Rep. Elizabeth Hernandez

Filed: 3/25/2011

 

 


 

 


 
09700HB0542ham002LRB097 03369 JDS 53413 a

1
AMENDMENT TO HOUSE BILL 542

2    AMENDMENT NO. ______. Amend House Bill 542 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Intergovernmental Cooperation Act is
5amended by changing Section 6 as follows:
 
6    (5 ILCS 220/6)  (from Ch. 127, par. 746)
7    Sec. 6. Joint self-insurance. An intergovernmental
8contract may, among other undertakings, authorize public
9agencies to jointly self-insure and authorize each public
10agency member of the contract to utilize its funds to pay to a
11joint insurance pool its costs and reserves to protect, wholly
12or partially, itself or any public agency member of the
13contract against liability or loss in the designated insurable
14area. A joint insurance pool shall have an annual audit
15performed by an independent certified public accountant and
16shall file an annual audited financial report with the Director

 

 

09700HB0542ham002- 2 -LRB097 03369 JDS 53413 a

1of Insurance no later than 150 days after the end of the pool's
2immediately preceding fiscal year. The Director of Insurance
3shall issue rules necessary to implement this audit and report
4requirement. The rule shall establish the due date for filing
5the initial annual audited financial report. Within 30 days
6after January 1, 1991, and within 30 days after each January 1
7thereafter, public agencies that are jointly self-insured to
8protect against liability under the Workers' Compensation Act
9and the Workers' Occupational Diseases Act shall file with the
10Illinois Workers' Compensation Commission a report indicating
11an election to self-insure.
12    For purposes of this Section, "public agency member" means
13any public agency defined or created under this Act, any local
14public entity as defined in Section 1-206 of the Local
15Governmental and Governmental Employees Tort Immunity Act, and
16any public agency, authority, instrumentality, council, board,
17service region, district, unit, bureau, or, commission, or any
18municipal corporation, college, or university, whether
19corporate or otherwise, and any other local governmental body
20or similar entity that is presently existing or created after
21the effective date of this amendatory Act of the 92nd General
22Assembly, whether or not specified in this Section. Only public
23agency members with tax receipts, tax revenues, taxing
24authority, or other resources sufficient to pay costs and to
25service debt related to intergovernmental activities described
26in this Section, or public agency members created by or as part

 

 

09700HB0542ham002- 3 -LRB097 03369 JDS 53413 a

1of a public agency with these powers, may enter into contracts
2or otherwise associate among themselves as permitted in this
3Section.
4    No joint insurance pool or other intergovernmental
5cooperative offering health insurance shall interfere with the
6statutory obligation of any public agency member to bargain
7over or to reach agreement with a labor organization over a
8mandatory subject of collective bargaining as those terms are
9used in the Illinois Public Labor Relations Act. No
10intergovernmental contract of insurance offering health
11insurance shall limit the rights or obligations of public
12agency members to engage in collective bargaining, and it shall
13be unlawful for a joint insurance pool or other
14intergovernmental cooperative offering health insurance to
15discriminate against public agency members or otherwise
16retaliate against such members for limiting their
17participation in a joint insurance pool as a result of a
18collective bargaining agreement.
19    No joint insurance pool or other intergovernmental
20cooperative shall require any public agency member to provide
21notice of the member's intent to withdraw from the pool or
22cooperative more than 30 days before the date upon which the
23member withdraws.
24    If a public agency member of a joint insurance pool or
25intergovernmental cooperative withdraws for the sole reason of
26seeking competitive pricing and then seeks to rejoin the pool

 

 

09700HB0542ham002- 4 -LRB097 03369 JDS 53413 a

1or intergovernmental cooperative within 60 days after
2withdrawing, the member shall be allowed to rejoin the pool or
3intergovernmental cooperative without penalty and without
4being required to pay higher premiums.
5    The head of any joint insurance pool or other
6intergovernmental cooperative shall be a licensed insurance
7producer in the State of Illinois.
8    No joint insurance pool or other intergovernmental
9cooperative shall, after the effective date of this amendatory
10Act of the 97th General Assembly, enter into any contract for
11insurance coverage that exceeds one year in duration.
12    It shall not be considered a violation of this Section for
13an intergovernmental contract of insurance relating to health
14insurance coverage, life insurance coverage, or both to permit
15the pool or cooperative, if a member withdraws employees or
16officers into a union-sponsored program, to re-price the costs
17of benefits provided to the continuing employees or officers
18based upon the same underwriting criteria used by that pool or
19cooperative in the normal course of its business, but no member
20shall be expelled from a pool or cooperative if the continuing
21employees or officers meet the general criteria required of
22other members.
23(Source: P.A. 93-721, eff. 1-1-05; 94-685, eff. 11-2-05.)".