be expelled from a pool or cooperative if the continuing

 

 

SB1999 - 13 - LRB095 14469 DRJ 40375 b

1 employees or officers meet the general criteria required of
2 other members.
3 (Source: P.A. 93-721, eff. 1-1-05; 94-685, eff. 11-2-05.)
 
4     Section 9010. The State Officials and Employees Ethics Act
5 is amended by changing Section 5-50 as follows:
 
6     (5 ILCS 430/5-50)
7     Sec. 5-50. Ex parte communications; special government
8 agents.
9     (a) This Section applies to ex parte communications made to
10 any agency listed in subsection (e).
11     (b) "Ex parte communication" means any written or oral
12 communication by any person that imparts or requests material
13 information or makes a material argument regarding potential
14 action concerning regulatory, quasi-adjudicatory, investment,
15 or licensing matters pending before or under consideration by
16 the agency. "Ex parte communication" does not include the
17 following: (i) statements by a person publicly made in a public
18 forum; (ii) statements regarding matters of procedure and
19 practice, such as format, the number of copies required, the
20 manner of filing, and the status of a matter; and (iii)
21 statements made by a State employee of the agency to the agency
22 head or other employees of that agency.
23     (b-5) An ex parte communication received by an agency,
24 agency head, or other agency employee from an interested party

 

 

SB1999 - 14 - LRB095 14469 DRJ 40375 b

1 or his or her official representative or attorney shall
2 promptly be memorialized and made a part of the record.
3     (c) An ex parte communication received by any agency,
4 agency head, or other agency employee, other than an ex parte
5 communication described in subsection (b-5), shall immediately
6 be reported to that agency's ethics officer by the recipient of
7 the communication and by any other employee of that agency who
8 responds to the communication. The ethics officer shall require
9 that the ex parte communication be promptly made a part of the
10 record. The ethics officer shall promptly file the ex parte
11 communication with the Executive Ethics Commission, including
12 all written communications, all written responses to the
13 communications, and a memorandum prepared by the ethics officer
14 stating the nature and substance of all oral communications,
15 the identity and job title of the person to whom each
16 communication was made, all responses made, the identity and
17 job title of the person making each response, the identity of
18 each person from whom the written or oral ex parte
19 communication was received, the individual or entity
20 represented by that person, any action the person requested or
21 recommended, and any other pertinent information. The
22 disclosure shall also contain the date of any ex parte
23 communication.
24     (d) "Interested party" means a person or entity whose
25 rights, privileges, or interests are the subject of or are
26 directly affected by a regulatory, quasi-adjudicatory,

 

 

SB1999 - 15 - LRB095 14469 DRJ 40375 b

1 investment, or licensing matter.
2     (e) This Section applies to the following agencies:
3 Executive Ethics Commission
4 Illinois Commerce Commission
5 Educational Labor Relations Board
6 State Board of Elections
7 Illinois Gaming Board
8 Health Facilities Planning Board
9 Illinois Workers' Compensation Commission
10 Illinois Labor Relations Board
11 Illinois Liquor Control Commission
12 Pollution Control Board
13 Property Tax Appeal Board
14 Illinois Racing Board
15 Illinois Purchased Care Review Board
16 Department of State Police Merit Board
17 Motor Vehicle Review Board
18 Prisoner Review Board
19 Civil Service Commission
20 Personnel Review Board for the Treasurer
21 Merit Commission for the Secretary of State
22 Merit Commission for the Office of the Comptroller
23 Court of Claims
24 Board of Review of the Department of Employment Security
25 Department of Financial and Professional Regulation, in its
26     capacity as the successor of the Department of Insurance

 

 

SB1999 - 16 - LRB095 14469 DRJ 40375 b

1 Department of Financial and Professional Regulation, in its
2     capacity as the successor of the Department
3     of Professional Regulation, and licensing boards 
4     under the Department in that capacity
5 Department of Public Health and licensing boards
6     under the Department
7 Department of Financial and Professional Regulation, in its
8     capacity as the successor of the Office of Banks and
9     Real Estate, and licensing boards under
10     the Department in that capacity Office
11 State Employees Retirement System Board of Trustees
12 Judges Retirement System Board of Trustees
13 General Assembly Retirement System Board of Trustees
14 Illinois Board of Investment
15 State Universities Retirement System Board of Trustees
16 Teachers Retirement System Officers Board of Trustees
17     (f) Any person who fails to (i) report an ex parte
18 communication to an ethics officer, (ii) make information part
19 of the record, or (iii) make a filing with the Executive Ethics
20 Commission as required by this Section or as required by
21 Section 5-165 of the Illinois Administrative Procedure Act
22 violates this Act.
23 (Source: P.A. 95-331, eff. 8-21-07.)
 
24     Section 9015. The State Treasurer Act is amended by
25 changing Sections 0.02, 0.05, and 0.06 as follows:
 

 

 

SB1999 - 17 - LRB095 14469 DRJ 40375 b

1     (15 ILCS 505/0.02)
2     Sec. 0.02. Transfer of powers.
3     (a) The rights, powers, duties, and functions vested in the
4 Department of Financial Institutions to administer the Uniform
5 Disposition of Unclaimed Property Act are transferred to the
6 State Treasurer on July 1, 1999; provided, however, that the
7 rights, powers, duties, and functions involving the
8 examination of the records of any person that the State
9 Treasurer has reason to believe has failed to report properly
10 under this Act shall be transferred to the Office of Banks and
11 Real Estate if the person is regulated by the Office of Banks
12 and Real Estate under the Illinois Banking Act, the Corporate
13 Fiduciary Act, the Foreign Banking Office Act, the Illinois
14 Savings and Loan Act of 1985, or the Savings Bank Act and shall
15 be retained by the Department of Financial Institutions if the
16 person is doing business in the State under the supervision of
17 the Department of Financial Institutions, the National Credit
18 Union Administration, the Office of Thrift Supervision, or the
19 Comptroller of the Currency.
20     (b) The rights, powers, duties, and functions transferred
21 to the Office of Banks and Real Estate or retained by the
22 Department of Financial Institutions under this Section are
23 subject to the Department of Financial and Professional
24 Regulation Act.
25 (Source: P.A. 91-16, eff. 6-4-99.)
 

 

 

SB1999 - 18 - LRB095 14469 DRJ 40375 b

1     (15 ILCS 505/0.05)
2     Sec. 0.05. Rules and standards.
3     (a) The rules and standards of the Department of Financial
4 Institutions that are in effect on June 30, 1999 and pertain to
5 the administration of the Uniform Disposition of Unclaimed
6 Property Act shall become the rules and standards of the State
7 Treasurer on July 1, 1999 and shall continue in effect until
8 amended or repealed by the State Treasurer.
9     (b) Any rules pertaining to the administration of the
10 Uniform Disposition of Unclaimed Property Act that have been
11 proposed by the Department of Financial Institutions but have
12 not taken effect or been finally adopted by June 30, 1999 shall
13 become proposed rules of the State Treasurer on July 1, 1999,
14 and any rulemaking procedures that have already been completed
15 by the Department of Financial Institutions need not be
16 repeated.
17     (c) As soon as practical after July 1, 1999, the State
18 Treasurer shall revise and clarify the rules transferred to it
19 under this amendatory Act of 1999 to reflect the reorganization
20 of rights, powers, duties, and functions effected by this
21 amendatory Act of 1999 using the procedures for recodification
22 of rules available under the Illinois Administrative Procedure
23 Act, except that existing title, part, and section numbering
24 for the affected rules may be retained.
25     (d) As soon as practical after July 1, 1999, the Office of

 

 

SB1999 - 19 - LRB095 14469 DRJ 40375 b

1 Banks and Real Estate and the Office of the State Treasurer
2 shall jointly promulgate rules to reflect the transfer of
3 examination functions to the Office of Banks and Real Estate
4 under this amendatory Act of 1999 using the procedures
5 available under the Illinois Administrative Procedure Act.
6     (e) As soon as practical after July 1, 1999, the Department
7 of Financial Institutions and the Office of the State Treasurer
8 shall jointly promulgate rules to reflect the retention of
9 examination functions by the Department of Financial
10 Institutions under this amendatory Act of 1999 using the
11 procedures available under the Illinois Administrative
12 Procedure Act.
13     (f) The rules pertaining to the rights, powers, duties, and
14 functions transferred to the Office of Banks and Real Estate or
15 retained by the Department of Financial Institutions under this
16 Section are subject to the Department of Financial and
17 Professional Regulation Act.
18 (Source: P.A. 91-16, eff. 6-4-99.)
 
19     (15 ILCS 505/0.06)
20     Sec. 0.06. Savings provisions.
21     (a) The rights, powers, duties, and functions transferred
22 to the State Treasurer or the Commissioner of Banks and Real
23 Estate by this amendatory Act of 1999 shall be vested in and
24 exercised by the State Treasurer or the Commissioner of Banks
25 and Real Estate subject to the provisions of this amendatory

 

 

SB1999 - 20 - LRB095 14469 DRJ 40375 b

1 Act of 1999. An act done by the State Treasurer or the
2 Commissioner of Banks and Real Estate or an officer, employee,
3 or agent of the State Treasurer or the Commissioner of Banks
4 and Real Estate in the exercise of the transferred rights,
5 powers, duties, or functions shall have the same legal effect
6 as if done by the Department of Financial Institutions or an
7 officer, employee, or agent of the Department of Financial
8 Institutions prior to the effective date of this amendatory Act
9 of 1999.
10     (a-5) The vesting of rights, powers, duties, and functions
11 in the Office of Banks and Real Estate under this Section, and
12 the exercise of those rights, powers, duties, and functions by
13 that Office, are subject to the Department of Financial and
14 Professional Regulation Act.
15     (b) The transfer of rights, powers, duties, and functions
16 to the State Treasurer or the Commissioner of Banks and Real
17 Estate under this amendatory Act of 1999 does not invalidate
18 any previous action taken by or in respect to the Department of
19 Financial Institutions or its officers, employees, or agents.
20 References to the Department of Financial Institutions or its
21 officers, employees or agents in any document, contract,
22 agreement, or law shall, in appropriate contexts, be deemed to
23 refer to the State Treasurer or the Commissioner of Banks and
24 Real Estate or the officers, employees, or agents of the State
25 Treasurer or the Commissioner of Banks and Real Estate.
26     (c) The transfer of rights, powers, duties, and functions

 

 

SB1999 - 21 - LRB095 14469 DRJ 40375 b

1 from the Department of Financial Institutions to the State
2 Treasurer or the Commissioner of Banks and Real Estate under
3 this amendatory Act of 1999 does not affect the rights,
4 obligations, or duties of any other person or entity, including
5 any civil or criminal penalties applicable thereto, arising out
6 of those transferred rights, powers, duties, and functions.
7     (d) With respect to matters that pertain to a right, power,
8 duty, or function transferred to the State Treasurer under this
9 amendatory Act of 1999:
10         (1) Beginning July 1, 1999, any report or notice that
11     was previously required to be made or given by any person
12     to the Department of Financial Institutions or any of its
13     officers, employees, or agents under the Uniform
14     Disposition of Unclaimed Property Act or rules promulgated
15     pursuant to that Act shall be made or given in the same
16     manner to the State Treasurer or his or her appropriate
17     officer, employee, or agent.
18         (2) Beginning July 1, 1999, any document that was
19     previously required to be furnished or served by any person
20     to or upon the Department of Financial Institutions or any
21     of its officers, employees, or agents under the Uniform
22     Disposition of Unclaimed Property Act or rules promulgated
23     pursuant to that Act shall be furnished or served in the
24     same manner to or upon the State Treasurer or his or her
25     appropriate officer, employee, or agent.
26     (e) This amendatory Act of 1999 does not affect any act

 

 

SB1999 - 22 - LRB095 14469 DRJ 40375 b

1 done, ratified, or canceled, any right occurring or
2 established, or any action or proceeding had or commenced in an
3 administrative, civil, or criminal cause before July 1, 1999.
4 Any such action or proceeding that pertains to the Uniform
5 Disposition of Unclaimed Property Act or rules promulgated
6 pursuant to that Act and that is pending on that date may be
7 prosecuted, defended, or continued by the State Treasurer.
8 (Source: P.A. 91-16, eff. 6-4-99.)
 
9     Section 9020. The Deposit of State Moneys Act is amended by
10 changing Sections 3, 6, and 15 as follows:
 
11     (15 ILCS 520/3)  (from Ch. 130, par. 22)
12     Sec. 3. The State Treasurer shall, at such times as he may
13 in his discretion determine, cause a notice to be sent to each
14 savings and loan association, Federally insured credit union of
15 $50,000,000 or more assets, or regularly established National
16 and State bank doing business in this State, indicating that on
17 a date named therein not less than one month after the date of
18 such notice, he will receive sealed proposals for the deposit
19 of the public moneys in his custody or control. The State
20 Treasurer may also at any time receive a new or supplemental
21 proposal from any savings and loan association, credit union or
22 national or State bank.
23     A "regularly established" national or State bank is a bank
24 which is doing business in the State under the supervision of

 

 

SB1999 - 23 - LRB095 14469 DRJ 40375 b

1 the Comptroller of the Currency or the Department of Financial
2 and Professional Regulation Office of Banks and Real Estate.
3 (Source: P.A. 89-508, eff. 7-3-96.)
 
4     (15 ILCS 520/6)  (from Ch. 130, par. 25)
5     Sec. 6. Within 5 days after the last day named for the
6 receipt of proposals, such proposals shall be publicly opened
7 by the State Treasurer in the presence of the Secretary of
8 Financial and Professional Regulation Commissioner of Banks
9 and Real Estate and the Director of Central Management
10 Services.
11     The State Treasurer may reject any and all proposals, and
12 may ask for new or additional proposals.
13 (Source: P.A. 89-508, eff. 7-3-96.)
 
14     (15 ILCS 520/15)  (from Ch. 130, par. 34)
15     Sec. 15. (a) A bank or savings and loan association
16 approved as a depositary shall cease to be an approved bank or
17 savings and loan association, and shall be disqualified by the
18 State Treasurer:
19         (1) Upon its failure to post a suitable bond or deposit
20     securities with the State Treasurer;
21         (2) Upon its failure or refusal to pay over public
22     moneys or any part thereof;
23         (3) Upon its becoming insolvent or bankrupt, or being
24     placed in the hands of a receiver;

 

 

SB1999 - 24 - LRB095 14469 DRJ 40375 b

1         (4) Upon a showing of unsatisfactory financial
2     condition through a report made to, or an examination made
3     by, the Comptroller of the Currency, the Secretary of
4     Financial and Professional Regulation Commissioner of
5     Banks and Real Estate, or the Federal Home Loan Bank or its
6     successors.
7     (b) No approved depositary shall be disqualified by the
8 State Treasurer solely by reason of its acquisition by another
9 institution.
10 (Source: P.A. 89-508, eff. 7-3-96.)
 
11     Section 9025. The Civil Administrative Code of Illinois is
12 amended by changing Sections 1-5, 5-15, 5-20, and 5-710 and
13 adding Sections 5-131, 5-216, and 5-346 as follows:
 
14     (20 ILCS 5/1-5)
15     Sec. 1-5. Articles. The Civil Administrative Code of
16 Illinois consists of the following Articles:
17     Article 1. General Provisions (20 ILCS 5/1-1 and
18 following).
19     Article 5. Departments of State Government Law (20 ILCS
20 5/5-1 and following).
21     Article 50. State Budget Law (15 ILCS 20/).
22     Article 110. Department on Aging Law (20 ILCS 110/).
23     Article 205. Department of Agriculture Law (20 ILCS 205/).
24     Article 250. State Fair Grounds Title Law (5 ILCS 620/).

 

 

SB1999 - 25 - LRB095 14469 DRJ 40375 b

1     Article 310. Department of Human Services (Alcoholism and
2 Substance Abuse) Law (20 ILCS 310/).
3     Article 405. Department of Central Management Services Law
4 (20 ILCS 405/).
5     Article 510. Department of Children and Family Services
6 Powers Law (20 ILCS 510/).
7     Article 605. Department of Commerce and Economic
8 Opportunity Law (20 ILCS 605/).
9     Article 805. Department of Natural Resources
10 (Conservation) Law (20 ILCS 805/).
11     Article 1005. Department of Employment Security Law (20
12 ILCS 1005/).
13     Article 1405. Department of Financial and Professional
14 Regulation (Insurance) Law (20 ILCS 1405/).
15     Article 1505. Department of Labor Law (20 ILCS 1505/).
16     Article 1710. Department of Human Services (Mental Health
17 and Developmental Disabilities) Law (20 ILCS 1710/).
18     Article 1905. Department of Natural Resources (Mines and
19 Minerals) Law (20 ILCS 1905/).
20     Article 2005. Department of Nuclear Safety Law (20 ILCS
21 2005/).
22     Article 2105. Department of Financial and Professional
23 Regulation (Professional Regulation) Law (20 ILCS 2105/).
24     Article 2205. Department of Healthcare and Family Services
25 Law (20 ILCS 2205/).
26     Article 2310. Department of Public Health Powers and Duties

 

 

SB1999 - 26 - LRB095 14469 DRJ 40375 b

1 Law (20 ILCS 2310/).
2     Article 2505. Department of Revenue Law (20 ILCS 2505/).
3     Article 2510. Certified Audit Program Law (20 ILCS 2510/).
4     Article 2605. Department of State Police Law (20 ILCS
5 2605/).
6     Article 2705. Department of Transportation Law (20 ILCS
7 2705/).
8     Article 3000. University of Illinois Exercise of Functions
9 and Duties Law (110 ILCS 355/).
10 (Source: P.A. 95-331, eff. 8-21-07.)
 
11     (20 ILCS 5/5-15)  (was 20 ILCS 5/3)
12     Sec. 5-15. Departments of State government. The
13 Departments of State government are created as follows:
14     The Department on Aging.
15     The Department of Agriculture.
16     The Department of Central Management Services.
17     The Department of Children and Family Services.
18     The Department of Commerce and Economic Opportunity.
19     The Department of Corrections.
20     The Department of Employment Security.
21     The Emergency Management Agency.
22     The Department of Financial and Professional Regulation.
23     The Department of Financial Institutions.
24     The Department of Healthcare and Family Services.
25     The Department of Human Rights.

 

 

SB1999 - 27 - LRB095 14469 DRJ 40375 b

1     The Department of Human Services.
2     The Illinois Power Agency.
3     The Department of Insurance.
4     The Department of Juvenile Justice.
5     The Department of Labor.
6     The Department of the Lottery.
7     The Department of Natural Resources.
8     The Department of Professional Regulation.
9     The Department of Public Health.
10     The Department of Revenue.
11     The Department of State Police.
12     The Department of Transportation.
13     The Department of Veterans' Affairs.
14 (Source: P.A. 94-696, eff. 6-1-06; 95-331, eff. 8-21-07;
15 95-481, eff. 8-28-07.)
 
16     (20 ILCS 5/5-20)  (was 20 ILCS 5/4)
17     Sec. 5-20. Heads of departments. Each department shall have
18 an officer as its head who shall be known as director or
19 secretary and who shall, subject to the provisions of the Civil
20 Administrative Code of Illinois, execute the powers and
21 discharge the duties vested by law in his or her respective
22 department.
23     The following officers are hereby created:
24     Director of Aging, for the Department on Aging.
25     Director of Agriculture, for the Department of

 

 

SB1999 - 28 - LRB095 14469 DRJ 40375 b

1 Agriculture.
2     Director of Central Management Services, for the
3 Department of Central Management Services.
4     Director of Children and Family Services, for the
5 Department of Children and Family Services.
6     Director of Commerce and Economic Opportunity, for the
7 Department of Commerce and Economic Opportunity.
8     Director of Corrections, for the Department of
9 Corrections.
10     Director of Emergency Management Agency, for the Emergency
11 Management Agency.
12     Director of Employment Security, for the Department of
13 Employment Security.
14     Secretary of Financial and Professional Regulation, for
15 the Department of Financial and Professional Regulation.
16     Director of Financial Institutions, for the Department of
17 Financial Institutions.
18     Director of Healthcare and Family Services, for the
19 Department of Healthcare and Family Services.
20     Director of Human Rights, for the Department of Human
21 Rights.
22     Secretary of Human Services, for the Department of Human
23 Services.
24     Director of the Illinois Power Agency, for the Illinois
25 Power Agency.
26     Director of Insurance, for the Department of Insurance.

 

 

SB1999 - 29 - LRB095 14469 DRJ 40375 b

1     Director of Juvenile Justice, for the Department of
2 Juvenile Justice.
3     Director of Labor, for the Department of Labor.
4     Director of the Lottery, for the Department of the Lottery.
5     Director of Natural Resources, for the Department of
6 Natural Resources.
7     Director of Professional Regulation, for the Department of
8 Professional Regulation.
9     Director of Public Health, for the Department of Public
10 Health.
11     Director of Revenue, for the Department of Revenue.
12     Director of State Police, for the Department of State
13 Police.
14     Secretary of Transportation, for the Department of
15 Transportation.
16     Director of Veterans' Affairs, for the Department of
17 Veterans' Affairs.
18 (Source: P.A. 94-696, eff. 6-1-06; 95-331, eff. 8-21-07;
19 95-481, eff. 8-28-07.)
 
20     (20 ILCS 5/5-131 new)
21     Sec. 5-131. In the Department of Financial and Professional
22 Regulation. Four Directors of Financial and Professional
23 Regulation.
 
24     (20 ILCS 5/5-216 new)

 

 

SB1999 - 30 - LRB095 14469 DRJ 40375 b

1     Sec. 5-216. In the Department of Financial and Professional
2 Regulation.
3     (a) Neither the Secretary of Financial and Professional
4 Regulation, nor any other executive and administrative officer
5 in the Department of Financial and Professional Regulation
6 designated to oversee the functions administered pursuant to
7 the Department of Financial and Professional Regulation
8 (Professional Regulation) Law of the Civil Administrative Code
9 of Illinois, shall be affiliated with any college or school
10 that prepares individuals for licensure in any profession or
11 occupation regulated by the Department, either as teacher,
12 officer, or stockholder, nor shall the Secretary or other
13 executive and administrative officer hold a license or
14 certificate to exercise or practice any of the professions,
15 trades, or occupations regulated.
16     (b) The Secretary of Financial and Professional Regulation
17 shall be familiar with regulatory law and practice in the State
18 of Illinois. Each Director of Financial and Professional
19 Regulation shall be familiar with regulatory law and practice
20 regarding those functions that the Director is assigned to
21 oversee.
 
22     (20 ILCS 5/5-346 new)
23     Sec. 5-346. In the Department of Financial and Professional
24 Regulation. The Secretary of Financial and Professional
25 Regulation shall receive an annual salary as set by the

 

 

SB1999 - 31 - LRB095 14469 DRJ 40375 b

1 Governor from time to time or as set by the Compensation Review
2 Board, whichever is greater.
 
3     (20 ILCS 5/5-710)
4     Sec. 5-710. Executive Order provision superseded.
5     (a) Executive Order No. 2004-6 creates the Department of
6 Financial and Professional Regulation and, in subdivision
7 I(B), provides in part: "The new agency shall have an officer
8 as its head known as the Secretary who shall be responsible for
9 all agency functions. Appointment to this office shall be made
10 by the Governor, by and with the advice and consent of the
11 Senate.".
12     (b) Executive Order No. 2004-6, in subdivision I(C),
13 provides in part: "None of the four Directors, nor any such
14 assistants or deputies, shall be state officers subject to
15 Senate confirmation.".
16     (c) The sentence of subdivision I(C) of Executive Order
17 2004-6 that is quoted in subsection (b), to the extent that it
18 exempts the appointments of the 4 Directors of the Department
19 of Financial and Professional Regulation from Senate
20 confirmation, is superseded by subsection (d) of this Section
21 and is of no force or effect as to the appointment of the 4
22 Directors of the Department of Financial and Professional
23 Regulation.
24     (d) In addition to appointments to the Office of Secretary
25 of Financial and Professional Regulation, appointments to the 4

 

 

SB1999 - 32 - LRB095 14469 DRJ 40375 b

1 Offices of Director of Financial and Professional Regulation
2 must each be made by the Governor, by and with the advice and
3 consent of the Senate, as provided in Section 10 of the
4 Department of Financial and Professional Regulation Act.
5 (Source: P.A. 93-735, eff. 7-14-04.)
 
6     (20 ILCS 5/5-130 rep.)
7     (20 ILCS 5/5-140 rep.)
8     (20 ILCS 5/5-215 rep.)
9     (20 ILCS 5/5-225 rep.)
10     (20 ILCS 5/5-345 rep.)
11     (20 ILCS 5/5-360 rep.)
12     (20 ILCS 5/5-390 rep.)
13     Section 9026. The Civil Administrative Code of Illinois is
14 amended by repealing Sections 5-130, 5-140, 5-215, 5-225,
15 5-345, 5-360, and 5-390.
 
16     Section 9030. The Alcoholism and Other Drug Abuse and
17 Dependency Act is amended by changing Section 15-5 as follows:
 
18     (20 ILCS 301/15-5)
19     Sec. 15-5. Applicability.
20     (a) It is unlawful for any person to provide treatment for
21 alcoholism and other drug abuse or dependency or to provide
22 services as specified in subsections (c), (d), (e), and (f) of
23 Section 15-10 of this Act unless the person is licensed to do

 

 

SB1999 - 33 - LRB095 14469 DRJ 40375 b

1 so by the Department. The performance of these activities by
2 any person in violation of this Act is declared to be inimical
3 to the public health and welfare, and to be a public nuisance.
4 The Department may undertake such inspections and
5 investigations as it deems appropriate to determine whether
6 licensable activities are being conducted without the
7 requisite license.
8     (b) Nothing in this Act shall be construed to require any
9 hospital, as defined by the Hospital Licensing Act, required to
10 have a license from the Department of Public Health pursuant to
11 the Hospital Licensing Act to obtain any license under this Act
12 for any alcoholism and other drug dependency treatment services
13 operated on the licensed premises of the hospital, and operated
14 by the hospital or its designated agent, provided that such
15 services are covered within the scope of the Hospital Licensing
16 Act. No person or facility required to be licensed under this
17 Act shall be required to obtain a license pursuant to the
18 Hospital Licensing Act or the Child Care Act of 1969.
19     (c) Nothing in this Act shall be construed to require an
20 individual employee of a licensed program to be licensed under
21 this Act.
22     (d) Nothing in this Act shall be construed to require any
23 private professional practice, whether by an individual
24 practitioner, by a partnership, or by a duly incorporated
25 professional service corporation, that provides outpatient
26 treatment for alcoholism and other drug abuse to be licensed

 

 

SB1999 - 34 - LRB095 14469 DRJ 40375 b

1 under this Act, provided that the treatment is rendered
2 personally by the professional in his own name and the
3 professional is authorized by individual professional
4 licensure or registration from the Department of Financial and
5 Professional Regulation or its predecessor, the Department of
6 Professional Regulation, to do such treatment unsupervised.
7 This exemption shall not apply to such private professional
8 practice which specializes primarily or exclusively in the
9 treatment of alcoholism and other drug abuse. This exemption
10 shall also not apply to intervention services, research, or
11 residential treatment services as defined in this Act or by
12 rule.
13     Notwithstanding any other provisions of this subsection to
14 the contrary, persons licensed to practice medicine in all of
15 its branches in Illinois shall not require licensure under this
16 Act unless their private professional practice specializes
17 exclusively in the treatment of alcoholism and other drug
18 abuse.
19     (e) Nothing in this Act shall be construed to require any
20 employee assistance program operated by an employer or any
21 intervenor program operated by a professional association to
22 obtain any license pursuant to this Act to perform services
23 that do not constitute licensable treatment or intervention as
24 defined in this Act.
25     (f) Before any violation of this Act is reported by the
26 Department or any of its agents to any State's Attorney for the

 

 

SB1999 - 35 - LRB095 14469 DRJ 40375 b

1 institution of a criminal proceeding, the person against whom
2 such proceeding is contemplated shall be given appropriate
3 notice and an opportunity to present his views before the
4 Department or its designated agent, either orally or in
5 writing, in person or by an attorney, with regard to such
6 contemplated proceeding. Nothing in this Act shall be construed
7 as requiring the Department to report minor violations of this
8 Act whenever the Department believes that the public interest
9 would be adequately served by a suitable written notice or
10 warning.
11 (Source: P.A. 88-80; 89-202, eff. 7-21-95; 89-507, eff.
12 7-1-97.)
 
13     Section 9035. The Personnel Code is amended by changing
14 Section 4c as follows:
 
15     (20 ILCS 415/4c)  (from Ch. 127, par. 63b104c)
16     Sec. 4c. General exemptions. The following positions in
17 State service shall be exempt from jurisdictions A, B, and C,
18 unless the jurisdictions shall be extended as provided in this
19 Act:
20         (1) All officers elected by the people.
21         (2) All positions under the Lieutenant Governor,
22     Secretary of State, State Treasurer, State Comptroller,
23     State Board of Education, Clerk of the Supreme Court,
24     Attorney General, and State Board of Elections.

 

 

SB1999 - 36 - LRB095 14469 DRJ 40375 b

1         (3) Judges, and officers and employees of the courts,
2     and notaries public.
3         (4) All officers and employees of the Illinois General
4     Assembly, all employees of legislative commissions, all
5     officers and employees of the Illinois Legislative
6     Reference Bureau, the Legislative Research Unit, and the
7     Legislative Printing Unit.
8         (5) All positions in the Illinois National Guard and
9     Illinois State Guard, paid from federal funds or positions
10     in the State Military Service filled by enlistment and paid
11     from State funds.
12         (6) All employees of the Governor at the executive
13     mansion and on his immediate personal staff.
14         (7) Directors of Departments, the Adjutant General,
15     the Assistant Adjutant General, the Director of the
16     Illinois Emergency Management Agency, members of boards
17     and commissions, and all other positions appointed by the
18     Governor by and with the consent of the Senate.
19         (8) The presidents, other principal administrative
20     officers, and teaching, research and extension faculties
21     of Chicago State University, Eastern Illinois University,
22     Governors State University, Illinois State University,
23     Northeastern Illinois University, Northern Illinois
24     University, Western Illinois University, the Illinois
25     Community College Board, Southern Illinois University,
26     Illinois Board of Higher Education, University of

 

 

SB1999 - 37 - LRB095 14469 DRJ 40375 b

1     Illinois, State Universities Civil Service System,
2     University Retirement System of Illinois, and the
3     administrative officers and scientific and technical staff
4     of the Illinois State Museum.
5         (9) All other employees except the presidents, other
6     principal administrative officers, and teaching, research
7     and extension faculties of the universities under the
8     jurisdiction of the Board of Regents and the colleges and
9     universities under the jurisdiction of the Board of
10     Governors of State Colleges and Universities, Illinois
11     Community College Board, Southern Illinois University,
12     Illinois Board of Higher Education, Board of Governors of
13     State Colleges and Universities, the Board of Regents,
14     University of Illinois, State Universities Civil Service
15     System, University Retirement System of Illinois, so long
16     as these are subject to the provisions of the State
17     Universities Civil Service Act.
18         (10) The State Police so long as they are subject to
19     the merit provisions of the State Police Act.
20         (11) The scientific staff of the State Scientific
21     Surveys and the Waste Management and Research Center.
22         (12) The technical and engineering staffs of the
23     Department of Transportation, the Department of Nuclear
24     Safety, the Pollution Control Board, and the Illinois
25     Commerce Commission, and the technical and engineering
26     staff providing architectural and engineering services in

 

 

SB1999 - 38 - LRB095 14469 DRJ 40375 b

1     the Department of Central Management Services.
2         (13) All employees of the Illinois State Toll Highway
3     Authority.
4         (14) The Secretary of the Illinois Workers'
5     Compensation Commission.
6         (15) All persons who are appointed or employed by the
7     Secretary of Financial and Professional Regulation
8     Director of Insurance under authority of Section 202 of the
9     Illinois Insurance Code to assist the Secretary Director of
10     Insurance in discharging his responsibilities relating to
11     the rehabilitation, liquidation, conservation, and
12     dissolution of companies that are subject to the
13     jurisdiction of the Illinois Insurance Code.
14         (16) All employees of the St. Louis Metropolitan Area
15     Airport Authority.
16         (17) All investment officers employed by the Illinois
17     State Board of Investment.
18         (18) Employees of the Illinois Young Adult
19     Conservation Corps program, administered by the Illinois
20     Department of Natural Resources, authorized grantee under
21     Title VIII of the Comprehensive Employment and Training Act
22     of 1973, 29 USC 993.
23         (19) Seasonal employees of the Department of
24     Agriculture for the operation of the Illinois State Fair
25     and the DuQuoin State Fair, no one person receiving more
26     than 29 days of such employment in any calendar year.

 

 

SB1999 - 39 - LRB095 14469 DRJ 40375 b

1         (20) All "temporary" employees hired under the
2     Department of Natural Resources' Illinois Conservation
3     Service, a youth employment program that hires young people
4     to work in State parks for a period of one year or less.
5         (21) All hearing officers of the Human Rights
6     Commission.
7         (22) All employees of the Illinois Mathematics and
8     Science Academy.
9         (23) All employees of the Kankakee River Valley Area
10     Airport Authority.
11         (24) The commissioners and employees of the Executive
12     Ethics Commission.
13         (25) The Executive Inspectors General, including
14     special Executive Inspectors General, and employees of
15     each Office of an Executive Inspector General.
16         (26) The commissioners and employees of the
17     Legislative Ethics Commission.
18         (27) The Legislative Inspector General, including
19     special Legislative Inspectors General, and employees of
20     the Office of the Legislative Inspector General.
21         (28) The Auditor General's Inspector General and
22     employees of the Office of the Auditor General's Inspector
23     General.
24 (Source: P.A. 93-617, eff. 12-9-03; 93-721, eff. 1-1-05;
25 93-1091, eff. 3-29-05.)
 

 

 

SB1999 - 40 - LRB095 14469 DRJ 40375 b

1     Section 9040. The Financial Institutions Code is amended by
2 changing Sections 1, 2, and 17 and by adding Section 1.5 as
3 follows:
 
4     (20 ILCS 1205/1)  (from Ch. 17, par. 101)
5     Sec. 1. This Act shall be known and shall be cited as the
6 "Department of Financial and Professional Regulation
7 (Financial Institutions) Code."
8 (Source: Laws 1957, p. 369.)
 
9     (20 ILCS 1205/1.5 new)
10     Sec. 1.5. References to Department or Director of Financial
11 Institutions. On and after the effective date of this
12 amendatory Act of the 95th General Assembly:
13         (1) References in this Code to the Department of
14     Financial Institutions or "the Department" mean the
15     Department of Financial and Professional Regulation.
16         (2) References in this Code to the Director of
17     Financial Institutions or "the Director" mean the
18     Secretary of Financial and Professional Regulation.
 
19     (20 ILCS 1205/2)  (from Ch. 17, par. 102)
20     Sec. 2. The purpose of the Department of Financial and
21 Professional Regulation (Financial Institutions) Code is to
22 provide under the Governor for the orderly administration and
23 enforcement of laws relating to financial institutions.

 

 

SB1999 - 41 - LRB095 14469 DRJ 40375 b

1 (Source: Laws 1957, p. 369.)
 
2     (20 ILCS 1205/17)  (from Ch. 17, par. 118)
3     Sec. 17. Neither the Secretary of Financial and
4 Professional Regulation nor the Director of Financial and
5 Professional Regulation designated to oversee the functions
6 administered pursuant to the Department of Financial and
7 Professional Regulation (Financial Institutions) Code, nor any
8 supervisor, nor any examiner shall be an officer, director,
9 owner, or shareholder of, or a partner in, or have any
10 proprietary interest, direct or indirect, in any financial
11 institution; provided, however, that ownership of withdrawable
12 capital accounts or shares in credit unions shall not be deemed
13 to be prevented hereby. If the Secretary of Financial and
14 Professional Regulation, or the Director of Financial and
15 Professional Regulation designated to oversee the functions
16 administered pursuant to the Department of Financial and
17 Professional Regulation (Financial Institutions) Code, or any
18 supervisor, or any examiner, shall be a shareholder, or partner
19 in or an owner of or have any interest, direct or indirect, in
20 any such financial institution at the time of his appointment,
21 he shall dispose of his shares of stock or other evidences of
22 ownership or property within 120 days from the date of his
23 appointment. It is unlawful for the Secretary of Financial and
24 Professional Regulation, or the Director of Financial and
25 Professional Regulation designated to oversee the functions

 

 

SB1999 - 42 - LRB095 14469 DRJ 40375 b

1 administered pursuant to the Department of Financial and
2 Professional Regulation (Financial Institutions) Code, or any
3 supervisor or examiner to obtain any loan or gratuity from a
4 financial institution subject to the jurisdiction of the
5 Department as herein provided. If any other employee of the
6 Department borrows from or becomes indebted in an aggregate
7 amount of $2,500 or more to any financial institution subject
8 to the jurisdiction of the Department, he shall make a written
9 report to the Director stating the date and amount of such loan
10 or indebtedness, the security therefor, if any, and the purpose
11 or purposes for which proceeds have been or are to be used.
12 (Source: P.A. 91-357, eff. 7-29-99.)
 
13     Section 9045. The Department of Insurance Law of the Civil
14 Administrative Code of Illinois is amended by changing the
15 heading of Article 1405 and Sections 1405-1, 1405-5, 1405-10,
16 1405-15, 1405-20, 1405-25, and 1405-30 as follows:
 
17     (20 ILCS 1405/Art. 1405 heading)
18
ARTICLE 1405. DEPARTMENT OF FINANCIAL AND PROFESSIONAL
19
REGULATION ( INSURANCE )

 
20     (20 ILCS 1405/1405-1)
21     Sec. 1405-1. Article short title. This Article 1405 of the
22 Civil Administrative Code of Illinois may be cited as the
23 Department of Financial and Professional Regulation

 

 

SB1999 - 43 - LRB095 14469 DRJ 40375 b

1 (Insurance) Law.
2 (Source: P.A. 91-239, eff. 1-1-00.)
 
3     (20 ILCS 1405/1405-5)  (was 20 ILCS 1405/56)
4     Sec. 1405-5. General powers. The Department of Financial
5 and Professional Regulation, as the successor of the Department
6 of Insurance, has the following powers:
7         (1) To exercise the rights, powers, and duties vested
8     by law in the insurance superintendent and the
9     superintendent's officers and employees.
10         (2) To exercise the rights, powers, and duties that
11     have been vested by law in the Department of Trade and
12     Commerce as the successor of the insurance superintendent
13     and the superintendent's officers and employees.
14         (3) To exercise the rights, powers, and duties
15     heretofore vested by law in the Department of Trade and
16     Commerce or in the Director of Trade and Commerce by:
17             (A) all laws in relation to insurance; and
18             (B) Article 22 of the Illinois Pension Code.
19         (4) To execute and administer all laws heretofore or
20     hereafter enacted relating to insurance.
21         (5) To transfer jurisdiction of any realty under the
22     control of the Department to any other department of the
23     State Government or to acquire or accept federal lands when
24     the transfer, acquisition, or acceptance is advantageous
25     to the State and is approved in writing by the Governor.

 

 

SB1999 - 44 - LRB095 14469 DRJ 40375 b

1 (Source: P.A. 91-239, eff. 1-1-00.)
 
2     (20 ILCS 1405/1405-10)  (was 20 ILCS 1405/56.1)
3     Sec. 1405-10. Child health insurance plan study. The
4 Department of Financial and Professional Regulation Insurance
5 shall cooperate with and provide consultation to the Department
6 of Public Health in studying the feasibility of a child health
7 insurance plan as provided in Section 2310-275 of the
8 Department of Public Health Powers and Duties Law (20 ILCS
9 2310/2310-275).
10 (Source: P.A. 91-239, eff. 1-1-00.)
 
11     (20 ILCS 1405/1405-15)  (was 20 ILCS 1405/56.2)
12     Sec. 1405-15. Senior citizen assistance and information
13 program.
14     (a) The Department of Financial and Professional
15 Regulation Insurance shall administer and operate a program to
16 provide assistance and information to senior citizens in
17 relation to insurance matters. The program may include, but is
18 not limited to, counseling for senior citizens in the
19 evaluation, comparison, or selection of Medicare options,
20 Medicare supplement insurance, and long-term care insurance.
21     (b) The Department shall recruit and train volunteers to
22 provide the following:
23         (i) one-on-one counseling on insurance matters; and
24         (ii) education on insurance matters to senior citizens

 

 

SB1999 - 45 - LRB095 14469 DRJ 40375 b

1     through public forums.
2     (c) The Department shall solicit the volunteers for their
3 input and advice on the success and accessibility of the
4 program.
5     (d) The Department shall strive to assure that all seniors
6 residing in Illinois have access to the program.
7     (e) The Department of Insurance may promulgate reasonable
8 rules necessary to implement this Section.
9 (Source: P.A. 91-239, eff. 1-1-00.)
 
10     (20 ILCS 1405/1405-20)  (was 20 ILCS 1405/56.3)
11     Sec. 1405-20. Investigational cancer treatments; study.
12     (a) The Department of Financial and Professional
13 Regulation Insurance shall conduct an analysis and study of
14 costs and benefits derived from the implementation of the
15 coverage requirements for investigational cancer treatments
16 established under Section 356y of the Illinois Insurance Code.
17 The study shall cover the years 2000, 2001, and 2002. The study
18 shall include an analysis of the effect of the coverage
19 requirements on the cost of insurance and health care, the
20 results of the treatments to patients, the mortality rate among
21 cancer patients, any improvements in care of patients, and any
22 improvements in the quality of life of patients.
23     (b) The Department shall report the results of its study to
24 the General Assembly and the Governor on or before March 1,
25 2003.

 

 

SB1999 - 46 - LRB095 14469 DRJ 40375 b

1 (Source: P.A. 91-406, eff. 1-1-00; 92-16, eff. 6-28-01.)
 
2     (20 ILCS 1405/1405-25)
3     Sec. 1405-25. Uninsured Ombudsman Program.
4     (a) The Department of Financial and Professional
5 Regulation Insurance shall establish and operate an Ombudsman
6 Program for uninsured individuals to provide assistance and
7 education to those individuals regarding health insurance
8 benefits options and rights under State and federal law. The
9 program may include, but is not limited to, counseling for
10 uninsured individuals in the discovery, evaluation, and
11 comparison of options for obtaining health insurance coverage.
12     (b) The Department may recruit and train volunteers to
13 assist in the Ombudsman Program. The volunteers may provide
14 one-on-one counseling on health insurance availability matters
15 and provide education to uninsured individuals through public
16 forums.
17     (c) The Department may issue reasonable rules necessary to
18 implement this Section.
19 (Source: P.A. 92-331, eff. 1-1-02.)
 
20     (20 ILCS 1405/1405-30)
21     Sec. 1405-30. Mental health insurance study.
22     (a) The Department of Financial and Professional
23 Regulation Insurance shall conduct an analysis and study of
24 costs and benefits derived from the implementation of the

 

 

SB1999 - 47 - LRB095 14469 DRJ 40375 b

1 coverage requirements for treatment of mental disorders
2 established under Section 370c of the Illinois Insurance Code.
3 The study shall cover the years 2002, 2003, and 2004. The study
4 shall include an analysis of the effect of the coverage
5 requirements on the cost of insurance and health care, the
6 results of the treatments to patients, any improvements in care
7 of patients, and any improvements in the quality of life of
8 patients.
9     (b) The Department shall report the results of its study to
10 the General Assembly and the Governor on or before March 1,
11 2005.
12 (Source: P.A. 92-185, eff. 1-1-02.)
 
13     Section 9050. The Mental Health and Developmental
14 Disabilities Administrative Act is amended by changing Section
15 56 as follows:
 
16     (20 ILCS 1705/56)  (from Ch. 91 1/2, par. 100-56)
17     Sec. 56. The Secretary, upon making a determination based
18 upon information in the possession of the Department, that
19 continuation in practice of a licensed health care professional
20 would constitute an immediate danger to the public, shall
21 submit a written communication to the Secretary Director of
22 Financial and Professional Regulation indicating such
23 determination and additionally providing a complete summary of
24 the information upon which such determination is based, and

 

 

SB1999 - 48 - LRB095 14469 DRJ 40375 b

1 recommending that the Secretary Director of Financial and
2 Professional Regulation immediately suspend such person's
3 license. All relevant evidence, or copies thereof, in the
4 Department's possession may also be submitted in conjunction
5 with the written communication. A copy of such written
6 communication, which is exempt from the copying and inspection
7 provisions of the Freedom of Information Act, shall at the time
8 of submittal to the Secretary Director of Financial and
9 Professional Regulation be simultaneously mailed to the last
10 known business address of such licensed health care
11 professional by certified or registered postage, United States
12 Mail, return receipt requested. Any evidence, or copies
13 thereof, which is submitted in conjunction with the written
14 communication is also exempt from the copying and inspection
15 provisions of the Freedom of Information Act.
16     For the purposes of this Section, "licensed health care
17 professional" means any person licensed under the Illinois
18 Dental Practice Act, the Nurse Practice Act, the Medical
19 Practice Act of 1987, the Pharmacy Practice Act, the Podiatric
20 Medical Practice Act of 1987, and the Illinois Optometric
21 Practice Act of 1987.
22 (Source: P.A. 95-639, eff. 10-5-07; 95-689, eff. 10-29-07;
23 revised 12-5-07.)
 
24     Section 9055. The Department of Professional Regulation
25 Law of the Civil Administrative Code of Illinois is amended by

 

 

SB1999 - 49 - LRB095 14469 DRJ 40375 b

1 changing the heading of Article 2105 and Section 2105-1 and
2 adding Section 2105-2 as follows:
 
3     (20 ILCS 2105/Art. 2105 heading)
4
ARTICLE 2105. DEPARTMENT OF
5
FINANCIAL AND PROFESSIONAL REGULATION ( PROFESSIONAL
6
REGULATION )

 
7     (20 ILCS 2105/2105-1)
8     Sec. 2105-1. Article short title. This Article 2105 of the
9 Civil Administrative Code of Illinois may be cited as the
10 Department of Financial and Professional Regulation
11 (Professional Regulation) Law.
12 (Source: P.A. 91-239, eff. 1-1-00.)
 
13     (20 ILCS 2105/2105-2 new)
14     Sec. 2105-2. References to Department or Director of
15 Professional Regulation. On and after the effective date of
16 this amendatory Act of the 95th General Assembly:
17         (1) References in this Law to the Department of
18     Professional Regulation or "the Department" mean the
19     Department of Financial and Professional Regulation.
20         (2) References in this Law to the Director of
21     Professional Regulation or "the Director" mean the
22     Secretary of Financial and Professional Regulation.
 

 

 

SB1999 - 50 - LRB095 14469 DRJ 40375 b

1     (20 ILCS 2105/2105-300 rep.)  (was 20 ILCS 2105/61e)
2     Section 9056. The Department of Professional Regulation
3 Law of the Civil Administrative Code of Illinois is amended by
4 repealing Section 2105-300.
 
5     Section 9060. The Department of Public Aid Law of the Civil
6 Administrative Code of Illinois is amended by changing Section
7 2205-10 as follows:
 
8     (20 ILCS 2205/2205-10)  (was 20 ILCS 2205/48b)
9     Sec. 2205-10. Suspension or termination of authorization
10 to provide medical services. Whenever the Department of
11 Healthcare and Family Services (formerly Department of Public
12 Aid) suspends or terminates the authorization of any person,
13 firm, corporation, association, agency, institution, or other
14 legal entity to provide medical services under Article V of the
15 Illinois Public Aid Code and the practice of providing those
16 services or the maintenance of facilities for those services is
17 licensed under a licensing Act administered by the Department
18 of Public Health or the Department of Financial and
19 Professional Regulation, the Department of Healthcare and
20 Family Services shall, within 30 days of the suspension or
21 termination, give written notice of the suspension or
22 termination and transmit a record of the evidence and specify
23 the grounds on which the suspension or termination is based to
24 the Department that administers the licensing Act under which

 

 

SB1999 - 51 - LRB095 14469 DRJ 40375 b

1 that person, firm, corporation, association, agency,
2 institution, or other legal entity is licensed, subject to any
3 confidentiality requirements imposed by applicable federal or
4 State law. The cost of any such record shall be borne by the
5 Department to which it is transmitted.
6 (Source: P.A. 95-331, eff. 8-21-07.)
 
7     Section 9065. The Illinois Health Finance Reform Act is
8 amended by changing Section 4-2 as follows:
 
9     (20 ILCS 2215/4-2)  (from Ch. 111 1/2, par. 6504-2)
10     Sec. 4-2. Powers and duties.
11     (a) (Blank).
12     (b) (Blank).
13     (c) (Blank).
14     (d) Uniform Provider Utilization and Charge Information.
15         (1) The Department of Public Health shall require that
16     all hospitals and ambulatory surgical treatment centers
17     licensed to operate in the State of Illinois adopt a
18     uniform system for submitting patient claims and encounter
19     data for payment from public and private payors. This
20     system shall be based upon adoption of the uniform
21     electronic billing form pursuant to the Health Insurance
22     Portability and Accountability Act.
23         (2) (Blank).
24         (3) The Department of Financial and Professional

 

 

SB1999 - 52 - LRB095 14469 DRJ 40375 b

1     Regulation Insurance shall require all third-party payors,
2     including but not limited to, licensed insurers, medical
3     and hospital service corporations, health maintenance
4     organizations, and self-funded employee health plans, to
5     accept the uniform billing form, without attachment as
6     submitted by hospitals pursuant to paragraph (1) of
7     subsection (d) above, effective January 1, 1985; provided,
8     however, nothing shall prevent all such third party payors
9     from requesting additional information necessary to
10     determine eligibility for benefits or liability for
11     reimbursement for services provided.
12         (4) By no later than 60 days after the end of each
13     calendar quarter, each hospital licensed in the State shall
14     electronically submit to the Department inpatient and
15     outpatient claims and encounter data related to surgical
16     and invasive procedures collected under paragraph (5) for
17     each patient.
18         By no later than 60 days after the end of each calendar
19     quarter, each ambulatory surgical treatment center
20     licensed in the State shall electronically submit to the
21     Department outpatient claims and encounter data collected
22     under paragraph (5) for each patient, provided however,
23     that, until July 1, 2006, ambulatory surgical treatment
24     centers who cannot electronically submit data may submit
25     data by computer diskette. For hospitals, the claims and
26     encounter data to be reported shall include all inpatient

 

 

SB1999 - 53 - LRB095 14469 DRJ 40375 b

1     surgical cases. Claims and encounter data submitted under
2     this Act shall not include a patient's name, address, or
3     Social Security number.
4         (5) By no later than January 1, 2006, the Department
5     must collect and compile claims and encounter data related
6     to surgical and invasive procedures according to uniform
7     electronic submission formats as required under the Health
8     Insurance Portability and Accountability Act. By no later
9     than January 1, 2006, the Department must collect and
10     compile from ambulatory surgical treatment centers the
11     claims and encounter data according to uniform electronic
12     data element formats as required under the Health Insurance
13     Portability and Accountability Act of 1996 (HIPAA).
14         (6) The Department shall make available on its website
15     the "Consumer Guide to Health Care" by January 1, 2006. The
16     "Consumer Guide to Health Care" shall include information
17     on at least 30 inpatient conditions and procedures
18     identified by the Department that demonstrate the highest
19     degree of variation in patient charges and quality of care.
20     By no later than January 1, 2007, the "Consumer Guide to
21     Health Care" shall also include information on at least 30
22     outpatient conditions and procedures identified by the
23     Department that demonstrate the highest degree of
24     variation in patient charges and quality care. As to each
25     condition or procedure, the "Consumer Guide to Health Care"
26     shall include up-to-date comparison information relating

 

 

SB1999 - 54 - LRB095 14469 DRJ 40375 b

1     to volume of cases, average charges, risk-adjusted
2     mortality rates, and nosocomial infection rates and, with
3     respect to outpatient surgical and invasive procedures,
4     shall include information regarding surgical infections,
5     complications, and direct admissions of outpatient cases
6     to hospitals for selected procedures, as determined by the
7     Department, based on review by the Department of its own,
8     local, or national studies. Information disclosed pursuant
9     to this paragraph on mortality and infection rates shall be
10     based upon information hospitals and ambulatory surgical
11     treatment centers have either (i) previously submitted to
12     the Department pursuant to their obligations to report
13     health care information under this Act or other public
14     health reporting laws and regulations outside of this Act
15     or (ii) submitted to the Department under the provisions of
16     the Hospital Report Card Act.
17         (7) Publicly disclosed information must be provided in
18     language that is easy to understand and accessible to
19     consumers using an interactive query system. The guide
20     shall include such additional information as is necessary
21     to enhance decision making among consumer and health care
22     purchasers, which shall include, at a minimum, appropriate
23     guidance on how to interpret the data and an explanation of
24     why the data may vary from provider to provider. The
25     "Consumer Guide to Health Care" shall also cite standards
26     that facilities meet under state and federal law and, if

 

 

SB1999 - 55 - LRB095 14469 DRJ 40375 b

1     applicable, to achieve voluntary accreditation.
2         (8) None of the information the Department discloses to
3     the public under this subsection may be made available
4     unless the information has been reviewed, adjusted, and
5     validated according to the following process:
6             (i) Hospitals, ambulatory surgical treatment
7         centers, and organizations representing hospitals,
8         ambulatory surgical treatment centers, purchasers,
9         consumer groups, and health plans are meaningfully
10         involved in providing advice and consultation to the
11         Department in the development of all aspects of the
12         Department's methodology for collecting, analyzing,
13         and disclosing the information collected under this
14         Act, including collection methods, formatting, and
15         methods and means for release and dissemination;
16             (ii) The entire methodology for collecting and
17         analyzing the data is disclosed to all relevant
18         organizations and to all providers that are the subject
19         of any information to be made available to the public
20         before any public disclosure of such information;
21             (iii) Data collection and analytical methodologies
22         are used that meet accepted standards of validity and
23         reliability before any information is made available
24         to the public;
25             (iv) The limitations of the data sources and
26         analytic methodologies used to develop comparative

 

 

SB1999 - 56 - LRB095 14469 DRJ 40375 b

1         provider information are clearly identified and
2         acknowledged, including, but not limited to,
3         appropriate and inappropriate uses of the data;
4             (v) To the greatest extent possible, comparative
5         hospital and ambulatory surgical treatment center
6         information initiatives use standard-based norms
7         derived from widely accepted provider-developed
8         practice guidelines;
9             (vi) Comparative hospital and ambulatory surgical
10         treatment center information and other information
11         that the Department has compiled regarding hospitals
12         and ambulatory surgical treatment centers is shared
13         with the hospitals and ambulatory surgical treatment
14         centers under review prior to public dissemination of
15         the information and these providers have an
16         opportunity to make corrections and additions of
17         helpful explanatory comments about the information
18         before the publication;
19             (vii) Comparisons among hospitals and ambulatory
20         surgical treatment centers adjust for patient case mix
21         and other relevant risk factors and control for
22         provider peer groups, if applicable;
23             (viii) Effective safeguards to protect against the
24         unauthorized use or disclosure of hospital and
25         ambulatory surgical treatment center information are
26         developed and implemented;

 

 

SB1999 - 57 - LRB095 14469 DRJ 40375 b

1             (ix) Effective safeguards to protect against the
2         dissemination of inconsistent, incomplete, invalid,
3         inaccurate, or subjective provider data are developed
4         and implemented;
5             (x) The quality and accuracy of hospital and
6         ambulatory surgical treatment center information
7         reported under this Act and its data collection,
8         analysis, and dissemination methodologies are
9         evaluated regularly; and
10             (xi) Only the most basic hospital or ambulatory
11         surgical treatment center identifying information from
12         mandatory reports is used. Information regarding a
13         hospital or ambulatory surgical center may be released
14         regardless of the number of employees or health care
15         professionals whose data are reflected in the data for
16         the hospital or ambulatory surgical treatment center
17         as long as no specific information identifying an
18         employee or a health care professional is released.
19         Further, patient identifiable information is not
20         released. The input data collected by the Department
21         shall not be a public record under the Illinois Freedom
22         of Information Act.
23         None of the information the Department discloses to the
24     public under this Act may be used to establish a standard
25     of care in a private civil action.
26         (9) The Department must develop and implement an

 

 

SB1999 - 58 - LRB095 14469 DRJ 40375 b

1     outreach campaign to educate the public regarding the
2     availability of the "Consumer Guide to Health Care".
3         (10) By January 1, 2006, the Department must study the
4     most effective methods for public disclosure of patient
5     claims and encounter data and health care quality
6     information that will be useful to consumers in making
7     health care decisions and report its recommendations to the
8     Governor and to the General Assembly.
9         (11) The Department must undertake all steps necessary
10     under State and Federal law to protect patient
11     confidentiality in order to prevent the identification of
12     individual patient records.
13         (12) The Department must adopt rules for inpatient and
14     outpatient data collection and reporting no later than
15     January 1, 2006.
16         (13) In addition to the data products indicated above,
17     the Department shall respond to requests by government
18     agencies, academic research organizations, and private
19     sector organizations for purposes of clinical performance
20     measurements and analyses of data collected pursuant to
21     this Section.
22         (14) The Department, with the advice of and in
23     consultation with hospitals, ambulatory surgical treatment
24     centers, organizations representing hospitals,
25     organizations representing ambulatory treatment centers,
26     purchasers, consumer groups, and health plans, must

 

 

SB1999 - 59 - LRB095 14469 DRJ 40375 b

1     evaluate additional methods for comparing the performance
2     of hospitals and ambulatory surgical treatment centers,
3     including the value of disclosing additional measures that
4     are adopted by the National Quality Forum, The Joint
5     Commission on Accreditation of Healthcare Organizations,
6     the Accreditation Association for Ambulatory Health Care,
7     the Centers for Medicare and Medicaid Services, or similar
8     national entities that establish standards to measure the
9     performance of health care providers. The Department shall
10     report its findings and recommendations on its Internet
11     website and to the Governor and General Assembly no later
12     than July 1, 2006.
13     (e) (Blank).
14 (Source: P.A. 93-144, eff. 7-10-03; 94-27, eff. 6-14-05.)
 
15     Section 9070. The Department of Public Health Powers and
16 Duties Law of the Civil Administrative Code of Illinois is
17 amended by changing Sections 2310-140, 2310-228, and 2310-445
18 as follows:
 
19     (20 ILCS 2310/2310-140)  (was 20 ILCS 2310/55.37a)
20     Sec. 2310-140. Recommending suspension of licensed health
21 care professional. The Director, upon making a determination
22 based upon information in the possession of the Department that
23 continuation in practice of a licensed health care professional
24 would constitute an immediate danger to the public, shall

 

 

SB1999 - 60 - LRB095 14469 DRJ 40375 b

1 submit a written communication to the Secretary Director of
2 Financial and Professional Regulation indicating that
3 determination and additionally (i) providing a complete
4 summary of the information upon which the determination is
5 based and (ii) recommending that the Secretary Director of
6 Financial and Professional Regulation immediately suspend the
7 person's license. All relevant evidence, or copies thereof, in
8 the Department's possession may also be submitted in
9 conjunction with the written communication. A copy of the
10 written communication, which is exempt from the copying and
11 inspection provisions of the Freedom of Information Act, shall
12 at the time of submittal to the Secretary Director of Financial
13 and Professional Regulation be simultaneously mailed to the
14 last known business address of the licensed health care
15 professional by certified or registered postage, United States
16 Mail, return receipt requested. Any evidence, or copies
17 thereof, that is submitted in conjunction with the written
18 communication is also exempt from the copying and inspection
19 provisions of the Freedom of Information Act.
20     For the purposes of this Section, "licensed health care
21 professional" means any person licensed under the Illinois
22 Dental Practice Act, the Nurse Practice Act, the Medical
23 Practice Act of 1987, the Pharmacy Practice Act, the Podiatric
24 Medical Practice Act of 1987, or the Illinois Optometric
25 Practice Act of 1987.
26 (Source: P.A. 95-639, eff. 10-5-07; 95-689, eff. 10-29-07;

 

 

SB1999 - 61 - LRB095 14469 DRJ 40375 b

1 revised 12-5-07.)
 
2     (20 ILCS 2310/2310-228)
3     Sec. 2310-228. Nursing workforce database.
4     (a) The Department shall, subject to appropriation and in
5 consultation with the Illinois Coalition for Nursing
6 Resources, the Illinois Nurses Association, and other nursing
7 associations, establish and administer a nursing workforce
8 database. The database shall be assembled from data currently
9 collected by State agencies or departments that may be released
10 under the Freedom of Information Act and shall be maintained
11 with the assistance of the Department of Financial and
12 Professional Regulation, the Department of Labor, the
13 Department of Employment Security, and any other State agency
14 or department with access to nursing workforce-related
15 information.
16     (b) The objective of establishing the database shall be to
17 compile the following data related to the nursing workforce
18 that is currently collected by State agencies or departments
19 that may be released under the Freedom of Information Act:
20         (1) Data on current and projected population
21     demographics and available health indicator data to
22     determine how the population needs relate to the demand for
23     nursing services.
24         (2) Data to create a dynamic system for projecting
25     nurse workforce supply and demand.

 

 

SB1999 - 62 - LRB095 14469 DRJ 40375 b

1         (3) Data related to the development of a nursing
2     workforce that considers the diversity, educational mix,
3     geographic distribution, and number of nurses needed
4     within the State.
5         (4) Data on the current and projected numbers of nurse
6     faculty who are needed to educate the nurses who will be
7     needed to meet the needs of the residents of the State.
8         (5) Data on nursing education programs within the State
9     including number of nursing programs, applications,
10     enrollments, and graduation rates.
11         (6) Data needed to develop collaborative models
12     between nursing education and practice to identify
13     necessary competencies, educational strategies, and models
14     of professional practice.
15         (7) Data on nurse practice setting, practice
16     locations, and specialties.
17     (c) To accomplish the objectives set forth in subsection
18 (b), data compiled by the Department into a database may be
19 used by the Department, medical institutions and societies,
20 health care facilities and associations of health care
21 facilities, and nursing programs to assess current and
22 projected nursing workforce shortfalls and develop strategies
23 for overcoming them. Notwithstanding any other provision of
24 law, the Department may not disclose any data that it compiles
25 under this Section in a manner that would allow the
26 identification of any particular health care professional or

 

 

SB1999 - 63 - LRB095 14469 DRJ 40375 b

1 health care facility.
2     (d) Nothing in this Section shall be construed as requiring
3 any health care facility to file or submit any data,
4 information, or reports to the Department or any State agency
5 or department.
6     (e) No later than January 15, 2006, the Department shall
7 submit a report to the Governor and to the members of the
8 General Assembly regarding the development of the database and
9 the effectiveness of its use.
10 (Source: P.A. 93-795, eff. 1-1-05.)
 
11     (20 ILCS 2310/2310-445)  (was 20 ILCS 2310/55.71)
12     Sec. 2310-445. Interagency council on health care for
13 pregnant women and infants.
14     (a) On or before January 1, 1994, the Director, in
15 cooperation with the Director of Public Aid (now Director of
16 Healthcare and Family Services), the Director of Children and
17 Family Services, the Director of Alcoholism and Substance
18 Abuse, and the Director of Insurance, shall develop and submit
19 to the Governor a proposal for consolidating all existing
20 health programs required by law for pregnant women and infants
21 into one comprehensive plan to be implemented by one or several
22 agencies. The proposal shall:
23         (1) include a time schedule for implementing the plan;
24         (2) provide a cost estimate of the plan;
25         (3) identify federal waivers necessary to implement

 

 

SB1999 - 64 - LRB095 14469 DRJ 40375 b

1     the plan;
2         (4) examine innovative programs; and
3         (5) identify sources of funding for the plan.
4     (b) The plan developed under subsection (a) shall provide
5 the following services statewide:
6         (1) Comprehensive prenatal services for all pregnant
7     women who qualify for existing programs through the
8     Department of Public Aid (now Department of Healthcare and
9     Family Services) or the Department of Public Health or any
10     other government-funded programs.
11         (2) Comprehensive medical care for all infants under 1
12     year of age.
13         (3) A case management system under which each family
14     with a child under the plan is assigned a case manager and
15     under which every reasonable effort is made to assure
16     continuity of case management and access to other
17     appropriate social services.
18         (4) Services regardless of and fees for services based
19     on clients' ability to pay.
20     (c) To the extent that any functions of the Director of
21 Insurance under this Section remain unperformed on the
22 effective date of this amendatory Act of the 95th General
23 Assembly, the Secretary of Financial and Professional
24 Regulation shall perform those functions on and after that
25 date.
26 (Source: P.A. 95-331, eff. 8-21-07.)
 

 

 

SB1999 - 65 - LRB095 14469 DRJ 40375 b

1     Section 9075. The Criminal Identification Act is amended by
2 changing Section 3.1 as follows:
 
3     (20 ILCS 2630/3.1)  (from Ch. 38, par. 206-3.1)
4     Sec. 3.1. (a) The Department may furnish, pursuant to
5 positive identification, records of convictions to the
6 Department of Financial and Professional Regulation for the
7 purpose of meeting registration or licensure requirements
8 under the Private Detective, Private Alarm, Private Security,
9 Fingerprint Vendor, and Locksmith Act of 2004.
10     (b) The Department may furnish, pursuant to positive
11 identification, records of convictions to policing bodies of
12 this State for the purpose of assisting local liquor control
13 commissioners in carrying out their duty to refuse to issue
14 licenses to persons specified in paragraphs (4), (5) and (6) of
15 Section 6-2 of the Liquor Control Act of 1934.
16     (c) The Department shall charge an application fee, based
17 on actual costs, for the dissemination of records pursuant to
18 this Section. Fees received for the dissemination of records
19 pursuant to this Section shall be deposited in the State Police
20 Services Fund. The Department is empowered to establish this
21 fee and to prescribe the form and manner for requesting and
22 furnishing conviction information pursuant to this Section.
23     (d) Any dissemination of any information obtained pursuant
24 to this Section to any person not specifically authorized

 

 

SB1999 - 66 - LRB095 14469 DRJ 40375 b

1 hereby to receive or use it for the purpose for which it was
2 disseminated shall constitute a violation of Section 7.
3 (Source: P.A. 95-613, eff. 9-11-07.)
 
4     Section 9080. The Office of Banks and Real Estate Act is
5 amended by changing the title of the Act and Sections 0.1, 0.8,
6 2, 2.5, 6, and 6.5 and by adding Sections 0.1a as follows:
 
7     (20 ILCS 3205/Act title)
8 An Act to provide for the administration of the Department
9 of Financial and Professional Regulation as the successor of
10 the Office of Banks and Real Estate.
 
11     (20 ILCS 3205/0.1)
12     Sec. 0.1. Short title. This Act may be cited as the
13 Department of Financial and Professional Regulation ( Office of
14 Banks and Real Estate) Act.
15 (Source: P.A. 89-508, eff. 7-3-96.)
 
16     (20 ILCS 3205/0.1a new)
17     Sec. 0.1a. Department of Financial and Professional
18 Regulation Act; references to Office or Commissioner of Banks
19 and Real Estate.
20     (a) This Act is subject to the Department of Financial and
21 Professional Regulation Act.
22     (b) On and after the effective date of this amendatory Act

 

 

SB1999 - 67 - LRB095 14469 DRJ 40375 b

1 of the 95th General Assembly:
2         (1) References in this Act to the Office of Banks and
3     Real Estate or "the Office" mean the Department of
4     Financial and Professional Regulation.
5         (2) References in this Act to the Commissioner of Banks
6     and Real Estate or "the Commissioner" mean the Secretary of
7     Financial and Professional Regulation.
 
8     (20 ILCS 3205/0.8)
9     Sec. 0.8. Commissioner and deputy commissioners.
10     (a) The Office of Banks and Real Estate shall be under the
11 direction of the Commissioner of Banks and Real Estate.
12     There shall be a First Deputy Commissioner and such other
13 deputy commissioners as the Governor may deem appropriate. All
14 deputy commissioners shall be under the direction,
15 supervision, and control of the Commissioner. The Commissioner
16 may delegate to one or more of the deputy commissioners any
17 power or duty that the Commissioner is authorized or required
18 by law to perform.
19     (b) The Commissioner and all deputy commissioners shall be
20 persons who are experienced in the theory and practice of the
21 business of banks and other financial institutions.
22     (c) The Commissioner, the First Deputy Commissioner, and
23 the deputy commissioners shall be appointed by the Governor
24 with the advice and consent of the Senate. If a vacancy occurs
25 while the Senate is not in session, the Governor may make a

 

 

SB1999 - 68 - LRB095 14469 DRJ 40375 b

1 temporary appointment until the next meeting of the Senate,
2 when the Governor shall nominate some person to fill the
3 vacancy. A person nominated to fill a vacancy, if confirmed by
4 the Senate, shall hold office for the remainder of the vacated
5 term and until his or her successor has been appointed and has
6 qualified.
7     (d) If the Commissioner is absent or unable to act, or if
8 the position of Commissioner becomes vacant, the First Deputy
9 Commissioner shall be Acting Commissioner and shall execute the
10 powers and discharge the duties vested by law in the
11 Commissioner until a temporary appointment is made as provided
12 in subsection (c).
13     If both the Commissioner and the First Deputy Commissioner
14 are absent or unable to act, or if the positions of
15 Commissioner and First Deputy Commissioner are both vacant, the
16 Governor shall designate another deputy commissioner as Acting
17 Commissioner to execute the powers and discharge the duties
18 vested by law in the Commissioner until a temporary appointment
19 is made as provided in subsection (c).
20     (e) The terms of the persons serving as the Commissioner,
21 First Deputy Commissioner, and Deputy Commissioners of Banks
22 and Trust Companies shall end on the effective date of this
23 amendatory Act of 1996, or as sooner provided by executive
24 order, except that those persons shall continue to serve as
25 Commissioner, First Deputy Commissioner, and Deputy
26 Commissioners of the Office of Banks and Real Estate,

 

 

SB1999 - 69 - LRB095 14469 DRJ 40375 b

1 respectively, until their successors have been appointed and
2 have qualified.
3     (f) The Commissioner, First Deputy Commissioner, and
4 Deputy Commissioners of the Office of Banks and Real Estate
5 shall hold office for terms beginning upon confirmation and
6 continuing until January 31, 2000 and until their successors
7 have been appointed and have qualified. Thereafter the
8 Commissioner, First Deputy Commissioner, and Deputy
9 Commissioners of the Office of Banks and Real Estate shall
10 serve for terms of 4 years beginning on February 1, 2000 and on
11 February 1 of every fourth year thereafter.
12 (Source: P.A. 89-508, eff. 7-3-96.)
 
13     (20 ILCS 3205/2)  (from Ch. 17, par. 452)
14     Sec. 2. Oath and bond.
15     (a) The Commissioner and each deputy commissioner, before
16 entering upon the duties of office, shall take and subscribe
17 the constitutional oath of office.
18     (b) The Commissioner and each deputy commissioner, before
19 entering upon the duties of office, shall give bond, with
20 security to be approved by the Governor, in the sum of $20,000
21 for the Commissioner and $10,000 for each deputy commissioner,
22 conditioned upon the faithful performance of his or her their
23 duties. Each such bond shall be filed with the Secretary of
24 State.
25 (Source: P.A. 89-508, eff. 7-3-96.)
 

 

 

SB1999 - 70 - LRB095 14469 DRJ 40375 b

1     (20 ILCS 3205/2.5)
2     Sec. 2.5. Prohibited activities.
3     (a) For the purposes of this Section, "regulated entity"
4 means any person, business, company, corporation, institution,
5 or other entity subject to regulation by the Department of
6 Financial and Professional Regulation Office of Banks and Real
7 Estate under the Illinois Banking Act, the Savings and Loan Act
8 of 1985, the Savings Bank Act, the Residential Mortgage License
9 Act of 1987, the Corporate Fiduciary Act, the Illinois Bank
10 Holding Company Act of 1957, the Foreign Banking Office Act, or
11 the Electronic Fund Transfer Act.
12     (b) The Secretary of Financial and Professional Regulation
13 Commissioner and the Director of Financial and Professional
14 Regulation designated to oversee the functions administered
15 pursuant to the Department of Financial and Professional
16 Regulation (Banks and Real Estate) Act deputy commissioners
17 shall not be an officer, director, employee, or agent of a
18 regulated entity or of a corporation or company that owns or
19 controls a regulated entity.
20     The Secretary of Financial and Professional Regulation
21 Commissioner and the Director of Financial and Professional
22 Regulation designated to oversee the functions administered
23 pursuant to the Department of Financial and Professional
24 Regulation (Banks and Real Estate) Act deputy commissioners
25 shall not own shares of stock or hold any other equity interest

 

 

SB1999 - 71 - LRB095 14469 DRJ 40375 b

1 in a regulated entity or in a corporation or company that owns
2 or controls a regulated entity. If the Secretary of Financial
3 and Professional Regulation Commissioner or the Director of
4 Financial and Professional Regulation designated to oversee
5 the functions administered pursuant to the Department of
6 Financial and Professional Regulation (Banks and Real Estate)
7 Act a deputy commissioner owns shares of stock or holds an
8 equity interest in a regulated entity at the time of
9 appointment, he or she shall dispose of such shares or other
10 equity interest within 120 days from the date of appointment.
11     The Secretary of Financial and Professional Regulation
12 Commissioner and the Director of Financial and Professional
13 Regulation designated to oversee the functions administered
14 pursuant to the Department of Financial and Professional
15 Regulation (Banks and Real Estate) Act deputy commissioners
16 shall not directly or indirectly obtain a loan from a regulated
17 entity or accept a gratuity from a regulated entity that is
18 intended to influence the performance of official duties.
19     (c) Employees of the Department of Financial and
20 Professional Regulation Office of Banks and Real Estate shall
21 not be officers, directors, employees, or agents of a regulated
22 entity or of a corporation or company that owns or controls a
23 regulated entity.
24     Except as provided by standards which the Department of
25 Financial and Professional Regulation Office of Banks and Real
26 Estate may establish, employees of the Department of Financial

 

 

SB1999 - 72 - LRB095 14469 DRJ 40375 b

1 and Professional Regulation Office of Banks and Real Estate
2 shall not own shares of stock or hold any other equity interest
3 in a regulated entity or in a corporation or company that owns
4 or controls a regulated entity, or directly or indirectly
5 obtain a loan from a regulated entity, or accept a gratuity
6 from a regulated entity that is intended to influence the
7 performance of official duties. However, in no case shall an
8 employee of the Department of Financial and Professional
9 Regulation Office of Banks and Real Estate participate in any
10 manner in the examination or direct regulation of a regulated
11 entity in which the employee owns shares of stock or holds any
12 other equity interest, or which is servicing a loan to which
13 the employee is an obligor.
14     (d) If the Secretary of Financial and Professional
15 Regulation Commissioner, the Director of Financial and
16 Professional Regulation designated to oversee the functions
17 administered pursuant to the Department of Financial and
18 Professional Regulation (Banks and Real Estate) Act a deputy
19 commissioner, or any employee of the Department of Financial
20 and Professional Regulation Office of Banks and Real Estate
21 properly obtains a loan or extension of credit from an entity
22 that is not a regulated entity, and the loan or extension of
23 credit is subsequently acquired by a regulated entity or the
24 entity converts to become a regulated entity after the loan is
25 made, such purchase by or conversion to a regulated entity
26 shall not cause the loan or extension of credit to be deemed a

 

 

SB1999 - 73 - LRB095 14469 DRJ 40375 b

1 violation of this Section.
2     Nothing in this Section shall be deemed to prevent the
3 ownership of a checking account, a savings deposit account, a
4 money market account, a certificate of deposit, a credit or
5 debit card account, or shares in open-end investment companies
6 registered with the Securities and Exchange Commission
7 pursuant to the federal Investment Company Act of 1940 and the
8 Securities Act of 1933 (commonly referred to as mutual or money
9 market funds).
10     (e) Neither the Secretary of Financial and Professional
11 Regulation No Commissioner, nor the Director of Financial and
12 Professional Regulation designated to oversee the functions
13 administered pursuant to the Department of Financial and
14 Professional Regulation (Banks and Real Estate) Act deputy
15 commissioner, nor any employee, or agent of the Department of
16 Financial and Professional Regulation Office of Banks and Real
17 Estate shall, either during or after the holding of his or her
18 term of office or employment, disclose confidential
19 information concerning any regulated entity or person except as
20 authorized by law or prescribed by rule. "Confidential
21 information", as used in this Section, means any information
22 that the person or officer obtained during his or her term of
23 office or employment that is not available from the Department
24 of Financial and Professional Regulation Office of Banks and
25 Real Estate pursuant to a request under the Freedom of
26 Information Act.

 

 

SB1999 - 74 - LRB095 14469 DRJ 40375 b

1 (Source: P.A. 89-508, eff. 7-3-96.)
 
2     (20 ILCS 3205/6)  (from Ch. 17, par. 456)
3     Sec. 6. Duties. The Commissioner shall direct and supervise
4 all the administrative and technical activities of the Office
5 and shall:
6     (a) Apply and carry out this Act and the law and all rules
7 adopted in pursuance thereof.
8     (b) Appoint, subject to the provisions of the Personnel
9 Code, such employees, experts, and special assistants as may be
10 necessary to carry out effectively the provisions of this Act
11 and, if the rate of compensation is not otherwise fixed by law,
12 fix their compensation; but neither the Commissioner nor any
13 deputy commissioner shall not be subject to the Personnel Code.
14     (c) Serve as Chairman of the State Banking Board of
15 Illinois.
16     (d) Serve as Chairman of the Board of Trustees of the
17 Illinois Bank Examiners' Education Foundation.
18     (e) Issue guidelines in the form of rules or regulations
19 which will prohibit discrimination by any State chartered bank
20 against any individual, corporation, partnership, association
21 or other entity because it appears in a so-called blacklist
22 issued by any domestic or foreign corporate or governmental
23 entity.
24     (f) Make an annual report to the Governor regarding the
25 work of the Office as the Commissioner may consider desirable

 

 

SB1999 - 75 - LRB095 14469 DRJ 40375 b

1 or as the Governor may request.
2     (g) Perform such other acts as may be requested by the
3 State Banking Board of Illinois pursuant to its lawful powers
4 and perform any other lawful act that the Commissioner
5 considers to be necessary or desirable to carry out the
6 purposes and provisions of this Act.
7     (h) Adopt, in accordance with the Illinois Administrative
8 Procedure Act, reasonable rules that the Commissioner deems
9 necessary for the proper administration and enforcement of any
10 Act the administration of which is vested in the Commissioner
11 or the Office of Banks and Real Estate.
12     (i) Work in cooperation with the Director of Aging to
13 encourage all financial institutions regulated by the Office to
14 participate fully in the Department on Aging's financial
15 exploitation of the elderly intervention program.
16 (Source: P.A. 92-483, eff. 8-23-01; 93-786, eff. 7-21-04.)
 
17     (20 ILCS 3205/6.5)
18     Sec. 6.5. Commissioner, boards, actions taken. Neither the
19 Commissioner, any deputy commissioner, any member of any Board
20 or committee which performs functions related to Acts
21 administered by the Commissioner, nor any employee of the
22 Commissioner's office shall be subject to any civil liability
23 or penalty, whether for damages or otherwise, on account of or
24 for any action taken or omitted to be taken in their respective
25 official capacities, except when such acts or omissions to act

 

 

SB1999 - 76 - LRB095 14469 DRJ 40375 b

1 are corrupt or malicious or unless such action is taken or
2 omitted to be taken not in good faith and without reasonable
3 grounds.
4 (Source: P.A. 90-602, eff. 7-1-98.)
 
5     (20 ILCS 3205/1 rep.)  (from Ch. 17, par. 451)
6     Section 9081. The Office of Banks and Real Estate Act is
7 amended by repealing Section 1.
 
8     Section 9085. The Illinois Bank Examiners' Education
9 Foundation Act is amended by adding Section 2.5 as follows:
 
10     (20 ILCS 3210/2.5 new)
11     Sec. 2.5. References to Office or Commissioner of Banks and
12 Real Estate. On and after the effective date of this amendatory
13 Act of the 95th General Assembly:
14         (1) References in this Act to the Office of Banks and
15     Real Estate or "the Office" mean the Department of
16     Financial and Professional Regulation.
17         (2) References in this Act to the Commissioner of Banks
18     and Real Estate or "the Commissioner" mean the Secretary of
19     Financial and Professional Regulation.
 
20     Section 9090. The Illinois Investment and Development
21 Authority Act is amended by changing Section 15 as follows:
 

 

 

SB1999 - 77 - LRB095 14469 DRJ 40375 b

1     (20 ILCS 3820/15)
2     Sec. 15. Creation of Illinois Investment and Development
3 Authority; members.
4     (a) There is created a political subdivision, body politic
5 and corporate, to be known as the Illinois Investment and
6 Development Authority. The exercise by the Authority of the
7 powers conferred by law shall be an essential public function.
8 The governing powers of the Authority shall be vested in a body
9 consisting of 11 members, including, as ex officio members, the
10 Secretary of Financial and Professional Regulation
11 Commissioner of Banks and Real Estate and the Director of
12 Commerce and Economic Opportunity or their designees. The other
13 9 members of the Authority shall be appointed by the Governor,
14 with the advice and consent of the Senate, and shall be
15 designated "public members". The public members shall include
16 representatives from banks and other private financial
17 services industries, community development finance experts,
18 small business development experts, and other community
19 leaders. Not more than 6 members of the Authority may be of the
20 same political party. The Chairperson of the Authority shall be
21 designated by the Governor from among its public members.
22     (b) Six members of the Authority shall constitute a quorum.
23 However, when a quorum of members of the Authority is
24 physically present at the meeting site, other Authority members
25 may participate in and act at any meeting through the use of a
26 conference telephone or other communications equipment by

 

 

SB1999 - 78 - LRB095 14469 DRJ 40375 b

1 means of which all persons participating in the meeting can
2 hear each other. Participation in such meeting shall constitute
3 attendance and presence in person at the meeting of the person
4 or persons so participating. All official acts of the Authority
5 shall require the approval of at least 5 members.
6     (c) Of the members initially appointed by the Governor
7 pursuant to this Act, 3 shall serve until the third Monday in
8 January, 2004, 3 shall serve until the third Monday in January,
9 2005, and 3 shall serve until the third Monday in January, 2006
10 and all shall serve until their successors are appointed and
11 qualified. All successors shall hold office for a term of 3
12 years commencing on the third Monday in January of the year in
13 which their term commences, except in case of an appointment to
14 fill a vacancy. Each member appointed under this Section who is
15 confirmed by the Senate shall hold office during the specified
16 term and until his or her successor is appointed and qualified.
17 In case of vacancy in the office when the Senate is not in
18 session, the Governor may make a temporary appointment until
19 the next meeting of the Senate, when the Governor shall
20 nominate such person to fill the office, and any person so
21 nominated who is confirmed by the Senate, shall hold his or her
22 office during the remainder of the term and until his or her
23 successor is appointed and qualified.
24     (d) Members of the Authority shall not be entitled to
25 compensation for their services as members, but shall be
26 entitled to reimbursement for all necessary expenses incurred

 

 

SB1999 - 79 - LRB095 14469 DRJ 40375 b

1 in connection with the performance of their duties as members.
2     (e) The Governor may remove any public member of the
3 Authority in case of incompetency, neglect of duty, or
4 malfeasance in office, after service on the member of a copy of
5 the written charges against him or her and an opportunity to be
6 publicly heard in person or by counsel in his or her own
7 defense upon not less than 10 days notice.
8 (Source: P.A. 94-793, eff. 5-19-06.)
 
9     Section 9095. The Experimental Organ Transplantation
10 Procedures Act is amended by changing Section 4 as follows:
 
11     (20 ILCS 3935/4)  (from Ch. 111 1/2, par. 6604)
12     Sec. 4. Determination of an individual transplant
13 candidate's eligibility. (a) The Board shall have until June
14 30, 1985 to organize, establish all of the necessary criteria
15 and operating procedures, and adopt such rules and regulations
16 as it deems necessary to screen and act on such applications as
17 it may receive under this Act.
18     (b) The Board shall begin screening applications
19 nominating Illinois residents who are potential or actual organ
20 transplant recipients after July 1, 1985, and who due to
21 limitations, exclusions or gaps in their accident and health
22 insurance or in federal, state, and local government medical
23 assistance programs, might be eligible to receive benefits from
24 funds appropriated to the Department of Public Health to cover

 

 

SB1999 - 80 - LRB095 14469 DRJ 40375 b

1 part or all of the expenses involved in undergoing an
2 experimental organ transplantation procedure. All such
3 applications must be in such form and contain such information
4 as the Board shall require, and must come directly from a
5 teaching hospital or affiliated medical center with an
6 established and proven experimental organ transplantation
7 program which exists for the purpose of treatment of human
8 subjects and which is formally affiliated with or part of a
9 school whose graduates are eligible for examination for
10 licensing pursuant to the statutes, rules and regulations
11 administered by the Department of Financial and Professional
12 Regulation, as the successor of the Department of Professional
13 Regulation, and whose graduates, if licensed, are eligible for
14 admission to the medical staff of an accredited hospital. In
15 the application the teaching hospital or affiliated medical
16 center must certify that the nominee is a viable candidate for
17 an organ transplant procedure, and has been medically approved
18 by their medical specialists in this field for this procedure.
19 All tests and applicable work-ups necessary to support such
20 conclusions shall have been completed at the time of the
21 application at no cost to the State of Illinois, and the
22 results of such tests and all other applicable medical records
23 concerning the nominee shall be forwarded to the Board for the
24 confidential use of its members and staff only. Such medical
25 records shall not be public records, and shall be maintained as
26 a separate part of each nominee's application file. Such

 

 

SB1999 - 81 - LRB095 14469 DRJ 40375 b

1 records and deliberations of the Board shall be privileged and
2 confidential in accordance with Sections 8-2101, 8-2102,
3 8-2103, 8-2104 and 8-2105 of the Code of Civil Procedure, as
4 amended, and such applications, records and deliberations of
5 the Board are exempt from the provisions of The Freedom of
6 Information Act. The application and supporting records must
7 document that the nominee was a legally domiciled resident of
8 this State at the time the pathophysiological state
9 necessitating the organ transplantation procedure was
10 originally identified, and that the nominee continues to be
11 legally domiciled in the State of Illinois.
12     (c) Screening of applications may be performed as often as
13 necessary and may be performed by any 3 members of the Board.
14     (d) Those applications deemed eligible by the screening
15 team shall be referred to the full Board for final
16 determination as to eligibility for state benefits and for
17 recommendation to the Director of Public Health as to the level
18 of benefits the nominee shall receive. However, in emergency
19 situations, a screening team may make a final determination as
20 to eligibility for state benefits.
21     All benefits shall cover all or part of the actual costs
22 of, rather than the billed charges for, the procedure, with no
23 more than 10 percent of the award being allocated to
24 professional fees.
25     (e) Any benefits which the Board recommends to be paid on
26 behalf of an eligible nominee shall be supplemental to any

 

 

SB1999 - 82 - LRB095 14469 DRJ 40375 b

1 health insurance benefits that individual is otherwise
2 entitled to, and no state benefits shall be paid to a hospital
3 or other provider until all other health insurance benefits for
4 that individual have been exhausted.
5     (f) Whenever the Board recommends, and the Director of
6 Public Health approves, payment of such benefits as are
7 authorized by this Act or the rules and regulations promulgated
8 hereunder shall be made from such appropriations as the General
9 Assembly may provide for this purpose to the Department of
10 Public Health. No one individual shall be eligible to receive
11 more than a total of $200,000 under this Act.
12     The maximum level of payment recommended by the Board for
13 live donor acquisition charges shall be $10,000. No payments
14 shall be made for complications or follow-up hospitalization
15 for a donor of an organ transplanted under this program.
16     (g) Meetings of the Board or any screening team for the
17 purpose of reviewing or discussing applications are exempt from
18 the Open Meetings Act; provided that those portions of meetings
19 at which final determinations are made shall be public
20 meetings.
21     (h) A transplantation institution located outside of the
22 State of Illinois shall not be approved for participation under
23 this program unless such institution is closer to the residence
24 of the patient than is any approved Illinois institution, or
25 unless the required procedure is offered at the out-of-state
26 institution and the procedure is not approved at any

 

 

SB1999 - 83 - LRB095 14469 DRJ 40375 b

1 institution located within the State.
2 (Source: P.A. 85-1209.)
 
3     Section 9100. The Geriatric Medicine Assistance Act is
4 amended by changing Section 2 as follows:
 
5     (20 ILCS 3945/2)  (from Ch. 144, par. 2002)
6     Sec. 2. There is created the Geriatric Medicine Assistance
7 Commission. The Commission shall receive and approve
8 applications for grants from schools, recognized by the
9 Department of Financial and Professional Regulation as being
10 authorized to confer doctor of medicine, doctor of osteopathy,
11 doctor of chiropractic or registered professional nursing
12 degrees in the State, to help finance the establishment of
13 geriatric medicine programs within such schools. In
14 determining eligibility for grants, the Commission shall give
15 preference to those programs which exhibit the greatest
16 potential for directly benefiting the largest number of elderly
17 citizens in the State. The Commission may not approve the
18 application of any institution which is unable to demonstrate
19 its current financial stability and reasonable prospects for
20 future stability. No institution which fails to possess and
21 maintain an open policy with respect to race, creed, color and
22 sex as to admission of students, appointment of faculty and
23 employment of staff shall be eligible for grants under this
24 Act. The Commission shall establish such rules and standards as

 

 

SB1999 - 84 - LRB095 14469 DRJ 40375 b

1 it deems necessary for the implementation of this Act.
2     The Commission shall be composed of 8 members selected as
3 follows: 2 physicians licensed to practice under the Medical
4 Practice Act of 1987 and specializing in geriatric medicine; a
5 registered professional nurse licensed under the Nurse
6 Practice Act and specializing in geriatric health care; 2
7 representatives of organizations interested in geriatric
8 medicine or the care of the elderly; and 3 individuals 60 or
9 older who are interested in geriatric health care or the care
10 of the elderly. The members of the Commission shall be selected
11 by the Governor from a list of recommendations submitted to him
12 by organizations concerned with geriatric medicine or the care
13 of the elderly.
14     The terms of the members of the Commission shall be 4
15 years, except that of the members initially appointed, 2 shall
16 be designated to serve until January 1, 1986, 3 until January
17 1, 1988, and 2 until January 1, 1990. Members of the Commission
18 shall receive no compensation, but shall be reimbursed for
19 actual expenses incurred in carrying out their duties.
20 (Source: P.A. 95-639, eff. 10-5-07.)
 
21     Section 9102. The Health Care Justice Act is amended by
22 changing Section 20 as follows:
 
23     (20 ILCS 4045/20)
24     Sec. 20. Adequate Health Care Task Force. There is created

 

 

SB1999 - 85 - LRB095 14469 DRJ 40375 b

1 an Adequate Health Care Task Force. The Task Force shall
2 consist of 29 voting members appointed as follows: 5 shall be
3 appointed by the Governor; 6 shall be appointed by the
4 President of the Senate, 6 shall be appointed by the Minority
5 Leader of the Senate, 6 shall be appointed by the Speaker of
6 the House of Representatives, and 6 shall be appointed by the
7 Minority Leader of the House of Representatives. The Task Force
8 shall have a chairman and a vice-chairman who shall be elected
9 by the voting members at the first meeting of the Task Force.
10 The Director of Public Health or his or her designee, the
11 Director of Aging or his or her designee, the Director of
12 Healthcare and Family Services or his or her designee, the
13 Secretary of Financial and Professional Regulation (as the
14 successor to the Director of Insurance) or his or her designee,
15 and the Secretary of Human Services or his or her designee
16 shall represent their respective departments and shall be
17 invited to attend Task Force meetings, but shall not be members
18 of the Task Force. The members of the Task Force shall be
19 appointed within 30 days after the effective date of this Act.
20 The departments of State government represented on the Task
21 Force shall work cooperatively to provide administrative
22 support for the Task Force; the Department of Public Health
23 shall be the primary agency in providing that administrative
24 support.
25 (Source: P.A. 95-331, eff. 8-21-07.)
 

 

 

SB1999 - 86 - LRB095 14469 DRJ 40375 b

1     Section 9105. The State Finance Act is amended by changing
2 Sections 6q, 6z-26, 6z-38, 8.12, 8f, and 12-1 as follows:
 
3     (30 ILCS 105/6q)  (from Ch. 127, par. 142q)
4     Sec. 6q. (a) All moneys received by the Department of
5 Central Management Services as an incident to the operation of
6 paper and printing warehouses, including fees received for wall
7 certificates from the Department of Professional Regulation,
8 or from the Department of Financial and Professional Regulation
9 in its capacity as the successor of the Department of
10 Professional Regulation, shall be paid into the paper and
11 printing revolving fund.
12     (b) All funds in the special wastepaper recycling account
13 in the State Surplus Property Revolving Fund not used or
14 designated for recycling expenses shall be paid into the Paper
15 and Printing Revolving Fund and held in a special account for
16 recycled paper expenses.
17 (Source: P.A. 85-1209; 85-1440.)
 
18     (30 ILCS 105/6z-26)
19     Sec. 6z-26. The Financial Institution Fund. All moneys
20 received by the Department of Financial and Professional
21 Regulation under the Safety Deposit License Act, the Foreign
22 Exchange License Act, the Pawners Societies Act, the Sale of
23 Exchange Act, the Currency Exchange Act, the Sales Finance
24 Agency Act, the Debt Management Service Act, the Consumer

 

 

SB1999 - 87 - LRB095 14469 DRJ 40375 b

1 Installment Loan Act, the Illinois Development Credit
2 Corporation Act, the Title Insurance Act, and any other Act
3 administered by the Department of Financial and Professional
4 Regulation as the successor of the Department of Financial
5 Institutions now or in the future (unless an Act specifically
6 provides otherwise) shall be deposited in the Financial
7 Institution Fund (hereinafter "Fund"), a special fund that is
8 hereby created in the State Treasury.
9     Moneys in the Fund shall be used by the Department, subject
10 to appropriation, for expenses incurred in administering the
11 above named and referenced Acts.
12     The Comptroller and the State Treasurer shall transfer from
13 the General Revenue Fund to the Fund any monies received by the
14 Department after June 30, 1993, under any of the above named
15 and referenced Acts that have been deposited in the General
16 Revenue Fund.
17     As soon as possible after the end of each calendar year,
18 the Comptroller shall compare the balance in the Fund at the
19 end of the calendar year with the amount appropriated from the
20 Fund for the fiscal year beginning on July 1 of that calendar
21 year. If the balance in the Fund exceeds the amount
22 appropriated, the Comptroller and the State Treasurer shall
23 transfer from the Fund to the General Revenue Fund an amount
24 equal to the difference between the balance in the Fund and the
25 amount appropriated.
26     Nothing in this Section shall be construed to prohibit

 

 

SB1999 - 88 - LRB095 14469 DRJ 40375 b

1 appropriations from the General Revenue Fund for expenses
2 incurred in the administration of the above named and
3 referenced Acts.
4     Moneys in the Fund may be transferred to the Professions
5 Indirect Cost Fund, as authorized under Section 2105-300 of the
6 Department of Financial and Professional Regulation
7 (Professional Regulation) Law of the Civil Administrative Code
8 of Illinois.
9 (Source: P.A. 94-91, eff. 7-1-05.)
 
10     (30 ILCS 105/6z-38)
11     Sec. 6z-38. General Professions Dedicated Fund. The
12 General Professions Dedicated Fund is created in the State
13 treasury. Moneys in the Fund shall be invested and earnings on
14 the investments shall be retained in the Fund. Moneys in the
15 Fund shall be appropriated to the Department of Financial and
16 Professional Regulation for the ordinary and contingent
17 expenses of the Department. Moneys in the Fund may be
18 transferred to the Professions Indirect Cost Fund as authorized
19 by Section 2105-300 of the Department of Financial and
20 Professional Regulation (Professional Regulation) Law (20 ILCS
21 2105/2105-300).
22 (Source: P.A. 91-239, eff. 1-1-00.)
 
23     (30 ILCS 105/8.12)   (from Ch. 127, par. 144.12)
24     Sec. 8.12. State Pensions Fund.

 

 

SB1999 - 89 - LRB095 14469 DRJ 40375 b

1     (a) The moneys in the State Pensions Fund shall be used
2 exclusively for the administration of the Uniform Disposition
3 of Unclaimed Property Act and for the payment of or repayment
4 to the General Revenue Fund a portion of the required State
5 contributions to the designated retirement systems.
6     "Designated retirement systems" means:
7         (1) the State Employees' Retirement System of
8     Illinois;
9         (2) the Teachers' Retirement System of the State of
10     Illinois;
11         (3) the State Universities Retirement System;
12         (4) the Judges Retirement System of Illinois; and
13         (5) the General Assembly Retirement System.
14     (b) Each year the General Assembly may make appropriations
15 from the State Pensions Fund for the administration of the
16 Uniform Disposition of Unclaimed Property Act.
17     Each month, the Secretary of Financial and Professional
18 Regulation Commissioner of the Office of Banks and Real Estate
19 shall certify to the State Treasurer the actual expenditures
20 that the Department of Financial and Professional Regulation or
21 its predecessor, the Office of Banks and Real Estate, incurred
22 conducting unclaimed property examinations under the Uniform
23 Disposition of Unclaimed Property Act during the immediately
24 preceding month. Within a reasonable time following the
25 acceptance of such certification by the State Treasurer, the
26 State Treasurer shall pay from its appropriation from the State

 

 

SB1999 - 90 - LRB095 14469 DRJ 40375 b

1 Pensions Fund to the Bank and Trust Company Fund and the
2 Savings and Residential Finance Regulatory Fund an amount equal
3 to the expenditures incurred by each Fund for that month.
4     Each month, the Director of Financial Institutions shall
5 certify to the State Treasurer the actual expenditures that the
6 Department of Financial Institutions incurred conducting
7 unclaimed property examinations under the Uniform Disposition
8 of Unclaimed Property Act during the immediately preceding
9 month. Within a reasonable time following the acceptance of
10 such certification by the State Treasurer, the State Treasurer
11 shall pay from its appropriation from the State Pensions Fund
12 to the Financial Institutions Fund and the Credit Union Fund an
13 amount equal to the expenditures incurred by each Fund for that
14 month.
15     (c) As soon as possible after the effective date of this
16 amendatory Act of the 93rd General Assembly, the General
17 Assembly shall appropriate from the State Pensions Fund (1) to
18 the State Universities Retirement System the amount certified
19 under Section 15-165 during the prior year, (2) to the Judges
20 Retirement System of Illinois the amount certified under
21 Section 18-140 during the prior year, and (3) to the General
22 Assembly Retirement System the amount certified under Section
23 2-134 during the prior year as part of the required State
24 contributions to each of those designated retirement systems;
25 except that amounts appropriated under this subsection (c) in
26 State fiscal year 2005 shall not reduce the amount in the State

 

 

SB1999 - 91 - LRB095 14469 DRJ 40375 b

1 Pensions Fund below $5,000,000. If the amount in the State
2 Pensions Fund does not exceed the sum of the amounts certified
3 in Sections 15-165, 18-140, and 2-134 by at least $5,000,000,
4 the amount paid to each designated retirement system under this
5 subsection shall be reduced in proportion to the amount
6 certified by each of those designated retirement systems.
7     (c-5) For fiscal year 2006 and thereafter, the General
8 Assembly shall appropriate from the State Pensions Fund to the
9 State Universities Retirement System the amount estimated to be
10 available during the fiscal year in the State Pensions Fund;
11 provided, however, that the amounts appropriated under this
12 subsection (c-5) shall not reduce the amount in the State
13 Pensions Fund below $5,000,000.
14     (d) The Governor's Office of Management and Budget shall
15 determine the individual and total reserve deficiencies of the
16 designated retirement systems. For this purpose, the
17 Governor's Office of Management and Budget shall utilize the
18 latest available audit and actuarial reports of each of the
19 retirement systems and the relevant reports and statistics of
20 the Public Employee Pension Fund Division of the Department of
21 Financial and Professional Regulation Insurance.
22     (d-1) As soon as practicable after the effective date of
23 this amendatory Act of the 93rd General Assembly, the
24 Comptroller shall direct and the Treasurer shall transfer from
25 the State Pensions Fund to the General Revenue Fund, as funds
26 become available, a sum equal to the amounts that would have

 

 

SB1999 - 92 - LRB095 14469 DRJ 40375 b

1 been paid from the State Pensions Fund to the Teachers'
2 Retirement System of the State of Illinois, the State
3 Universities Retirement System, the Judges Retirement System
4 of Illinois, the General Assembly Retirement System, and the
5 State Employees' Retirement System of Illinois after the
6 effective date of this amendatory Act during the remainder of
7 fiscal year 2004 to the designated retirement systems from the
8 appropriations provided for in this Section if the transfers
9 provided in Section 6z-61 had not occurred. The transfers
10 described in this subsection (d-1) are to partially repay the
11 General Revenue Fund for the costs associated with the bonds
12 used to fund the moneys transferred to the designated
13 retirement systems under Section 6z-61.
14     (e) The changes to this Section made by this amendatory Act
15 of 1994 shall first apply to distributions from the Fund for
16 State fiscal year 1996.
17 (Source: P.A. 93-665, eff. 3-5-04; 93-839, eff. 7-30-04; 94-91,
18 eff. 7-1-05.)
 
19     (30 ILCS 105/8f)
20     Sec. 8f. Public Pension Regulation Fund. The Public Pension
21 Regulation Fund is created in the State Treasury. Except as
22 otherwise provided in the Illinois Pension Code, all money
23 received by the Department of Financial and Professional
24 Regulation, in its capacity as the successor of as successor to
25 the Illinois Department of Insurance, under the Illinois

 

 

SB1999 - 93 - LRB095 14469 DRJ 40375 b

1 Pension Code shall be paid into the Fund. Moneys in the Fund
2 may be transferred to the Professions Indirect Cost Fund, as
3 authorized under Section 2105-300 of the Department of
4 Professional Regulation Law of the Civil Administrative Code of
5 Illinois. The State Treasurer promptly shall invest the money
6 in the Fund, and all earnings that accrue on the money in the
7 Fund shall be credited to the Fund. Moneys in the Fund may be
8 transferred to the Professions Indirect Cost Fund as authorized
9 under Section 70 of the Department of Financial and
10 Professional Regulation Act. No other money may be transferred
11 from this Fund to any other fund. The General Assembly may make
12 appropriations from this Fund for the ordinary and contingent
13 expenses of the Public Pension Division of the Illinois
14 Department of Financial and Professional Regulation Insurance.
15 (Source: P.A. 94-91, eff. 7-1-05.)
 
16     (30 ILCS 105/12-1)  (from Ch. 127, par. 148-1)
17     Sec. 12-1. Travel control boards.
18     (a) The following travel control boards are created with
19 the members and jurisdiction set forth below:
20         (1) A Travel Control Board is created within the Office
21     of the Attorney General consisting of the Attorney General
22     as chairman and 2 members of his supervisory staff
23     appointed by him. The board shall have jurisdiction over
24     travel by employees of the office.
25         (2) A Travel Control Board is created within the Office

 

 

SB1999 - 94 - LRB095 14469 DRJ 40375 b

1     of the State Comptroller consisting of the Comptroller as
2     chairman and 2 members of his supervisory staff appointed
3     by him. The board shall have jurisdiction over travel by
4     employees of the office.
5         (3) The Higher Education Travel Control Board shall
6     consist of 11 members, one to be appointed by each of the
7     following: the Board of Trustees of the University of
8     Illinois, the Board of Trustees of Southern Illinois
9     University, the Board of Trustees of Chicago State
10     University, the Board of Trustees of Eastern Illinois
11     University, the Board of Trustees of Governors State
12     University, the Board of Trustees of Illinois State
13     University, the Board of Trustees of Northeastern Illinois
14     University, the Board of Trustees of Northern Illinois
15     University, the Board of Trustees of Western Illinois
16     University, the Illinois Community College Board and the
17     Illinois Board of Higher Education. Each member shall be an
18     officer, member or employee of the board making the
19     appointment, or of an institution governed or maintained by
20     such board. The board shall have jurisdiction over travel
21     by the Board of Higher Education, the Board of Trustees of
22     the University of Illinois, the Board of Trustees of
23     Southern Illinois University, the Board of Trustees of
24     Chicago State University, the Board of Trustees of Eastern
25     Illinois University, the Board of Trustees of Governors
26     State University, the Board of Trustees of Illinois State

 

 

SB1999 - 95 - LRB095 14469 DRJ 40375 b

1     University, the Board of Trustees of Northeastern Illinois
2     University, the Board of Trustees of Northern Illinois
3     University, the Board of Trustees of Western Illinois
4     University, the Illinois Community College Board, the
5     State Community College of East St. Louis, the Illinois
6     State Scholarship Commission, the State Universities
7     Retirement System, the University Civil Service Merit
8     Board, the Board of Trustees of the Illinois Mathematics
9     and Science Academy and all employees of the named Boards,
10     Commission and System and of the institutions governed or
11     maintained by the named Boards. The Higher Education Travel
12     Control Board shall select a chairman from among its
13     members.
14         (4) The Legislative Travel Control Board shall consist
15     of the following members serving ex-officio: The Auditor
16     General as chairman, the President and the Minority Leader
17     of the Senate and the Speaker and the Minority Leader of
18     the House of Representatives. The board shall have
19     jurisdiction over travel by employees of: the General
20     Assembly, legislative boards and commissions, the Office
21     of the Auditor General and all legislative agencies.
22         (5) A Travel Control Board is created within the Office
23     of the Lieutenant Governor consisting of the Lieutenant
24     Governor as chairman and 2 members of his supervisory staff
25     appointed by him. The board shall have jurisdiction over
26     travel by employees of the office. The Travel Control Board

 

 

SB1999 - 96 - LRB095 14469 DRJ 40375 b

1     within the office of the Lieutenant Governor is subject to
2     the provisions of Section 405-500 of the Department of
3     Central Management Services Law (20 ILCS 405/405-500).
4         (6) A Travel Control Board is created within the Office
5     of the Secretary of State consisting of the Secretary of
6     State as chairman, and 2 members of his supervisory staff
7     appointed by him. The board shall have jurisdiction over
8     travel by employees of the office.
9         (7) A Travel Control Board is created within the
10     Judicial Branch consisting of a chairman and 2 members
11     appointed by the Supreme Court. The board shall have
12     jurisdiction over travel by personnel of the Judicial
13     Branch, except the circuit courts and the judges.
14         (8) A Travel Control Board is created under the State
15     Board of Education, consisting of the State Superintendent
16     of Education as chairman, and 2 members of his supervisory
17     staff appointed by the State Board of Education. The Board
18     shall have jurisdiction over travel by employees of the
19     State Board of Education.
20         (9) A Travel Control Board is created within the Office
21     of the State Treasurer, consisting of the State Treasurer
22     as chairman and 2 members of his supervisory staff
23     appointed by him. The board shall have jurisdiction over
24     travel by employees of the office.
25         (10) A Governor's Travel Control Board is created
26     consisting of the Governor ex-officio as chairman, and 2

 

 

SB1999 - 97 - LRB095 14469 DRJ 40375 b

1     members appointed by the Governor. The board shall have
2     jurisdiction over travel by employees and officers of all
3     State agencies as defined in the Illinois State Auditing
4     Act, except for the following: judges, members of the
5     General Assembly, elected constitutional officers of the
6     State, the Auditor General, and personnel under the
7     jurisdiction of another travel control board created by
8     statute.
9     (a-5) The Secretary of Financial and Professional
10 Regulation Commissioner of Banks and Real Estate, the Prisoner
11 Review Board, and the State Fire Marshal shall submit to the
12 Governor's Travel Control Board the quarterly reports required
13 by regulation pertaining to their employees reimbursed for
14 housing.
15     (b) Each travel control board created by this Section shall
16 meet at the call of the chairman at least quarterly to review
17 all vouchers, or a report thereof, for travel reimbursements
18 involving an exception to the State Travel Regulations and
19 Rates. Each travel control board shall prescribe the procedures
20 for submission of an information copy of vouchers involving an
21 exception to the general provisions established by the State
22 Travel Regulations and Reimbursement Rates.
23     (c) Any chairman or member of a travel control board may,
24 with the consent of the respective appointing official,
25 designate a deputy to serve in his place at any or all meetings
26 of the board. The designation shall be in writing and directed

 

 

SB1999 - 98 - LRB095 14469 DRJ 40375 b

1 to the chairman of the board.
2     (d) No member of a travel control board may receive
3 additional compensation for his service as a member.
4     (e) A report of the travel reimbursement claims reviewed by
5 each travel control board shall be submitted to the Legislative
6 Audit Commission at least once each quarter and that Commission
7 shall comment on all such reports in its annual reports to the
8 General Assembly.
9 (Source: P.A. 90-609, eff. 6-30-98; 91-239, eff. 1-1-00.)
 
10     Section 9110. The State Officers and Employees Money
11 Disposition Act is amended by changing Section 1 as follows:
 
12     (30 ILCS 230/1)  (from Ch. 127, par. 170)
13     Sec. 1. Application of Act; exemptions. The officers of the
14 Executive Department of the State Government, the Clerk of the
15 Supreme Court, the Clerks of the Appellate Courts, the
16 Departments of the State government created by the Civil
17 Administrative Code of Illinois, and all other officers,
18 boards, commissions, commissioners, departments, institutions,
19 arms or agencies, or agents of the Executive Department of the
20 State government except the University of Illinois, Southern
21 Illinois University, Chicago State University, Eastern
22 Illinois University, Governors State University, Illinois
23 State University, Northeastern Illinois University, Northern
24 Illinois University, Western Illinois University, the

 

 

SB1999 - 99 - LRB095 14469 DRJ 40375 b

1 Cooperative Computer Center, and the Board of Trustees of the
2 Illinois Bank Examiners' Education Foundation for moneys
3 collected pursuant to subsection (11) of Section 48 of the
4 Illinois Banking Act for purposes of the Illinois Bank
5 Examiners' Education Program are subject to this Act. This Act
6 shall not apply, however, to any of the following: (i) the
7 receipt by any such officer of federal funds made available
8 under such conditions as precluded the payment thereof into the
9 State Treasury, (ii) (blank), (iii) the Secretary of Financial
10 and Professional Regulation Director of Insurance in his
11 capacity as rehabilitator or liquidator under Article XIII of
12 the Illinois Insurance Code, (iv) funds received by the
13 Illinois State Scholarship Commission from private firms
14 employed by the State to collect delinquent amounts due and
15 owing from a borrower on any loans guaranteed by such
16 Commission under the Higher Education Student Assistance Law or
17 on any "eligible loans" as that term is defined under the
18 Education Loan Purchase Program Law, or (v) moneys collected on
19 behalf of lessees of facilities of the Department of
20 Agriculture located on the Illinois State Fairgrounds at
21 Springfield and DuQuoin. This Section 1 shall not apply to the
22 receipt of funds required to be deposited in the Industrial
23 Project Fund pursuant to Section 12 of the Disabled Persons
24 Rehabilitation Act.
25 (Source: P.A. 92-850, eff. 8-26-02.)
 

 

 

SB1999 - 100 - LRB095 14469 DRJ 40375 b

1     Section 9115. The Public Funds Investment Act is amended by
2 changing Section 6 as follows:
 
3     (30 ILCS 235/6)  (from Ch. 85, par. 906)
4     Sec. 6. Report of financial institutions.
5     (a) No bank shall receive any public funds unless it has
6 furnished the corporate authorities of a public agency
7 submitting a deposit with copies of the last two sworn
8 statements of resources and liabilities which the bank is
9 required to furnish to the Commissioner of Banks and Real
10 Estate or to the Comptroller of the Currency. Each bank
11 designated as a depository for public funds shall, while acting
12 as such depository, furnish the corporate authorities of a
13 public agency with a copy of all statements of resources and
14 liabilities which it is required to furnish to the Secretary of
15 Financial and Professional Regulation Commissioner of Banks
16 and Real Estate or to the Comptroller of the Currency;
17 provided, that if such funds or moneys are deposited in a bank,
18 the amount of all such deposits not collateralized or insured
19 by an agency of the federal government shall not exceed 75% of
20 the capital stock and surplus of such bank, and the corporate
21 authorities of a public agency submitting a deposit shall not
22 be discharged from responsibility for any funds or moneys
23 deposited in any bank in excess of such limitation.
24     (b) No savings bank or savings and loan association shall
25 receive public funds unless it has furnished the corporate

 

 

SB1999 - 101 - LRB095 14469 DRJ 40375 b

1 authorities of a public agency submitting a deposit with copies
2 of the last 2 sworn statements of resources and liabilities
3 which the savings bank or savings and loan association is
4 required to furnish to the Secretary of Financial and
5 Professional Regulation Commissioner of Banks and Real Estate
6 or the Federal Deposit Insurance Corporation. Each savings bank
7 or savings and loan association designated as a depository for
8 public funds shall, while acting as such depository, furnish
9 the corporate authorities of a public agency with a copy of all
10 statements of resources and liabilities which it is required to
11 furnish to the Secretary of Financial and Professional
12 Regulation Commissioner of Banks and Real Estate or the Federal
13 Deposit Insurance Corporation; provided, that if such funds or
14 moneys are deposited in a savings bank or savings and loan
15 association, the amount of all such deposits not collateralized
16 or insured by an agency of the federal government shall not
17 exceed 75% of the net worth of such savings bank or savings and
18 loan association as defined by the Federal Deposit Insurance
19 Corporation, and the corporate authorities of a public agency
20 submitting a deposit shall not be discharged from
21 responsibility for any funds or moneys deposited in any savings
22 bank or savings and loan association in excess of such
23 limitation.
24     (c) No credit union shall receive public funds unless it
25 has furnished the corporate authorities of a public agency
26 submitting a share deposit with copies of the last two reports

 

 

SB1999 - 102 - LRB095 14469 DRJ 40375 b

1 of examination prepared by or submitted to the Illinois
2 Department of Financial and Professional Regulation
3 Institutions or the National Credit Union Administration. Each
4 credit union designated as a depository for public funds shall,
5 while acting as such depository, furnish the corporate
6 authorities of a public agency with a copy of all reports of
7 examination prepared by or furnished to the Illinois Department
8 of Financial and Professional Regulation Institutions or the
9 National Credit Union Administration; provided that if such
10 funds or moneys are invested in a credit union account, the
11 amount of all such investments not collateralized or insured by
12 an agency of the federal government or other approved share
13 insurer shall not exceed 50% of the unimpaired capital and
14 surplus of such credit union, which shall include shares,
15 reserves and undivided earnings and the corporate authorities
16 of a public agency making an investment shall not be discharged
17 from responsibility for any funds or moneys invested in a
18 credit union in excess of such limitation.
19     (d) Whenever a public agency deposits any public funds in a
20 financial institution, the public agency may enter into an
21 agreement with the financial institution requiring any funds
22 not insured by the Federal Deposit Insurance Corporation or the
23 National Credit Union Administration or other approved share
24 insurer to be collateralized by any of the following classes of
25 securities, provided there has been no default in the payment
26 of principal or interest thereon:

 

 

SB1999 - 103 - LRB095 14469 DRJ 40375 b

1         (1) Bonds, notes, or other securities constituting
2     direct and general obligations of the United States, the
3     bonds, notes, or other securities constituting the direct
4     and general obligation of any agency or instrumentality of
5     the United States, the interest and principal of which is
6     unconditionally guaranteed by the United States, and
7     bonds, notes, or other securities or evidence of
8     indebtedness constituting the obligation of a U.S. agency
9     or instrumentality.
10         (2) Direct and general obligation bonds of the State of
11     Illinois or of any other state of the United States.
12         (3) Revenue bonds of this State or any authority,
13     board, commission, or similar agency thereof.
14         (4) Direct and general obligation bonds of any city,
15     town, county, school district, or other taxing body of any
16     state, the debt service of which is payable from general ad
17     valorem taxes.
18         (5) Revenue bonds of any city, town, county, or school
19     district of the State of Illinois.
20         (6) Obligations issued, assumed, or guaranteed by the
21     International Finance Corporation, the principal of which
22     is not amortized during the life of the obligation, but no
23     such obligation shall be accepted at more than 90% of its
24     market value.
25         (7) Illinois Affordable Housing Program Trust Fund
26     Bonds or Notes as defined in and issued pursuant to the

 

 

SB1999 - 104 - LRB095 14469 DRJ 40375 b

1     Illinois Housing Development Act.
2         (8) In an amount equal to at least market value of that
3     amount of funds deposited exceeding the insurance
4     limitation provided by the Federal Deposit Insurance
5     Corporation or the National Credit Union Administration or
6     other approved share insurer: (i) securities, (ii)
7     mortgages, (iii) letters of credit issued by a Federal Home
8     Loan Bank, or (iv) loans covered by a State Guarantee under
9     the Illinois Farm Development Act, if that guarantee has
10     been assumed by the Illinois Finance Authority under
11     Section 845-75 of the Illinois Finance Authority Act, and
12     loans covered by a State Guarantee under Article 830 of the
13     Illinois Finance Authority Act.
14         (9) Certificates of deposit or share certificates
15     issued to the depository institution pledging them as
16     security. The public agency may require security in the
17     amount of 125% of the value of the public agency deposit.
18     Such certificate of deposit or share certificate shall:
19             (i) be fully insured by the Federal Deposit
20         Insurance Corporation, the Federal Savings and Loan
21         Insurance Corporation, or the National Credit Union
22         Share Insurance Fund or issued by a depository
23         institution which is rated within the 3 highest
24         classifications established by at least one of the 2
25         standard rating services;
26             (ii) be issued by a financial institution having

 

 

SB1999 - 105 - LRB095 14469 DRJ 40375 b

1         assets of $15,000,000 or more; and
2             (iii) be issued by either a savings and loan
3         association having a capital to asset ratio of at least
4         2%, by a bank having a capital to asset ratio of at
5         least 6% or by a credit union having a capital to asset
6         ratio of at least 4%.
7     The depository institution shall effect the assignment of
8 the certificate of deposit or share certificate to the public
9 agency and shall agree that, in the event the issuer of the
10 certificate fails to maintain the capital to asset ratio
11 required by this Section, such certificate of deposit or share
12 certificate shall be replaced by additional suitable security.
13     (e) The public agency may accept a system established by
14 the State Treasurer to aggregate permissible securities
15 received as collateral from financial institutions in a
16 collateral pool to secure public deposits of the institutions
17 that have pledged securities to the pool.
18     (f) The public agency may at any time declare any
19 particular security ineligible to qualify as collateral when,
20 in the public agency's judgment, it is deemed desirable to do
21 so.
22     (g) Notwithstanding any other provision of this Section, as
23 security a public agency may, at its discretion, accept a bond,
24 executed by a company authorized to transact the kinds of
25 business described in clause (g) of Section 4 of the Illinois
26 Insurance Code, in an amount not less than the amount of the

 

 

SB1999 - 106 - LRB095 14469 DRJ 40375 b

1 deposits required by this Section to be secured, payable to the
2 public agency for the benefit of the People of the unit of
3 government, in a form that is acceptable to the public agency.
4     (h) Paragraphs (a), (b), (c), (d), (e), (f), and (g) of
5 this Section do not apply to the University of Illinois,
6 Southern Illinois University, Chicago State University,
7 Eastern Illinois University, Governors State University,
8 Illinois State University, Northeastern Illinois University,
9 Northern Illinois University, Western Illinois University, the
10 Cooperative Computer Center and public community colleges.
11 (Source: P.A. 95-331, eff. 8-21-07.)
 
12     Section 9120. The Architectural, Engineering, and Land
13 Surveying Qualifications Based Selection Act is amended by
14 changing Section 5 as follows:
 
15     (30 ILCS 535/5)  (from Ch. 127, par. 4151-5)
16     Sec. 5. State policy on procurement of architectural,
17 engineering, and land surveying services. It is the policy of
18 State agencies of this State to publicly announce all
19 requirements for architectural, engineering, and land
20 surveying services, to procure these services on the basis of
21 demonstrated competence and qualifications, to negotiate
22 contracts at fair and reasonable prices, and to authorize the
23 Department of Financial and Professional Regulation to enforce
24 the provisions of Section 65 of this Act.

 

 

SB1999 - 107 - LRB095 14469 DRJ 40375 b

1 (Source: P.A. 87-673.)
 
2     Section 9125. The Public Construction Bond Act is amended
3 by changing Section 3 as follows:
 
4     (30 ILCS 550/3)
5     Sec. 3. Builder or developer cash bond or other surety.
6     (a) A county or municipality may not require a cash bond,
7 irrevocable letter of credit, surety bond, or letter of
8 commitment issued by a bank, savings and loan association,
9 surety, or insurance company from a builder or developer to
10 guarantee completion of a project improvement when the builder
11 or developer has filed with the county or municipal clerk a
12 current, irrevocable letter of credit, surety bond, or letter
13 of commitment issued by a bank, savings and loan association,
14 surety, or insurance company, deemed good and sufficient by the
15 county or municipality accepting such security, in an amount
16 equal to or greater than 110% of the amount of the bid on each
17 project improvement. A builder or developer has the option to
18 utilize a cash bond, irrevocable letter of credit, surety bond,
19 or letter of commitment, issued by a bank, savings and loan
20 association, surety, or insurance company, deemed good and
21 sufficient by the county or municipality, to satisfy any cash
22 bond requirement established by a county or municipality.
23 Except for a municipality or county with a population of
24 1,000,000 or more, the county or municipality must approve and

 

 

SB1999 - 108 - LRB095 14469 DRJ 40375 b

1 deem a surety or insurance company good and sufficient for the
2 purposes set forth in this Section if the surety or insurance
3 company is authorized by the Illinois Department of Financial
4 and Professional Regulation Insurance to sell and issue
5 sureties in the State of Illinois.
6     (b) If a county or municipality receives a cash bond,
7 irrevocable letter of credit, or surety bond from a builder or
8 developer to guarantee completion of a project improvement, the
9 county or municipality shall (i) register the bond under the
10 address of the project and the construction permit number and
11 (ii) give the builder or developer a receipt for the bond. The
12 county or municipality shall establish and maintain a separate
13 account for all cash bonds received from builders and
14 developers to guarantee completion of a project improvement.
15     (c) The county or municipality shall refund a cash bond to
16 a builder or developer, or release the irrevocable letter of
17 credit or surety bond, within 60 days after the builder or
18 developer notifies the county or municipality in writing of the
19 completion of the project improvement for which the bond was
20 required. For these purposes, "completion" means that the
21 county or municipality has determined that the project
22 improvement for which the bond was required is complete or a
23 licensed engineer or licensed architect has certified to the
24 builder or developer and the county or municipality that the
25 project improvement has been completed to the applicable codes
26 and ordinances. The county or municipality shall pay interest

 

 

SB1999 - 109 - LRB095 14469 DRJ 40375 b

1 to the builder or developer, beginning 60 days after the
2 builder or developer notifies the county or municipality in
3 writing of the completion of the project improvement, on any
4 bond not refunded to a builder or developer, at the rate of 1%
5 per month.
6     (d) A home rule county or municipality may not require or
7 maintain cash bonds, irrevocable letters of credit, surety
8 bonds, or letters of commitment issued by a bank, savings and
9 loan association, surety, or insurance company from builders or
10 developers in a manner inconsistent with this Section. This
11 Section supercedes and controls over other provisions of the
12 Counties Code or Illinois Municipal Code as they apply to and
13 guarantee completion of a project improvement that is required
14 by the county or municipality, regardless of whether the
15 project improvement is a condition of annexation agreements.
16 This Section is a denial and limitation under subsection (i) of
17 Section 6 of Article VII of the Illinois Constitution on the
18 concurrent exercise by a home rule county or municipality of
19 powers and functions exercised by the State.
20 (Source: P.A. 92-479, eff. 1-1-02.)
 
21     Section 9130. The Illinois Income Tax Act is amended by
22 changing Section 304 as follows:
 
23     (35 ILCS 5/304)  (from Ch. 120, par. 3-304)
24     Sec. 304. Business income of persons other than residents.

 

 

SB1999 - 110 - LRB095 14469 DRJ 40375 b

1     (a) In general. The business income of a person other than
2 a resident shall be allocated to this State if such person's
3 business income is derived solely from this State. If a person
4 other than a resident derives business income from this State
5 and one or more other states, then, for tax years ending on or
6 before December 30, 1998, and except as otherwise provided by
7 this Section, such person's business income shall be
8 apportioned to this State by multiplying the income by a
9 fraction, the numerator of which is the sum of the property
10 factor (if any), the payroll factor (if any) and 200% of the
11 sales factor (if any), and the denominator of which is 4
12 reduced by the number of factors other than the sales factor
13 which have a denominator of zero and by an additional 2 if the
14 sales factor has a denominator of zero. For tax years ending on
15 or after December 31, 1998, and except as otherwise provided by
16 this Section, persons other than residents who derive business
17 income from this State and one or more other states shall
18 compute their apportionment factor by weighting their
19 property, payroll, and sales factors as provided in subsection
20 (h) of this Section.
21     (1) Property factor.
22         (A) The property factor is a fraction, the numerator of
23     which is the average value of the person's real and
24     tangible personal property owned or rented and used in the
25     trade or business in this State during the taxable year and
26     the denominator of which is the average value of all the

 

 

SB1999 - 111 - LRB095 14469 DRJ 40375 b

1     person's real and tangible personal property owned or
2     rented and used in the trade or business during the taxable
3     year.
4         (B) Property owned by the person is valued at its
5     original cost. Property rented by the person is valued at 8
6     times the net annual rental rate. Net annual rental rate is
7     the annual rental rate paid by the person less any annual
8     rental rate received by the person from sub-rentals.
9         (C) The average value of property shall be determined
10     by averaging the values at the beginning and ending of the
11     taxable year but the Director may require the averaging of
12     monthly values during the taxable year if reasonably
13     required to reflect properly the average value of the
14     person's property.
15     (2) Payroll factor.
16         (A) The payroll factor is a fraction, the numerator of
17     which is the total amount paid in this State during the
18     taxable year by the person for compensation, and the
19     denominator of which is the total compensation paid
20     everywhere during the taxable year.
21         (B) Compensation is paid in this State if:
22             (i) The individual's service is performed entirely
23         within this State;
24             (ii) The individual's service is performed both
25         within and without this State, but the service
26         performed without this State is incidental to the

 

 

SB1999 - 112 - LRB095 14469 DRJ 40375 b

1         individual's service performed within this State; or
2             (iii) Some of the service is performed within this
3         State and either the base of operations, or if there is
4         no base of operations, the place from which the service
5         is directed or controlled is within this State, or the
6         base of operations or the place from which the service
7         is directed or controlled is not in any state in which
8         some part of the service is performed, but the
9         individual's residence is in this State.
10             (iv) Compensation paid to nonresident professional
11         athletes.
12             (a) General. The Illinois source income of a
13         nonresident individual who is a member of a
14         professional athletic team includes the portion of the
15         individual's total compensation for services performed
16         as a member of a professional athletic team during the
17         taxable year which the number of duty days spent within
18         this State performing services for the team in any
19         manner during the taxable year bears to the total
20         number of duty days spent both within and without this
21         State during the taxable year.
22             (b) Travel days. Travel days that do not involve
23         either a game, practice, team meeting, or other similar
24         team event are not considered duty days spent in this
25         State. However, such travel days are considered in the
26         total duty days spent both within and without this

 

 

SB1999 - 113 - LRB095 14469 DRJ 40375 b

1         State.
2             (c) Definitions. For purposes of this subpart
3         (iv):
4                 (1) The term "professional athletic team"
5             includes, but is not limited to, any professional
6             baseball, basketball, football, soccer, or hockey
7             team.
8                 (2) The term "member of a professional
9             athletic team" includes those employees who are
10             active players, players on the disabled list, and
11             any other persons required to travel and who travel
12             with and perform services on behalf of a
13             professional athletic team on a regular basis.
14             This includes, but is not limited to, coaches,
15             managers, and trainers.
16                 (3) Except as provided in items (C) and (D) of
17             this subpart (3), the term "duty days" means all
18             days during the taxable year from the beginning of
19             the professional athletic team's official
20             pre-season training period through the last game
21             in which the team competes or is scheduled to
22             compete. Duty days shall be counted for the year in
23             which they occur, including where a team's
24             official pre-season training period through the
25             last game in which the team competes or is
26             scheduled to compete, occurs during more than one

 

 

SB1999 - 114 - LRB095 14469 DRJ 40375 b

1             tax year.
2                     (A) Duty days shall also include days on
3                 which a member of a professional athletic team
4                 performs service for a team on a date that does
5                 not fall within the foregoing period (e.g.,
6                 participation in instructional leagues, the
7                 "All Star Game", or promotional "caravans").
8                 Performing a service for a professional
9                 athletic team includes conducting training and
10                 rehabilitation activities, when such
11                 activities are conducted at team facilities.
12                     (B) Also included in duty days are game
13                 days, practice days, days spent at team
14                 meetings, promotional caravans, preseason
15                 training camps, and days served with the team
16                 through all post-season games in which the team
17                 competes or is scheduled to compete.
18                     (C) Duty days for any person who joins a
19                 team during the period from the beginning of
20                 the professional athletic team's official
21                 pre-season training period through the last
22                 game in which the team competes, or is
23                 scheduled to compete, shall begin on the day
24                 that person joins the team. Conversely, duty
25                 days for any person who leaves a team during
26                 this period shall end on the day that person

 

 

SB1999 - 115 - LRB095 14469 DRJ 40375 b

1                 leaves the team. Where a person switches teams
2                 during a taxable year, a separate duty-day
3                 calculation shall be made for the period the
4                 person was with each team.
5                     (D) Days for which a member of a
6                 professional athletic team is not compensated
7                 and is not performing services for the team in
8                 any manner, including days when such member of
9                 a professional athletic team has been
10                 suspended without pay and prohibited from
11                 performing any services for the team, shall not
12                 be treated as duty days.
13                     (E) Days for which a member of a
14                 professional athletic team is on the disabled
15                 list and does not conduct rehabilitation
16                 activities at facilities of the team, and is
17                 not otherwise performing services for the team
18                 in Illinois, shall not be considered duty days
19                 spent in this State. All days on the disabled
20                 list, however, are considered to be included in
21                 total duty days spent both within and without
22                 this State.
23                 (4) The term "total compensation for services
24             performed as a member of a professional athletic
25             team" means the total compensation received during
26             the taxable year for services performed:

 

 

SB1999 - 116 - LRB095 14469 DRJ 40375 b

1                     (A) from the beginning of the official
2                 pre-season training period through the last
3                 game in which the team competes or is scheduled
4                 to compete during that taxable year; and
5                     (B) during the taxable year on a date which
6                 does not fall within the foregoing period
7                 (e.g., participation in instructional leagues,
8                 the "All Star Game", or promotional caravans).
9                 This compensation shall include, but is not
10             limited to, salaries, wages, bonuses as described
11             in this subpart, and any other type of compensation
12             paid during the taxable year to a member of a
13             professional athletic team for services performed
14             in that year. This compensation does not include
15             strike benefits, severance pay, termination pay,
16             contract or option year buy-out payments,
17             expansion or relocation payments, or any other
18             payments not related to services performed for the
19             team.
20                 For purposes of this subparagraph, "bonuses"
21             included in "total compensation for services
22             performed as a member of a professional athletic
23             team" subject to the allocation described in
24             Section 302(c)(1) are: bonuses earned as a result
25             of play (i.e., performance bonuses) during the
26             season, including bonuses paid for championship,

 

 

SB1999 - 117 - LRB095 14469 DRJ 40375 b

1             playoff or "bowl" games played by a team, or for
2             selection to all-star league or other honorary
3             positions; and bonuses paid for signing a
4             contract, unless the payment of the signing bonus
5             is not conditional upon the signee playing any
6             games for the team or performing any subsequent
7             services for the team or even making the team, the
8             signing bonus is payable separately from the
9             salary and any other compensation, and the signing
10             bonus is nonrefundable.
11     (3) Sales factor.
12         (A) The sales factor is a fraction, the numerator of
13     which is the total sales of the person in this State during
14     the taxable year, and the denominator of which is the total
15     sales of the person everywhere during the taxable year.
16         (B) Sales of tangible personal property are in this
17     State if:
18             (i) The property is delivered or shipped to a
19         purchaser, other than the United States government,
20         within this State regardless of the f. o. b. point or
21         other conditions of the sale; or
22             (ii) The property is shipped from an office, store,
23         warehouse, factory or other place of storage in this
24         State and either the purchaser is the United States
25         government or the person is not taxable in the state of
26         the purchaser; provided, however, that premises owned

 

 

SB1999 - 118 - LRB095 14469 DRJ 40375 b

1         or leased by a person who has independently contracted
2         with the seller for the printing of newspapers,
3         periodicals or books shall not be deemed to be an
4         office, store, warehouse, factory or other place of
5         storage for purposes of this Section. Sales of tangible
6         personal property are not in this State if the seller
7         and purchaser would be members of the same unitary
8         business group but for the fact that either the seller
9         or purchaser is a person with 80% or more of total
10         business activity outside of the United States and the
11         property is purchased for resale.
12         (B-1) Patents, copyrights, trademarks, and similar
13     items of intangible personal property.
14             (i) Gross receipts from the licensing, sale, or
15         other disposition of a patent, copyright, trademark,
16         or similar item of intangible personal property are in
17         this State to the extent the item is utilized in this
18         State during the year the gross receipts are included
19         in gross income.
20             (ii) Place of utilization.
21                 (I) A patent is utilized in a state to the
22             extent that it is employed in production,
23             fabrication, manufacturing, or other processing in
24             the state or to the extent that a patented product
25             is produced in the state. If a patent is utilized
26             in more than one state, the extent to which it is

 

 

SB1999 - 119 - LRB095 14469 DRJ 40375 b

1             utilized in any one state shall be a fraction equal
2             to the gross receipts of the licensee or purchaser
3             from sales or leases of items produced,
4             fabricated, manufactured, or processed within that
5             state using the patent and of patented items
6             produced within that state, divided by the total of
7             such gross receipts for all states in which the
8             patent is utilized.
9                 (II) A copyright is utilized in a state to the
10             extent that printing or other publication
11             originates in the state. If a copyright is utilized
12             in more than one state, the extent to which it is
13             utilized in any one state shall be a fraction equal
14             to the gross receipts from sales or licenses of
15             materials printed or published in that state
16             divided by the total of such gross receipts for all
17             states in which the copyright is utilized.
18                 (III) Trademarks and other items of intangible
19             personal property governed by this paragraph (B-1)
20             are utilized in the state in which the commercial
21             domicile of the licensee or purchaser is located.
22             (iii) If the state of utilization of an item of
23         property governed by this paragraph (B-1) cannot be
24         determined from the taxpayer's books and records or
25         from the books and records of any person related to the
26         taxpayer within the meaning of Section 267(b) of the

 

 

SB1999 - 120 - LRB095 14469 DRJ 40375 b

1         Internal Revenue Code, 26 U.S.C. 267, the gross
2         receipts attributable to that item shall be excluded
3         from both the numerator and the denominator of the
4         sales factor.
5         (B-2) Gross receipts from the license, sale, or other
6     disposition of patents, copyrights, trademarks, and
7     similar items of intangible personal property may be
8     included in the numerator or denominator of the sales
9     factor only if gross receipts from licenses, sales, or
10     other disposition of such items comprise more than 50% of
11     the taxpayer's total gross receipts included in gross
12     income during the tax year and during each of the 2
13     immediately preceding tax years; provided that, when a
14     taxpayer is a member of a unitary business group, such
15     determination shall be made on the basis of the gross
16     receipts of the entire unitary business group.
17         (C) For taxable years ending before December 31, 2008,
18     sales, other than sales governed by paragraphs (B), (B-1),
19     and (B-2), are in this State if:
20             (i) The income-producing activity is performed in
21         this State; or
22             (ii) The income-producing activity is performed
23         both within and without this State and a greater
24         proportion of the income-producing activity is
25         performed within this State than without this State,
26         based on performance costs.

 

 

SB1999 - 121 - LRB095 14469 DRJ 40375 b

1         (C-5) For taxable years ending on or after December 31,
2     2008, sales, other than sales governed by paragraphs (B),
3     (B-1), and (B-2), are in this State if the purchaser is in
4     this State or the sale is otherwise attributable to this
5     State's marketplace. The following examples are
6     illustrative:
7             (i) Sales from the sale or lease of real property
8         are in this State if the property is located in this
9         State.
10             (ii) Sales from the lease or rental of tangible
11         personal property are in this State if the property is
12         located in this State during the rental period. Sales
13         from the lease or rental of tangible personal property
14         that is characteristically moving property, including,
15         but not limited to, motor vehicles, rolling stock,
16         aircraft, vessels, or mobile equipment are in this
17         State to the extent that the property is used in this
18         State.
19             (iii) Sales of intangible personal property are in
20         this State if the purchaser realizes benefit from the
21         property in this State. If the purchaser realizes
22         benefit from the property both within and without this
23         State, the gross receipts from the sale shall be
24         divided among those states in which the taxpayer is
25         taxable in proportion to the benefit in each state. If
26         the proportionate benefit in this State cannot be

 

 

SB1999 - 122 - LRB095 14469 DRJ 40375 b

1         determined, the sale shall be excluded from both the
2         numerator and the denominator of the sales factor.
3             (iv) Sales of services are in this State if the
4         benefit of the service is realized in this State. If
5         the benefit of the service is realized both within and
6         without this State, the gross receipts from the sale
7         shall be divided among those states in which the
8         taxpayer is taxable in proportion to the benefit of
9         service realized in each state. If the proportionate
10         benefit in this State cannot be determined, the sale
11         shall be excluded from both the numerator and the
12         denominator of the sales factor. The Department may
13         adopt rules prescribing where the benefit of specific
14         types of service, including, but not limited to,
15         telecommunications, broadcast, cable, advertising,
16         publishing, and utility service, is realized.
17         (D) For taxable years ending on or after December 31,
18     1995, the following items of income shall not be included
19     in the numerator or denominator of the sales factor:
20     dividends; amounts included under Section 78 of the
21     Internal Revenue Code; and Subpart F income as defined in
22     Section 952 of the Internal Revenue Code. No inference
23     shall be drawn from the enactment of this paragraph (D) in
24     construing this Section for taxable years ending before
25     December 31, 1995.
26         (E) Paragraphs (B-1) and (B-2) shall apply to tax years

 

 

SB1999 - 123 - LRB095 14469 DRJ 40375 b

1     ending on or after December 31, 1999, provided that a
2     taxpayer may elect to apply the provisions of these
3     paragraphs to prior tax years. Such election shall be made
4     in the form and manner prescribed by the Department, shall
5     be irrevocable, and shall apply to all tax years; provided
6     that, if a taxpayer's Illinois income tax liability for any
7     tax year, as assessed under Section 903 prior to January 1,
8     1999, was computed in a manner contrary to the provisions
9     of paragraphs (B-1) or (B-2), no refund shall be payable to
10     the taxpayer for that tax year to the extent such refund is
11     the result of applying the provisions of paragraph (B-1) or
12     (B-2) retroactively. In the case of a unitary business
13     group, such election shall apply to all members of such
14     group for every tax year such group is in existence, but
15     shall not apply to any taxpayer for any period during which
16     that taxpayer is not a member of such group.
17     (b) Insurance companies.
18         (1) In general. Except as otherwise provided by
19     paragraph (2), business income of an insurance company for
20     a taxable year shall be apportioned to this State by
21     multiplying such income by a fraction, the numerator of
22     which is the direct premiums written for insurance upon
23     property or risk in this State, and the denominator of
24     which is the direct premiums written for insurance upon
25     property or risk everywhere. For purposes of this
26     subsection, the term "direct premiums written" means the

 

 

SB1999 - 124 - LRB095 14469 DRJ 40375 b

1     total amount of direct premiums written, assessments and
2     annuity considerations as reported for the taxable year on
3     the annual statement filed by the company with the
4     Secretary of Financial and Professional Regulation or the
5     Secretary's predecessor, the Illinois Director of
6     Insurance, in the form approved by the National Convention
7     of Insurance Commissioners or such other form as may be
8     prescribed in lieu thereof.
9         (2) Reinsurance. If the principal source of premiums
10     written by an insurance company consists of premiums for
11     reinsurance accepted by it, the business income of such
12     company shall be apportioned to this State by multiplying
13     such income by a fraction, the numerator of which is the
14     sum of (i) direct premiums written for insurance upon
15     property or risk in this State, plus (ii) premiums written
16     for reinsurance accepted in respect of property or risk in
17     this State, and the denominator of which is the sum of
18     (iii) direct premiums written for insurance upon property
19     or risk everywhere, plus (iv) premiums written for
20     reinsurance accepted in respect of property or risk
21     everywhere. For taxable years ending before December 31,
22     2008, for purposes of this paragraph, premiums written for
23     reinsurance accepted in respect of property or risk in this
24     State, whether or not otherwise determinable, may, at the
25     election of the company, be determined on the basis of the
26     proportion which premiums written for reinsurance accepted

 

 

SB1999 - 125 - LRB095 14469 DRJ 40375 b

1     from companies commercially domiciled in Illinois bears to
2     premiums written for reinsurance accepted from all
3     sources, or, alternatively, in the proportion which the sum
4     of the direct premiums written for insurance upon property
5     or risk in this State by each ceding company from which
6     reinsurance is accepted bears to the sum of the total
7     direct premiums written by each such ceding company for the
8     taxable year.
9     (c) Financial organizations.
10         (1) In general. For taxable years ending before
11     December 31, 2008, business income of a financial
12     organization shall be apportioned to this State by
13     multiplying such income by a fraction, the numerator of
14     which is its business income from sources within this
15     State, and the denominator of which is its business income
16     from all sources. For the purposes of this subsection, the
17     business income of a financial organization from sources
18     within this State is the sum of the amounts referred to in
19     subparagraphs (A) through (E) following, but excluding the
20     adjusted income of an international banking facility as
21     determined in paragraph (2):
22             (A) Fees, commissions or other compensation for
23         financial services rendered within this State;
24             (B) Gross profits from trading in stocks, bonds or
25         other securities managed within this State;
26             (C) Dividends, and interest from Illinois

 

 

SB1999 - 126 - LRB095 14469 DRJ 40375 b

1         customers, which are received within this State;
2             (D) Interest charged to customers at places of
3         business maintained within this State for carrying
4         debit balances of margin accounts, without deduction
5         of any costs incurred in carrying such accounts; and
6             (E) Any other gross income resulting from the
7         operation as a financial organization within this
8         State. In computing the amounts referred to in
9         paragraphs (A) through (E) of this subsection, any
10         amount received by a member of an affiliated group
11         (determined under Section 1504(a) of the Internal
12         Revenue Code but without reference to whether any such
13         corporation is an "includible corporation" under
14         Section 1504(b) of the Internal Revenue Code) from
15         another member of such group shall be included only to
16         the extent such amount exceeds expenses of the
17         recipient directly related thereto.
18         (2) International Banking Facility. For taxable years
19     ending before December 31, 2008:
20             (A) Adjusted Income. The adjusted income of an
21         international banking facility is its income reduced
22         by the amount of the floor amount.
23             (B) Floor Amount. The floor amount shall be the
24         amount, if any, determined by multiplying the income of
25         the international banking facility by a fraction, not
26         greater than one, which is determined as follows:

 

 

SB1999 - 127 - LRB095 14469 DRJ 40375 b

1                 (i) The numerator shall be:
2                 The average aggregate, determined on a
3             quarterly basis, of the financial organization's
4             loans to banks in foreign countries, to foreign
5             domiciled borrowers (except where secured
6             primarily by real estate) and to foreign
7             governments and other foreign official
8             institutions, as reported for its branches,
9             agencies and offices within the state on its
10             "Consolidated Report of Condition", Schedule A,
11             Lines 2.c., 5.b., and 7.a., which was filed with
12             the Federal Deposit Insurance Corporation and
13             other regulatory authorities, for the year 1980,
14             minus
15                 The average aggregate, determined on a
16             quarterly basis, of such loans (other than loans of
17             an international banking facility), as reported by
18             the financial institution for its branches,
19             agencies and offices within the state, on the
20             corresponding Schedule and lines of the
21             Consolidated Report of Condition for the current
22             taxable year, provided, however, that in no case
23             shall the amount determined in this clause (the
24             subtrahend) exceed the amount determined in the
25             preceding clause (the minuend); and
26                 (ii) the denominator shall be the average

 

 

SB1999 - 128 - LRB095 14469 DRJ 40375 b

1             aggregate, determined on a quarterly basis, of the
2             international banking facility's loans to banks in
3             foreign countries, to foreign domiciled borrowers
4             (except where secured primarily by real estate)
5             and to foreign governments and other foreign
6             official institutions, which were recorded in its
7             financial accounts for the current taxable year.
8             (C) Change to Consolidated Report of Condition and
9         in Qualification. In the event the Consolidated Report
10         of Condition which is filed with the Federal Deposit
11         Insurance Corporation and other regulatory authorities
12         is altered so that the information required for
13         determining the floor amount is not found on Schedule
14         A, lines 2.c., 5.b. and 7.a., the financial institution
15         shall notify the Department and the Department may, by
16         regulations or otherwise, prescribe or authorize the
17         use of an alternative source for such information. The
18         financial institution shall also notify the Department
19         should its international banking facility fail to
20         qualify as such, in whole or in part, or should there
21         be any amendment or change to the Consolidated Report
22         of Condition, as originally filed, to the extent such
23         amendment or change alters the information used in
24         determining the floor amount.
25         (3) For taxable years ending on or after December 31,
26     2008, the business income of a financial organization shall

 

 

SB1999 - 129 - LRB095 14469 DRJ 40375 b

1     be apportioned to this State by multiplying such income by
2     a fraction, the numerator of which is its gross receipts
3     from sources in this State or otherwise attributable to
4     this State's marketplace and the denominator of which is
5     its gross receipts everywhere during the taxable year.
6     "Gross receipts" for purposes of this subparagraph (3)
7     means gross income, including net taxable gain on
8     disposition of assets, including securities and money
9     market instruments, when derived from transactions and
10     activities in the regular course of the financial
11     organization's trade or business. If a person derives
12     business income from activities in addition to the
13     provision of financial services, this subparagraph (3)
14     shall apply only to its business income from financial
15     services, and its other business income shall be
16     apportioned to this State under the applicable provisions
17     of this Section. The following examples are illustrative:
18             (i) Receipts from the lease or rental of real or
19         tangible personal property are in this State if the
20         property is located in this State during the rental
21         period. Receipts from the lease or rental of tangible
22         personal property that is characteristically moving
23         property, including, but not limited to, motor
24         vehicles, rolling stock, aircraft, vessels, or mobile
25         equipment are from sources in this State to the extent
26         that the property is used in this State.

 

 

SB1999 - 130 - LRB095 14469 DRJ 40375 b

1             (ii) Interest income, commissions, fees, gains on
2         disposition, and other receipts from assets in the
3         nature of loans that are secured primarily by real
4         estate or tangible personal property are from sources
5         in this State if the security is located in this State.
6             (iii) Interest income, commissions, fees, gains on
7         disposition, and other receipts from consumer loans
8         that are not secured by real or tangible personal
9         property are from sources in this State if the debtor
10         is a resident of this State.
11             (iv) Interest income, commissions, fees, gains on
12         disposition, and other receipts from commercial loans
13         and installment obligations that are not secured by
14         real or tangible personal property are from sources in
15         this State if the proceeds of the loan are to be
16         applied in this State. If it cannot be determined where
17         the funds are to be applied, the income and receipts
18         are from sources in this State if the office of the
19         borrower from which the loan was negotiated in the
20         regular course of business is located in this State. If
21         the location of this office cannot be determined, the
22         income and receipts shall be excluded from the
23         numerator and denominator of the sales factor.
24             (v) Interest income, fees, gains on disposition,
25         service charges, merchant discount income, and other
26         receipts from credit card receivables are from sources

 

 

SB1999 - 131 - LRB095 14469 DRJ 40375 b

1         in this State if the card charges are regularly billed
2         to a customer in this State.
3             (vi) Receipts from the performance of services,
4         including, but not limited to, fiduciary, advisory,
5         and brokerage services, are in this State if the
6         benefit of the service is realized in this State. If
7         the benefit of the service is realized both within and
8         without this State, the gross receipts from the sale
9         shall be divided among those states in which the
10         taxpayer is taxable in proportion to the benefit of
11         service realized in each state. If the proportionate
12         benefit in this State cannot be determined, the sale
13         shall be excluded from both the numerator and the
14         denominator of the gross receipts factor.
15             (vii) Receipts from the issuance of travelers
16         checks and money orders are from sources in this State
17         if the checks and money orders are issued from a
18         location within this State.
19             (viii) In the case of a financial organization that
20         accepts deposits, receipts from investments and from
21         money market instruments are apportioned to this State
22         based on the ratio that the total deposits of the
23         financial organization (including all members of the
24         financial organization's unitary group) from this
25         State, its residents, (including businesses with an
26         office or other place of business in this State), and

 

 

SB1999 - 132 - LRB095 14469 DRJ 40375 b

1         its political subdivisions, agencies, and
2         instrumentalities bear to total deposits everywhere.
3         For purposes of this subdivision, deposits must be
4         attributed to this State under the preceding sentence,
5         whether or not the deposits are accepted or maintained
6         by the financial organization at locations within this
7         State. In the case of a financial organization that
8         does not accept deposits, receipts from investments in
9         securities and from money market instruments shall be
10         excluded from the numerator and the denominator of the
11         gross receipts factor.
12         (4) As used in subparagraph (3), "deposit" includes but
13     is not limited to:
14             (i) the unpaid balance of money or its equivalent
15         received or held by a financial institution in the
16         usual course of business and for which it has given or
17         is obligated to give credit, either conditionally or
18         unconditionally, to a commercial, checking, savings,
19         time, or thrift account whether or not advance notice
20         is required to withdraw the credited funds, or which is
21         evidenced by its certificate of deposit, thrift
22         certificate, investment certificate, or certificate of
23         indebtedness, or other similar name, or a check or
24         draft drawn against a deposit account and certified by
25         the financial organization, or a letter of credit or a
26         traveler's check on which the financial organization

 

 

SB1999 - 133 - LRB095 14469 DRJ 40375 b

1         is primarily liable. However, without limiting the
2         generality of the term "money or its equivalent", any
3         such account or instrument must be regarded as
4         evidencing the receipt of the equivalent of money when
5         credited or issued in exchange for checks or drafts or
6         for a promissory note upon which the person obtaining
7         the credit or instrument is primarily or secondarily
8         liable, or for a charge against a deposit account, or
9         in settlement of checks, drafts, or other instruments
10         forwarded to the bank for collection;
11             (ii) trust funds received or held by the financial
12         organization, whether held in the trust department or
13         held or deposited in any other department of the
14         financial organization;
15             (iii) money received or held by a financial
16         organization, or the credit given for money or its
17         equivalent received or held by a financial
18         organization, in the usual course of business for a
19         special or specific purpose, regardless of the legal
20         relationship so established. Under this paragraph,
21         "deposit" includes, but is not limited to, escrow
22         funds, funds held as security for an obligation due to
23         the financial organization or others, including funds
24         held as dealers reserves, or for securities loaned by
25         the financial organization, funds deposited by a
26         debtor to meet maturing obligations, funds deposited

 

 

SB1999 - 134 - LRB095 14469 DRJ 40375 b

1         as advance payment on subscriptions to United States
2         government securities, funds held for distribution or
3         purchase of securities, funds held to meet its
4         acceptances or letters of credit, and withheld taxes.
5         It does not include funds received by the financial
6         organization for immediate application to the
7         reduction of an indebtedness to the receiving
8         financial organization, or under condition that the
9         receipt of the funds immediately reduces or
10         extinguishes the indebtedness;
11             (iv) outstanding drafts, including advice of
12         another financial organization, cashier's checks,
13         money orders, or other officer's checks issued in the
14         usual course of business for any purpose, but not
15         including those issued in payment for services,
16         dividends, or purchases or other costs or expenses of
17         the financial organization itself; and
18             (v) money or its equivalent held as a credit
19         balance by a financial organization on behalf of its
20         customer if the entity is engaged in soliciting and
21         holding such balances in the regular course of its
22         business.
23         (5) As used in subparagraph (3), "money market
24     instruments" includes but is not limited to:
25             (i) Interest-bearing deposits, federal funds sold
26         and securities purchased under agreements to resell,

 

 

SB1999 - 135 - LRB095 14469 DRJ 40375 b

1         commercial paper, banker's acceptances, and purchased
2         certificates of deposit and similar instruments to the
3         extent that the instruments are reflected as assets
4         under generally accepted accounting principles.
5             "Securities" means corporate stock, bonds, and
6         other securities (including, for purposes of taxation
7         of gains on securities and for purchases under
8         agreements to resell, United States Treasury
9         securities, obligations of United States government
10         agencies and corporations, obligations of state and
11         political subdivisions, the interest on which is
12         exempt from Illinois income tax), participations in
13         securities backed by mortgages held by United States or
14         state government agencies, loan-backed securities, and
15         similar investments to the extent the investments are
16         reflected as assets under generally accepted
17         accounting principles.
18             (ii) For purposes of subparagraph (3), "money
19         market instruments" shall include investments in
20         investment partnerships, trusts, pools, funds,
21         investment companies, or any similar entity in
22         proportion to the investment of the entity in money
23         market instruments, and "securities" shall include
24         investments in investment partnerships, trusts, pools,
25         funds, investment companies, or any similar entity in
26         proportion to the investment of the entity in

 

 

SB1999 - 136 - LRB095 14469 DRJ 40375 b

1         securities.
2     (d) Transportation services. For taxable years ending
3 before December 31, 2008, business income derived from
4 furnishing transportation services shall be apportioned to
5 this State in accordance with paragraphs (1) and (2):
6         (1) Such business income (other than that derived from
7     transportation by pipeline) shall be apportioned to this
8     State by multiplying such income by a fraction, the
9     numerator of which is the revenue miles of the person in
10     this State, and the denominator of which is the revenue
11     miles of the person everywhere. For purposes of this
12     paragraph, a revenue mile is the transportation of 1
13     passenger or 1 net ton of freight the distance of 1 mile
14     for a consideration. Where a person is engaged in the
15     transportation of both passengers and freight, the
16     fraction above referred to shall be determined by means of
17     an average of the passenger revenue mile fraction and the
18     freight revenue mile fraction, weighted to reflect the
19     person's
20             (A) relative railway operating income from total
21         passenger and total freight service, as reported to the
22         Interstate Commerce Commission, in the case of
23         transportation by railroad, and
24             (B) relative gross receipts from passenger and
25         freight transportation, in case of transportation
26         other than by railroad.

 

 

SB1999 - 137 - LRB095 14469 DRJ 40375 b

1         (2) Such business income derived from transportation
2     by pipeline shall be apportioned to this State by
3     multiplying such income by a fraction, the numerator of
4     which is the revenue miles of the person in this State, and
5     the denominator of which is the revenue miles of the person
6     everywhere. For the purposes of this paragraph, a revenue
7     mile is the transportation by pipeline of 1 barrel of oil,
8     1,000 cubic feet of gas, or of any specified quantity of
9     any other substance, the distance of 1 mile for a
10     consideration.
11         (3) For taxable years ending on or after December 31,
12     2008, business income derived from providing
13     transportation services other than airline services shall
14     be apportioned to this State by using a fraction, (a) the
15     numerator of which shall be (i) all receipts from any
16     movement or shipment of people, goods, mail, oil, gas, or
17     any other substance (other than by airline) that both
18     originates and terminates in this State, plus (ii) that
19     portion of the person's gross receipts from movements or
20     shipments of people, goods, mail, oil, gas, or any other
21     substance (other than by airline) passing through, into, or
22     out of this State, that is determined by the ratio that the
23     miles traveled in this State bears to total miles from
24     point of origin to point of destination and (b) the
25     denominator of which shall be all revenue derived from the
26     movement or shipment of people, goods, mail, oil, gas, or

 

 

SB1999 - 138 - LRB095 14469 DRJ 40375 b

1     any other substance (other than by airline). If a person
2     derives business income from activities in addition to the
3     provision of transportation services (other than by
4     airline), this subsection shall apply only to its business
5     income from transportation services and its other business
6     income shall be apportioned to this State according to the
7     applicable provisions of this Section.
8         (4) For taxable years ending on or after December 31,
9     2008, business income derived from providing airline
10     services shall be apportioned to this State by using a
11     fraction, (a) the numerator of which shall be arrivals of
12     aircraft to and departures from this State weighted as to
13     cost of aircraft by type and (b) the denominator of which
14     shall be total arrivals and departures of aircraft weighted
15     as to cost of aircraft by type. If a person derives
16     business income from activities in addition to the
17     provision of airline services, this subsection shall apply
18     only to its business income from airline services and its
19     other business income shall be apportioned to this State
20     under the applicable provisions of this Section.
21     (e) Combined apportionment. Where 2 or more persons are
22 engaged in a unitary business as described in subsection
23 (a)(27) of Section 1501, a part of which is conducted in this
24 State by one or more members of the group, the business income
25 attributable to this State by any such member or members shall
26 be apportioned by means of the combined apportionment method.

 

 

SB1999 - 139 - LRB095 14469 DRJ 40375 b

1     (f) Alternative allocation. If the allocation and
2 apportionment provisions of subsections (a) through (e) and of
3 subsection (h) do not fairly represent the extent of a person's
4 business activity in this State, the person may petition for,
5 or the Director may, without a petition, permit or require, in
6 respect of all or any part of the person's business activity,
7 if reasonable:
8         (1) Separate accounting;
9         (2) The exclusion of any one or more factors;
10         (3) The inclusion of one or more additional factors
11     which will fairly represent the person's business
12     activities in this State; or
13         (4) The employment of any other method to effectuate an
14     equitable allocation and apportionment of the person's
15     business income.
16     (g) Cross reference. For allocation of business income by
17 residents, see Section 301(a).
18     (h) For tax years ending on or after December 31, 1998, the
19 apportionment factor of persons who apportion their business
20 income to this State under subsection (a) shall be equal to:
21         (1) for tax years ending on or after December 31, 1998
22     and before December 31, 1999, 16 2/3% of the property
23     factor plus 16 2/3% of the payroll factor plus 66 2/3% of
24     the sales factor;
25         (2) for tax years ending on or after December 31, 1999
26     and before December 31, 2000, 8 1/3% of the property factor

 

 

SB1999 - 140 - LRB095 14469 DRJ 40375 b

1     plus 8 1/3% of the payroll factor plus 83 1/3% of the sales
2     factor;
3         (3) for tax years ending on or after December 31, 2000,
4     the sales factor.
5 If, in any tax year ending on or after December 31, 1998 and
6 before December 31, 2000, the denominator of the payroll,
7 property, or sales factor is zero, the apportionment factor
8 computed in paragraph (1) or (2) of this subsection for that
9 year shall be divided by an amount equal to 100% minus the
10 percentage weight given to each factor whose denominator is
11 equal to zero.
12 (Source: P.A. 94-247, eff. 1-1-06; 95-233, eff. 8-16-07.)
 
13     Section 9135. The Property Tax Code is amended by changing
14 Section 15-65 as follows:
 
15     (35 ILCS 200/15-65)
16     Sec. 15-65. Charitable purposes. All property of the
17 following is exempt when actually and exclusively used for
18 charitable or beneficent purposes, and not leased or otherwise
19 used with a view to profit:
20         (a) Institutions of public charity.
21         (b) Beneficent and charitable organizations
22     incorporated in any state of the United States, including
23     organizations whose owner, and no other person, uses the
24     property exclusively for the distribution, sale, or resale

 

 

SB1999 - 141 - LRB095 14469 DRJ 40375 b

1     of donated goods and related activities and uses all the
2     income from those activities to support the charitable,
3     religious or beneficent activities of the owner, whether or
4     not such activities occur on the property.
5         (c) Old people's homes, facilities for persons with a
6     developmental disability, and not-for-profit organizations
7     providing services or facilities related to the goals of
8     educational, social and physical development, if, upon
9     making application for the exemption, the applicant
10     provides affirmative evidence that the home or facility or
11     organization is an exempt organization under paragraph (3)
12     of Section 501(c) of the Internal Revenue Code or its
13     successor, and either: (i) the bylaws of the home or
14     facility or not-for-profit organization provide for a
15     waiver or reduction, based on an individual's ability to
16     pay, of any entrance fee, assignment of assets, or fee for
17     services, or (ii) the home or facility is qualified, built
18     or financed under Section 202 of the National Housing Act
19     of 1959, as amended.
20         An applicant that has been granted an exemption under
21     this subsection on the basis that its bylaws provide for a
22     waiver or reduction, based on an individual's ability to
23     pay, of any entrance fee, assignment of assets, or fee for
24     services may be periodically reviewed by the Department to
25     determine if the waiver or reduction was a past policy or
26     is a current policy. The Department may revoke the

 

 

SB1999 - 142 - LRB095 14469 DRJ 40375 b

1     exemption if it finds that the policy for waiver or
2     reduction is no longer current.
3         If a not-for-profit organization leases property that
4     is otherwise exempt under this subsection to an
5     organization that conducts an activity on the leased
6     premises that would entitle the lessee to an exemption from
7     real estate taxes if the lessee were the owner of the
8     property, then the leased property is exempt.
9         (d) Not-for-profit health maintenance organizations
10     certified by the Secretary of Financial and Professional
11     Regulation or the Secretary's predecessor, the Director of
12     the Illinois Department of Insurance, under the Health
13     Maintenance Organization Act, including any health
14     maintenance organization that provides services to members
15     at prepaid rates approved by the Department of Financial
16     and Professional Regulation or the Illinois Department of
17     Insurance if the membership of the organization is
18     sufficiently large or of indefinite classes so that the
19     community is benefited by its operation. No exemption shall
20     apply to any hospital or health maintenance organization
21     which has been adjudicated by a court of competent
22     jurisdiction to have denied admission to any person because
23     of race, color, creed, sex or national origin.
24         (e) All free public libraries.
25         (f) Historical societies.
26     Property otherwise qualifying for an exemption under this

 

 

SB1999 - 143 - LRB095 14469 DRJ 40375 b

1 Section shall not lose its exemption because the legal title is
2 held (i) by an entity that is organized solely to hold that
3 title and that qualifies under paragraph (2) of Section 501(c)
4 of the Internal Revenue Code or its successor, whether or not
5 that entity receives rent from the charitable organization for
6 the repair and maintenance of the property, (ii) by an entity
7 that is organized as a partnership, in which the charitable
8 organization, or an affiliate or subsidiary of the charitable
9 organization, is a general partner, for the purposes of owning
10 and operating a residential rental property that has received
11 an allocation of Low Income Housing Tax Credits for 100% of the
12 dwelling units under Section 42 of the Internal Revenue Code of
13 1986, or (iii) for any assessment year including and subsequent
14 to January 1, 1996 for which an application for exemption has
15 been filed and a decision on which has not become final and
16 nonappealable, by a limited liability company organized under
17 the Limited Liability Company Act provided that (A) the limited
18 liability company receives a notification from the Internal
19 Revenue Service that it qualifies under paragraph (2) or (3) of
20 Section 501(c) of the Internal Revenue Code; (B) the limited
21 liability company's sole members, as that term is used in
22 Section 1-5 of the Limited Liability Company Act, are the
23 institutions of public charity that actually and exclusively
24 use the property for charitable and beneficent purposes; and
25 (C) the limited liability company does not lease the property
26 or otherwise use it with a view to profit.

 

 

SB1999 - 144 - LRB095 14469 DRJ 40375 b

1 (Source: P.A. 91-416, eff. 8-6-99; 92-382, eff. 8-16-01.)
 
2     Section 9140. The Illinois Pension Code is amended by
3 changing Sections 1-113.3, 1-113.4, 1-113.5, 1-113.6, 1-113.7,
4 1-113.11, 1A-101, 1A-102, 1A-104, 1A-105, 1A-107, 1A-111,
5 1A-112, 1A-113, 3-110, 4-118, 4-121, 5-188, 5-226, 6-184,
6 6-220, 13-711, 14-104, and 14-110 as follows:
 
7     (40 ILCS 5/1-113.3)
8     Sec. 1-113.3. List of additional permitted investments for
9 pension funds with net assets of $2,500,000 or more.
10     (a) In addition to the items in Section 3-113.2, a pension
11 fund established under Article 3 or 4 that has net assets of at
12 least $2,500,000 may invest a portion of its net assets in the
13 following items:
14         (1) Separate accounts that are managed by life
15     insurance companies authorized to transact business in
16     Illinois and are comprised of diversified portfolios
17     consisting of common or preferred stocks, bonds, or money
18     market instruments.
19         (2) Mutual funds that meet the following requirements:
20             (i) the mutual fund is managed by an investment
21         company as defined and registered under the federal
22         Investment Company Act of 1940 and registered under the
23         Illinois Securities Law of 1953;
24             (ii) the mutual fund has been in operation for at

 

 

SB1999 - 145 - LRB095 14469 DRJ 40375 b

1         least 5 years;
2             (iii) the mutual fund has total net assets of $250
3         million or more; and
4             (iv) the mutual fund is comprised of diversified
5         portfolios of common or preferred stocks, bonds, or
6         money market instruments.
7     (b) A pension fund's total investment in the items
8 authorized under this Section shall not exceed 35% of the
9 market value of the pension fund's net present assets stated in
10 its most recent annual report on file with the Department of
11 Financial and Professional Regulation the Illinois Department
12 of Insurance.
13 (Source: P.A. 90-507, eff. 8-22-97.)
 
14     (40 ILCS 5/1-113.4)
15     Sec. 1-113.4. List of additional permitted investments for
16 pension funds with net assets of $5,000,000 or more.
17     (a) In addition to the items in Sections 1-113.2 and
18 1-113.3, a pension fund established under Article 3 or 4 that
19 has net assets of at least $5,000,000 and has appointed an
20 investment adviser under Section 1-113.5 may, through that
21 investment adviser, invest a portion of its assets in common
22 and preferred stocks authorized for investments of trust funds
23 under the laws of the State of Illinois. The stocks must meet
24 all of the following requirements:
25         (1) The common stocks are listed on a national

 

 

SB1999 - 146 - LRB095 14469 DRJ 40375 b

1     securities exchange or board of trade (as defined in the
2     federal Securities Exchange Act of 1934 and set forth in
3     Section 3.G of the Illinois Securities Law of 1953) or
4     quoted in the National Association of Securities Dealers
5     Automated Quotation System National Market System (NASDAQ
6     NMS).
7         (2) The securities are of a corporation created or
8     existing under the laws of the United States or any state,
9     district, or territory thereof and the corporation has been
10     in existence for at least 5 years.
11         (3) The corporation has not been in arrears on payment
12     of dividends on its preferred stock during the preceding 5
13     years.
14         (4) The market value of stock in any one corporation
15     does not exceed 5% of the cash and invested assets of the
16     pension fund, and the investments in the stock of any one
17     corporation do not exceed 5% of the total outstanding stock
18     of that corporation.
19         (5) The straight preferred stocks or convertible
20     preferred stocks are issued or guaranteed by a corporation
21     whose common stock qualifies for investment by the board.
22         (6) The issuer of the stocks has been subject to the
23     requirements of Section 12 of the federal Securities
24     Exchange Act of 1934 and has been current with the filing
25     requirements of Sections 13 and 14 of that Act during the
26     preceding 3 years.

 

 

SB1999 - 147 - LRB095 14469 DRJ 40375 b

1     (b) A pension fund's total investment in the items
2 authorized under this Section and Section 1-113.3 shall not
3 exceed 35% of the market value of the pension fund's net
4 present assets stated in its most recent annual report on file
5 with the Department of Financial and Professional Regulation
6 the Illinois Department of Insurance.
7     (c) A pension fund that invests funds under this Section
8 shall electronically file with the Division any reports of its
9 investment activities that the Division may require, at the
10 times and in the format required by the Division.
11 (Source: P.A. 90-507, eff. 8-22-97.)
 
12     (40 ILCS 5/1-113.5)
13     Sec. 1-113.5. Investment advisers and investment services.
14     (a) The board of trustees of a pension fund may appoint
15 investment advisers as defined in Section 1-101.4. The board of
16 any pension fund investing in common or preferred stock under
17 Section 1-113.4 shall appoint an investment adviser before
18 making such investments.
19     The investment adviser shall be a fiduciary, as defined in
20 Section 1-101.2, with respect to the pension fund and shall be
21 one of the following:
22         (1) an investment adviser registered under the federal
23     Investment Advisers Act of 1940 and the Illinois Securities
24     Law of 1953;
25         (2) a bank or trust company authorized to conduct a

 

 

SB1999 - 148 - LRB095 14469 DRJ 40375 b

1     trust business in Illinois;
2         (3) a life insurance company authorized to transact
3     business in Illinois; or
4         (4) an investment company as defined and registered
5     under the federal Investment Company Act of 1940 and
6     registered under the Illinois Securities Law of 1953.
7     (b) All investment advice and services provided by an
8 investment adviser appointed under this Section shall be
9 rendered pursuant to a written contract between the investment
10 adviser and the board, and in accordance with the board's
11 investment policy.
12     The contract shall include all of the following:
13         (1) acknowledgement in writing by the investment
14     adviser that he or she is a fiduciary with respect to the
15     pension fund;
16         (2) the board's investment policy;
17         (3) full disclosure of direct and indirect fees,
18     commissions, penalties, and any other compensation that
19     may be received by the investment adviser, including
20     reimbursement for expenses; and
21         (4) a requirement that the investment adviser submit
22     periodic written reports, on at least a quarterly basis,
23     for the board's review at its regularly scheduled meetings.
24     All returns on investment shall be reported as net returns
25     after payment of all fees, commissions, and any other
26     compensation.

 

 

SB1999 - 149 - LRB095 14469 DRJ 40375 b

1     (c) Within 30 days after appointing an investment adviser,
2 the board shall submit a copy of the contract to the Department
3 of Financial and Professional Regulation Insurance.
4     (d) Investment services provided by a person other than an
5 investment adviser appointed under this Section, including but
6 not limited to services provided by the kinds of persons listed
7 in items (1) through (4) of subsection (a), shall be rendered
8 only after full written disclosure of direct and indirect fees,
9 commissions, penalties, and any other compensation that shall
10 or may be received by the person rendering those services.
11     (e) The board of trustees of each pension fund shall retain
12 records of investment transactions in accordance with the rules
13 of the Department of Financial and Professional Regulation
14 Insurance.
15 (Source: P.A. 90-507, eff. 8-22-97.)
 
16     (40 ILCS 5/1-113.6)
17     Sec. 1-113.6. Investment policies. Every board of trustees
18 of a pension fund shall adopt a written investment policy and
19 file a copy of that policy with the Department of Financial and
20 Professional Regulation Insurance within 30 days after its
21 adoption. Whenever a board changes its investment policy, it
22 shall file a copy of the new policy with the Department within
23 30 days.
24 (Source: P.A. 90-507, eff. 8-22-97.)
 

 

 

SB1999 - 150 - LRB095 14469 DRJ 40375 b

1     (40 ILCS 5/1-113.7)
2     Sec. 1-113.7. Registration of investments; custody and
3 safekeeping. The board of trustees may register the investments
4 of its pension fund in the name of the pension fund, in the
5 nominee name of a bank or trust company authorized to conduct a
6 trust business in Illinois, or in the nominee name of the
7 Illinois Public Treasurer's Investment Pool.
8     The assets of the pension fund and ownership of its
9 investments shall be protected through third-party custodial
10 safekeeping. The board of trustees may appoint as custodian of
11 the investments of its pension fund the treasurer of the
12 municipality, a bank or trust company authorized to conduct a
13 trust business in Illinois, or the Illinois Public Treasurer's
14 Investment Pool.
15     A dealer may not maintain possession of or control over
16 securities of a pension fund subject to the provisions of this
17 Section unless it is registered as a broker-dealer with the
18 U.S. Securities and Exchange Commission and is a member in good
19 standing of the National Association of Securities Dealers, and
20 (1) with respect to securities that are not issued only in
21 book-entry form, (A) all such securities of each fund are
22 either held in safekeeping in a place reasonably free from risk
23 of destruction or held in custody by a securities depository
24 that is a "clearing agency" registered with the U.S. Securities
25 and Exchange Commission, (B) the dealer is a member of the
26 Securities Investor Protection Corporation, (C) the dealer

 

 

SB1999 - 151 - LRB095 14469 DRJ 40375 b

1 sends to each fund, no less frequently than each calendar
2 quarter, an itemized statement showing the moneys and
3 securities in the custody or possession of the dealer at the
4 end of such period, and (D) an independent certified public
5 accountant conducts an audit, no less frequently than each
6 calendar year, that reviews the dealer's internal accounting
7 controls and procedures for safeguarding securities; and (2)
8 with respect to securities that are issued only in book-entry
9 form, (A) all such securities of each fund are held either in a
10 securities depository that is a "clearing agency" registered
11 with the U.S. Securities and Exchange Commission or in a bank
12 that is a member of the Federal Reserve System, (B) the dealer
13 records the ownership interest of the funds in such securities
14 on the dealer's books and records, (C) the dealer is a member
15 of the Securities Investor Protection Corporation, (D) the
16 dealer sends to each fund, no less frequently than each
17 calendar quarter, an itemized statement showing the moneys and
18 securities in the custody or possession of the dealer at the
19 end of such period, and (E) the dealer's financial statement
20 (which shall contain among other things a statement of the
21 dealer's net capital and its required net capital computed in
22 accordance with Rule 15c3-1 under the Securities Exchange Act
23 of 1934) is audited annually by an independent certified public
24 accountant, and the dealer's most recent audited financial
25 statement is furnished to the fund. No broker-dealer serving as
26 a custodian for any public pension fund as provided by this Act

 

 

SB1999 - 152 - LRB095 14469 DRJ 40375 b

1 shall be authorized to serve as an investment advisor for that
2 same public pension fund as described in Section 1-101.4 of
3 this Code, to the extent that the investment advisor acquires
4 or disposes of any asset of that same public pension fund.
5 Notwithstanding the foregoing, in no event may a broker or
6 dealer that is a natural person maintain possession of or
7 control over securities or other assets of a pension fund
8 subject to the provisions of this Section. In maintaining
9 securities of a pension fund subject to the provisions of this
10 Section, each dealer must maintain those securities in
11 conformity with the provisions of Rule 15c3-3(b) of the
12 Securities Exchange Act of 1934 (Physical Possession or Control
13 of Securities). The Secretary of Financial and Professional
14 Regulation Director of the Department of Insurance may adopt
15 such rules and regulations as shall be necessary and
16 appropriate in his or her judgment to effectuate the purposes
17 of this Section.
18     A bank or trust company authorized to conduct a trust
19 business in Illinois shall register, deposit, or hold
20 investments for safekeeping, all in accordance with the
21 obligations and subject to the limitations of the Securities in
22 Fiduciary Accounts Act.
23 (Source: P.A. 92-651, eff. 7-11-02.)
 
24     (40 ILCS 5/1-113.11)
25     Sec. 1-113.11. Rules. The Department of Financial and

 

 

SB1999 - 153 - LRB095 14469 DRJ 40375 b

1 Professional Regulation Insurance is authorized to promulgate
2 rules that are necessary or useful for the administration and
3 enforcement of Sections 1-113.1 through 1-113.10 of this
4 Article.
5 (Source: P.A. 90-507, eff. 8-22-97.)
 
6     (40 ILCS 5/1A-101)
7     Sec. 1A-101. Creation of Public Pension Division. There is
8 created in the Department of Financial and Professional
9 Regulation Insurance a Public Pension Division which, under the
10 supervision and direction of the Secretary of Financial and
11 Professional Regulation Director of Insurance, shall exercise
12 the powers and perform the duties and functions prescribed
13 under this Code. The Division shall consist of an
14 administrator, a supervisor, a technical staff trained in the
15 fundamentals of public pension fund planning, operations,
16 administration, and investment of public pension funds, and
17 such other personnel as may be necessary properly and
18 effectively to discharge the functions of the Division.
19 (Source: P.A. 90-507, eff. 8-22-97.)
 
20     (40 ILCS 5/1A-102)
21     Sec. 1A-102. Definitions. As used in this Article, the
22 following terms have the meanings ascribed to them in this
23 Section, unless the context otherwise requires:
24     "Accrued liability" means the actuarial present value of

 

 

SB1999 - 154 - LRB095 14469 DRJ 40375 b

1 future benefit payments and appropriate administrative
2 expenses under a plan, reduced by the actuarial present value
3 of all future normal costs (including any participant
4 contributions) with respect to the participants included in the
5 actuarial valuation of the plan.
6     "Actuarial present value" means the single amount, as of a
7 given valuation date, that results from applying actuarial
8 assumptions to an amount or series of amounts payable or
9 receivable at various times.
10     "Actuarial value of assets" means the value assigned by the
11 actuary to the assets of a plan for the purposes of an
12 actuarial valuation.
13     "Basis point" means 1/100th of one percent.
14     "Beneficiary" means a person eligible for or receiving
15 benefits from a pension fund as provided in the Article of this
16 Code under which the fund is established.
17     "Credited projected benefit" means that portion of a
18 participant's projected benefit based on an allocation taking
19 into account service to date determined in accordance with the
20 terms of the plan based on anticipated future compensation.
21     "Current value" means the fair market value when available;
22 otherwise, the fair value as determined in good faith by a
23 trustee, assuming an orderly liquidation at the time of the
24 determination.
25     "Department" means the Department of Financial and
26 Professional Regulation Insurance of the State of Illinois.

 

 

SB1999 - 155 - LRB095 14469 DRJ 40375 b

1     "Director" means the Director of the Department of
2 Insurance.
3     "Division" means the Public Pension Division of the
4 Department of Financial and Professional Regulation Insurance.
5     "Governmental unit" means the State of Illinois, any
6 instrumentality or agency thereof (except transit authorities
7 or agencies operating within or within and without cities with
8 a population over 3,000,000), and any political subdivision or
9 municipal corporation that establishes and maintains a public
10 pension fund.
11     "Normal cost" means that part of the actuarial present
12 value of all future benefit payments and appropriate
13 administrative expenses assigned to the current year under the
14 actuarial valuation method used by the plan (excluding any
15 amortization of the unfunded accrued liability).
16     "Participant" means a participating member or deferred
17 pensioner or annuitant of a pension fund as provided in the
18 Article of this Code under which the pension fund is
19 established, or a beneficiary thereof.
20     "Pension fund" means any public pension fund, annuity and
21 benefit fund, or retirement system established under this Code.
22     "Plan year" means the calendar or fiscal year on which the
23 records of a given plan are kept.
24     "Projected benefits" means benefit amounts under a plan
25 which are expected to be paid at various future times under a
26 particular set of actuarial assumptions, taking into account,

 

 

SB1999 - 156 - LRB095 14469 DRJ 40375 b

1 as applicable, the effect of advancement in age and past and
2 anticipated future compensation and service credits.
3     "Secretary" means the Secretary of Financial and
4 Professional Regulation.
5     "Supplemental annual cost" means that portion of the
6 unfunded accrued liability assigned to the current year under
7 one of the following bases:
8         (1) interest only on the unfunded accrued liability;
9         (2) the level annual amount required to amortize the
10     unfunded accrued liability over a period not exceeding 40
11     years;
12         (3) the amount required for the current year to
13     amortize the unfunded accrued liability over a period not
14     exceeding 40 years as a level percentage of payroll.
15     "Total annual cost" means the sum of the normal cost plus
16 the supplemental annual cost.
17     "Unfunded accrued liability" means the excess of the
18 accrued liability over the actuarial value of the assets of a
19 plan.
20     "Vested pension benefit" means an interest obtained by a
21 participant or beneficiary in that part of an immediate or
22 deferred benefit under a plan which arises from the
23 participant's service and is not conditional upon the
24 participant's continued service for an employer any of whose
25 employees are covered under the plan, and which has not been
26 forfeited under the terms of the plan.

 

 

SB1999 - 157 - LRB095 14469 DRJ 40375 b

1 (Source: P.A. 90-507, eff. 8-22-97.)
 
2     (40 ILCS 5/1A-104)
3     Sec. 1A-104. Examinations and investigations.
4     (a) The Division shall make periodic examinations and
5 investigations of all pension funds established under this Code
6 and maintained for the benefit of employees and officers of
7 governmental units in the State of Illinois. However, in lieu
8 of making an examination and investigation, the Division may
9 accept and rely upon a report of audit or examination of any
10 pension fund made by an independent certified public accountant
11 pursuant to the provisions of the Article of this Code
12 governing the pension fund. The acceptance of the report of
13 audit or examination does not bar the Division from making a
14 further audit, examination, and investigation if deemed
15 necessary by the Division.
16     The Department may implement a flexible system of
17 examinations under which it directs resources as it deems
18 necessary or appropriate. In consultation with the pension fund
19 being examined, the Division may retain attorneys, independent
20 actuaries, independent certified public accountants, and other
21 professionals and specialists as examiners, the cost of which
22 (except in the case of pension funds established under Article
23 3 or 4) shall be borne by the pension fund that is the subject
24 of the examination.
25     (b) The Division shall examine or investigate each pension

 

 

SB1999 - 158 - LRB095 14469 DRJ 40375 b

1 fund established under Article 3 or Article 4 of this Code.
2     Each examination shall include the following:
3         (1) an audit of financial transactions, investment
4     policies, and procedures;
5         (2) an examination of books, records, documents,
6     files, and other pertinent memoranda relating to
7     financial, statistical, and administrative operations;
8         (3) a review of policies and procedures maintained for
9     the administration and operation of the pension fund;
10         (4) a determination of whether or not full effect is
11     being given to the statutory provisions governing the
12     operation of the pension fund;
13         (5) a determination of whether or not the
14     administrative policies in force are in accord with the
15     purposes of the statutory provisions and effectively
16     protect and preserve the rights and equities of the
17     participants; and
18         (6) a determination of whether or not proper financial
19     and statistical records have been established and adequate
20     documentary evidence is recorded and maintained in support
21     of the several types of annuity and benefit payments being
22     made.
23     In addition, the Division may conduct investigations,
24 which shall be identified as such and which may include one or
25 more of the items listed in this subsection.
26     A copy of the report of examination or investigation as

 

 

SB1999 - 159 - LRB095 14469 DRJ 40375 b

1 prepared by the Division shall be submitted to the secretary of
2 the board of trustees of the pension fund examined or
3 investigated. The Secretary Director, upon request, shall
4 grant a hearing to the officers or trustees of the pension fund
5 or their duly appointed representatives, upon any facts
6 contained in the report of examination. The hearing shall be
7 conducted before filing the report or making public any
8 information contained in the report. The Secretary Director may
9 withhold the report from public inspection for up to 60 days
10 following the hearing.
11 (Source: P.A. 90-507, eff. 8-22-97.)
 
12     (40 ILCS 5/1A-105)
13     Sec. 1A-105. Examination and subpoena of records and
14 witnesses. The Secretary Director may administer oaths and
15 affirmations and summon and compel the attendance before him or
16 her and examine under oath any officer, trustee, agent,
17 actuary, attorney, or employee connected either directly or
18 indirectly with any pension fund, or any other person having
19 information regarding the condition, affairs, management,
20 administration, or methods of conducting a pension fund. The
21 Secretary Director may require any person having possession of
22 any record, book, paper, contract, or other document pertaining
23 to a pension fund to surrender it or to otherwise afford the
24 Secretary Director access to it and for failure so to do the
25 Secretary Director may attach the same.

 

 

SB1999 - 160 - LRB095 14469 DRJ 40375 b

1     Should any person fail to obey the summons of the Secretary
2 Director or refuse to surrender to him or her or afford him or
3 her access to any such record, book, paper, contract, or other
4 document, the Secretary Director may apply to the circuit court
5 of the county in which the principal office of the pension fund
6 involved is located, and the court, if it finds that the
7 Secretary Director has not exceeded his or her authority in the
8 matter, may, by order duly entered, require the attendance of
9 witnesses and the production of all relevant documents required
10 by the Secretary Director in carrying out his or her
11 responsibilities under this Code. Upon refusal or neglect to
12 obey the order of the court, the court may compel obedience by
13 proceedings for contempt of court.
14 (Source: P.A. 90-507, eff. 8-22-97.)
 
15     (40 ILCS 5/1A-107)
16     Sec. 1A-107. Automation of services. The Division shall
17 automate its operations, services, and communications to the
18 fullest practical extent. This automation shall include, but
19 need not be limited to, the acquisition, use, and maintenance
20 of electronic data processing technology to (i) automate
21 Division operations as necessary to carry out its duties and
22 responsibilities under this Code, (ii) provide by FY 2000
23 electronic exchange of information between the Division and
24 pension funds subject to this Code, (iii) provide to pension
25 funds and the general public and receive from pension funds and

 

 

SB1999 - 161 - LRB095 14469 DRJ 40375 b

1 the general public data on computer processible media, and (iv)
2 control access to information when necessary to protect the
3 confidentiality of persons identified in the information.
4     The Division shall ensure that this automation is designed
5 so as to protect any confidential data it may receive from a
6 pension fund. This Section does not authorize the Division or
7 the Department of Insurance to disclose any information
8 identifying specific pension fund participants or relating to
9 an identifiable pension fund participant.
10 (Source: P.A. 90-507, eff. 8-22-97.)
 
11     (40 ILCS 5/1A-111)
12     Sec. 1A-111. Actuarial statements by pension funds
13 established under Article 3 or 4.
14     (a) Each pension fund established under Article 3 or 4 of
15 this Code shall include as part of its annual statement a
16 complete actuarial statement applicable to the plan year.
17     If the actuarial statement is prepared by a person other
18 than the Department, it shall be filed with the Division within
19 9 months after the close of the fiscal year of the pension
20 fund. Any pension fund that fails to file within that time
21 shall be subject to the penalty provisions of Section 1A-113.
22 The statement shall be prepared by or under the supervision of
23 a qualified actuary, signed by the qualified actuary, and
24 contain such information as the Division may by rule require.
25     (b) For the purposes of this Section, "qualified actuary"

 

 

SB1999 - 162 - LRB095 14469 DRJ 40375 b

1 means (i) a member of the American Academy of Actuaries, or
2 (ii) an individual who has demonstrated to the satisfaction of
3 the Secretary Director that he or she has the educational
4 background necessary for the practice of actuarial science and
5 has at least 7 years of actuarial experience.
6 (Source: P.A. 90-507, eff. 8-22-97.)
 
7     (40 ILCS 5/1A-112)
8     Sec. 1A-112. Fees.
9     (a) Every pension fund that is required to file an annual
10 statement under Section 1A-109 shall pay to the Department an
11 annual compliance fee. In the case of a pension fund under
12 Article 3 or 4 of this Code, the annual compliance fee shall be
13 0.02% (2 basis points) of the total assets of the pension fund,
14 as reported in the most current annual statement of the fund,
15 but not more than $8,000. In the case of all other pension
16 funds and retirement systems, the annual compliance fee shall
17 be $8,000.
18     (b) The annual compliance fee shall be due on June 30 for
19 the following State fiscal year, except that the fee payable in
20 1997 for fiscal year 1998 shall be due no earlier than 30 days
21 following the effective date of this amendatory Act of 1997.
22     (c) Any information obtained by the Division that is
23 available to the public under the Freedom of Information Act
24 and is either compiled in published form or maintained on a
25 computer processible medium shall be furnished upon the written

 

 

SB1999 - 163 - LRB095 14469 DRJ 40375 b

1 request of any applicant and the payment of a reasonable
2 information services fee established by the Secretary
3 Director, sufficient to cover the total cost to the Division of
4 compiling, processing, maintaining, and generating the
5 information. The information may be furnished by means of
6 published copy or on a computer processed or computer
7 processible medium.
8     No fee may be charged to any person for information that
9 the Division is required by law to furnish to that person.
10     (d) Except as otherwise provided in this Section, all fees
11 and penalties collected by the Department under this Code shall
12 be deposited into the Public Pension Regulation Fund.
13     (e) Fees collected under subsection (c) of this Section and
14 money collected under Section 1A-107 shall be deposited into
15 the Department's Statistical Services Revolving Fund and
16 credited to the account of the Public Pension Division. This
17 income shall be used exclusively for the purposes set forth in
18 Section 1A-107. Notwithstanding the provisions of Section
19 408.2 of the Illinois Insurance Code, no surplus funds
20 remaining in this account shall be deposited in the Insurance
21 Financial Regulation Fund. All money in this account that the
22 Secretary Director certifies is not needed for the purposes set
23 forth in Section 1A-107 of this Code shall be transferred to
24 the Public Pension Regulation Fund.
25     (f) Nothing in this Code prohibits the General Assembly
26 from appropriating funds from the General Revenue Fund to the

 

 

SB1999 - 164 - LRB095 14469 DRJ 40375 b

1 Department for the purpose of administering or enforcing this
2 Code.
3 (Source: P.A. 93-32, eff. 7-1-03.)
 
4     (40 ILCS 5/1A-113)
5     Sec. 1A-113. Penalties.
6     (a) A pension fund that fails, without just cause, to file
7 its annual statement within the time prescribed under Section
8 1A-109 shall pay to the Department a penalty to be determined
9 by the Department, which shall not exceed $100 for each day's
10 delay.
11     (b) A pension fund that fails, without just cause, to file
12 its actuarial statement within the time prescribed under
13 Section 1A-110 or 1A-111 shall pay to the Department a penalty
14 to be determined by the Department, which shall not exceed $100
15 for each day's delay.
16     (c) A pension fund that fails to pay a fee within the time
17 prescribed under Section 1A-112 shall pay to the Department a
18 penalty of 5% of the amount of the fee for each month or part of
19 a month that the fee is late. The entire penalty shall not
20 exceed 25% of the fee due.
21     (d) This subsection applies to any governmental unit, as
22 defined in Section 1A-102, that is subject to any law
23 establishing a pension fund or retirement system for the
24 benefit of employees of the governmental unit.
25     Whenever the Division determines by examination,

 

 

SB1999 - 165 - LRB095 14469 DRJ 40375 b

1 investigation, or in any other manner that the governing body
2 or any elected or appointed officer or official of a
3 governmental unit has failed to comply with any provision of
4 that law:
5         (1) The Secretary Director shall notify in writing the
6     governing body, officer, or official of the specific
7     provision or provisions of the law with which the person
8     has failed to comply.
9         (2) Upon receipt of the notice, the person notified
10     shall take immediate steps to comply with the provisions of
11     law specified in the notice.
12         (3) If the person notified fails to comply within a
13     reasonable time after receiving the notice, the Secretary
14     Director may hold a hearing at which the person notified
15     may show cause for noncompliance with the law.
16         (4) If upon hearing the Secretary Director determines
17     that good and sufficient cause for noncompliance has not
18     been shown, the Secretary Director may order the person to
19     submit evidence of compliance within a specified period of
20     not less than 30 days.
21         (5) If evidence of compliance has not been submitted to
22     the Secretary Director within the period of time prescribed
23     in the order and no administrative appeal from the order
24     has been initiated, the Secretary Director may assess a
25     civil penalty of up to $2,000 against the governing body,
26     officer, or official for each noncompliance with an order

 

 

SB1999 - 166 - LRB095 14469 DRJ 40375 b

1     of the Secretary Director.
2     The Secretary Director shall develop by rule, with as much
3 specificity as practicable, the standards and criteria to be
4 used in assessing penalties and their amounts. The standards
5 and criteria shall include, but need not be limited to,
6 consideration of evidence of efforts made in good faith to
7 comply with applicable legal requirements. This rulemaking is
8 subject to the provisions of the Illinois Administrative
9 Procedure Act.
10     If a penalty is not paid within 30 days of the date of
11 assessment, the Secretary Director without further notice
12 shall report the act of noncompliance to the Attorney General
13 of this State. It shall be the duty of the Attorney General or,
14 if the Attorney General so designates, the State's Attorney of
15 the county in which the governmental unit is located to apply
16 promptly by complaint on relation of the Secretary of Financial
17 and Professional Regulation Director of Insurance in the name
18 of the people of the State of Illinois, as plaintiff, to the
19 circuit court of the county in which the governmental unit is
20 located for enforcement of the penalty prescribed in this
21 subsection or for such additional relief as the nature of the
22 case and the interest of the employees of the governmental unit
23 or the public may require.
24     (e) Whoever knowingly makes a false certificate, entry, or
25 memorandum upon any of the books or papers pertaining to any
26 pension fund or upon any statement, report, or exhibit filed or

 

 

SB1999 - 167 - LRB095 14469 DRJ 40375 b

1 offered for file with the Division or the Secretary Director of
2 Insurance in the course of any examination, inquiry, or
3 investigation, with intent to deceive the Secretary Director,
4 the Division, or any of its employees is guilty of a Class A
5 misdemeanor.
6 (Source: P.A. 90-507, eff. 8-22-97.)
 
7     (40 ILCS 5/3-110)  (from Ch. 108 1/2, par. 3-110)
8     Sec. 3-110. Creditable service.
9     (a) "Creditable service" is the time served by a police
10 officer as a member of a regularly constituted police force of
11 a municipality. In computing creditable service furloughs
12 without pay exceeding 30 days shall not be counted, but all
13 leaves of absence for illness or accident, regardless of
14 length, and all periods of disability retirement for which a
15 police officer has received no disability pension payments
16 under this Article shall be counted.
17     (a-5) Up to 3 years of time during which the police officer
18 receives a disability pension under Section 3-114.1, 3-114.2,
19 3-114.3, or 3-114.6 shall be counted as creditable service,
20 provided that (i) the police officer returns to active service
21 after the disability for a period at least equal to the period
22 for which credit is to be established and (ii) the police
23 officer makes contributions to the fund based on the rates
24 specified in Section 3-125.1 and the salary upon which the
25 disability pension is based. These contributions may be paid at

 

 

SB1999 - 168 - LRB095 14469 DRJ 40375 b

1 any time prior to the commencement of a retirement pension. The
2 police officer may, but need not, elect to have the
3 contributions deducted from the disability pension or to pay
4 them in installments on a schedule approved by the board. If
5 not deducted from the disability pension, the contributions
6 shall include interest at the rate of 6% per year, compounded
7 annually, from the date for which service credit is being
8 established to the date of payment. If contributions are paid
9 under this subsection (a-5) in excess of those needed to
10 establish the credit, the excess shall be refunded. This
11 subsection (a-5) applies to persons receiving a disability
12 pension under Section 3-114.1, 3-114.2, 3-114.3, or 3-114.6 on
13 the effective date of this amendatory Act of the 91st General
14 Assembly, as well as persons who begin to receive such a
15 disability pension after that date.
16     (b) Creditable service includes all periods of service in
17 the military, naval or air forces of the United States entered
18 upon while an active police officer of a municipality, provided
19 that upon applying for a permanent pension, and in accordance
20 with the rules of the board, the police officer pays into the
21 fund the amount the officer would have contributed if he or she
22 had been a regular contributor during such period, to the
23 extent that the municipality which the police officer served
24 has not made such contributions in the officer's behalf. The
25 total amount of such creditable service shall not exceed 5
26 years, except that any police officer who on July 1, 1973 had

 

 

SB1999 - 169 - LRB095 14469 DRJ 40375 b

1 more than 5 years of such creditable service shall receive the
2 total amount thereof.
3     (c) Creditable service also includes service rendered by a
4 police officer while on leave of absence from a police
5 department to serve as an executive of an organization whose
6 membership consists of members of a police department, subject
7 to the following conditions: (i) the police officer is a
8 participant of a fund established under this Article with at
9 least 10 years of service as a police officer; (ii) the police
10 officer received no credit for such service under any other
11 retirement system, pension fund, or annuity and benefit fund
12 included in this Code; (iii) pursuant to the rules of the board
13 the police officer pays to the fund the amount he or she would
14 have contributed had the officer been an active member of the
15 police department; and (iv) the organization pays a
16 contribution equal to the municipality's normal cost for that
17 period of service.
18         (d)(1) Creditable service also includes periods of
19     service originally established in another police pension
20     fund under this Article or in the Fund established under
21     Article 7 of this Code for which (i) the contributions have
22     been transferred under Section 3-110.7 or Section 7-139.9
23     and (ii) any additional contribution required under
24     paragraph (2) of this subsection has been paid in full in
25     accordance with the requirements of this subsection (d).
26         (2) If the board of the pension fund to which

 

 

SB1999 - 170 - LRB095 14469 DRJ 40375 b

1     creditable service and related contributions are
2     transferred under Section 3-110.7 or 7-139.9 determines
3     that the amount transferred is less than the true cost to
4     the pension fund of allowing that creditable service to be
5     established, then in order to establish that creditable
6     service the police officer must pay to the pension fund,
7     within the payment period specified in paragraph (3) of
8     this subsection, an additional contribution equal to the
9     difference, as determined by the board in accordance with
10     the rules and procedures adopted under paragraph (6) of
11     this subsection.
12         (3) Except as provided in paragraph (4), the additional
13     contribution must be paid to the board (i) within 5 years
14     from the date of the transfer of contributions under
15     Section 3-110.7 or 7-139.9 and (ii) before the police
16     officer terminates service with the fund. The additional
17     contribution may be paid in a lump sum or in accordance
18     with a schedule of installment payments authorized by the
19     board.
20         (4) If the police officer dies in service before
21     payment in full has been made and before the expiration of
22     the 5-year payment period, the surviving spouse of the
23     officer may elect to pay the unpaid amount on the officer's
24     behalf within 6 months after the date of death, in which
25     case the creditable service shall be granted as though the
26     deceased police officer had paid the remaining balance on

 

 

SB1999 - 171 - LRB095 14469 DRJ 40375 b

1     the day before the date of death.
2         (5) If the additional contribution is not paid in full
3     within the required time, the creditable service shall not
4     be granted and the police officer (or the officer's
5     surviving spouse or estate) shall be entitled to receive a
6     refund of (i) any partial payment of the additional
7     contribution that has been made by the police officer and
8     (ii) those portions of the amounts transferred under
9     subdivision (a)(1) of Section 3-110.7 or subdivisions
10     (a)(1) and (a)(3) of Section 7-139.9 that represent
11     employee contributions paid by the police officer (but not
12     the accumulated interest on those contributions) and
13     interest paid by the police officer to the prior pension
14     fund in order to reinstate service terminated by acceptance
15     of a refund.
16         At the time of paying a refund under this item (5), the
17     pension fund shall also repay to the pension fund from
18     which the contributions were transferred under Section
19     3-110.7 or 7-139.9 the amount originally transferred under
20     subdivision (a)(2) of that Section, plus interest at the
21     rate of 6% per year, compounded annually, from the date of
22     the original transfer to the date of repayment. Amounts
23     repaid to the Article 7 fund under this provision shall be
24     credited to the appropriate municipality.
25         Transferred credit that is not granted due to failure
26     to pay the additional contribution within the required time

 

 

SB1999 - 172 - LRB095 14469 DRJ 40375 b

1     is lost; it may not be transferred to another pension fund
2     and may not be reinstated in the pension fund from which it
3     was transferred.
4         (6) The Public Employee Pension Fund Division of the
5     Department of Financial and Professional Regulation
6     Insurance shall establish by rule the manner of making the
7     calculation required under paragraph (2) of this
8     subsection, taking into account the appropriate actuarial
9     assumptions; the police officer's service, age, and salary
10     history; the level of funding of the pension fund to which
11     the credits are being transferred; and any other factors
12     that the Division determines to be relevant. The rules may
13     require that all calculations made under paragraph (2) be
14     reported to the Division by the board performing the
15     calculation, together with documentation of the creditable
16     service to be transferred, the amounts of contributions and
17     interest to be transferred, the manner in which the
18     calculation was performed, the numbers relied upon in
19     making the calculation, the results of the calculation, and
20     any other information the Division may deem useful.
21         (e)(1) Creditable service also includes periods of
22     service originally established in the Fund established
23     under Article 7 of this Code for which the contributions
24     have been transferred under Section 7-139.11.
25         (2) If the board of the pension fund to which
26     creditable service and related contributions are

 

 

SB1999 - 173 - LRB095 14469 DRJ 40375 b

1     transferred under Section 7-139.11 determines that the
2     amount transferred is less than the true cost to the
3     pension fund of allowing that creditable service to be
4     established, then the amount of creditable service the
5     police officer may establish under this subsection (e)
6     shall be reduced by an amount equal to the difference, as
7     determined by the board in accordance with the rules and
8     procedures adopted under paragraph (3) of this subsection.
9         (3) The Public Pension Division of the Department of
10     Financial and Professional Regulation shall establish by
11     rule the manner of making the calculation required under
12     paragraph (2) of this subsection, taking into account the
13     appropriate actuarial assumptions; the police officer's
14     service, age, and salary history; the level of funding of
15     the pension fund to which the credits are being
16     transferred; and any other factors that the Division
17     determines to be relevant. The rules may require that all
18     calculations made under paragraph (2) be reported to the
19     Division by the board performing the calculation, together
20     with documentation of the creditable service to be
21     transferred, the amounts of contributions and interest to
22     be transferred, the manner in which the calculation was
23     performed, the numbers relied upon in making the
24     calculation, the results of the calculation, and any other
25     information the Division may deem useful.
26 (Source: P.A. 94-356, eff. 7-29-05.)
 

 

 

SB1999 - 174 - LRB095 14469 DRJ 40375 b

1     (40 ILCS 5/4-118)  (from Ch. 108 1/2, par. 4-118)
2     Sec. 4-118. Financing.
3     (a) The city council or the board of trustees of the
4 municipality shall annually levy a tax upon all the taxable
5 property of the municipality at the rate on the dollar which
6 will produce an amount which, when added to the deductions from
7 the salaries or wages of firefighters and revenues available
8 from other sources, will equal a sum sufficient to meet the
9 annual actuarial requirements of the pension fund, as
10 determined by an enrolled actuary employed by the Illinois
11 Department of Financial and Professional Regulation Insurance
12 or by an enrolled actuary retained by the pension fund or
13 municipality. For the purposes of this Section, the annual
14 actuarial requirements of the pension fund are equal to (1) the
15 normal cost of the pension fund, or 17.5% of the salaries and
16 wages to be paid to firefighters for the year involved,
17 whichever is greater, plus (2) the annual amount necessary to
18 amortize the fund's unfunded accrued liabilities over a period
19 of 40 years from July 1, 1993, as annually updated and
20 determined by an enrolled actuary employed by the Illinois
21 Department of Financial and Professional Regulation Insurance
22 or by an enrolled actuary retained by the pension fund or the
23 municipality. The amount to be applied towards the amortization
24 of the unfunded accrued liability in any year shall not be less
25 than the annual amount required to amortize the unfunded

 

 

SB1999 - 175 - LRB095 14469 DRJ 40375 b

1 accrued liability, including interest, as a level percentage of
2 payroll over the number of years remaining in the 40 year
3 amortization period.
4     (b) The tax shall be levied and collected in the same
5 manner as the general taxes of the municipality, and shall be
6 in addition to all other taxes now or hereafter authorized to
7 be levied upon all property within the municipality, and in
8 addition to the amount authorized to be levied for general
9 purposes, under Section 8-3-1 of the Illinois Municipal Code or
10 under Section 14 of the Fire Protection District Act. The tax
11 shall be forwarded directly to the treasurer of the board
12 within 30 business days of receipt by the county (or, in the
13 case of amounts added to the tax levy under subsection (f),
14 used by the municipality to pay the employer contributions
15 required under subsection (b-1) of Section 15-155 of this
16 Code).
17     (c) The board shall make available to the membership and
18 the general public for inspection and copying at reasonable
19 times the most recent Actuarial Valuation Balance Sheet and Tax
20 Levy Requirement issued to the fund by the Department of
21 Financial and Professional Regulation or its predecessor, the
22 Department of Insurance.
23     (d) The firefighters' pension fund shall consist of the
24 following moneys which shall be set apart by the treasurer of
25 the municipality: (1) all moneys derived from the taxes levied
26 hereunder; (2) contributions by firefighters as provided under

 

 

SB1999 - 176 - LRB095 14469 DRJ 40375 b

1 Section 4-118.1; (3) all rewards in money, fees, gifts, and
2 emoluments that may be paid or given for or on account of
3 extraordinary service by the fire department or any member
4 thereof, except when allowed to be retained by competitive
5 awards; and (4) any money, real estate or personal property
6 received by the board.
7     (e) For the purposes of this Section, "enrolled actuary"
8 means an actuary: (1) who is a member of the Society of
9 Actuaries or the American Academy of Actuaries; and (2) who is
10 enrolled under Subtitle C of Title III of the Employee
11 Retirement Income Security Act of 1974, or who has been engaged
12 in providing actuarial services to one or more public
13 retirement systems for a period of at least 3 years as of July
14 1, 1983.
15     (f) The corporate authorities of a municipality that
16 employs a person who is described in subdivision (d) of Section
17 4-106 may add to the tax levy otherwise provided for in this
18 Section an amount equal to the projected cost of the employer
19 contributions required to be paid by the municipality to the
20 State Universities Retirement System under subsection (b-1) of
21 Section 15-155 of this Code.
22 (Source: P.A. 94-859, eff. 6-15-06.)
 
23     (40 ILCS 5/4-121)  (from Ch. 108 1/2, par. 4-121)
24     Sec. 4-121. Board created. There is created in each
25 municipality or fire protection district a board of trustees to

 

 

SB1999 - 177 - LRB095 14469 DRJ 40375 b

1 be known as the "Board of Trustees of the Firefighters' Pension
2 Fund". The membership of the board for each municipality shall
3 be, respectively, as follows: in cities, the treasurer, clerk,
4 marshall or chief officer of the fire department, and the
5 comptroller if there is one, or if not, the mayor; in each
6 township, village or incorporated town, the president of the
7 municipality's board of trustees, the village or town clerk,
8 village or town attorney, village or town treasurer, and the
9 chief officer of the fire department; and in each fire
10 protection district, the president and other 2 members of its
11 board of trustees and the marshall or chief of its fire
12 department or service, as the case may be; and in all the
13 municipalities above designated 3 additional persons chosen
14 from their active firefighters and one other person who has
15 retired under the "Firemen's Pension Fund Act of 1919", or this
16 Article. Notwithstanding any provision of this Section to the
17 contrary, the term of office of each member of a board
18 established on or before the 3rd Monday in April, 2006 shall
19 terminate on the 3rd Monday in April, 2006, but all incumbent
20 members shall continue to exercise all of the powers and be
21 subject to all of the duties of a member of the board until all
22 the new members of the board take office.
23     Beginning on the 3rd Monday in April, 2006, the board for
24 each municipality or fire protection district shall consist of
25 5 members. Two members of the board shall be appointed by the
26 mayor or president of the board of trustees of the municipality

 

 

SB1999 - 178 - LRB095 14469 DRJ 40375 b

1 or fire protection district involved. Two members of the board
2 shall be active participants of the pension fund who are
3 elected from the active participants of the fund. One member of
4 the board shall be a person who is retired under the Firemen's
5 Pension Fund Act of 1919 or this Article who is elected from
6 persons retired under the Firemen's Pension Fund Act of 1919 or
7 this Article.
8     For the purposes of this Section, a firefighter receiving a
9 disability pension shall be considered a retired firefighter.
10 In the event that there are no retired firefighters under the
11 Fund or if none is willing to serve on the board, then an
12 additional active firefighter shall be elected to the board in
13 lieu of the retired firefighter that would otherwise be
14 elected.
15     If the regularly constituted fire department of a
16 municipality is dissolved and Section 4-106.1 is not
17 applicable, the board shall continue to exist and administer
18 the Fund so long as there continues to be any annuitant or
19 deferred pensioner in the Fund. In such cases, elections shall
20 continue to be held as specified in this Section, except that:
21 (1) deferred pensioners shall be deemed to be active members
22 for the purposes of such elections; (2) any otherwise
23 unfillable positions on the board, including ex officio
24 positions, shall be filled by election from the remaining
25 firefighters and deferred pensioners of the Fund, to the extent
26 possible; and (3) if the membership of the board falls below 3

 

 

SB1999 - 179 - LRB095 14469 DRJ 40375 b

1 persons, the Illinois Secretary of Financial and Professional
2 Regulation Director of Insurance or his designee shall be
3 deemed a member of the board, ex officio.
4     The members chosen from the active and retired firefighters
5 shall be elected by ballot at elections to be held on the 3rd
6 Monday in April of the applicable years under the Australian
7 ballot system, at such place or places, in the municipality,
8 and under such regulations as shall be prescribed by the board.
9     No person shall cast more than one vote for each candidate
10 for whom he or she is eligible to vote. In the elections for
11 board members to be chosen from the active firefighters, all
12 active firefighters and no others may vote. In the elections
13 for board members to be chosen from retired firefighters, the
14 retired firefighters and no others may vote.
15     Each member of the board so elected shall hold office for a
16 term of 3 years and until his or her successor has been duly
17 elected and qualified.
18     The board shall canvass the ballots and declare which
19 persons have been elected and for what term or terms
20 respectively. In case of a tie vote between 2 or more
21 candidates, the board shall determine by lot which candidate or
22 candidates have been elected and for what term or terms
23 respectively. In the event of the failure, resignation, or
24 inability to act of any board member, a successor shall be
25 elected for the unexpired term at a special election called by
26 the board and conducted in the same manner as a regular

 

 

SB1999 - 180 - LRB095 14469 DRJ 40375 b

1 election.
2     The board shall elect annually from its members a president
3 and secretary.
4     Board members shall not receive or have any right to
5 receive any salary from a pension fund for services performed
6 as board members.
7 (Source: P.A. 94-317, eff. 7-25-05.)
 
8     (40 ILCS 5/5-188)  (from Ch. 108 1/2, par. 5-188)
9     Sec. 5-188. To have an audit. To contract with an
10 independent certified public accounting firm to perform an
11 annual audit of the assets of the fund and issue a financial
12 opinion. The annual audit shall be in addition to any
13 examination of the fund by the Secretary of Financial and
14 Professional Regulation State Director of Insurance.
15 (Source: P.A. 85-964.)
 
16     (40 ILCS 5/5-226)  (from Ch. 108 1/2, par. 5-226)
17     Sec. 5-226. Examination and report by Secretary of
18 Financial and Professional Regulation Director of Insurance.
19 The Secretary of Financial and Professional Regulation
20 Director of Insurance biennially shall make a thorough
21 examination of the fund provided for in this Article. He or she
22 shall report the results thereof with such recommendations as
23 he or she deems proper to the Governor for transmittal to the
24 General Assembly, and send a copy to the board and to the city

 

 

SB1999 - 181 - LRB095 14469 DRJ 40375 b

1 council of the city. The city council shall file such report
2 and recommendations in the official record of its proceedings.
3     The requirement for reporting to the General Assembly shall
4 be satisfied by filing copies of the report with the Speaker,
5 the Minority Leader and the Clerk of the House of
6 Representatives and the President, the Minority Leader and the
7 Secretary of the Senate and the Legislative Research Unit, as
8 required by Section 3.1 of "An Act to revise the law in
9 relation to the General Assembly", approved February 25, 1874,
10 as amended, and filing such additional copies with the State
11 Government Report Distribution Center for the General Assembly
12 as is required under paragraph (t) of Section 7 of the State
13 Library Act.
14 (Source: P.A. 84-1438.)
 
15     (40 ILCS 5/6-184)  (from Ch. 108 1/2, par. 6-184)
16     Sec. 6-184. To have an audit. To contract with an
17 independent certified public accounting firm to perform an
18 annual audit of the assets of the fund and issue a financial
19 opinion. The annual audit shall be in addition to any
20 examination of the fund by the Secretary of Financial and
21 Professional Regulation State Director of Insurance.
22 (Source: P.A. 86-273.)
 
23     (40 ILCS 5/6-220)  (from Ch. 108 1/2, par. 6-220)
24     Sec. 6-220. Examination and report by Secretary of

 

 

SB1999 - 182 - LRB095 14469 DRJ 40375 b

1 Financial and Professional Regulation director of insurance.
2 The Secretary of Financial and Professional Regulation
3 Director of Insurance biennially shall make a thorough
4 examination of the fund provided for in this Article. He or she
5 shall report the results thereof with such recommendations as
6 he or she deems proper to the Governor for transmittal to the
7 General Assembly and send a copy to the board and to the city
8 council of the city. The city council shall file such report
9 and recommendations in the official record of its proceedings.
10     The requirement for reporting to the General Assembly shall
11 be satisfied by filing copies of the report with the Speaker,
12 the Minority Leader and the Clerk of the House of
13 Representatives and the President, the Minority Leader and the
14 Secretary of the Senate and the Legislative Research Unit, as
15 required by Section 3.1 of "An Act to revise the law in
16 relation to the General Assembly", approved February 25, 1874,
17 as amended, and filing such additional copies with the State
18 Government Report Distribution Center for the General Assembly
19 as is required under paragraph (t) of Section 7 of the State
20 Library Act.
21 (Source: P.A. 84-1438.)
 
22     (40 ILCS 5/13-711)  (from Ch. 108 1/2, par. 13-711)
23     Sec. 13-711. Examination of Fund. The Board shall have an
24 audit and a thorough examination of the affairs of the fund
25 made annually by a certified public accountant. The Board shall

 

 

SB1999 - 183 - LRB095 14469 DRJ 40375 b

1 submit the results of the examination to the Secretary of
2 Financial and Professional Regulation Director of Insurance,
3 and to the Board of Commissioners of the District. The report
4 shall be filed in the official record of the proceedings of the
5 meeting of the District at which it is received. The expenses
6 of the examination shall be paid by the Board.
7 (Source: P.A. 87-794.)
 
8     (40 ILCS 5/14-104)  (from Ch. 108 1/2, par. 14-104)
9     Sec. 14-104. Service for which contributions permitted.
10 Contributions provided for in this Section shall cover the
11 period of service granted. Except as otherwise provided in this
12 Section, the contributions shall be based upon the employee's
13 compensation and contribution rate in effect on the date he
14 last became a member of the System; provided that for all
15 employment prior to January 1, 1969 the contribution rate shall
16 be that in effect for a noncovered employee on the date he last
17 became a member of the System. Except as otherwise provided in
18 this Section, contributions permitted under this Section shall
19 include regular interest from the date an employee last became
20 a member of the System to the date of payment.
21     These contributions must be paid in full before retirement
22 either in a lump sum or in installment payments in accordance
23 with such rules as may be adopted by the board.
24     (a) Any member may make contributions as required in this
25 Section for any period of service, subsequent to the date of

 

 

SB1999 - 184 - LRB095 14469 DRJ 40375 b

1 establishment, but prior to the date of membership.
2     (b) Any employee who had been previously excluded from
3 membership because of age at entry and subsequently became
4 eligible may elect to make contributions as required in this
5 Section for the period of service during which he was
6 ineligible.
7     (c) An employee of the Department of Insurance or the
8 Department of Financial and Professional Regulation, as the
9 successor of the Department of Insurance, who, after January 1,
10 1944 but prior to becoming eligible for membership, received
11 salary from funds of insurance companies in the process of
12 rehabilitation, liquidation, conservation or dissolution, may
13 elect to make contributions as required in this Section for
14 such service.
15     (d) Any employee who rendered service in a State office to
16 which he was elected, or rendered service in the elective
17 office of Clerk of the Appellate Court prior to the date he
18 became a member, may make contributions for such service as
19 required in this Section. Any member who served by appointment
20 of the Governor under the Civil Administrative Code of Illinois
21 and did not participate in this System may make contributions
22 as required in this Section for such service.
23     (e) Any person employed by the United States government or
24 any instrumentality or agency thereof from January 1, 1942
25 through November 15, 1946 as the result of a transfer from
26 State service by executive order of the President of the United

 

 

SB1999 - 185 - LRB095 14469 DRJ 40375 b

1 States shall be entitled to prior service credit covering the
2 period from January 1, 1942 through December 31, 1943 as
3 provided for in this Article and to membership service credit
4 for the period from January 1, 1944 through November 15, 1946
5 by making the contributions required in this Section. A person
6 so employed on January 1, 1944 but whose employment began after
7 January 1, 1942 may qualify for prior service and membership
8 service credit under the same conditions.
9     (f) An employee of the Department of Labor of the State of
10 Illinois who performed services for and under the supervision
11 of that Department prior to January 1, 1944 but who was
12 compensated for those services directly by federal funds and
13 not by a warrant of the Auditor of Public Accounts paid by the
14 State Treasurer may establish credit for such employment by
15 making the contributions required in this Section. An employee
16 of the Department of Agriculture of the State of Illinois, who
17 performed services for and under the supervision of that
18 Department prior to June 1, 1963, but was compensated for those
19 services directly by federal funds and not paid by a warrant of
20 the Auditor of Public Accounts paid by the State Treasurer, and
21 who did not contribute to any other public employee retirement
22 system for such service, may establish credit for such
23 employment by making the contributions required in this
24 Section.
25     (g) Any employee who executed a waiver of membership within
26 60 days prior to January 1, 1944 may, at any time while in the

 

 

SB1999 - 186 - LRB095 14469 DRJ 40375 b

1 service of a department, file with the board a rescission of
2 such waiver. Upon making the contributions required by this
3 Section, the member shall be granted the creditable service
4 that would have been received if the waiver had not been
5 executed.
6     (h) Until May 1, 1990, an employee who was employed on a
7 full-time basis by a regional planning commission for at least
8 5 continuous years may establish creditable service for such
9 employment by making the contributions required under this
10 Section, provided that any credits earned by the employee in
11 the commission's retirement plan have been terminated.
12     (i) Any person who rendered full time contractual services
13 to the General Assembly as a member of a legislative staff may
14 establish service credit for up to 8 years of such services by
15 making the contributions required under this Section, provided
16 that application therefor is made not later than July 1, 1991.
17     (j) By paying the contributions otherwise required under
18 this Section, plus an amount determined by the Board to be
19 equal to the employer's normal cost of the benefit plus
20 interest, but with all of the interest calculated from the date
21 the employee last became a member of the System or November 19,
22 1991, whichever is later, to the date of payment, an employee
23 may establish service credit for a period of up to 4 years
24 spent in active military service for which he does not qualify
25 for credit under Section 14-105, provided that (1) he was not
26 dishonorably discharged from such military service, and (2) the

 

 

SB1999 - 187 - LRB095 14469 DRJ 40375 b

1 amount of service credit established by a member under this
2 subsection (j), when added to the amount of military service
3 credit granted to the member under subsection (b) of Section
4 14-105, shall not exceed 5 years. The change in the manner of
5 calculating interest under this subsection (j) made by this
6 amendatory Act of the 92nd General Assembly applies to credit
7 purchased by an employee on or after its effective date and
8 does not entitle any person to a refund of contributions or
9 interest already paid. In compliance with Section 14-152.1 of
10 this Act concerning new benefit increases, any new benefit
11 increase as a result of the changes to this subsection (j) made
12 by Public Act 95-483 this amendatory Act of the 95th General
13 Assembly is funded through the employee contributions provided
14 for in this subsection (j). Any new benefit increase as a
15 result of the changes made to this subsection (j) by Public Act
16 95-483 this amendatory Act of the 95th General Assembly is
17 exempt from the provisions of subsection (d) of Section
18 14-152.1.
19     (k) An employee who was employed on a full-time basis by
20 the Illinois State's Attorneys Association Statewide Appellate
21 Assistance Service LEAA-ILEC grant project prior to the time
22 that project became the State's Attorneys Appellate Service
23 Commission, now the Office of the State's Attorneys Appellate
24 Prosecutor, an agency of State government, may establish
25 creditable service for not more than 60 months service for such
26 employment by making contributions required under this

 

 

SB1999 - 188 - LRB095 14469 DRJ 40375 b

1 Section.
2     (l) By paying the contributions otherwise required under
3 this Section, plus an amount determined by the Board to be
4 equal to the employer's normal cost of the benefit plus
5 interest, a member may establish service credit for periods of
6 less than one year spent on authorized leave of absence from
7 service, provided that (1) the period of leave began on or
8 after January 1, 1982 and (2) any credit established by the
9 member for the period of leave in any other public employee
10 retirement system has been terminated. A member may establish
11 service credit under this subsection for more than one period
12 of authorized leave, and in that case the total period of
13 service credit established by the member under this subsection
14 may exceed one year. In determining the contributions required
15 for establishing service credit under this subsection, the
16 interest shall be calculated from the beginning of the leave of
17 absence to the date of payment.
18     (l-5) By paying the contributions otherwise required under
19 this Section, plus an amount determined by the Board to be
20 equal to the employer's normal cost of the benefit plus
21 interest, a member may establish service credit for periods of
22 up to 2 years spent on authorized leave of absence from
23 service, provided that during that leave the member represented
24 or was employed as an officer or employee of a statewide labor
25 organization that represents members of this System. In
26 determining the contributions required for establishing

 

 

SB1999 - 189 - LRB095 14469 DRJ 40375 b

1 service credit under this subsection, the interest shall be
2 calculated from the beginning of the leave of absence to the
3 date of payment.
4     (m) Any person who rendered contractual services to a
5 member of the General Assembly as a worker in the member's
6 district office may establish creditable service for up to 3
7 years of those contractual services by making the contributions
8 required under this Section. The System shall determine a
9 full-time salary equivalent for the purpose of calculating the
10 required contribution. To establish credit under this
11 subsection, the applicant must apply to the System by March 1,
12 1998.
13     (n) Any person who rendered contractual services to a
14 member of the General Assembly as a worker providing
15 constituent services to persons in the member's district may
16 establish creditable service for up to 8 years of those
17 contractual services by making the contributions required
18 under this Section. The System shall determine a full-time
19 salary equivalent for the purpose of calculating the required
20 contribution. To establish credit under this subsection, the
21 applicant must apply to the System by March 1, 1998.
22     (o) A member who participated in the Illinois Legislative
23 Staff Internship Program may establish creditable service for
24 up to one year of that participation by making the contribution
25 required under this Section. The System shall determine a
26 full-time salary equivalent for the purpose of calculating the

 

 

SB1999 - 190 - LRB095 14469 DRJ 40375 b

1 required contribution. Credit may not be established under this
2 subsection for any period for which service credit is
3 established under any other provision of this Code.
4     (p) By paying the contributions otherwise required under
5 this Section, plus an amount determined by the Board to be
6 equal to the employer's normal cost of the benefit plus
7 interest, a member may establish service credit for a period of
8 up to 8 years during which he or she was employed by the
9 Visually Handicapped Managers of Illinois in a vending program
10 operated under a contractual agreement with the Department of
11 Rehabilitation Services or its successor agency.
12     This subsection (p) applies without regard to whether the
13 person was in service on or after the effective date of this
14 amendatory Act of the 94th General Assembly. In the case of a
15 person who is receiving a retirement annuity on that effective
16 date, the increase, if any, shall begin to accrue on the first
17 annuity payment date following receipt by the System of the
18 contributions required under this subsection (p).
19     (q) By paying the required contributions under this
20 Section, plus an amount determined by the Board to be equal to
21 the employer's normal cost of the benefit plus interest, an
22 employee who was laid off but returned to State employment
23 under circumstances in which the employee is considered to have
24 been in continuous service for purposes of determining
25 seniority may establish creditable service for the period of
26 the layoff, provided that (1) the applicant applies for the

 

 

SB1999 - 191 - LRB095 14469 DRJ 40375 b

1 creditable service under this subsection (q) within 6 months
2 after the effective date of this amendatory Act of the 94th
3 General Assembly, (2) the applicant does not receive credit for
4 that period under any other provision of this Code, (3) at the
5 time of the layoff, the applicant is not in an initial
6 probationary status consistent with the rules of the Department
7 of Central Management Services, and (4) the total amount of
8 creditable service established by the applicant under this
9 subsection (q) does not exceed 3 years. For service established
10 under this subsection (q), the required employee contribution
11 shall be based on the rate of compensation earned by the
12 employee on the date of returning to employment after the
13 layoff and the contribution rate then in effect, and the
14 required interest shall be calculated from the date of
15 returning to employment after the layoff to the date of
16 payment.
17     (r) A member who participated in the University of Illinois
18 Government Public Service Internship Program (GPSI) may
19 establish creditable service for up to 2 years of that
20 participation by making the contribution required under this
21 Section, plus an amount determined by the Board to be equal to
22 the employer's normal cost of the benefit plus interest. The
23 System shall determine a full-time salary equivalent for the
24 purpose of calculating the required contribution. Credit may
25 not be established under this subsection for any period for
26 which service credit is established under any other provision

 

 

SB1999 - 192 - LRB095 14469 DRJ 40375 b

1 of this Code.
2     (s) (r) A member who worked as a nurse under a contractual
3 agreement for the Department of Public Aid, or its successor
4 agency, the Department of Human Services, in the Client
5 Assessment Unit and was subsequently determined to be a State
6 employee by the United States Internal Revenue Service and the
7 Illinois Labor Relations Board may establish creditable
8 service for those contractual services by making the
9 contributions required under this Section. To establish credit
10 under this subsection, the applicant must apply to the System
11 by July 1, 2008.
12     The Department of Human Services shall pay an employer
13 contribution based upon an amount determined by the Board to be
14 equal to the employer's normal cost of the benefit, plus
15 interest.
16     In compliance with Section 14-152.1 added by Public Act
17 94-4, the cost of the benefits provided by Public Act 95-583
18 this amendatory Act of the 95th General Assembly are offset by
19 the required employee and employer contributions.
20 (Source: P.A. 94-612, eff. 8-18-05; 94-1111, eff. 2-27-07;
21 95-483, eff. 8-28-07; 95-583, eff. 8-31-07; 95-652, eff.
22 10-11-07; revised 11-9-07.)
 
23     (40 ILCS 5/14-110)  (from Ch. 108 1/2, par. 14-110)
24     Sec. 14-110. Alternative retirement annuity.
25     (a) Any member who has withdrawn from service with not less

 

 

SB1999 - 193 - LRB095 14469 DRJ 40375 b

1 than 20 years of eligible creditable service and has attained
2 age 55, and any member who has withdrawn from service with not
3 less than 25 years of eligible creditable service and has
4 attained age 50, regardless of whether the attainment of either
5 of the specified ages occurs while the member is still in
6 service, shall be entitled to receive at the option of the
7 member, in lieu of the regular or minimum retirement annuity, a
8 retirement annuity computed as follows:
9         (i) for periods of service as a noncovered employee: if
10     retirement occurs on or after January 1, 2001, 3% of final
11     average compensation for each year of creditable service;
12     if retirement occurs before January 1, 2001, 2 1/4% of
13     final average compensation for each of the first 10 years
14     of creditable service, 2 1/2% for each year above 10 years
15     to and including 20 years of creditable service, and 2 3/4%
16     for each year of creditable service above 20 years; and
17         (ii) for periods of eligible creditable service as a
18     covered employee: if retirement occurs on or after January
19     1, 2001, 2.5% of final average compensation for each year
20     of creditable service; if retirement occurs before January
21     1, 2001, 1.67% of final average compensation for each of
22     the first 10 years of such service, 1.90% for each of the
23     next 10 years of such service, 2.10% for each year of such
24     service in excess of 20 but not exceeding 30, and 2.30% for
25     each year in excess of 30.
26     Such annuity shall be subject to a maximum of 75% of final

 

 

SB1999 - 194 - LRB095 14469 DRJ 40375 b

1 average compensation if retirement occurs before January 1,
2 2001 or to a maximum of 80% of final average compensation if
3 retirement occurs on or after January 1, 2001.
4     These rates shall not be applicable to any service
5 performed by a member as a covered employee which is not
6 eligible creditable service. Service as a covered employee
7 which is not eligible creditable service shall be subject to
8 the rates and provisions of Section 14-108.
9     (b) For the purpose of this Section, "eligible creditable
10 service" means creditable service resulting from service in one
11 or more of the following positions:
12         (1) State policeman;
13         (2) fire fighter in the fire protection service of a
14     department;
15         (3) air pilot;
16         (4) special agent;
17         (5) investigator for the Secretary of State;
18         (6) conservation police officer;
19         (7) investigator for the Department of Revenue;
20         (8) security employee of the Department of Human
21     Services;
22         (9) Central Management Services security police
23     officer;
24         (10) security employee of the Department of
25     Corrections or the Department of Juvenile Justice;
26         (11) dangerous drugs investigator;

 

 

SB1999 - 195 - LRB095 14469 DRJ 40375 b

1         (12) investigator for the Department of State Police;
2         (13) investigator for the Office of the Attorney
3     General;
4         (14) controlled substance inspector;
5         (15) investigator for the Office of the State's
6     Attorneys Appellate Prosecutor;
7         (16) Commerce Commission police officer;
8         (17) arson investigator;
9         (18) State highway maintenance worker.
10     A person employed in one of the positions specified in this
11 subsection is entitled to eligible creditable service for
12 service credit earned under this Article while undergoing the
13 basic police training course approved by the Illinois Law
14 Enforcement Training Standards Board, if completion of that
15 training is required of persons serving in that position. For
16 the purposes of this Code, service during the required basic
17 police training course shall be deemed performance of the
18 duties of the specified position, even though the person is not
19 a sworn peace officer at the time of the training.
20     (c) For the purposes of this Section:
21         (1) The term "state policeman" includes any title or
22     position in the Department of State Police that is held by
23     an individual employed under the State Police Act.
24         (2) The term "fire fighter in the fire protection
25     service of a department" includes all officers in such fire
26     protection service including fire chiefs and assistant

 

 

SB1999 - 196 - LRB095 14469 DRJ 40375 b

1     fire chiefs.
2         (3) The term "air pilot" includes any employee whose
3     official job description on file in the Department of
4     Central Management Services, or in the department by which
5     he is employed if that department is not covered by the
6     Personnel Code, states that his principal duty is the
7     operation of aircraft, and who possesses a pilot's license;
8     however, the change in this definition made by this
9     amendatory Act of 1983 shall not operate to exclude any
10     noncovered employee who was an "air pilot" for the purposes
11     of this Section on January 1, 1984.
12         (4) The term "special agent" means any person who by
13     reason of employment by the Division of Narcotic Control,
14     the Bureau of Investigation or, after July 1, 1977, the
15     Division of Criminal Investigation, the Division of
16     Internal Investigation, the Division of Operations, or any
17     other Division or organizational entity in the Department
18     of State Police is vested by law with duties to maintain
19     public order, investigate violations of the criminal law of
20     this State, enforce the laws of this State, make arrests
21     and recover property. The term "special agent" includes any
22     title or position in the Department of State Police that is
23     held by an individual employed under the State Police Act.
24         (5) The term "investigator for the Secretary of State"
25     means any person employed by the Office of the Secretary of
26     State and vested with such investigative duties as render

 

 

SB1999 - 197 - LRB095 14469 DRJ 40375 b

1     him ineligible for coverage under the Social Security Act
2     by reason of Sections 218(d)(5)(A), 218(d)(8)(D) and
3     218(l)(1) of that Act.
4         A person who became employed as an investigator for the
5     Secretary of State between January 1, 1967 and December 31,
6     1975, and who has served as such until attainment of age
7     60, either continuously or with a single break in service
8     of not more than 3 years duration, which break terminated
9     before January 1, 1976, shall be entitled to have his
10     retirement annuity calculated in accordance with
11     subsection (a), notwithstanding that he has less than 20
12     years of credit for such service.
13         (6) The term "Conservation Police Officer" means any
14     person employed by the Division of Law Enforcement of the
15     Department of Natural Resources and vested with such law
16     enforcement duties as render him ineligible for coverage
17     under the Social Security Act by reason of Sections
18     218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act. The
19     term "Conservation Police Officer" includes the positions
20     of Chief Conservation Police Administrator and Assistant
21     Conservation Police Administrator.
22         (7) The term "investigator for the Department of
23     Revenue" means any person employed by the Department of
24     Revenue and vested with such investigative duties as render
25     him ineligible for coverage under the Social Security Act
26     by reason of Sections 218(d)(5)(A), 218(d)(8)(D) and

 

 

SB1999 - 198 - LRB095 14469 DRJ 40375 b

1     218(l)(1) of that Act.
2         (8) The term "security employee of the Department of
3     Human Services" means any person employed by the Department
4     of Human Services who (i) is employed at the Chester Mental
5     Health Center and has daily contact with the residents
6     thereof, (ii) is employed within a security unit at a
7     facility operated by the Department and has daily contact
8     with the residents of the security unit, (iii) is employed
9     at a facility operated by the Department that includes a
10     security unit and is regularly scheduled to work at least
11     50% of his or her working hours within that security unit,
12     or (iv) is a mental health police officer. "Mental health
13     police officer" means any person employed by the Department
14     of Human Services in a position pertaining to the
15     Department's mental health and developmental disabilities
16     functions who is vested with such law enforcement duties as
17     render the person ineligible for coverage under the Social
18     Security Act by reason of Sections 218(d)(5)(A),
19     218(d)(8)(D) and 218(l)(1) of that Act. "Security unit"
20     means that portion of a facility that is devoted to the
21     care, containment, and treatment of persons committed to
22     the Department of Human Services as sexually violent
23     persons, persons unfit to stand trial, or persons not
24     guilty by reason of insanity. With respect to past
25     employment, references to the Department of Human Services
26     include its predecessor, the Department of Mental Health

 

 

SB1999 - 199 - LRB095 14469 DRJ 40375 b

1     and Developmental Disabilities.
2         The changes made to this subdivision (c)(8) by Public
3     Act 92-14 apply to persons who retire on or after January
4     1, 2001, notwithstanding Section 1-103.1.
5         (9) "Central Management Services security police
6     officer" means any person employed by the Department of
7     Central Management Services who is vested with such law
8     enforcement duties as render him ineligible for coverage
9     under the Social Security Act by reason of Sections
10     218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
11         (10) For a member who first became an employee under
12     this Article before July 1, 2005, the term "security
13     employee of the Department of Corrections or the Department
14     of Juvenile Justice" means any employee of the Department
15     of Corrections or the Department of Juvenile Justice or the
16     former Department of Personnel, and any member or employee
17     of the Prisoner Review Board, who has daily contact with
18     inmates or youth by working within a correctional facility
19     or Juvenile facility operated by the Department of Juvenile
20     Justice or who is a parole officer or an employee who has
21     direct contact with committed persons in the performance of
22     his or her job duties. For a member who first becomes an
23     employee under this Article on or after July 1, 2005, the
24     term means an employee of the Department of Corrections or
25     the Department of Juvenile Justice who is any of the
26     following: (i) officially headquartered at a correctional

 

 

SB1999 - 200 - LRB095 14469 DRJ 40375 b

1     facility or Juvenile facility operated by the Department of
2     Juvenile Justice, (ii) a parole officer, (iii) a member of
3     the apprehension unit, (iv) a member of the intelligence
4     unit, (v) a member of the sort team, or (vi) an
5     investigator.
6         (11) The term "dangerous drugs investigator" means any
7     person who is employed as such by the Department of Human
8     Services.
9         (12) The term "investigator for the Department of State
10     Police" means a person employed by the Department of State
11     Police who is vested under Section 4 of the Narcotic
12     Control Division Abolition Act with such law enforcement
13     powers as render him ineligible for coverage under the
14     Social Security Act by reason of Sections 218(d)(5)(A),
15     218(d)(8)(D) and 218(l)(1) of that Act.
16         (13) "Investigator for the Office of the Attorney
17     General" means any person who is employed as such by the
18     Office of the Attorney General and is vested with such
19     investigative duties as render him ineligible for coverage
20     under the Social Security Act by reason of Sections
21     218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. For
22     the period before January 1, 1989, the term includes all
23     persons who were employed as investigators by the Office of
24     the Attorney General, without regard to social security
25     status.
26         (14) "Controlled substance inspector" means any person

 

 

SB1999 - 201 - LRB095 14469 DRJ 40375 b

1     who is employed as such by the Department of Financial and
2     Professional Regulation and is vested with such law
3     enforcement duties as render him ineligible for coverage
4     under the Social Security Act by reason of Sections
5     218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. The
6     term "controlled substance inspector" includes the Program
7     Executive of Enforcement and the Assistant Program
8     Executive of Enforcement.
9         (15) The term "investigator for the Office of the
10     State's Attorneys Appellate Prosecutor" means a person
11     employed in that capacity on a full time basis under the
12     authority of Section 7.06 of the State's Attorneys
13     Appellate Prosecutor's Act.
14         (16) "Commerce Commission police officer" means any
15     person employed by the Illinois Commerce Commission who is
16     vested with such law enforcement duties as render him
17     ineligible for coverage under the Social Security Act by
18     reason of Sections 218(d)(5)(A), 218(d)(8)(D), and
19     218(l)(1) of that Act.
20         (17) "Arson investigator" means any person who is
21     employed as such by the Office of the State Fire Marshal
22     and is vested with such law enforcement duties as render
23     the person ineligible for coverage under the Social
24     Security Act by reason of Sections 218(d)(5)(A),
25     218(d)(8)(D), and 218(l)(1) of that Act. A person who was
26     employed as an arson investigator on January 1, 1995 and is

 

 

SB1999 - 202 - LRB095 14469 DRJ 40375 b

1     no longer in service but not yet receiving a retirement
2     annuity may convert his or her creditable service for
3     employment as an arson investigator into eligible
4     creditable service by paying to the System the difference
5     between the employee contributions actually paid for that
6     service and the amounts that would have been contributed if
7     the applicant were contributing at the rate applicable to
8     persons with the same social security status earning
9     eligible creditable service on the date of application.
10         (18) The term "State highway maintenance worker" means
11     a person who is either of the following:
12             (i) A person employed on a full-time basis by the
13         Illinois Department of Transportation in the position
14         of highway maintainer, highway maintenance lead
15         worker, highway maintenance lead/lead worker, heavy
16         construction equipment operator, power shovel
17         operator, or bridge mechanic; and whose principal
18         responsibility is to perform, on the roadway, the
19         actual maintenance necessary to keep the highways that
20         form a part of the State highway system in serviceable
21         condition for vehicular traffic.
22             (ii) A person employed on a full-time basis by the
23         Illinois State Toll Highway Authority in the position
24         of equipment operator/laborer H-4, equipment
25         operator/laborer H-6, welder H-4, welder H-6,
26         mechanical/electrical H-4, mechanical/electrical H-6,

 

 

SB1999 - 203 - LRB095 14469 DRJ 40375 b

1         water/sewer H-4, water/sewer H-6, sign maker/hanger
2         H-4, sign maker/hanger H-6, roadway lighting H-4,
3         roadway lighting H-6, structural H-4, structural H-6,
4         painter H-4, or painter H-6; and whose principal
5         responsibility is to perform, on the roadway, the
6         actual maintenance necessary to keep the Authority's
7         tollways in serviceable condition for vehicular
8         traffic.
9     (d) A security employee of the Department of Corrections or
10 the Department of Juvenile Justice, and a security employee of
11 the Department of Human Services who is not a mental health
12 police officer, shall not be eligible for the alternative
13 retirement annuity provided by this Section unless he or she
14 meets the following minimum age and service requirements at the
15 time of retirement:
16         (i) 25 years of eligible creditable service and age 55;
17     or
18         (ii) beginning January 1, 1987, 25 years of eligible
19     creditable service and age 54, or 24 years of eligible
20     creditable service and age 55; or
21         (iii) beginning January 1, 1988, 25 years of eligible
22     creditable service and age 53, or 23 years of eligible
23     creditable service and age 55; or
24         (iv) beginning January 1, 1989, 25 years of eligible
25     creditable service and age 52, or 22 years of eligible
26     creditable service and age 55; or

 

 

SB1999 - 204 - LRB095 14469 DRJ 40375 b

1         (v) beginning January 1, 1990, 25 years of eligible
2     creditable service and age 51, or 21 years of eligible
3     creditable service and age 55; or
4         (vi) beginning January 1, 1991, 25 years of eligible
5     creditable service and age 50, or 20 years of eligible
6     creditable service and age 55.
7     Persons who have service credit under Article 16 of this
8 Code for service as a security employee of the Department of
9 Corrections or the Department of Juvenile Justice, or the
10 Department of Human Services in a position requiring
11 certification as a teacher may count such service toward
12 establishing their eligibility under the service requirements
13 of this Section; but such service may be used only for
14 establishing such eligibility, and not for the purpose of
15 increasing or calculating any benefit.
16     (e) If a member enters military service while working in a
17 position in which eligible creditable service may be earned,
18 and returns to State service in the same or another such
19 position, and fulfills in all other respects the conditions
20 prescribed in this Article for credit for military service,
21 such military service shall be credited as eligible creditable
22 service for the purposes of the retirement annuity prescribed
23 in this Section.
24     (f) For purposes of calculating retirement annuities under
25 this Section, periods of service rendered after December 31,
26 1968 and before October 1, 1975 as a covered employee in the

 

 

SB1999 - 205 - LRB095 14469 DRJ 40375 b

1 position of special agent, conservation police officer, mental
2 health police officer, or investigator for the Secretary of
3 State, shall be deemed to have been service as a noncovered
4 employee, provided that the employee pays to the System prior
5 to retirement an amount equal to (1) the difference between the
6 employee contributions that would have been required for such
7 service as a noncovered employee, and the amount of employee
8 contributions actually paid, plus (2) if payment is made after
9 July 31, 1987, regular interest on the amount specified in item
10 (1) from the date of service to the date of payment.
11     For purposes of calculating retirement annuities under
12 this Section, periods of service rendered after December 31,
13 1968 and before January 1, 1982 as a covered employee in the
14 position of investigator for the Department of Revenue shall be
15 deemed to have been service as a noncovered employee, provided
16 that the employee pays to the System prior to retirement an
17 amount equal to (1) the difference between the employee
18 contributions that would have been required for such service as
19 a noncovered employee, and the amount of employee contributions
20 actually paid, plus (2) if payment is made after January 1,
21 1990, regular interest on the amount specified in item (1) from
22 the date of service to the date of payment.
23     (g) A State policeman may elect, not later than January 1,
24 1990, to establish eligible creditable service for up to 10
25 years of his service as a policeman under Article 3, by filing
26 a written election with the Board, accompanied by payment of an

 

 

SB1999 - 206 - LRB095 14469 DRJ 40375 b

1 amount to be determined by the Board, equal to (i) the
2 difference between the amount of employee and employer
3 contributions transferred to the System under Section 3-110.5,
4 and the amounts that would have been contributed had such
5 contributions been made at the rates applicable to State
6 policemen, plus (ii) interest thereon at the effective rate for
7 each year, compounded annually, from the date of service to the
8 date of payment.
9     Subject to the limitation in subsection (i), a State
10 policeman may elect, not later than July 1, 1993, to establish
11 eligible creditable service for up to 10 years of his service
12 as a member of the County Police Department under Article 9, by
13 filing a written election with the Board, accompanied by
14 payment of an amount to be determined by the Board, equal to
15 (i) the difference between the amount of employee and employer
16 contributions transferred to the System under Section 9-121.10
17 and the amounts that would have been contributed had those
18 contributions been made at the rates applicable to State
19 policemen, plus (ii) interest thereon at the effective rate for
20 each year, compounded annually, from the date of service to the
21 date of payment.
22     (h) Subject to the limitation in subsection (i), a State
23 policeman or investigator for the Secretary of State may elect
24 to establish eligible creditable service for up to 12 years of
25 his service as a policeman under Article 5, by filing a written
26 election with the Board on or before January 31, 1992, and

 

 

SB1999 - 207 - LRB095 14469 DRJ 40375 b

1 paying to the System by January 31, 1994 an amount to be
2 determined by the Board, equal to (i) the difference between
3 the amount of employee and employer contributions transferred
4 to the System under Section 5-236, and the amounts that would
5 have been contributed had such contributions been made at the
6 rates applicable to State policemen, plus (ii) interest thereon
7 at the effective rate for each year, compounded annually, from
8 the date of service to the date of payment.
9     Subject to the limitation in subsection (i), a State
10 policeman, conservation police officer, or investigator for
11 the Secretary of State may elect to establish eligible
12 creditable service for up to 10 years of service as a sheriff's
13 law enforcement employee under Article 7, by filing a written
14 election with the Board on or before January 31, 1993, and
15 paying to the System by January 31, 1994 an amount to be
16 determined by the Board, equal to (i) the difference between
17 the amount of employee and employer contributions transferred
18 to the System under Section 7-139.7, and the amounts that would
19 have been contributed had such contributions been made at the
20 rates applicable to State policemen, plus (ii) interest thereon
21 at the effective rate for each year, compounded annually, from
22 the date of service to the date of payment.
23     Subject to the limitation in subsection (i), a State
24 policeman, conservation police officer, or investigator for
25 the Secretary of State may elect to establish eligible
26 creditable service for up to 5 years of service as a police

 

 

SB1999