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1    AN ACT concerning government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the State
5Healthcare Purchasing Reorganization Act.
 
6    Section 10. Revocation of Executive Order 3 (2005). On
7January 1, 2012, Executive Order 3 (2005) is superseded by this
8Act with the exception of Section I (renaming the Department of
9Public Aid as the Department of Healthcare and Family
10Services), which remains in effect.
 
11    Section 15. Transfer back of State healthcare purchasing
12functions transferred by Executive Order 3 (2005).
13    (a) On January 1, 2012 or as soon thereafter as practical,
14all of the powers, duties, rights, and responsibilities related
15to State healthcare purchasing that were transferred from the
16Department of Central Management Services, the Department of
17Corrections, the Department of Human Services, and the
18Department of Veterans' Affairs to the Department of Healthcare
19and Family Services by Executive Order 3 (2005) are transferred
20back to the Departments from which those powers, duties,
21rights, and responsibilities were transferred; however,
22powers, duties, rights, and responsibilities related to State

 

 

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1healthcare purchasing that were exercised by the Department of
2Corrections before Executive Order 3 (2005) but that pertain to
3individuals resident in facilities operated by Department of
4Juvenile Justice are transferred to the Department of Juvenile
5Justice.
6    (b) The functions associated with State healthcare
7purchasing that are transferred from the Department of
8Healthcare and Family Services under this Section include,
9without limitation, the following:
10        (1) Rate development and negotiation with hospitals,
11    physicians, and managed care providers.
12        (2) Health care procurement development.
13        (3) Contract implementation and fiscal monitoring.
14        (4) Contract amendments.
15        (5) Payment processing.
16        (6) Purchasing aspects of health care plans
17    administered by the State on behalf of the following:
18            (A) State employees. These healthcare purchasing
19        functions include the following health care plans:
20        quality health care plan; managed health care plan;
21        vision plan; pharmacy benefits plan; dental plan;
22        behavioral health plan; employee assistance plan;
23        utilization management plan; and SHIPs and various
24        subrogation agreements. These healthcare purchasing
25        functions also include the purchasing and
26        administration of flu shots, hepatitis B vaccinations,

 

 

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1        and tuberculosis tests.
2            (B) Persons other than State employees. These
3        healthcare purchasing functions include the following
4        health care plans: the retired teachers' health
5        insurance plan under the State Employees Group
6        Insurance Act of 1971; the local government health
7        insurance plan under the State Employees Group
8        Insurance Act of 1971; the community colleges health
9        insurance plan under the State Employees Group
10        Insurance Act of 1971; and the active teacher
11        prescription program.
12            (C) Residents of State-operated facilities,
13        including (i) correctional and youth facilities
14        operated by the Department of Corrections or the
15        Department of Juvenile Justice, (ii) mental health
16        centers and developmental centers operated by the
17        Department of Human Services, and (iii) veterans homes
18        operated by the Department of Veterans' Affairs.
19    (c) The powers, duties, rights, and responsibilities
20vested in or associated with State healthcare purchasing are
21not affected by this Act, except that all management and staff
22support or other resources necessary to the operation of a
23State healthcare purchasing function shall be provided by the
24Department to which that function is transferred under this
25Act.
 

 

 

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1    Section 20. Representation on boards or other entities.
2When any provision of an Executive Order or Act provides for
3the membership of the Director of Healthcare and Family
4Services on any council, commission, board, or other entity
5that exercises any of the State healthcare purchasing functions
6transferred by this Act, the Director or Secretary of the
7Department to which the State healthcare purchasing function is
8transferred under this Act, or his or her designee, shall serve
9in the place of the Director of Healthcare and Family Services,
10but only with regard to the exercise of the function
11transferred under this Act. If more than one such person is
12required by law to serve on any council, commission, board, or
13other entity, then an equivalent number of the representatives
14of the Department to which the applicable function is
15transferred under this Act shall so serve. In addition, any
16statutory mandate that provides for action on the part of the
17Director of Healthcare and Family Services relating to a State
18healthcare purchasing function transferred under this Act
19shall become the responsibility of the Director or Secretary of
20the Department to which that function is transferred under this
21Act.
 
22    Section 25. Personnel transferred.
23    (a) The status and rights of employees of the Department of
24Healthcare and Family Services engaged in the performance of
25State healthcare purchasing functions transferred back to the

 

 

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1Department of Central Management Services are not affected by
2this Act. The status and rights of those employees, and the
3rights of the State of Illinois and its agencies, under the
4Personnel Code and applicable collective bargaining agreements
5or under any pension, retirement, or annuity plan are not
6affected by this Act. Personnel and positions within the
7Department of Healthcare and Family Services that are engaged
8in the performance of State healthcare purchasing functions
9transferred back to the Department of Central Management
10Services are transferred to and shall continue their service
11within the Department of Central Management Services.
12    (b) Personnel and positions of the Department of
13Corrections, the Department of Juvenile Justice, the
14Department of Human Services, and the Department of Veterans'
15Affairs were not in fact transferred under Executive Order 3
16(2005) and are not affected by this Act.
 
17    Section 30. Books and records transferred. All books,
18records, papers, documents, property (real and personal),
19contracts, and pending business pertaining to the powers,
20duties, rights, and responsibilities related to any of the
21State healthcare purchasing functions transferred under this
22Act from the Department of Healthcare and Family Services to
23the Department of Central Management Services, the Department
24of Corrections, the Department of Juvenile Justice, the
25Department of Human Services, and the Department of Veterans'

 

 

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1Affairs, including, but not limited to, material in electronic
2or magnetic format and necessary computer hardware and
3software, shall be delivered to the Department to which that
4State healthcare purchasing function is transferred under this
5Act, provided that the delivery of that information may not
6violate any applicable confidentiality constraints. The access
7by personnel of the Department of Central Management Services,
8the Department of Corrections, the Department of Juvenile
9Justice, the Department of Human Services, and the Department
10of Veterans' Affairs to databases and electronic health
11information that are currently maintained by the Department of
12Healthcare and Family Services and that contain data and
13information necessary to the performance of the State
14healthcare purchasing functions shall continue in the same
15manner and level of access as before this Act. Staff of the
16Department of Central Management Services, the Department of
17Corrections, the Department of Juvenile Justice, the
18Department of Human Services, and the Department of Veterans'
19Affairs may work with staff of the Department of Healthcare and
20Family Services to add new information relevant to State
21healthcare purchasing functions.
 
22    Section 35. Unexpended moneys transferred.
23    (a) With respect to the State healthcare purchasing
24functions transferred under this Act, the Department of Central
25Management Services is the successor agency to the Department

 

 

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1of Healthcare and Family Services under the Successor Agency
2Act and Section 9b of the State Finance Act. All unexpended
3appropriations and balances and other moneys available for use
4in connection with any of the State healthcare purchasing
5functions transferred from the Department of Healthcare and
6Family Services to the Department of Central Management
7Services are transferred for use by the Department of Central
8Management Services for the exercise of those functions
9pursuant to the direction of the Governor. Unexpended balances
10so transferred shall be expended only for the purpose for which
11the appropriations were originally made.
12    (b) Appropriations of the Department of Corrections, the
13Department of Juvenile Justice, the Department of Human
14Services, and the Department of Veterans' Affairs that were not
15in fact transferred under Executive Order 3 (2005) are not
16affected by this Act.
 
17    Section 40. Exercise of transferred powers; savings
18provisions. The powers, duties, rights, and responsibilities
19related to the State healthcare purchasing functions
20transferred under this Act are vested in and shall be exercised
21by the Department to which the applicable function is
22transferred. Each act done in the exercise of those powers,
23duties, rights, and responsibilities shall have the same legal
24effect as if done by the Department of Healthcare and Family
25Services or its divisions, officers, or employees.
 

 

 

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1    Section 45. Rights, obligations, and duties unaffected by
2transfer. The transfer of powers, duties, rights, and
3responsibilities from the Department of Healthcare and Family
4Services under this Act does not affect any person's rights,
5obligations, or duties, including any civil or criminal
6penalties applicable thereto, arising out of those transferred
7powers, duties, rights, and responsibilities.
 
8    Section 50. Agency officers; penalties. Every officer of
9the Department of Central Management Services, the Department
10of Corrections, the Department of Juvenile Justice, the
11Department of Human Services, and the Department of Veterans'
12Affairs is, for any offense, subject to the same penalty or
13penalties, civil or criminal, as are prescribed by existing law
14for the same offense by any officer whose powers or duties are
15transferred under this Act.
 
16    Section 55. Reports, notices, or papers. Whenever reports
17or notices are required to be made or given or papers or
18documents furnished or served by any person to or upon the
19Department of Healthcare and Family Services in connection with
20any State healthcare purchasing function transferred under
21this Act, the same shall be made, given, furnished, or served
22in the same manner to or upon the Department to which that
23State healthcare purchasing function is transferred.
 

 

 

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1    Section 60. Acts and actions unaffected by transfer. This
2Act does not affect any act done, ratified, or canceled, or any
3right occurring or established, before January 1, 2012, in
4connection with any State healthcare purchasing function
5transferred under this Act. This Act does not affect any action
6or proceeding had or commenced before January 1, 2012, in an
7administrative, civil, or criminal cause regarding a State
8healthcare purchasing function transferred from the Department
9of Healthcare and Family Services under this Act, but any such
10action or proceeding may be defended, prosecuted, or continued
11by the Department to which the applicable State healthcare
12purchasing function is transferred.
 
13    Section 900. The State Employees Group Insurance Act of
141971 is amended by adding Sections 2.5 and 5.5 and changing
15Sections 3, 5, 6.5, 6.10, 10, and 13.1 as follows:
 
16    (5 ILCS 375/2.5 new)
17    Sec. 2.5. State healthcare purchasing. On and after January
181, 2012, as provided in the State Healthcare Purchasing
19Reorganization Act, all of the powers, duties, rights, and
20responsibilities related to State healthcare purchasing under
21this Act that were transferred from the Department of Central
22Management Services to the Department of Healthcare and Family
23Services by Executive Order 3 (2005) are transferred back to

 

 

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1the Department.
 
2    (5 ILCS 375/3)  (from Ch. 127, par. 523)
3    Sec. 3. Definitions. Unless the context otherwise
4requires, the following words and phrases as used in this Act
5shall have the following meanings. The Department may define
6these and other words and phrases separately for the purpose of
7implementing specific programs providing benefits under this
8Act.
9    (a) "Administrative service organization" means any
10person, firm or corporation experienced in the handling of
11claims which is fully qualified, financially sound and capable
12of meeting the service requirements of a contract of
13administration executed with the Department.
14    (b) "Annuitant" means (1) an employee who retires, or has
15retired, on or after January 1, 1966 on an immediate annuity
16under the provisions of Articles 2, 14 (including an employee
17who has elected to receive an alternative retirement
18cancellation payment under Section 14-108.5 of the Illinois
19Pension Code in lieu of an annuity), 15 (including an employee
20who has retired under the optional retirement program
21established under Section 15-158.2), paragraphs (2), (3), or
22(5) of Section 16-106, or Article 18 of the Illinois Pension
23Code; (2) any person who was receiving group insurance coverage
24under this Act as of March 31, 1978 by reason of his status as
25an annuitant, even though the annuity in relation to which such

 

 

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1coverage was provided is a proportional annuity based on less
2than the minimum period of service required for a retirement
3annuity in the system involved; (3) any person not otherwise
4covered by this Act who has retired as a participating member
5under Article 2 of the Illinois Pension Code but is ineligible
6for the retirement annuity under Section 2-119 of the Illinois
7Pension Code; (4) the spouse of any person who is receiving a
8retirement annuity under Article 18 of the Illinois Pension
9Code and who is covered under a group health insurance program
10sponsored by a governmental employer other than the State of
11Illinois and who has irrevocably elected to waive his or her
12coverage under this Act and to have his or her spouse
13considered as the "annuitant" under this Act and not as a
14"dependent"; or (5) an employee who retires, or has retired,
15from a qualified position, as determined according to rules
16promulgated by the Director, under a qualified local
17government, a qualified rehabilitation facility, a qualified
18domestic violence shelter or service, or a qualified child
19advocacy center. (For definition of "retired employee", see (p)
20post).
21    (b-5) "New SERS annuitant" means a person who, on or after
22January 1, 1998, becomes an annuitant, as defined in subsection
23(b), by virtue of beginning to receive a retirement annuity
24under Article 14 of the Illinois Pension Code (including an
25employee who has elected to receive an alternative retirement
26cancellation payment under Section 14-108.5 of that Code in

 

 

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1lieu of an annuity), and is eligible to participate in the
2basic program of group health benefits provided for annuitants
3under this Act.
4    (b-6) "New SURS annuitant" means a person who (1) on or
5after January 1, 1998, becomes an annuitant, as defined in
6subsection (b), by virtue of beginning to receive a retirement
7annuity under Article 15 of the Illinois Pension Code, (2) has
8not made the election authorized under Section 15-135.1 of the
9Illinois Pension Code, and (3) is eligible to participate in
10the basic program of group health benefits provided for
11annuitants under this Act.
12    (b-7) "New TRS State annuitant" means a person who, on or
13after July 1, 1998, becomes an annuitant, as defined in
14subsection (b), by virtue of beginning to receive a retirement
15annuity under Article 16 of the Illinois Pension Code based on
16service as a teacher as defined in paragraph (2), (3), or (5)
17of Section 16-106 of that Code, and is eligible to participate
18in the basic program of group health benefits provided for
19annuitants under this Act.
20    (c) "Carrier" means (1) an insurance company, a corporation
21organized under the Limited Health Service Organization Act or
22the Voluntary Health Services Plan Act, a partnership, or other
23nongovernmental organization, which is authorized to do group
24life or group health insurance business in Illinois, or (2) the
25State of Illinois as a self-insurer.
26    (d) "Compensation" means salary or wages payable on a

 

 

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1regular payroll by the State Treasurer on a warrant of the
2State Comptroller out of any State, trust or federal fund, or
3by the Governor of the State through a disbursing officer of
4the State out of a trust or out of federal funds, or by any
5Department out of State, trust, federal or other funds held by
6the State Treasurer or the Department, to any person for
7personal services currently performed, and ordinary or
8accidental disability benefits under Articles 2, 14, 15
9(including ordinary or accidental disability benefits under
10the optional retirement program established under Section
1115-158.2), paragraphs (2), (3), or (5) of Section 16-106, or
12Article 18 of the Illinois Pension Code, for disability
13incurred after January 1, 1966, or benefits payable under the
14Workers' Compensation or Occupational Diseases Act or benefits
15payable under a sick pay plan established in accordance with
16Section 36 of the State Finance Act. "Compensation" also means
17salary or wages paid to an employee of any qualified local
18government, qualified rehabilitation facility, qualified
19domestic violence shelter or service, or qualified child
20advocacy center.
21    (e) "Commission" means the State Employees Group Insurance
22Advisory Commission authorized by this Act. Commencing July 1,
231984, "Commission" as used in this Act means the Commission on
24Government Forecasting and Accountability as established by
25the Legislative Commission Reorganization Act of 1984.
26    (f) "Contributory", when referred to as contributory

 

 

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1coverage, shall mean optional coverages or benefits elected by
2the member toward the cost of which such member makes
3contribution, or which are funded in whole or in part through
4the acceptance of a reduction in earnings or the foregoing of
5an increase in earnings by an employee, as distinguished from
6noncontributory coverage or benefits which are paid entirely by
7the State of Illinois without reduction of the member's salary.
8    (g) "Department" means any department, institution, board,
9commission, officer, court or any agency of the State
10government receiving appropriations and having power to
11certify payrolls to the Comptroller authorizing payments of
12salary and wages against such appropriations as are made by the
13General Assembly from any State fund, or against trust funds
14held by the State Treasurer and includes boards of trustees of
15the retirement systems created by Articles 2, 14, 15, 16 and 18
16of the Illinois Pension Code. "Department" also includes the
17Illinois Comprehensive Health Insurance Board, the Board of
18Examiners established under the Illinois Public Accounting
19Act, and the Illinois Finance Authority.
20    (h) "Dependent", when the term is used in the context of
21the health and life plan, means a member's spouse and any child
22(1) from birth to age 26 including an adopted child, a child
23who lives with the member from the time of the filing of a
24petition for adoption until entry of an order of adoption, a
25stepchild or adjudicated child, or a child who lives with the
26member if such member is a court appointed guardian of the

 

 

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1child or (2) age 19 or over who is mentally or physically
2disabled from a cause originating prior to the age of 19 (age
326 if enrolled as an adult child dependent). For the health
4plan only, the term "dependent" also includes (1) any person
5enrolled prior to the effective date of this Section who is
6dependent upon the member to the extent that the member may
7claim such person as a dependent for income tax deduction
8purposes and (2) any person who has received after June 30,
92000 an organ transplant and who is financially dependent upon
10the member and eligible to be claimed as a dependent for income
11tax purposes. A member requesting to cover any dependent must
12provide documentation as requested by the Department of Central
13Management Services and file with the Department any and all
14forms required by the Department.
15    (i) "Director" means the Director of the Illinois
16Department of Central Management Services or of any successor
17agency designated to administer this Act.
18    (j) "Eligibility period" means the period of time a member
19has to elect enrollment in programs or to select benefits
20without regard to age, sex or health.
21    (k) "Employee" means and includes each officer or employee
22in the service of a department who (1) receives his
23compensation for service rendered to the department on a
24warrant issued pursuant to a payroll certified by a department
25or on a warrant or check issued and drawn by a department upon
26a trust, federal or other fund or on a warrant issued pursuant

 

 

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1to a payroll certified by an elected or duly appointed officer
2of the State or who receives payment of the performance of
3personal services on a warrant issued pursuant to a payroll
4certified by a Department and drawn by the Comptroller upon the
5State Treasurer against appropriations made by the General
6Assembly from any fund or against trust funds held by the State
7Treasurer, and (2) is employed full-time or part-time in a
8position normally requiring actual performance of duty during
9not less than 1/2 of a normal work period, as established by
10the Director in cooperation with each department, except that
11persons elected by popular vote will be considered employees
12during the entire term for which they are elected regardless of
13hours devoted to the service of the State, and (3) except that
14"employee" does not include any person who is not eligible by
15reason of such person's employment to participate in one of the
16State retirement systems under Articles 2, 14, 15 (either the
17regular Article 15 system or the optional retirement program
18established under Section 15-158.2) or 18, or under paragraph
19(2), (3), or (5) of Section 16-106, of the Illinois Pension
20Code, but such term does include persons who are employed
21during the 6 month qualifying period under Article 14 of the
22Illinois Pension Code. Such term also includes any person who
23(1) after January 1, 1966, is receiving ordinary or accidental
24disability benefits under Articles 2, 14, 15 (including
25ordinary or accidental disability benefits under the optional
26retirement program established under Section 15-158.2),

 

 

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1paragraphs (2), (3), or (5) of Section 16-106, or Article 18 of
2the Illinois Pension Code, for disability incurred after
3January 1, 1966, (2) receives total permanent or total
4temporary disability under the Workers' Compensation Act or
5Occupational Disease Act as a result of injuries sustained or
6illness contracted in the course of employment with the State
7of Illinois, or (3) is not otherwise covered under this Act and
8has retired as a participating member under Article 2 of the
9Illinois Pension Code but is ineligible for the retirement
10annuity under Section 2-119 of the Illinois Pension Code.
11However, a person who satisfies the criteria of the foregoing
12definition of "employee" except that such person is made
13ineligible to participate in the State Universities Retirement
14System by clause (4) of subsection (a) of Section 15-107 of the
15Illinois Pension Code is also an "employee" for the purposes of
16this Act. "Employee" also includes any person receiving or
17eligible for benefits under a sick pay plan established in
18accordance with Section 36 of the State Finance Act. "Employee"
19also includes (i) each officer or employee in the service of a
20qualified local government, including persons appointed as
21trustees of sanitary districts regardless of hours devoted to
22the service of the sanitary district, (ii) each employee in the
23service of a qualified rehabilitation facility, (iii) each
24full-time employee in the service of a qualified domestic
25violence shelter or service, and (iv) each full-time employee
26in the service of a qualified child advocacy center, as

 

 

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1determined according to rules promulgated by the Director.
2    (l) "Member" means an employee, annuitant, retired
3employee or survivor.
4    (m) "Optional coverages or benefits" means those coverages
5or benefits available to the member on his or her voluntary
6election, and at his or her own expense.
7    (n) "Program" means the group life insurance, health
8benefits and other employee benefits designed and contracted
9for by the Director under this Act.
10    (o) "Health plan" means a health benefits program offered
11by the State of Illinois for persons eligible for the plan.
12    (p) "Retired employee" means any person who would be an
13annuitant as that term is defined herein but for the fact that
14such person retired prior to January 1, 1966. Such term also
15includes any person formerly employed by the University of
16Illinois in the Cooperative Extension Service who would be an
17annuitant but for the fact that such person was made ineligible
18to participate in the State Universities Retirement System by
19clause (4) of subsection (a) of Section 15-107 of the Illinois
20Pension Code.
21    (q) "Survivor" means a person receiving an annuity as a
22survivor of an employee or of an annuitant. "Survivor" also
23includes: (1) the surviving dependent of a person who satisfies
24the definition of "employee" except that such person is made
25ineligible to participate in the State Universities Retirement
26System by clause (4) of subsection (a) of Section 15-107 of the

 

 

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1Illinois Pension Code; (2) the surviving dependent of any
2person formerly employed by the University of Illinois in the
3Cooperative Extension Service who would be an annuitant except
4for the fact that such person was made ineligible to
5participate in the State Universities Retirement System by
6clause (4) of subsection (a) of Section 15-107 of the Illinois
7Pension Code; and (3) the surviving dependent of a person who
8was an annuitant under this Act by virtue of receiving an
9alternative retirement cancellation payment under Section
1014-108.5 of the Illinois Pension Code.
11    (q-2) "SERS" means the State Employees' Retirement System
12of Illinois, created under Article 14 of the Illinois Pension
13Code.
14    (q-3) "SURS" means the State Universities Retirement
15System, created under Article 15 of the Illinois Pension Code.
16    (q-4) "TRS" means the Teachers' Retirement System of the
17State of Illinois, created under Article 16 of the Illinois
18Pension Code.
19    (q-5) "New SERS survivor" means a survivor, as defined in
20subsection (q), whose annuity is paid under Article 14 of the
21Illinois Pension Code and is based on the death of (i) an
22employee whose death occurs on or after January 1, 1998, or
23(ii) a new SERS annuitant as defined in subsection (b-5). "New
24SERS survivor" includes the surviving dependent of a person who
25was an annuitant under this Act by virtue of receiving an
26alternative retirement cancellation payment under Section

 

 

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114-108.5 of the Illinois Pension Code.
2    (q-6) "New SURS survivor" means a survivor, as defined in
3subsection (q), whose annuity is paid under Article 15 of the
4Illinois Pension Code and is based on the death of (i) an
5employee whose death occurs on or after January 1, 1998, or
6(ii) a new SURS annuitant as defined in subsection (b-6).
7    (q-7) "New TRS State survivor" means a survivor, as defined
8in subsection (q), whose annuity is paid under Article 16 of
9the Illinois Pension Code and is based on the death of (i) an
10employee who is a teacher as defined in paragraph (2), (3), or
11(5) of Section 16-106 of that Code and whose death occurs on or
12after July 1, 1998, or (ii) a new TRS State annuitant as
13defined in subsection (b-7).
14    (r) "Medical services" means the services provided within
15the scope of their licenses by practitioners in all categories
16licensed under the Medical Practice Act of 1987.
17    (s) "Unit of local government" means any county,
18municipality, township, school district (including a
19combination of school districts under the Intergovernmental
20Cooperation Act), special district or other unit, designated as
21a unit of local government by law, which exercises limited
22governmental powers or powers in respect to limited
23governmental subjects, any not-for-profit association with a
24membership that primarily includes townships and township
25officials, that has duties that include provision of research
26service, dissemination of information, and other acts for the

 

 

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1purpose of improving township government, and that is funded
2wholly or partly in accordance with Section 85-15 of the
3Township Code; any not-for-profit corporation or association,
4with a membership consisting primarily of municipalities, that
5operates its own utility system, and provides research,
6training, dissemination of information, or other acts to
7promote cooperation between and among municipalities that
8provide utility services and for the advancement of the goals
9and purposes of its membership; the Southern Illinois
10Collegiate Common Market, which is a consortium of higher
11education institutions in Southern Illinois; the Illinois
12Association of Park Districts; and any hospital provider that
13is owned by a county that has 100 or fewer hospital beds and
14has not already joined the program. "Qualified local
15government" means a unit of local government approved by the
16Director and participating in a program created under
17subsection (i) of Section 10 of this Act.
18    (t) "Qualified rehabilitation facility" means any
19not-for-profit organization that is accredited by the
20Commission on Accreditation of Rehabilitation Facilities or
21certified by the Department of Human Services (as successor to
22the Department of Mental Health and Developmental
23Disabilities) to provide services to persons with disabilities
24and which receives funds from the State of Illinois for
25providing those services, approved by the Director and
26participating in a program created under subsection (j) of

 

 

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1Section 10 of this Act.
2    (u) "Qualified domestic violence shelter or service" means
3any Illinois domestic violence shelter or service and its
4administrative offices funded by the Department of Human
5Services (as successor to the Illinois Department of Public
6Aid), approved by the Director and participating in a program
7created under subsection (k) of Section 10.
8    (v) "TRS benefit recipient" means a person who:
9        (1) is not a "member" as defined in this Section; and
10        (2) is receiving a monthly benefit or retirement
11    annuity under Article 16 of the Illinois Pension Code; and
12        (3) either (i) has at least 8 years of creditable
13    service under Article 16 of the Illinois Pension Code, or
14    (ii) was enrolled in the health insurance program offered
15    under that Article on January 1, 1996, or (iii) is the
16    survivor of a benefit recipient who had at least 8 years of
17    creditable service under Article 16 of the Illinois Pension
18    Code or was enrolled in the health insurance program
19    offered under that Article on the effective date of this
20    amendatory Act of 1995, or (iv) is a recipient or survivor
21    of a recipient of a disability benefit under Article 16 of
22    the Illinois Pension Code.
23    (w) "TRS dependent beneficiary" means a person who:
24        (1) is not a "member" or "dependent" as defined in this
25    Section; and
26        (2) is a TRS benefit recipient's: (A) spouse, (B)

 

 

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1    dependent parent who is receiving at least half of his or
2    her support from the TRS benefit recipient, or (C) natural,
3    step, adjudicated, or adopted child who is (i) under age
4    26, (ii) was, on January 1, 1996, participating as a
5    dependent beneficiary in the health insurance program
6    offered under Article 16 of the Illinois Pension Code, or
7    (iii) age 19 or over who is mentally or physically disabled
8    from a cause originating prior to the age of 19 (age 26 if
9    enrolled as an adult child).
10    (x) "Military leave" refers to individuals in basic
11training for reserves, special/advanced training, annual
12training, emergency call up, activation by the President of the
13United States, or any other training or duty in service to the
14United States Armed Forces.
15    (y) (Blank).
16    (z) "Community college benefit recipient" means a person
17who:
18        (1) is not a "member" as defined in this Section; and
19        (2) is receiving a monthly survivor's annuity or
20    retirement annuity under Article 15 of the Illinois Pension
21    Code; and
22        (3) either (i) was a full-time employee of a community
23    college district or an association of community college
24    boards created under the Public Community College Act
25    (other than an employee whose last employer under Article
26    15 of the Illinois Pension Code was a community college

 

 

SB0178 Enrolled- 24 -LRB097 03971 JDS 44010 b

1    district subject to Article VII of the Public Community
2    College Act) and was eligible to participate in a group
3    health benefit plan as an employee during the time of
4    employment with a community college district (other than a
5    community college district subject to Article VII of the
6    Public Community College Act) or an association of
7    community college boards, or (ii) is the survivor of a
8    person described in item (i).
9    (aa) "Community college dependent beneficiary" means a
10person who:
11        (1) is not a "member" or "dependent" as defined in this
12    Section; and
13        (2) is a community college benefit recipient's: (A)
14    spouse, (B) dependent parent who is receiving at least half
15    of his or her support from the community college benefit
16    recipient, or (C) natural, step, adjudicated, or adopted
17    child who is (i) under age 26, or (ii) age 19 or over and
18    mentally or physically disabled from a cause originating
19    prior to the age of 19 (age 26 if enrolled as an adult
20    child).
21    (bb) "Qualified child advocacy center" means any Illinois
22child advocacy center and its administrative offices funded by
23the Department of Children and Family Services, as defined by
24the Children's Advocacy Center Act (55 ILCS 80/), approved by
25the Director and participating in a program created under
26subsection (n) of Section 10.

 

 

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1(Source: P.A. 95-331, eff. 8-21-07; 95-632, eff. 9-25-07;
296-756, eff. 1-1-10; 96-1519, eff. 2-4-11.)
 
3    (5 ILCS 375/5)  (from Ch. 127, par. 525)
4    Sec. 5. Employee benefits; declaration of State policy. The
5General Assembly declares that it is the policy of the State
6and in the best interest of the State to assure quality
7benefits to members and their dependents under this Act. The
8implementation of this policy depends upon, among other things,
9stability and continuity of coverage, care, and services under
10benefit programs for members and their dependents.
11Specifically, but without limitation, members should have
12continued access, on substantially similar terms and
13conditions, to trusted family health care providers with whom
14they have developed long-term relationships through a benefit
15program under this Act. Therefore, the Director must administer
16this Act consistent with that State policy, but may consider
17affordability, cost of coverage and care, and competition among
18health insurers and providers. All contracts for provision of
19employee benefits, including those portions of any proposed
20collective bargaining agreement that would require
21implementation through contracts entered into under this Act,
22are subject to Section 5.5 and the following requirements:
23        (i) By January April 1 of each year, the Director must
24    report and provide information to the Commission
25    concerning the status of the employee benefits program to

 

 

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1    be offered for the next fiscal year. Information includes,
2    but is not limited to, documents, reports of negotiations,
3    bid invitations, requests for proposals, specifications,
4    copies of proposed and final contracts or agreements, and
5    any other materials concerning contracts or agreements for
6    the employee benefits program. By the first of each month
7    thereafter, the Director must provide updated, and any new,
8    information to the Commission until the employee benefits
9    program for the next fiscal year is finalized determined.
10    In addition to these monthly reporting requirements, at any
11    time the Commission makes a written request, the Director
12    must promptly, but in no event later than 5 business days
13    after receipt of the request, provide to the Commission any
14    additional requested information in the possession of the
15    Director concerning employee benefits programs. The
16    Commission may waive any of the reporting requirements of
17    this item (i) upon the written request by the Director. Any
18    waiver granted under this item (i) must be in writing.
19    Nothing in this item is intended to abrogate any
20    attorney-client privilege.
21        (ii) Within 30 days after notice of the awarding or
22    letting of a contract has appeared in the Illinois
23    Procurement Bulletin in accordance with subsection (b) of
24    Section 15-25 of the Illinois Procurement Code, the
25    Commission may request in writing from the Director and the
26    Director shall promptly, but in no event later than 5

 

 

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1    business days after receipt of the request, provide to the
2    Commission information in the possession of the Director
3    concerning the proposed contract. Nothing in this item is
4    intended to waive or abrogate any privilege or right of
5    confidentiality authorized by law.
6        (iii) No contract subject to this Section may be
7    entered into until the 30-day period described in item (ii)
8    has expired, unless the Director requests in writing that
9    the Commission waive the period and the Commission grants
10    the waiver in writing.
11        (iv) If the Director seeks to make any substantive
12    modification to any provision of a proposed contract after
13    it is submitted to the Commission in accordance with item
14    (ii), the modified contract shall be subject to the
15    requirements of items (ii) and (iii) unless the Commission
16    agrees, in writing, to a waiver of those requirements with
17    respect to the modified contract.
18        (v) By April 1 of each year the date of the beginning
19    of the annual benefit choice period, the Director must
20    transmit to the Commission a copy of each final contract or
21    agreement for the employee benefits program to be offered
22    for the next fiscal year. The annual benefit choice period
23    for an employee benefits program must begin on May 1 of the
24    fiscal year preceding the year for which the program is to
25    be offered. If, however, in any such preceding fiscal year
26    collective bargaining over employee benefit programs for

 

 

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1    the next fiscal year remains pending on April 15, the
2    beginning date of the annual benefit choice period shall be
3    not later than 15 days after ratification of the collective
4    bargaining agreement.
5        (vi) The Director must provide the reports,
6    information, and contracts required under items (i), (ii),
7    (iv), and (v) by electronic or other means satisfactory to
8    the Commission. Reports, information, and contracts in the
9    possession of the Commission pursuant to items (i), (ii),
10    (iv), and (v) are exempt from disclosure by the Commission
11    and its members and employees under the Freedom of
12    Information Act. Reports, information, and contracts
13    received by the Commission pursuant to items (i), (ii),
14    (iv), and (v) must be kept confidential by and may not be
15    disclosed or used by the Commission or its members or
16    employees if such disclosure or use could compromise the
17    fairness or integrity of the procurement, bidding, or
18    contract process. Commission meetings, or portions of
19    Commission meetings, in which reports, information, and
20    contracts received by the Commission pursuant to items (i),
21    (ii), (iv), and (v) are discussed must be closed if
22    disclosure or use of the report or information could
23    compromise the fairness or integrity of the procurement,
24    bidding, or contract process.
25    All contracts entered into under this Section are subject
26to appropriation and shall comply with Section 20-60(b) of the

 

 

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1Illinois Procurement Code (30 ILCS 500/20-60(b)).
2    The Director shall contract or otherwise make available
3group life insurance, health benefits and other employee
4benefits to eligible members and, where elected, their eligible
5dependents. Any contract or, if applicable, contracts or other
6arrangement for provision of benefits shall be on terms
7consistent with State policy and based on, but not limited to,
8such criteria as administrative cost, service capabilities of
9the carrier or other contractor and premiums, fees or charges
10as related to benefits.
11    The Director may prepare and issue specifications for group
12life insurance, health benefits, other employee benefits and
13administrative services for the purpose of receiving proposals
14from interested parties.
15    The Director is authorized to execute a contract, or
16contracts, for the programs of group life insurance, health
17benefits, other employee benefits and administrative services
18authorized by this Act (including, without limitation,
19prescription drug benefits). All of the benefits provided under
20this Act may be included in one or more contracts, or the
21benefits may be classified into different types with each type
22included under one or more similar contracts with the same or
23different companies.
24    Except as otherwise provided in this Act, the The term of
25any contract may not extend beyond 5 fiscal years. Upon
26recommendation of the Commission, the Director may exercise

 

 

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1renewal options of the same contract for up to a period of 5
2years or for an additional period of time, as authorized under
3Section 5.5. Any increases in premiums, fees or charges
4requested by a contractor whose contract may be renewed
5pursuant to a renewal option contained therein, must be
6justified on the basis of (1) audited experience data, (2)
7increases in the costs of health care services provided under
8the contract, (3) contractor performance, (4) increases in
9contractor responsibilities, or (5) any combination thereof.
10    Any contractor shall agree to abide by all requirements of
11this Act and Rules and Regulations promulgated and adopted
12thereto; to submit such information and data as may from time
13to time be deemed necessary by the Director for effective
14administration of the provisions of this Act and the programs
15established hereunder, and to fully cooperate in any audit.
16(Source: P.A. 93-839, eff. 7-30-04.)
 
17    (5 ILCS 375/5.5 new)
18    Sec. 5.5. State healthcare purchasing oversight; timely
19provision of health benefits.
20    (a) If, after reviewing the information submitted to it
21under item (ii) of Section 5 of this Act, the Commission makes
22a formal written determination that a proposed contract
23inadequately balances the policies identified in Section 5 of
24this Act, then the Commission may disapprove the proposed
25contract at any time before it is finalized. If the Commission

 

 

SB0178 Enrolled- 31 -LRB097 03971 JDS 44010 b

1disapproves a proposed contract, then that proposed contract
2may not be finalized unless subsequently approved by a joint
3resolution of the General Assembly.
4    (b) If, within 90 days before the start of a fiscal year,
5the Chief Procurement Officer responsible for awarding group
6health insurance contracts under this Act has not finalized all
7written contracts for the provision of group health insurance
8benefits under this Act for the coming fiscal year, then the
9Commission may direct the Chief Procurement Officer (i) not to
10finalize any proposed group health insurance contracts for that
11fiscal year, as well as associated requests for proposals, and
12(ii) to seek to extend existing contracts for those benefits
13for a term of 2 additional years.
 
14    (5 ILCS 375/6.5)
15    Sec. 6.5. Health benefits for TRS benefit recipients and
16TRS dependent beneficiaries.
17    (a) Purpose. It is the purpose of this amendatory Act of
181995 to transfer the administration of the program of health
19benefits established for benefit recipients and their
20dependent beneficiaries under Article 16 of the Illinois
21Pension Code to the Department of Central Management Services.
22    (b) Transition provisions. The Board of Trustees of the
23Teachers' Retirement System shall continue to administer the
24health benefit program established under Article 16 of the
25Illinois Pension Code through December 31, 1995. Beginning

 

 

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1January 1, 1996, the Department of Central Management Services
2shall be responsible for administering a program of health
3benefits for TRS benefit recipients and TRS dependent
4beneficiaries under this Section. The Department of Central
5Management Services and the Teachers' Retirement System shall
6cooperate in this endeavor and shall coordinate their
7activities so as to ensure a smooth transition and
8uninterrupted health benefit coverage.
9    (c) Eligibility. All persons who were enrolled in the
10Article 16 program at the time of the transfer shall be
11eligible to participate in the program established under this
12Section without any interruption or delay in coverage or
13limitation as to pre-existing medical conditions. Eligibility
14to participate shall be determined by the Teachers' Retirement
15System. Eligibility information shall be communicated to the
16Department of Central Management Services in a format
17acceptable to the Department.
18    A TRS dependent beneficiary who is a child age 19 or over
19and mentally or physically disabled does not become ineligible
20to participate by reason of (i) becoming ineligible to be
21claimed as a dependent for Illinois or federal income tax
22purposes or (ii) receiving earned income, so long as those
23earnings are insufficient for the child to be fully
24self-sufficient.
25    (d) Coverage. The level of health benefits provided under
26this Section shall be similar to the level of benefits provided

 

 

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1by the program previously established under Article 16 of the
2Illinois Pension Code.
3    Group life insurance benefits are not included in the
4benefits to be provided to TRS benefit recipients and TRS
5dependent beneficiaries under this Act.
6    The program of health benefits under this Section may
7include any or all of the benefit limitations, including but
8not limited to a reduction in benefits based on eligibility for
9federal medicare benefits, that are provided under subsection
10(a) of Section 6 of this Act for other health benefit programs
11under this Act.
12    (e) Insurance rates and premiums. The Director shall
13determine the insurance rates and premiums for TRS benefit
14recipients and TRS dependent beneficiaries, and shall present
15to the Teachers' Retirement System of the State of Illinois, by
16April 15 of each calendar year, the rate-setting methodology
17(including but not limited to utilization levels and costs)
18used to determine the amount of the health care premiums.
19        For Fiscal Year 1996, the premium shall be equal to the
20    premium actually charged in Fiscal Year 1995; in subsequent
21    years, the premium shall never be lower than the premium
22    charged in Fiscal Year 1995.
23        For Fiscal Year 2003, the premium shall not exceed 110%
24    of the premium actually charged in Fiscal Year 2002.
25        For Fiscal Year 2004, the premium shall not exceed 112%
26    of the premium actually charged in Fiscal Year 2003.

 

 

SB0178 Enrolled- 34 -LRB097 03971 JDS 44010 b

1        For Fiscal Year 2005, the premium shall not exceed a
2    weighted average of 106.6% of the premium actually charged
3    in Fiscal Year 2004.
4        For Fiscal Year 2006, the premium shall not exceed a
5    weighted average of 109.1% of the premium actually charged
6    in Fiscal Year 2005.
7        For Fiscal Year 2007, the premium shall not exceed a
8    weighted average of 103.9% of the premium actually charged
9    in Fiscal Year 2006.
10        For Fiscal Year 2008 and thereafter, the premium in
11    each fiscal year shall not exceed 105% of the premium
12    actually charged in the previous fiscal year.
13    Rates and premiums may be based in part on age and
14eligibility for federal medicare coverage. However, the cost of
15participation for a TRS dependent beneficiary who is an
16unmarried child age 19 or over and mentally or physically
17disabled shall not exceed the cost for a TRS dependent
18beneficiary who is an unmarried child under age 19 and
19participates in the same major medical or managed care program.
20    The cost of health benefits under the program shall be paid
21as follows:
22        (1) For a TRS benefit recipient selecting a managed
23    care program, up to 75% of the total insurance rate shall
24    be paid from the Teacher Health Insurance Security Fund.
25    Effective with Fiscal Year 2007 and thereafter, for a TRS
26    benefit recipient selecting a managed care program, 75% of

 

 

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1    the total insurance rate shall be paid from the Teacher
2    Health Insurance Security Fund.
3        (2) For a TRS benefit recipient selecting the major
4    medical coverage program, up to 50% of the total insurance
5    rate shall be paid from the Teacher Health Insurance
6    Security Fund if a managed care program is accessible, as
7    determined by the Teachers' Retirement System. Effective
8    with Fiscal Year 2007 and thereafter, for a TRS benefit
9    recipient selecting the major medical coverage program,
10    50% of the total insurance rate shall be paid from the
11    Teacher Health Insurance Security Fund if a managed care
12    program is accessible, as determined by the Department of
13    Central Management Services.
14        (3) For a TRS benefit recipient selecting the major
15    medical coverage program, up to 75% of the total insurance
16    rate shall be paid from the Teacher Health Insurance
17    Security Fund if a managed care program is not accessible,
18    as determined by the Teachers' Retirement System.
19    Effective with Fiscal Year 2007 and thereafter, for a TRS
20    benefit recipient selecting the major medical coverage
21    program, 75% of the total insurance rate shall be paid from
22    the Teacher Health Insurance Security Fund if a managed
23    care program is not accessible, as determined by the
24    Department of Central Management Services.
25        (3.1) For a TRS dependent beneficiary who is Medicare
26    primary and enrolled in a managed care plan, or the major

 

 

SB0178 Enrolled- 36 -LRB097 03971 JDS 44010 b

1    medical coverage program if a managed care plan is not
2    available, 25% of the total insurance rate shall be paid
3    from the Teacher Health Security Fund as determined by the
4    Department of Central Management Services. For the purpose
5    of this item (3.1), the term "TRS dependent beneficiary who
6    is Medicare primary" means a TRS dependent beneficiary who
7    is participating in Medicare Parts A and B.
8        (4) Except as otherwise provided in item (3.1), the
9    balance of the rate of insurance, including the entire
10    premium of any coverage for TRS dependent beneficiaries
11    that has been elected, shall be paid by deductions
12    authorized by the TRS benefit recipient to be withheld from
13    his or her monthly annuity or benefit payment from the
14    Teachers' Retirement System; except that (i) if the balance
15    of the cost of coverage exceeds the amount of the monthly
16    annuity or benefit payment, the difference shall be paid
17    directly to the Teachers' Retirement System by the TRS
18    benefit recipient, and (ii) all or part of the balance of
19    the cost of coverage may, at the school board's option, be
20    paid to the Teachers' Retirement System by the school board
21    of the school district from which the TRS benefit recipient
22    retired, in accordance with Section 10-22.3b of the School
23    Code. The Teachers' Retirement System shall promptly
24    deposit all moneys withheld by or paid to it under this
25    subdivision (e)(4) into the Teacher Health Insurance
26    Security Fund. These moneys shall not be considered assets

 

 

SB0178 Enrolled- 37 -LRB097 03971 JDS 44010 b

1    of the Retirement System.
2    (f) Financing. Beginning July 1, 1995, all revenues arising
3from the administration of the health benefit programs
4established under Article 16 of the Illinois Pension Code or
5this Section shall be deposited into the Teacher Health
6Insurance Security Fund, which is hereby created as a
7nonappropriated trust fund to be held outside the State
8Treasury, with the State Treasurer as custodian. Any interest
9earned on moneys in the Teacher Health Insurance Security Fund
10shall be deposited into the Fund.
11    Moneys in the Teacher Health Insurance Security Fund shall
12be used only to pay the costs of the health benefit program
13established under this Section, including associated
14administrative costs, and the costs associated with the health
15benefit program established under Article 16 of the Illinois
16Pension Code, as authorized in this Section. Beginning July 1,
171995, the Department of Central Management Services may make
18expenditures from the Teacher Health Insurance Security Fund
19for those costs.
20    After other funds authorized for the payment of the costs
21of the health benefit program established under Article 16 of
22the Illinois Pension Code are exhausted and until January 1,
231996 (or such later date as may be agreed upon by the Director
24of Central Management Services and the Secretary of the
25Teachers' Retirement System), the Secretary of the Teachers'
26Retirement System may make expenditures from the Teacher Health

 

 

SB0178 Enrolled- 38 -LRB097 03971 JDS 44010 b

1Insurance Security Fund as necessary to pay up to 75% of the
2cost of providing health coverage to eligible benefit
3recipients (as defined in Sections 16-153.1 and 16-153.3 of the
4Illinois Pension Code) who are enrolled in the Article 16
5health benefit program and to facilitate the transfer of
6administration of the health benefit program to the Department
7of Central Management Services.
8    The Department of Central Management Healthcare and Family
9Services, or any successor agency designated to procure
10healthcare contracts pursuant to this Act, is authorized to
11establish funds, separate accounts provided by any bank or
12banks as defined by the Illinois Banking Act, or separate
13accounts provided by any savings and loan association or
14associations as defined by the Illinois Savings and Loan Act of
151985 to be held by the Director, outside the State treasury,
16for the purpose of receiving the transfer of moneys from the
17Teacher Health Insurance Security Fund. The Department may
18promulgate rules further defining the methodology for the
19transfers. Any interest earned by moneys in the funds or
20accounts shall inure to the Teacher Health Insurance Security
21Fund. The transferred moneys, and interest accrued thereon,
22shall be used exclusively for transfers to administrative
23service organizations or their financial institutions for
24payments of claims to claimants and providers under the
25self-insurance health plan. The transferred moneys, and
26interest accrued thereon, shall not be used for any other

 

 

SB0178 Enrolled- 39 -LRB097 03971 JDS 44010 b

1purpose including, but not limited to, reimbursement of
2administration fees due the administrative service
3organization pursuant to its contract or contracts with the
4Department.
5    (g) Contract for benefits. The Director shall by contract,
6self-insurance, or otherwise make available the program of
7health benefits for TRS benefit recipients and their TRS
8dependent beneficiaries that is provided for in this Section.
9The contract or other arrangement for the provision of these
10health benefits shall be on terms deemed by the Director to be
11in the best interest of the State of Illinois and the TRS
12benefit recipients based on, but not limited to, such criteria
13as administrative cost, service capabilities of the carrier or
14other contractor, and the costs of the benefits.
15    (g-5) Committee. A Teacher Retirement Insurance Program
16Committee shall be established, to consist of 10 persons
17appointed by the Governor.
18    The Committee shall convene at least 4 times each year, and
19shall consider and make recommendations on issues affecting the
20program of health benefits provided under this Section.
21Recommendations of the Committee shall be based on a consensus
22of the members of the Committee.
23    If the Teacher Health Insurance Security Fund experiences a
24deficit balance based upon the contribution and subsidy rates
25established in this Section and Section 6.6 for Fiscal Year
262008 or thereafter, the Committee shall make recommendations

 

 

SB0178 Enrolled- 40 -LRB097 03971 JDS 44010 b

1for adjustments to the funding sources established under these
2Sections.
3    (h) Continuation of program. It is the intention of the
4General Assembly that the program of health benefits provided
5under this Section be maintained on an ongoing, affordable
6basis.
7    The program of health benefits provided under this Section
8may be amended by the State and is not intended to be a pension
9or retirement benefit subject to protection under Article XIII,
10Section 5 of the Illinois Constitution.
11    (i) Repeal. (Blank).
12(Source: P.A. 95-632, eff. 9-25-07; 96-1519, eff. 2-4-11.)
 
13    (5 ILCS 375/6.10)
14    Sec. 6.10. Contributions to the Community College Health
15Insurance Security Fund.
16    (a) Beginning January 1, 1999, every active contributor of
17the State Universities Retirement System (established under
18Article 15 of the Illinois Pension Code) who (1) is a full-time
19employee of a community college district (other than a
20community college district subject to Article VII of the Public
21Community College Act) or an association of community college
22boards and (2) is not an employee as defined in Section 3 of
23this Act shall make contributions toward the cost of community
24college annuitant and survivor health benefits at the rate of
250.50% of salary.

 

 

SB0178 Enrolled- 41 -LRB097 03971 JDS 44010 b

1    These contributions shall be deducted by the employer and
2paid to the State Universities Retirement System as service
3agent for the Department of Central Management Services. The
4System may use the same processes for collecting the
5contributions required by this subsection that it uses to
6collect the contributions received from those employees under
7Section 15-157 of the Illinois Pension Code. An employer may
8agree to pick up or pay the contributions required under this
9subsection on behalf of the employee; such contributions shall
10be deemed to have been paid by the employee.
11    The State Universities Retirement System shall promptly
12deposit all moneys collected under this subsection (a) into the
13Community College Health Insurance Security Fund created in
14Section 6.9 of this Act. The moneys collected under this
15Section shall be used only for the purposes authorized in
16Section 6.9 of this Act and shall not be considered to be
17assets of the State Universities Retirement System.
18Contributions made under this Section are not transferable to
19other pension funds or retirement systems and are not
20refundable upon termination of service.
21    (b) Beginning January 1, 1999, every community college
22district (other than a community college district subject to
23Article VII of the Public Community College Act) or association
24of community college boards that is an employer under the State
25Universities Retirement System shall contribute toward the
26cost of the community college health benefits provided under

 

 

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1Section 6.9 of this Act an amount equal to 0.50% of the salary
2paid to its full-time employees who participate in the State
3Universities Retirement System and are not members as defined
4in Section 3 of this Act.
5    These contributions shall be paid by the employer to the
6State Universities Retirement System as service agent for the
7Department of Central Management Services. The System may use
8the same processes for collecting the contributions required by
9this subsection that it uses to collect the contributions
10received from those employers under Section 15-155 of the
11Illinois Pension Code.
12    The State Universities Retirement System shall promptly
13deposit all moneys collected under this subsection (b) into the
14Community College Health Insurance Security Fund created in
15Section 6.9 of this Act. The moneys collected under this
16Section shall be used only for the purposes authorized in
17Section 6.9 of this Act and shall not be considered to be
18assets of the State Universities Retirement System.
19Contributions made under this Section are not transferable to
20other pension funds or retirement systems and are not
21refundable upon termination of service.
22    The Department of Central Management Healthcare and Family
23Services, or any successor agency designated to procure
24healthcare contracts pursuant to this Act, is authorized to
25establish funds, separate accounts provided by any bank or
26banks as defined by the Illinois Banking Act, or separate

 

 

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1accounts provided by any savings and loan association or
2associations as defined by the Illinois Savings and Loan Act of
31985 to be held by the Director, outside the State treasury,
4for the purpose of receiving the transfer of moneys from the
5Community College Health Insurance Security Fund. The
6Department may promulgate rules further defining the
7methodology for the transfers. Any interest earned by moneys in
8the funds or accounts shall inure to the Community College
9Health Insurance Security Fund. The transferred moneys, and
10interest accrued thereon, shall be used exclusively for
11transfers to administrative service organizations or their
12financial institutions for payments of claims to claimants and
13providers under the self-insurance health plan. The
14transferred moneys, and interest accrued thereon, shall not be
15used for any other purpose including, but not limited to,
16reimbursement of administration fees due the administrative
17service organization pursuant to its contract or contracts with
18the Department.
19    (c) On or before November 15 of each year, the Board of
20Trustees of the State Universities Retirement System shall
21certify to the Governor, the Director of Central Management
22Services, and the State Comptroller its estimate of the total
23amount of contributions to be paid under subsection (a) of this
24Section for the next fiscal year. Beginning in fiscal year
252008, the amount certified shall be decreased or increased each
26year by the amount that the actual active employee

 

 

SB0178 Enrolled- 44 -LRB097 03971 JDS 44010 b

1contributions either fell short of or exceeded the estimate
2used by the Board in making the certification for the previous
3fiscal year. The State Universities Retirement System shall
4calculate the amount of actual active employee contributions in
5fiscal years 1999 through 2005. Based upon this calculation,
6the fiscal year 2008 certification shall include an amount
7equal to the cumulative amount that the actual active employee
8contributions either fell short of or exceeded the estimate
9used by the Board in making the certification for those fiscal
10years. The certification shall include a detailed explanation
11of the methods and information that the Board relied upon in
12preparing its estimate. As soon as possible after the effective
13date of this Section, the Board shall submit its estimate for
14fiscal year 1999.
15    (d) Beginning in fiscal year 1999, on the first day of each
16month, or as soon thereafter as may be practical, the State
17Treasurer and the State Comptroller shall transfer from the
18General Revenue Fund to the Community College Health Insurance
19Security Fund 1/12 of the annual amount appropriated for that
20fiscal year to the State Comptroller for deposit into the
21Community College Health Insurance Security Fund under Section
221.4 of the State Pension Funds Continuing Appropriation Act.
23    (e) Except where otherwise specified in this Section, the
24definitions that apply to Article 15 of the Illinois Pension
25Code apply to this Section.
26(Source: P.A. 94-839, eff. 6-6-06; 95-632, eff. 9-25-07.)
 

 

 

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1    (5 ILCS 375/10)  (from Ch. 127, par. 530)
2    Sec. 10. Payments by State; premiums.
3    (a) The State shall pay the cost of basic non-contributory
4group life insurance and, subject to member paid contributions
5set by the Department or required by this Section, the basic
6program of group health benefits on each eligible member,
7except a member, not otherwise covered by this Act, who has
8retired as a participating member under Article 2 of the
9Illinois Pension Code but is ineligible for the retirement
10annuity under Section 2-119 of the Illinois Pension Code, and
11part of each eligible member's and retired member's premiums
12for health insurance coverage for enrolled dependents as
13provided by Section 9. The State shall pay the cost of the
14basic program of group health benefits only after benefits are
15reduced by the amount of benefits covered by Medicare for all
16members and dependents who are eligible for benefits under
17Social Security or the Railroad Retirement system or who had
18sufficient Medicare-covered government employment, except that
19such reduction in benefits shall apply only to those members
20and dependents who (1) first become eligible for such Medicare
21coverage on or after July 1, 1992; or (2) are Medicare-eligible
22members or dependents of a local government unit which began
23participation in the program on or after July 1, 1992; or (3)
24remain eligible for, but no longer receive Medicare coverage
25which they had been receiving on or after July 1, 1992. The

 

 

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1Department may determine the aggregate level of the State's
2contribution on the basis of actual cost of medical services
3adjusted for age, sex or geographic or other demographic
4characteristics which affect the costs of such programs.
5    The cost of participation in the basic program of group
6health benefits for the dependent or survivor of a living or
7deceased retired employee who was formerly employed by the
8University of Illinois in the Cooperative Extension Service and
9would be an annuitant but for the fact that he or she was made
10ineligible to participate in the State Universities Retirement
11System by clause (4) of subsection (a) of Section 15-107 of the
12Illinois Pension Code shall not be greater than the cost of
13participation that would otherwise apply to that dependent or
14survivor if he or she were the dependent or survivor of an
15annuitant under the State Universities Retirement System.
16    (a-1) Beginning January 1, 1998, for each person who
17becomes a new SERS annuitant and participates in the basic
18program of group health benefits, the State shall contribute
19toward the cost of the annuitant's coverage under the basic
20program of group health benefits an amount equal to 5% of that
21cost for each full year of creditable service upon which the
22annuitant's retirement annuity is based, up to a maximum of
23100% for an annuitant with 20 or more years of creditable
24service. The remainder of the cost of a new SERS annuitant's
25coverage under the basic program of group health benefits shall
26be the responsibility of the annuitant. In the case of a new

 

 

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1SERS annuitant who has elected to receive an alternative
2retirement cancellation payment under Section 14-108.5 of the
3Illinois Pension Code in lieu of an annuity, for the purposes
4of this subsection the annuitant shall be deemed to be
5receiving a retirement annuity based on the number of years of
6creditable service that the annuitant had established at the
7time of his or her termination of service under SERS.
8    (a-2) Beginning January 1, 1998, for each person who
9becomes a new SERS survivor and participates in the basic
10program of group health benefits, the State shall contribute
11toward the cost of the survivor's coverage under the basic
12program of group health benefits an amount equal to 5% of that
13cost for each full year of the deceased employee's or deceased
14annuitant's creditable service in the State Employees'
15Retirement System of Illinois on the date of death, up to a
16maximum of 100% for a survivor of an employee or annuitant with
1720 or more years of creditable service. The remainder of the
18cost of the new SERS survivor's coverage under the basic
19program of group health benefits shall be the responsibility of
20the survivor. In the case of a new SERS survivor who was the
21dependent of an annuitant who elected to receive an alternative
22retirement cancellation payment under Section 14-108.5 of the
23Illinois Pension Code in lieu of an annuity, for the purposes
24of this subsection the deceased annuitant's creditable service
25shall be determined as of the date of termination of service
26rather than the date of death.

 

 

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1    (a-3) Beginning January 1, 1998, for each person who
2becomes a new SURS annuitant and participates in the basic
3program of group health benefits, the State shall contribute
4toward the cost of the annuitant's coverage under the basic
5program of group health benefits an amount equal to 5% of that
6cost for each full year of creditable service upon which the
7annuitant's retirement annuity is based, up to a maximum of
8100% for an annuitant with 20 or more years of creditable
9service. The remainder of the cost of a new SURS annuitant's
10coverage under the basic program of group health benefits shall
11be the responsibility of the annuitant.
12    (a-4) (Blank).
13    (a-5) Beginning January 1, 1998, for each person who
14becomes a new SURS survivor and participates in the basic
15program of group health benefits, the State shall contribute
16toward the cost of the survivor's coverage under the basic
17program of group health benefits an amount equal to 5% of that
18cost for each full year of the deceased employee's or deceased
19annuitant's creditable service in the State Universities
20Retirement System on the date of death, up to a maximum of 100%
21for a survivor of an employee or annuitant with 20 or more
22years of creditable service. The remainder of the cost of the
23new SURS survivor's coverage under the basic program of group
24health benefits shall be the responsibility of the survivor.
25    (a-6) Beginning July 1, 1998, for each person who becomes a
26new TRS State annuitant and participates in the basic program

 

 

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1of group health benefits, the State shall contribute toward the
2cost of the annuitant's coverage under the basic program of
3group health benefits an amount equal to 5% of that cost for
4each full year of creditable service as a teacher as defined in
5paragraph (2), (3), or (5) of Section 16-106 of the Illinois
6Pension Code upon which the annuitant's retirement annuity is
7based, up to a maximum of 100%; except that the State
8contribution shall be 12.5% per year (rather than 5%) for each
9full year of creditable service as a regional superintendent or
10assistant regional superintendent of schools. The remainder of
11the cost of a new TRS State annuitant's coverage under the
12basic program of group health benefits shall be the
13responsibility of the annuitant.
14    (a-7) Beginning July 1, 1998, for each person who becomes a
15new TRS State survivor and participates in the basic program of
16group health benefits, the State shall contribute toward the
17cost of the survivor's coverage under the basic program of
18group health benefits an amount equal to 5% of that cost for
19each full year of the deceased employee's or deceased
20annuitant's creditable service as a teacher as defined in
21paragraph (2), (3), or (5) of Section 16-106 of the Illinois
22Pension Code on the date of death, up to a maximum of 100%;
23except that the State contribution shall be 12.5% per year
24(rather than 5%) for each full year of the deceased employee's
25or deceased annuitant's creditable service as a regional
26superintendent or assistant regional superintendent of

 

 

SB0178 Enrolled- 50 -LRB097 03971 JDS 44010 b

1schools. The remainder of the cost of the new TRS State
2survivor's coverage under the basic program of group health
3benefits shall be the responsibility of the survivor.
4    (a-8) A new SERS annuitant, new SERS survivor, new SURS
5annuitant, new SURS survivor, new TRS State annuitant, or new
6TRS State survivor may waive or terminate coverage in the
7program of group health benefits. Any such annuitant or
8survivor who has waived or terminated coverage may enroll or
9re-enroll in the program of group health benefits only during
10the annual benefit choice period, as determined by the
11Director; except that in the event of termination of coverage
12due to nonpayment of premiums, the annuitant or survivor may
13not re-enroll in the program.
14    (a-9) No later than May 1 of each calendar year, the
15Director of Central Management Services shall certify in
16writing to the Executive Secretary of the State Employees'
17Retirement System of Illinois the amounts of the Medicare
18supplement health care premiums and the amounts of the health
19care premiums for all other retirees who are not Medicare
20eligible.
21    A separate calculation of the premiums based upon the
22actual cost of each health care plan shall be so certified.
23    The Director of Central Management Services shall provide
24to the Executive Secretary of the State Employees' Retirement
25System of Illinois such information, statistics, and other data
26as he or she may require to review the premium amounts

 

 

SB0178 Enrolled- 51 -LRB097 03971 JDS 44010 b

1certified by the Director of Central Management Services.
2    The Department of Central Management Healthcare and Family
3Services, or any successor agency designated to procure
4healthcare contracts pursuant to this Act, is authorized to
5establish funds, separate accounts provided by any bank or
6banks as defined by the Illinois Banking Act, or separate
7accounts provided by any savings and loan association or
8associations as defined by the Illinois Savings and Loan Act of
91985 to be held by the Director, outside the State treasury,
10for the purpose of receiving the transfer of moneys from the
11Local Government Health Insurance Reserve Fund. The Department
12may promulgate rules further defining the methodology for the
13transfers. Any interest earned by moneys in the funds or
14accounts shall inure to the Local Government Health Insurance
15Reserve Fund. The transferred moneys, and interest accrued
16thereon, shall be used exclusively for transfers to
17administrative service organizations or their financial
18institutions for payments of claims to claimants and providers
19under the self-insurance health plan. The transferred moneys,
20and interest accrued thereon, shall not be used for any other
21purpose including, but not limited to, reimbursement of
22administration fees due the administrative service
23organization pursuant to its contract or contracts with the
24Department.
25    (b) State employees who become eligible for this program on
26or after January 1, 1980 in positions normally requiring actual

 

 

SB0178 Enrolled- 52 -LRB097 03971 JDS 44010 b

1performance of duty not less than 1/2 of a normal work period
2but not equal to that of a normal work period, shall be given
3the option of participating in the available program. If the
4employee elects coverage, the State shall contribute on behalf
5of such employee to the cost of the employee's benefit and any
6applicable dependent supplement, that sum which bears the same
7percentage as that percentage of time the employee regularly
8works when compared to normal work period.
9    (c) The basic non-contributory coverage from the basic
10program of group health benefits shall be continued for each
11employee not in pay status or on active service by reason of
12(1) leave of absence due to illness or injury, (2) authorized
13educational leave of absence or sabbatical leave, or (3)
14military leave. This coverage shall continue until expiration
15of authorized leave and return to active service, but not to
16exceed 24 months for leaves under item (1) or (2). This
1724-month limitation and the requirement of returning to active
18service shall not apply to persons receiving ordinary or
19accidental disability benefits or retirement benefits through
20the appropriate State retirement system or benefits under the
21Workers' Compensation or Occupational Disease Act.
22    (d) The basic group life insurance coverage shall continue,
23with full State contribution, where such person is (1) absent
24from active service by reason of disability arising from any
25cause other than self-inflicted, (2) on authorized educational
26leave of absence or sabbatical leave, or (3) on military leave.

 

 

SB0178 Enrolled- 53 -LRB097 03971 JDS 44010 b

1    (e) Where the person is in non-pay status for a period in
2excess of 30 days or on leave of absence, other than by reason
3of disability, educational or sabbatical leave, or military
4leave, such person may continue coverage only by making
5personal payment equal to the amount normally contributed by
6the State on such person's behalf. Such payments and coverage
7may be continued: (1) until such time as the person returns to
8a status eligible for coverage at State expense, but not to
9exceed 24 months or (2) until such person's employment or
10annuitant status with the State is terminated (exclusive of any
11additional service imposed pursuant to law).
12    (f) The Department shall establish by rule the extent to
13which other employee benefits will continue for persons in
14non-pay status or who are not in active service.
15    (g) The State shall not pay the cost of the basic
16non-contributory group life insurance, program of health
17benefits and other employee benefits for members who are
18survivors as defined by paragraphs (1) and (2) of subsection
19(q) of Section 3 of this Act. The costs of benefits for these
20survivors shall be paid by the survivors or by the University
21of Illinois Cooperative Extension Service, or any combination
22thereof. However, the State shall pay the amount of the
23reduction in the cost of participation, if any, resulting from
24the amendment to subsection (a) made by this amendatory Act of
25the 91st General Assembly.
26    (h) Those persons occupying positions with any department

 

 

SB0178 Enrolled- 54 -LRB097 03971 JDS 44010 b

1as a result of emergency appointments pursuant to Section 8b.8
2of the Personnel Code who are not considered employees under
3this Act shall be given the option of participating in the
4programs of group life insurance, health benefits and other
5employee benefits. Such persons electing coverage may
6participate only by making payment equal to the amount normally
7contributed by the State for similarly situated employees. Such
8amounts shall be determined by the Director. Such payments and
9coverage may be continued until such time as the person becomes
10an employee pursuant to this Act or such person's appointment
11is terminated.
12    (i) Any unit of local government within the State of
13Illinois may apply to the Director to have its employees,
14annuitants, and their dependents provided group health
15coverage under this Act on a non-insured basis. To participate,
16a unit of local government must agree to enroll all of its
17employees, who may select coverage under either the State group
18health benefits plan or a health maintenance organization that
19has contracted with the State to be available as a health care
20provider for employees as defined in this Act. A unit of local
21government must remit the entire cost of providing coverage
22under the State group health benefits plan or, for coverage
23under a health maintenance organization, an amount determined
24by the Director based on an analysis of the sex, age,
25geographic location, or other relevant demographic variables
26for its employees, except that the unit of local government

 

 

SB0178 Enrolled- 55 -LRB097 03971 JDS 44010 b

1shall not be required to enroll those of its employees who are
2covered spouses or dependents under this plan or another group
3policy or plan providing health benefits as long as (1) an
4appropriate official from the unit of local government attests
5that each employee not enrolled is a covered spouse or
6dependent under this plan or another group policy or plan, and
7(2) at least 50% of the employees are enrolled and the unit of
8local government remits the entire cost of providing coverage
9to those employees, except that a participating school district
10must have enrolled at least 50% of its full-time employees who
11have not waived coverage under the district's group health plan
12by participating in a component of the district's cafeteria
13plan. A participating school district is not required to enroll
14a full-time employee who has waived coverage under the
15district's health plan, provided that an appropriate official
16from the participating school district attests that the
17full-time employee has waived coverage by participating in a
18component of the district's cafeteria plan. For the purposes of
19this subsection, "participating school district" includes a
20unit of local government whose primary purpose is education as
21defined by the Department's rules.
22    Employees of a participating unit of local government who
23are not enrolled due to coverage under another group health
24policy or plan may enroll in the event of a qualifying change
25in status, special enrollment, special circumstance as defined
26by the Director, or during the annual Benefit Choice Period. A

 

 

SB0178 Enrolled- 56 -LRB097 03971 JDS 44010 b

1participating unit of local government may also elect to cover
2its annuitants. Dependent coverage shall be offered on an
3optional basis, with the costs paid by the unit of local
4government, its employees, or some combination of the two as
5determined by the unit of local government. The unit of local
6government shall be responsible for timely collection and
7transmission of dependent premiums.
8    The Director shall annually determine monthly rates of
9payment, subject to the following constraints:
10        (1) In the first year of coverage, the rates shall be
11    equal to the amount normally charged to State employees for
12    elected optional coverages or for enrolled dependents
13    coverages or other contributory coverages, or contributed
14    by the State for basic insurance coverages on behalf of its
15    employees, adjusted for differences between State
16    employees and employees of the local government in age,
17    sex, geographic location or other relevant demographic
18    variables, plus an amount sufficient to pay for the
19    additional administrative costs of providing coverage to
20    employees of the unit of local government and their
21    dependents.
22        (2) In subsequent years, a further adjustment shall be
23    made to reflect the actual prior years' claims experience
24    of the employees of the unit of local government.
25    In the case of coverage of local government employees under
26a health maintenance organization, the Director shall annually

 

 

SB0178 Enrolled- 57 -LRB097 03971 JDS 44010 b

1determine for each participating unit of local government the
2maximum monthly amount the unit may contribute toward that
3coverage, based on an analysis of (i) the age, sex, geographic
4location, and other relevant demographic variables of the
5unit's employees and (ii) the cost to cover those employees
6under the State group health benefits plan. The Director may
7similarly determine the maximum monthly amount each unit of
8local government may contribute toward coverage of its
9employees' dependents under a health maintenance organization.
10    Monthly payments by the unit of local government or its
11employees for group health benefits plan or health maintenance
12organization coverage shall be deposited in the Local
13Government Health Insurance Reserve Fund.
14    The Local Government Health Insurance Reserve Fund is
15hereby created as a nonappropriated trust fund to be held
16outside the State Treasury, with the State Treasurer as
17custodian. The Local Government Health Insurance Reserve Fund
18shall be a continuing fund not subject to fiscal year
19limitations. The Local Government Health Insurance Reserve
20Fund is not subject to administrative charges or charge-backs,
21including but not limited to those authorized under Section 8h
22of the State Finance Act. All revenues arising from the
23administration of the health benefits program established
24under this Section shall be deposited into the Local Government
25Health Insurance Reserve Fund. Any interest earned on moneys in
26the Local Government Health Insurance Reserve Fund shall be

 

 

SB0178 Enrolled- 58 -LRB097 03971 JDS 44010 b

1deposited into the Fund. All expenditures from this Fund shall
2be used for payments for health care benefits for local
3government and rehabilitation facility employees, annuitants,
4and dependents, and to reimburse the Department or its
5administrative service organization for all expenses incurred
6in the administration of benefits. No other State funds may be
7used for these purposes.
8    A local government employer's participation or desire to
9participate in a program created under this subsection shall
10not limit that employer's duty to bargain with the
11representative of any collective bargaining unit of its
12employees.
13    (j) Any rehabilitation facility within the State of
14Illinois may apply to the Director to have its employees,
15annuitants, and their eligible dependents provided group
16health coverage under this Act on a non-insured basis. To
17participate, a rehabilitation facility must agree to enroll all
18of its employees and remit the entire cost of providing such
19coverage for its employees, except that the rehabilitation
20facility shall not be required to enroll those of its employees
21who are covered spouses or dependents under this plan or
22another group policy or plan providing health benefits as long
23as (1) an appropriate official from the rehabilitation facility
24attests that each employee not enrolled is a covered spouse or
25dependent under this plan or another group policy or plan, and
26(2) at least 50% of the employees are enrolled and the

 

 

SB0178 Enrolled- 59 -LRB097 03971 JDS 44010 b

1rehabilitation facility remits the entire cost of providing
2coverage to those employees. Employees of a participating
3rehabilitation facility who are not enrolled due to coverage
4under another group health policy or plan may enroll in the
5event of a qualifying change in status, special enrollment,
6special circumstance as defined by the Director, or during the
7annual Benefit Choice Period. A participating rehabilitation
8facility may also elect to cover its annuitants. Dependent
9coverage shall be offered on an optional basis, with the costs
10paid by the rehabilitation facility, its employees, or some
11combination of the 2 as determined by the rehabilitation
12facility. The rehabilitation facility shall be responsible for
13timely collection and transmission of dependent premiums.
14    The Director shall annually determine quarterly rates of
15payment, subject to the following constraints:
16        (1) In the first year of coverage, the rates shall be
17    equal to the amount normally charged to State employees for
18    elected optional coverages or for enrolled dependents
19    coverages or other contributory coverages on behalf of its
20    employees, adjusted for differences between State
21    employees and employees of the rehabilitation facility in
22    age, sex, geographic location or other relevant
23    demographic variables, plus an amount sufficient to pay for
24    the additional administrative costs of providing coverage
25    to employees of the rehabilitation facility and their
26    dependents.

 

 

SB0178 Enrolled- 60 -LRB097 03971 JDS 44010 b

1        (2) In subsequent years, a further adjustment shall be
2    made to reflect the actual prior years' claims experience
3    of the employees of the rehabilitation facility.
4    Monthly payments by the rehabilitation facility or its
5employees for group health benefits shall be deposited in the
6Local Government Health Insurance Reserve Fund.
7    (k) Any domestic violence shelter or service within the
8State of Illinois may apply to the Director to have its
9employees, annuitants, and their dependents provided group
10health coverage under this Act on a non-insured basis. To
11participate, a domestic violence shelter or service must agree
12to enroll all of its employees and pay the entire cost of
13providing such coverage for its employees. The domestic
14violence shelter shall not be required to enroll those of its
15employees who are covered spouses or dependents under this plan
16or another group policy or plan providing health benefits as
17long as (1) an appropriate official from the domestic violence
18shelter attests that each employee not enrolled is a covered
19spouse or dependent under this plan or another group policy or
20plan and (2) at least 50% of the employees are enrolled and the
21domestic violence shelter remits the entire cost of providing
22coverage to those employees. Employees of a participating
23domestic violence shelter who are not enrolled due to coverage
24under another group health policy or plan may enroll in the
25event of a qualifying change in status, special enrollment, or
26special circumstance as defined by the Director or during the

 

 

SB0178 Enrolled- 61 -LRB097 03971 JDS 44010 b

1annual Benefit Choice Period. A participating domestic
2violence shelter may also elect to cover its annuitants.
3Dependent coverage shall be offered on an optional basis, with
4employees, or some combination of the 2 as determined by the
5domestic violence shelter or service. The domestic violence
6shelter or service shall be responsible for timely collection
7and transmission of dependent premiums.
8    The Director shall annually determine rates of payment,
9subject to the following constraints:
10        (1) In the first year of coverage, the rates shall be
11    equal to the amount normally charged to State employees for
12    elected optional coverages or for enrolled dependents
13    coverages or other contributory coverages on behalf of its
14    employees, adjusted for differences between State
15    employees and employees of the domestic violence shelter or
16    service in age, sex, geographic location or other relevant
17    demographic variables, plus an amount sufficient to pay for
18    the additional administrative costs of providing coverage
19    to employees of the domestic violence shelter or service
20    and their dependents.
21        (2) In subsequent years, a further adjustment shall be
22    made to reflect the actual prior years' claims experience
23    of the employees of the domestic violence shelter or
24    service.
25    Monthly payments by the domestic violence shelter or
26service or its employees for group health insurance shall be

 

 

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1deposited in the Local Government Health Insurance Reserve
2Fund.
3    (l) A public community college or entity organized pursuant
4to the Public Community College Act may apply to the Director
5initially to have only annuitants not covered prior to July 1,
61992 by the district's health plan provided health coverage
7under this Act on a non-insured basis. The community college
8must execute a 2-year contract to participate in the Local
9Government Health Plan. Any annuitant may enroll in the event
10of a qualifying change in status, special enrollment, special
11circumstance as defined by the Director, or during the annual
12Benefit Choice Period.
13    The Director shall annually determine monthly rates of
14payment subject to the following constraints: for those
15community colleges with annuitants only enrolled, first year
16rates shall be equal to the average cost to cover claims for a
17State member adjusted for demographics, Medicare
18participation, and other factors; and in the second year, a
19further adjustment of rates shall be made to reflect the actual
20first year's claims experience of the covered annuitants.
21    (l-5) The provisions of subsection (l) become inoperative
22on July 1, 1999.
23    (m) The Director shall adopt any rules deemed necessary for
24implementation of this amendatory Act of 1989 (Public Act
2586-978).
26    (n) Any child advocacy center within the State of Illinois

 

 

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1may apply to the Director to have its employees, annuitants,
2and their dependents provided group health coverage under this
3Act on a non-insured basis. To participate, a child advocacy
4center must agree to enroll all of its employees and pay the
5entire cost of providing coverage for its employees. The child
6advocacy center shall not be required to enroll those of its
7employees who are covered spouses or dependents under this plan
8or another group policy or plan providing health benefits as
9long as (1) an appropriate official from the child advocacy
10center attests that each employee not enrolled is a covered
11spouse or dependent under this plan or another group policy or
12plan and (2) at least 50% of the employees are enrolled and the
13child advocacy center remits the entire cost of providing
14coverage to those employees. Employees of a participating child
15advocacy center who are not enrolled due to coverage under
16another group health policy or plan may enroll in the event of
17a qualifying change in status, special enrollment, or special
18circumstance as defined by the Director or during the annual
19Benefit Choice Period. A participating child advocacy center
20may also elect to cover its annuitants. Dependent coverage
21shall be offered on an optional basis, with the costs paid by
22the child advocacy center, its employees, or some combination
23of the 2 as determined by the child advocacy center. The child
24advocacy center shall be responsible for timely collection and
25transmission of dependent premiums.
26    The Director shall annually determine rates of payment,

 

 

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1subject to the following constraints:
2        (1) In the first year of coverage, the rates shall be
3    equal to the amount normally charged to State employees for
4    elected optional coverages or for enrolled dependents
5    coverages or other contributory coverages on behalf of its
6    employees, adjusted for differences between State
7    employees and employees of the child advocacy center in
8    age, sex, geographic location, or other relevant
9    demographic variables, plus an amount sufficient to pay for
10    the additional administrative costs of providing coverage
11    to employees of the child advocacy center and their
12    dependents.
13        (2) In subsequent years, a further adjustment shall be
14    made to reflect the actual prior years' claims experience
15    of the employees of the child advocacy center.
16    Monthly payments by the child advocacy center or its
17employees for group health insurance shall be deposited into
18the Local Government Health Insurance Reserve Fund.
19(Source: P.A. 95-331, eff. 8-21-07; 95-632, eff. 9-25-07;
2095-707, eff. 1-11-08; 96-756, eff. 1-1-10; 96-1232, eff.
217-23-10; 96-1519, eff. 2-4-11.)
 
22    (5 ILCS 375/13.1)  (from Ch. 127, par. 533.1)
23    Sec. 13.1. (a) All contributions, appropriations,
24interest, and dividend payments to fund the program of health
25benefits and other employee benefits, and all other revenues

 

 

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1arising from the administration of any employee health benefits
2program, shall be deposited in a trust fund outside the State
3Treasury, with the State Treasurer as ex-officio custodian, to
4be known as the Health Insurance Reserve Fund.
5    (b) Upon the adoption of a self-insurance health plan, any
6monies attributable to the group health insurance program shall
7be deposited in or transferred to the Health Insurance Reserve
8Fund for use by the Department. As of the effective date of
9this amendatory Act of 1986, the Department shall certify to
10the Comptroller the amount of money in the Group Insurance
11Premium Fund attributable to the State group health insurance
12program and the Comptroller shall transfer such money from the
13Group Insurance Premium Fund to the Health Insurance Reserve
14Fund. Contributions by the State to the Health Insurance
15Reserve Fund to meet the requirements of this Act, as
16established by the Director, from the General Revenue Fund and
17the Road Fund to the Health Insurance Reserve Fund shall be by
18annual appropriations, and all other contributions to meet the
19requirements of the programs of health benefits or other
20employee benefits shall be deposited in the Health Insurance
21Reserve Fund. The Department shall draw the appropriation from
22the General Revenue Fund and the Road Fund from time to time as
23necessary to make expenditures authorized under this Act.
24    The Director may employ such assistance and services and
25may purchase such goods as may be necessary for the proper
26development and administration of any of the benefit programs

 

 

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1authorized by this Act. The Director may promulgate rules and
2regulations in regard to the administration of these programs.
3    All monies received by the Department for deposit in or
4transfer to the Health Insurance Reserve Fund, through
5appropriation or otherwise, shall be used to provide for the
6making of payments to claimants and providers and to reimburse
7the Department for all expenses directly incurred relating to
8Department development and administration of the program of
9health benefits and other employee benefits.
10    Any administrative service organization administering any
11self-insurance health plan and paying claims and benefits under
12authority of this Act may receive, pursuant to written
13authorization and direction of the Director, an initial
14transfer and periodic transfers of funds from the Health
15Insurance Reserve Fund in amounts determined by the Director
16who may consider the amount recommended by the administrative
17service organization. Notwithstanding any other statute, such
18transferred funds shall be retained by the administrative
19service organization in a separate account provided by any bank
20as defined by the Illinois Banking Act. The Department may
21promulgate regulations further defining the banks authorized
22to accept such funds and all methodology for transfer of such
23funds. Any interest earned by monies in such account shall
24inure to the Health Insurance Reserve Fund, shall remain in
25such account and shall be used exclusively to pay claims and
26benefits under this Act. Such transferred funds shall be used

 

 

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1exclusively for administrative service organization payment of
2claims to claimants and providers under the self-insurance
3health plan by the drawing of checks against such account. The
4administrative service organization may not use such
5transferred funds, or interest accrued thereon, for any other
6purpose including, but not limited to, reimbursement of
7administrative expenses or payments of administration fees due
8the organization pursuant to its contract or contracts with the
9Department of Central Management Services.
10    The account of the administrative service organization
11established under this Section, any transfers from the Health
12Insurance Reserve Fund to such account and the use of such
13account and funds shall be subject to (1) audit by the
14Department or private contractor authorized by the Department
15to conduct audits, and (2) post audit pursuant to the Illinois
16State Auditing Act.
17    The Department of Central Management Healthcare and Family
18Services, or any successor agency designated to procure
19healthcare contracts pursuant to this Act, is authorized to
20establish funds, separate accounts provided by any bank or
21banks as defined by the Illinois Banking Act, or separate
22accounts provided by any savings and loan association or
23associations as defined by the Illinois Savings and Loan Act of
241985 to be held by the Director, outside the State treasury,
25for the purpose of receiving the transfer of moneys from the
26Health Insurance Reserve Fund. The Department may promulgate

 

 

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1rules further defining the methodology for the transfers. Any
2interest earned by monies in the funds or accounts shall inure
3to the Health Insurance Reserve Fund. The transferred moneys,
4and interest accrued thereon, shall be used exclusively for
5transfers to administrative service organizations or their
6financial institutions for payments of claims to claimants and
7providers under the self-insurance health plan. The
8transferred moneys, and interest accrued thereon, shall not be
9used for any other purpose including, but not limited to,
10reimbursement of administration fees due the administrative
11service organization pursuant to its contract or contracts with
12the Department.
13    (c) The Director, with the advice and consent of the
14Commission, shall establish premiums for optional coverage for
15dependents of eligible members for the health plans. The
16eligible members shall be responsible for their portion of such
17optional premium. The State shall contribute an amount per
18month for each eligible member who has enrolled one or more
19dependents under the health plans. Such contribution shall be
20made directly to the Health Insurance Reserve Fund. Those
21employees described in subsection (b) of Section 9 of this Act
22shall be allowed to continue in the health plan by making
23personal payments with the premiums to be deposited in the
24Health Insurance Reserve Fund.
25    (d) The Health Insurance Reserve Fund shall be a continuing
26fund not subject to fiscal year limitations. All expenditures

 

 

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1from that fund shall be at the direction of the Director and
2shall be only for the purpose of:
3        (1) the payment of administrative expenses incurred by
4    the Department for the program of health benefits or other
5    employee benefit programs, including but not limited to the
6    costs of audits or actuarial consultations, professional
7    and contractual services, electronic data processing
8    systems and services, and expenses in connection with the
9    development and administration of such programs;
10        (2) the payment of administrative expenses incurred by
11    the Administrative Service Organization;
12        (3) the payment of health benefits;
13        (3.5) the payment of medical expenses incurred by the
14    Department for the treatment of employees who suffer
15    accidental injury or death within the scope of their
16    employment;
17        (4) refunds to employees for erroneous payments of
18    their selected dependent coverage;
19        (5) payment of premium for stop-loss or re-insurance;
20        (6) payment of premium to health maintenance
21    organizations pursuant to Section 6.1 of this Act;
22        (7) payment of adoption program benefits; and
23        (8) payment of other benefits offered to members and
24    dependents under this Act.
25(Source: P.A. 94-839, eff. 6-6-06; 95-632, eff. 9-25-07;
2695-744, eff. 7-18-08.)
 

 

 

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1    Section 905. The Department of Central Management Services
2Law of the Civil Administrative Code of Illinois is amended by
3adding Section 405-520 as follows:
 
4    (20 ILCS 405/405-520 new)
5    Sec. 405-520. State healthcare purchasing. On and after
6January 1, 2012, as provided in the State Healthcare Purchasing
7Reorganization Act, all of the powers, duties, rights, and
8responsibilities related to State healthcare purchasing under
9this Code that were transferred from the Department to the
10Department of Healthcare and Family Services by Executive Order
113 (2005) are transferred back to the Department.
 
12    Section 910. The Department of Human Services Act is
13amended by changing Section 1-20 as follows:
 
14    (20 ILCS 1305/1-20)
15    Sec. 1-20. General powers and duties.
16    (a) The Department shall exercise the rights, powers,
17duties, and functions provided by law, including (but not
18limited to) the rights, powers, duties, and functions
19transferred to the Department under Article 80 and Article 90
20of this Act.
21    (b) The Department may employ personnel (in accordance with
22the Personnel Code), provide facilities, contract for goods and

 

 

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1services, and adopt rules as necessary to carry out its
2functions and purposes, all in accordance with applicable State
3and federal law.
4    (c) On and after January 1, 2012, as provided in the State
5Healthcare Purchasing Reorganization Act, all of the powers,
6duties, rights, and responsibilities related to State
7healthcare purchasing under this Act that were transferred from
8the Department to the Department of Healthcare and Family
9Services by Executive Order 3 (2005) are transferred back to
10the Department.
11(Source: P.A. 89-507, eff. 7-3-96.)
 
12    Section 915. The Department of Healthcare and Family
13Services Law of the Civil Administrative Code of Illinois is
14amended by adding Section 2205-20 as follows:
 
15    (20 ILCS 2205/2205-20 new)
16    Sec. 2205-20. State healthcare purchasing. On and after
17January 1, 2012, as provided in the State Healthcare Purchasing
18Reorganization Act, all of the powers, duties, rights, and
19responsibilities related to State healthcare purchasing under
20this Code that were transferred to the Department of Healthcare
21and Family Services by Executive Order 3 (2005) are transferred
22back to the Departments from which those powers, duties,
23rights, and responsibilities were transferred; however,
24powers, duties, rights, and responsibilities related to State

 

 

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1healthcare purchasing under this Code that were exercised by
2the Department of Corrections before Executive Order 3 (2005)
3but that pertain to individuals resident in facilities operated
4by Department of Juvenile Justice shall be transferred to the
5Department of Juvenile Justice.
 
6    Section 920. The Department of Veterans Affairs Act is
7amended by adding Section 2.08 as follows:
 
8    (20 ILCS 2805/2.08 new)
9    Sec. 2.08. State healthcare purchasing. On and after
10January 1, 2012, as provided in the State Healthcare Purchasing
11Reorganization Act, all of the powers, duties, rights, and
12responsibilities related to State healthcare purchasing under
13this Act that were transferred from the Department to the
14Department of Healthcare and Family Services by Executive Order
153 (2005) are transferred back to the Department.
 
16    Section 925. The Commission on Government Forecasting and
17Accountability Act is amended by changing Section 3 as follows:
 
18    (25 ILCS 155/3)  (from Ch. 63, par. 343)
19    Sec. 3. The Commission shall:
20        (1) Study from time to time and report to the General
21    Assembly on economic development and trends in the State.
22        (2) Make such special economic and fiscal studies as it

 

 

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1    deems appropriate or desirable or as the General Assembly
2    may request.
3        (3) Based on its studies, recommend such State fiscal
4    and economic policies as it deems appropriate or desirable
5    to improve the functioning of State government and the
6    economy of the various regions within the State.
7        (4) Prepare annually a State economic report.
8        (5) Provide information for all appropriate
9    legislative organizations and personnel on economic trends
10    in relation to long range planning and budgeting.
11        (6) Study and make such recommendations as it deems
12    appropriate to the General Assembly on local and regional
13    economic and fiscal policy and on federal fiscal policy as
14    it may affect Illinois.
15        (7) Review capital expenditures, appropriations and
16    authorizations for both the State's general obligation and
17    revenue bonding authorities. At the direction of the
18    Commission, specific reviews may include economic
19    feasibility reviews of existing or proposed revenue bond
20    projects to determine the accuracy of the original estimate
21    of useful life of the projects, maintenance requirements
22    and ability to meet debt service requirements through their
23    operating expenses.
24        (8) Receive and review all executive agency and revenue
25    bonding authority annual and 3 year plans. The Commission
26    shall prepare a consolidated review of these plans, an

 

 

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1    updated assessment of current State agency capital plans, a
2    report on the outstanding and unissued bond
3    authorizations, an evaluation of the State's ability to
4    market further bond issues and shall submit them as the
5    "Legislative Capital Plan Analysis" to the House and Senate
6    Appropriations Committees at least once a year. The
7    Commission shall annually submit to the General Assembly on
8    the first Wednesday of April a report on the State's
9    long-term capital needs, with particular emphasis upon and
10    detail of the 5-year period in the immediate future.
11        (9) Study and make recommendations it deems
12    appropriate to the General Assembly on State bond
13    financing, bondability guidelines, and debt management. At
14    the direction of the Commission, specific studies and
15    reviews may take into consideration short and long-run
16    implications of State bonding and debt management policy.
17        (10) Comply with the provisions of the "State Debt
18    Impact Note Act" as now or hereafter amended.
19        (11) Comply with the provisions of the Pension Impact
20    Note Act, as now or hereafter amended.
21        (12) By August 1st of each year, the Commission must
22    prepare and cause to be published a summary report of State
23    appropriations for the State fiscal year beginning the
24    previous July 1st. The summary report must discuss major
25    categories of appropriations, the issues the General
26    Assembly faced in allocating appropriations, comparisons

 

 

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1    with appropriations for previous State fiscal years, and
2    other matters helpful in providing the citizens of Illinois
3    with an overall understanding of appropriations for that
4    fiscal year. The summary report must be written in plain
5    language and designed for readability. Publication must be
6    in newspapers of general circulation in the various areas
7    of the State to ensure distribution statewide. The summary
8    report must also be published on the General Assembly's web
9    site.
10        (13) Comply with the provisions of the State Facilities
11    Closure Act.
12        (14) For fiscal year 2012 and thereafter, develop a
13    3-year budget forecast for the State, including
14    opportunities and threats concerning anticipated revenues
15    and expenditures, with an appropriate level of detail.
16        (15) Exercise the powers and duties granted to it under
17    Section 5.5 of the State Employees Group Insurance Act.
18    The requirement for reporting to the General Assembly shall
19be satisfied by filing copies of the report with the Speaker,
20the Minority Leader and the Clerk of the House of
21Representatives and the President, the Minority Leader and the
22Secretary of the Senate and the Legislative Research Unit, as
23required by Section 3.1 of the General Assembly Organization
24Act, and filing such additional copies with the State
25Government Report Distribution Center for the General Assembly
26as is required under paragraph (t) of Section 7 of the State

 

 

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1Library Act.
2(Source: P.A. 96-958, eff. 7-1-10.)
 
3    Section 927. The Illinois Procurement Code is amended by
4changing Section 20-60 as follows:
 
5    (30 ILCS 500/20-60)
6    Sec. 20-60. Duration of contracts.
7    (a) Maximum duration. A contract, other than a contract
8entered into pursuant to the State University Certificates of
9Participation Act, may be entered into for any period of time
10deemed to be in the best interests of the State but not
11exceeding 10 years inclusive, beginning January 1, 2010, of
12proposed contract renewals. The length of a lease for real
13property or capital improvements shall be in accordance with
14the provisions of Section 40-25. A contract for bond or
15mortgage insurance awarded by the Illinois Housing Development
16Authority, however, may be entered into for any period of time
17less than or equal to the maximum period of time that the
18subject bond or mortgage may remain outstanding.
19    (b) Subject to appropriation. All contracts made or entered
20into shall recite that they are subject to termination and
21cancellation in any year for which the General Assembly fails
22to make an appropriation to make payments under the terms of
23the contract.
24    (c) The chief procurement officer shall file a proposed

 

 

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1extension or renewal of a contract with the Procurement Policy
2Board prior to entering into any extension or renewal if the
3cost associated with the extension or renewal exceeds $249,999.
4The Procurement Policy Board may object to the proposed
5extension or renewal within 30 calendar days and require a
6hearing before the Board prior to entering into the extension
7or renewal. If the Procurement Policy Board does not object
8within 30 calendar days or takes affirmative action to
9recommend the extension or renewal, the chief procurement
10officer may enter into the extension or renewal of a contract.
11This subsection does not apply to any emergency procurement,
12any procurement under Article 40, or any procurement exempted
13by Section 1-10(b) of this Code. If any State agency contract
14is paid for in whole or in part with federal-aid funds, grants,
15or loans and the provisions of this subsection would result in
16the loss of those federal-aid funds, grants, or loans, then the
17contract is exempt from the provisions of this subsection in
18order to remain eligible for those federal-aid funds, grants,
19or loans, and the State agency shall file notice of this
20exemption with the Procurement Policy Board prior to entering
21into the proposed extension or renewal. Nothing in this
22subsection permits a chief procurement officer to enter into an
23extension or renewal in violation of subsection (a). By August
241 each year, the Procurement Policy Board shall file a report
25with the General Assembly identifying for the previous fiscal
26year (i) the proposed extensions or renewals that were filed

 

 

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1with the Board and whether the Board objected and (ii) the
2contracts exempt from this subsection.
3    (d) If there is a conflict between the provisions of this
4Section and Section 5.5 of the State Employees Group Insurance
5Act of 1971, the provisions of Section 5.5 of the State
6Employees Group Insurance Act of 1971 control.
7(Source: P.A. 95-344, eff. 8-21-07; 96-15, eff. 6-22-09;
896-795, eff. 7-1-10 (see Section 5 of P.A. 96-793 for the
9effective date of changes made by P.A. 96-795); 96-920, eff.
107-1-10; 96-1478, eff. 8-23-10.)
 
11    Section 930. The School Employee Benefit Act is amended by
12adding Section 7 as follows:
 
13    (105 ILCS 55/7 new)
14    Sec. 7. State healthcare purchasing. On and after January
151, 2012, as provided in the State Healthcare Purchasing
16Reorganization Act, all of the powers, duties, rights, and
17responsibilities related to State healthcare purchasing under
18this Act that were transferred from the Department to the
19Department of Healthcare and Family Services by Executive Order
203 (2005) are transferred back to the Department.
 
21    Section 935. The Unified Code of Corrections is amended by
22changing Sections 3-2-2 and 3-2.5-20 as follows:
 

 

 

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1    (730 ILCS 5/3-2-2)  (from Ch. 38, par. 1003-2-2)
2    Sec. 3-2-2. Powers and Duties of the Department.
3    (1) In addition to the powers, duties and responsibilities
4which are otherwise provided by law, the Department shall have
5the following powers:
6        (a) To accept persons committed to it by the courts of
7    this State for care, custody, treatment and
8    rehabilitation, and to accept federal prisoners and aliens
9    over whom the Office of the Federal Detention Trustee is
10    authorized to exercise the federal detention function for
11    limited purposes and periods of time.
12        (b) To develop and maintain reception and evaluation
13    units for purposes of analyzing the custody and
14    rehabilitation needs of persons committed to it and to
15    assign such persons to institutions and programs under its
16    control or transfer them to other appropriate agencies. In
17    consultation with the Department of Alcoholism and
18    Substance Abuse (now the Department of Human Services), the
19    Department of Corrections shall develop a master plan for
20    the screening and evaluation of persons committed to its
21    custody who have alcohol or drug abuse problems, and for
22    making appropriate treatment available to such persons;
23    the Department shall report to the General Assembly on such
24    plan not later than April 1, 1987. The maintenance and
25    implementation of such plan shall be contingent upon the
26    availability of funds.

 

 

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1        (b-1) To create and implement, on January 1, 2002, a
2    pilot program to establish the effectiveness of
3    pupillometer technology (the measurement of the pupil's
4    reaction to light) as an alternative to a urine test for
5    purposes of screening and evaluating persons committed to
6    its custody who have alcohol or drug problems. The pilot
7    program shall require the pupillometer technology to be
8    used in at least one Department of Corrections facility.
9    The Director may expand the pilot program to include an
10    additional facility or facilities as he or she deems
11    appropriate. A minimum of 4,000 tests shall be included in
12    the pilot program. The Department must report to the
13    General Assembly on the effectiveness of the program by
14    January 1, 2003.
15        (b-5) To develop, in consultation with the Department
16    of State Police, a program for tracking and evaluating each
17    inmate from commitment through release for recording his or
18    her gang affiliations, activities, or ranks.
19        (c) To maintain and administer all State correctional
20    institutions and facilities under its control and to
21    establish new ones as needed. Pursuant to its power to
22    establish new institutions and facilities, the Department
23    may, with the written approval of the Governor, authorize
24    the Department of Central Management Services to enter into
25    an agreement of the type described in subsection (d) of
26    Section 405-300 of the Department of Central Management

 

 

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1    Services Law (20 ILCS 405/405-300). The Department shall
2    designate those institutions which shall constitute the
3    State Penitentiary System.
4        Pursuant to its power to establish new institutions and
5    facilities, the Department may authorize the Department of
6    Central Management Services to accept bids from counties
7    and municipalities for the construction, remodeling or
8    conversion of a structure to be leased to the Department of
9    Corrections for the purposes of its serving as a
10    correctional institution or facility. Such construction,
11    remodeling or conversion may be financed with revenue bonds
12    issued pursuant to the Industrial Building Revenue Bond Act
13    by the municipality or county. The lease specified in a bid
14    shall be for a term of not less than the time needed to
15    retire any revenue bonds used to finance the project, but
16    not to exceed 40 years. The lease may grant to the State
17    the option to purchase the structure outright.
18        Upon receipt of the bids, the Department may certify
19    one or more of the bids and shall submit any such bids to
20    the General Assembly for approval. Upon approval of a bid
21    by a constitutional majority of both houses of the General
22    Assembly, pursuant to joint resolution, the Department of
23    Central Management Services may enter into an agreement
24    with the county or municipality pursuant to such bid.
25        (c-5) To build and maintain regional juvenile
26    detention centers and to charge a per diem to the counties

 

 

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1    as established by the Department to defray the costs of
2    housing each minor in a center. In this subsection (c-5),
3    "juvenile detention center" means a facility to house
4    minors during pendency of trial who have been transferred
5    from proceedings under the Juvenile Court Act of 1987 to
6    prosecutions under the criminal laws of this State in
7    accordance with Section 5-805 of the Juvenile Court Act of
8    1987, whether the transfer was by operation of law or
9    permissive under that Section. The Department shall
10    designate the counties to be served by each regional
11    juvenile detention center.
12        (d) To develop and maintain programs of control,
13    rehabilitation and employment of committed persons within
14    its institutions.
15        (d-5) To provide a pre-release job preparation program
16    for inmates at Illinois adult correctional centers.
17        (e) To establish a system of supervision and guidance
18    of committed persons in the community.
19        (f) To establish in cooperation with the Department of
20    Transportation to supply a sufficient number of prisoners
21    for use by the Department of Transportation to clean up the
22    trash and garbage along State, county, township, or
23    municipal highways as designated by the Department of
24    Transportation. The Department of Corrections, at the
25    request of the Department of Transportation, shall furnish
26    such prisoners at least annually for a period to be agreed

 

 

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1    upon between the Director of Corrections and the Director
2    of Transportation. The prisoners used on this program shall
3    be selected by the Director of Corrections on whatever
4    basis he deems proper in consideration of their term,
5    behavior and earned eligibility to participate in such
6    program - where they will be outside of the prison facility
7    but still in the custody of the Department of Corrections.
8    Prisoners convicted of first degree murder, or a Class X
9    felony, or armed violence, or aggravated kidnapping, or
10    criminal sexual assault, aggravated criminal sexual abuse
11    or a subsequent conviction for criminal sexual abuse, or
12    forcible detention, or arson, or a prisoner adjudged a
13    Habitual Criminal shall not be eligible for selection to
14    participate in such program. The prisoners shall remain as
15    prisoners in the custody of the Department of Corrections
16    and such Department shall furnish whatever security is
17    necessary. The Department of Transportation shall furnish
18    trucks and equipment for the highway cleanup program and
19    personnel to supervise and direct the program. Neither the
20    Department of Corrections nor the Department of
21    Transportation shall replace any regular employee with a
22    prisoner.
23        (g) To maintain records of persons committed to it and
24    to establish programs of research, statistics and
25    planning.
26        (h) To investigate the grievances of any person

 

 

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1    committed to the Department, to inquire into any alleged
2    misconduct by employees or committed persons, and to
3    investigate the assets of committed persons to implement
4    Section 3-7-6 of this Code; and for these purposes it may
5    issue subpoenas and compel the attendance of witnesses and
6    the production of writings and papers, and may examine
7    under oath any witnesses who may appear before it; to also
8    investigate alleged violations of a parolee's or
9    releasee's conditions of parole or release; and for this
10    purpose it may issue subpoenas and compel the attendance of
11    witnesses and the production of documents only if there is
12    reason to believe that such procedures would provide
13    evidence that such violations have occurred.
14        If any person fails to obey a subpoena issued under
15    this subsection, the Director may apply to any circuit
16    court to secure compliance with the subpoena. The failure
17    to comply with the order of the court issued in response
18    thereto shall be punishable as contempt of court.
19        (i) To appoint and remove the chief administrative
20    officers, and administer programs of training and
21    development of personnel of the Department. Personnel
22    assigned by the Department to be responsible for the
23    custody and control of committed persons or to investigate
24    the alleged misconduct of committed persons or employees or
25    alleged violations of a parolee's or releasee's conditions
26    of parole shall be conservators of the peace for those

 

 

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1    purposes, and shall have the full power of peace officers
2    outside of the facilities of the Department in the
3    protection, arrest, retaking and reconfining of committed
4    persons or where the exercise of such power is necessary to
5    the investigation of such misconduct or violations.
6        (j) To cooperate with other departments and agencies
7    and with local communities for the development of standards
8    and programs for better correctional services in this
9    State.
10        (k) To administer all moneys and properties of the
11    Department.
12        (l) To report annually to the Governor on the committed
13    persons, institutions and programs of the Department.
14        (l-5) In a confidential annual report to the Governor,
15    the Department shall identify all inmate gangs by
16    specifying each current gang's name, population and allied
17    gangs. The Department shall further specify the number of
18    top leaders identified by the Department for each gang
19    during the past year, and the measures taken by the
20    Department to segregate each leader from his or her gang
21    and allied gangs. The Department shall further report the
22    current status of leaders identified and segregated in
23    previous years. All leaders described in the report shall
24    be identified by inmate number or other designation to
25    enable tracking, auditing, and verification without
26    revealing the names of the leaders. Because this report

 

 

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1    contains law enforcement intelligence information
2    collected by the Department, the report is confidential and
3    not subject to public disclosure.
4        (m) To make all rules and regulations and exercise all
5    powers and duties vested by law in the Department.
6        (n) To establish rules and regulations for
7    administering a system of good conduct credits,
8    established in accordance with Section 3-6-3, subject to
9    review by the Prisoner Review Board.
10        (o) To administer the distribution of funds from the
11    State Treasury to reimburse counties where State penal
12    institutions are located for the payment of assistant
13    state's attorneys' salaries under Section 4-2001 of the
14    Counties Code.
15        (p) To exchange information with the Department of
16    Human Services and the Department of Healthcare and Family
17    Services for the purpose of verifying living arrangements
18    and for other purposes directly connected with the
19    administration of this Code and the Illinois Public Aid
20    Code.
21        (q) To establish a diversion program.
22        The program shall provide a structured environment for
23    selected technical parole or mandatory supervised release
24    violators and committed persons who have violated the rules
25    governing their conduct while in work release. This program
26    shall not apply to those persons who have committed a new

 

 

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1    offense while serving on parole or mandatory supervised
2    release or while committed to work release.
3        Elements of the program shall include, but shall not be
4    limited to, the following:
5            (1) The staff of a diversion facility shall provide
6        supervision in accordance with required objectives set
7        by the facility.
8            (2) Participants shall be required to maintain
9        employment.
10            (3) Each participant shall pay for room and board
11        at the facility on a sliding-scale basis according to
12        the participant's income.
13            (4) Each participant shall:
14                (A) provide restitution to victims in
15            accordance with any court order;
16                (B) provide financial support to his
17            dependents; and
18                (C) make appropriate payments toward any other
19            court-ordered obligations.
20            (5) Each participant shall complete community
21        service in addition to employment.
22            (6) Participants shall take part in such
23        counseling, educational and other programs as the
24        Department may deem appropriate.
25            (7) Participants shall submit to drug and alcohol
26        screening.

 

 

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1            (8) The Department shall promulgate rules
2        governing the administration of the program.
3        (r) To enter into intergovernmental cooperation
4    agreements under which persons in the custody of the
5    Department may participate in a county impact
6    incarceration program established under Section 3-6038 or
7    3-15003.5 of the Counties Code.
8        (r-5) (Blank).
9        (r-10) To systematically and routinely identify with
10    respect to each streetgang active within the correctional
11    system: (1) each active gang; (2) every existing inter-gang
12    affiliation or alliance; and (3) the current leaders in
13    each gang. The Department shall promptly segregate leaders
14    from inmates who belong to their gangs and allied gangs.
15    "Segregate" means no physical contact and, to the extent
16    possible under the conditions and space available at the
17    correctional facility, prohibition of visual and sound
18    communication. For the purposes of this paragraph (r-10),
19    "leaders" means persons who:
20            (i) are members of a criminal streetgang;
21            (ii) with respect to other individuals within the
22        streetgang, occupy a position of organizer,
23        supervisor, or other position of management or
24        leadership; and
25            (iii) are actively and personally engaged in
26        directing, ordering, authorizing, or requesting

 

 

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1        commission of criminal acts by others, which are
2        punishable as a felony, in furtherance of streetgang
3        related activity both within and outside of the
4        Department of Corrections.
5    "Streetgang", "gang", and "streetgang related" have the
6    meanings ascribed to them in Section 10 of the Illinois
7    Streetgang Terrorism Omnibus Prevention Act.
8        (s) To operate a super-maximum security institution,
9    in order to manage and supervise inmates who are disruptive
10    or dangerous and provide for the safety and security of the
11    staff and the other inmates.
12        (t) To monitor any unprivileged conversation or any
13    unprivileged communication, whether in person or by mail,
14    telephone, or other means, between an inmate who, before
15    commitment to the Department, was a member of an organized
16    gang and any other person without the need to show cause or
17    satisfy any other requirement of law before beginning the
18    monitoring, except as constitutionally required. The
19    monitoring may be by video, voice, or other method of
20    recording or by any other means. As used in this
21    subdivision (1)(t), "organized gang" has the meaning
22    ascribed to it in Section 10 of the Illinois Streetgang
23    Terrorism Omnibus Prevention Act.
24        As used in this subdivision (1)(t), "unprivileged
25    conversation" or "unprivileged communication" means a
26    conversation or communication that is not protected by any

 

 

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1    privilege recognized by law or by decision, rule, or order
2    of the Illinois Supreme Court.
3        (u) To establish a Women's and Children's Pre-release
4    Community Supervision Program for the purpose of providing
5    housing and services to eligible female inmates, as
6    determined by the Department, and their newborn and young
7    children.
8        (u-5) To issue an order, whenever a person committed to
9    the Department absconds or absents himself or herself,
10    without authority to do so, from any facility or program to
11    which he or she is assigned. The order shall be certified
12    by the Director, the Supervisor of the Apprehension Unit,
13    or any person duly designated by the Director, with the
14    seal of the Department affixed. The order shall be directed
15    to all sheriffs, coroners, and police officers, or to any
16    particular person named in the order. Any order issued
17    pursuant to this subdivision (1) (u-5) shall be sufficient
18    warrant for the officer or person named in the order to
19    arrest and deliver the committed person to the proper
20    correctional officials and shall be executed the same as
21    criminal process.
22        (v) To do all other acts necessary to carry out the
23    provisions of this Chapter.
24    (2) The Department of Corrections shall by January 1, 1998,
25consider building and operating a correctional facility within
26100 miles of a county of over 2,000,000 inhabitants, especially

 

 

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1a facility designed to house juvenile participants in the
2impact incarceration program.
3    (3) When the Department lets bids for contracts for medical
4services to be provided to persons committed to Department
5facilities by a health maintenance organization, medical
6service corporation, or other health care provider, the bid may
7only be let to a health care provider that has obtained an
8irrevocable letter of credit or performance bond issued by a
9company whose bonds are rated AAA by a bond rating
10organization.
11    (4) When the Department lets bids for contracts for food or
12commissary services to be provided to Department facilities,
13the bid may only be let to a food or commissary services
14provider that has obtained an irrevocable letter of credit or
15performance bond issued by a company whose bonds are rated AAA
16by a bond rating organization.
17    (5) On and after January 1, 2012, as provided in the State
18Healthcare Purchasing Reorganization Act, all of the powers,
19duties, rights, and responsibilities related to State
20healthcare purchasing under this Code that were transferred
21from the Department of Corrections to the Department of
22Healthcare and Family Services by Executive Order 3 (2005) are
23transferred back to the Department of Corrections; however,
24powers, duties, rights, and responsibilities related to State
25healthcare purchasing under this Code that were exercised by
26the Department of Corrections before Executive Order 3 (2005)

 

 

SB0178 Enrolled- 92 -LRB097 03971 JDS 44010 b

1but that pertain to individuals resident in facilities operated
2by Department of Juvenile Justice are transferred to the
3Department of Juvenile Justice.
4(Source: P.A. 96-1265, eff. 7-26-10.)
 
5    (730 ILCS 5/3-2.5-20)
6    Sec. 3-2.5-20. General powers and duties.
7    (a) In addition to the powers, duties, and responsibilities
8which are otherwise provided by law or transferred to the
9Department as a result of this Article, the Department, as
10determined by the Director, shall have, but are not limited to,
11the following rights, powers, functions and duties:
12        (1) To accept juveniles committed to it by the courts
13    of this State for care, custody, treatment, and
14    rehabilitation.
15        (2) To maintain and administer all State juvenile
16    correctional institutions previously under the control of
17    the Juvenile and Women's & Children Divisions of the
18    Department of Corrections, and to establish and maintain
19    institutions as needed to meet the needs of the youth
20    committed to its care.
21        (3) To identify the need for and recommend the funding
22    and implementation of an appropriate mix of programs and
23    services within the juvenile justice continuum, including
24    but not limited to prevention, nonresidential and
25    residential commitment programs, day treatment, and

 

 

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1    conditional release programs and services, with the
2    support of educational, vocational, alcohol, drug abuse,
3    and mental health services where appropriate.
4        (4) To establish and provide transitional and
5    post-release treatment programs for juveniles committed to
6    the Department. Services shall include but are not limited
7    to:
8            (i) family and individual counseling and treatment
9        placement;
10            (ii) referral services to any other State or local
11        agencies;
12            (iii) mental health services;
13            (iv) educational services;
14            (v) family counseling services; and
15            (vi) substance abuse services.
16        (5) To access vital records of juveniles for the
17    purposes of providing necessary documentation for
18    transitional services such as obtaining identification,
19    educational enrollment, employment, and housing.
20        (6) To develop staffing and workload standards and
21    coordinate staff development and training appropriate for
22    juvenile populations.
23        (7) To develop, with the approval of the Office of the
24    Governor and the Governor's Office of Management and
25    Budget, annual budget requests.
26        (8) To administer the Interstate Compact for

 

 

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1    Juveniles, with respect to all juveniles under its
2    jurisdiction, and to cooperate with the Department of Human
3    Services with regard to all non-offender juveniles subject
4    to the Interstate Compact for Juveniles.
5    (b) The Department may employ personnel in accordance with
6the Personnel Code and Section 3-2.5-15 of this Code, provide
7facilities, contract for goods and services, and adopt rules as
8necessary to carry out its functions and purposes, all in
9accordance with applicable State and federal law.
10    (c) On and after January 1, 2012, as provided in the State
11Healthcare Purchasing Reorganization Act, all of the powers,
12duties, rights, and responsibilities related to State
13healthcare purchasing under this Code that were transferred
14from the Department of Corrections to the Department of
15Healthcare and Family Services by Executive Order 3 (2005) are
16transferred back to the Department of Corrections; however,
17powers, duties, rights, and responsibilities related to State
18healthcare purchasing under this Code that were exercised by
19the Department of Corrections before Executive Order 3 (2005)
20but that pertain to individuals resident in facilities operated
21by Department of Juvenile Justice are transferred to the
22Department of Juvenile Justice.
23(Source: P.A. 94-696, eff. 6-1-06; 95-937, eff. 8-26-08.)
 
24    Section 997. Severability. The provisions of this Act are
25severable under Section 1.31 of the Statute on Statutes.
 

 

 

SB0178 Enrolled- 95 -LRB097 03971 JDS 44010 b

1    Section 999. Effective date. This Act takes effect upon
2becoming law.