Sen. John G. Mulroe

Filed: 4/15/2013

 

 


 

 


 
09800SB2339sam002LRB098 10715 JDS 44552 a

1
AMENDMENT TO SENATE BILL 2339

2    AMENDMENT NO. ______. Amend Senate Bill 2339, AS AMENDED,
3by replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The Intergovernmental Cooperation Act is
6amended by changing Section 6 as follows:
 
7    (5 ILCS 220/6)  (from Ch. 127, par. 746)
8    Sec. 6. Joint self-insurance. An intergovernmental
9contract may, among other undertakings, authorize public
10agencies to jointly self-insure and authorize each public
11agency member of the contract to utilize its funds to pay to a
12joint insurance pool its costs and reserves to protect, wholly
13or partially, itself or any public agency member of the
14contract against liability or loss in the designated insurable
15area.
16    A joint insurance pool shall have an annual audit performed

 

 

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1by an independent certified public accountant and shall file an
2annual audited financial report with the Director of Insurance
3no later than 150 days after the end of the pool's immediately
4preceding fiscal year. The Director of Insurance shall issue
5rules necessary to implement this audit and report requirement.
6The rule shall establish the due date for filing the initial
7annual audited financial report. Within 30 days after January
81, 1991, and within 30 days after each January 1 thereafter,
9public agencies that are jointly self-insured to protect
10against liability under the Workers' Compensation Act and the
11Workers' Occupational Diseases Act shall file with the Illinois
12Workers' Compensation Commission a report indicating an
13election to self-insure.
14    The joint insurance pool shall also annually file with the
15Director a statement of actuarial opinion by an independent
16actuary who is an associate or fellow in a casualty actuarial
17society that the pool's reserves are in accordance with sound
18loss-reserving standards and adequate for the payment of
19claims. This opinion shall be filed no later than 150 days
20after the end of each fiscal year. The joint insurance pool
21shall be exempt from filing a statement of actuarial opinion by
22an independent actuary who is an associate or fellow in a
23casualty actuarial society that the joint insurance pool's
24reserves are in accordance with sound loss-reserving standards
25and payment of claims for the primary level of coverage if the
26joint insurance pool files with the Director, by the reporting

 

 

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1deadline, a statement of actuarial opinion on the joint pool's
2aggregate coverage, reinsurance, or other similar excess
3insurance coverage.
4    The Director may assess penalties against a joint insurance
5pool that fails to comply with the auditing, statement of
6actuarial opinion, and examination requirements of this
7Section in an amount equal to $500 per day for each violation,
8up to a maximum of $10,000 for each violation. The Director (or
9his or her staff) or a Director-selected independent auditor
10(or actuarial firm) that is not owned or affiliated with an
11insurance brokerage firm, insurance company, or other
12insurance industry affiliated entity may examine, as often as
13the Director deems advisable, the affairs, transactions,
14accounts, records, and assets and liabilities of each joint
15insurance pool that fails to comply with this Section. The
16joint insurance pool shall cooperate fully with the Director's
17representatives in all evaluations and audits of the joint
18insurance pool and resolve issues raised in those evaluations
19and audits. The failure to resolve those issues may constitute
20a violation of this Section, and may, after notice and an
21opportunity to be heard, result in the imposition of penalties
22pursuant to this Section. No sanctions under this Section may
23become effective until 30 days after the date that a notice of
24sanctions is delivered by registered or certified mail to the
25joint insurance pool. The Director shall have the authority to
26extend the time for filing any statement by any joint insurance

 

 

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1pool for reasons that he or she considers good and sufficient.
2    If a joint insurance pool requires a member to submit
3written notice in order for the member to withdraw from a
4qualified pool, then the period in which the member must
5provide the written notice cannot be greater than 120 days,
6except that this requirement applies only to joint insurance
7pool agreements entered into, modified, or renewed on or after
8the effective date of this amendatory Act of the 98th General
9Assembly.
10    For purposes of this Section, "public agency member" means
11any public agency defined or created under this Act, any local
12public entity as defined in Section 1-206 of the Local
13Governmental and Governmental Employees Tort Immunity Act, and
14any public agency, authority, instrumentality, council, board,
15service region, district, unit, bureau, or, commission, or any
16municipal corporation, college, or university, whether
17corporate or otherwise, and any other local governmental body
18or similar entity that is presently existing or created after
19the effective date of this amendatory Act of the 92nd General
20Assembly, whether or not specified in this Section. Only public
21agency members with tax receipts, tax revenues, taxing
22authority, or other resources sufficient to pay costs and to
23service debt related to intergovernmental activities described
24in this Section, or public agency members created by or as part
25of a public agency with these powers, may enter into contracts
26or otherwise associate among themselves as permitted in this

 

 

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

 

 

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1other members.
2(Source: P.A. 93-721, eff. 1-1-05; 94-685, eff. 11-2-05.)".