Full Text of HB6892 93rd General Assembly
HB6892 93RD GENERAL ASSEMBLY
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93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004 HB6892
Introduced 02/09/04, by Terry R. Parke SYNOPSIS AS INTRODUCED: |
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215 ILCS 5/416 |
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820 ILCS 305/4d |
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Amends the Illinois Insurance Code. Provides that the Industrial Commission Operations Fund Surcharge shall not be imposed on and after July 1, 2004, and that this does not affect the powers and duties of the Director of Insurance with regard to any payments due before July 1, 2004 and any deliquencies, penalties, and overpayments with respect to those payments. Amends the Worker's Compensation Act. Provides that the Industrial Commission Operations Fund Fee shall not be imposed on and after July 1, 2004, and that this does not affect the powers and duties of the Chairman of the Commission with regard to any payments due before July 1, 2004 and any deliquencies, penalties, and overpayments with respect to those payments. Effective July 1, 2004.
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A BILL FOR
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HB6892 |
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LRB093 20628 SAS 46463 b |
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| AN ACT concerning the Industrial Commission Operations | 2 |
| Fund.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Insurance Code is amended by | 6 |
| changing Section 416 as follows:
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| (215 ILCS 5/416)
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| Sec. 416. Industrial Commission Operations Fund Surcharge.
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| (a) As of the effective date of this amendatory Act of the | 10 |
| 93rd General
Assembly, every company licensed or
authorized by | 11 |
| the Illinois Department of Insurance and insuring employers'
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| liabilities arising under the Workers' Compensation Act or the | 13 |
| Workers'
Occupational Diseases Act shall remit to the Director | 14 |
| a surcharge based upon
the annual direct written premium, as | 15 |
| reported under Section 136 of this Act,
of the company in the | 16 |
| manner provided in this
Section. Such
proceeds shall
be | 17 |
| deposited into the Industrial Commission Operations Fund as
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| established in
the Workers' Compensation Act. If a company
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| survives or
was formed by a merger, consolidation, | 20 |
| reorganization, or reincorporation, the
direct
written | 21 |
| premiums of all companies party to the merger, consolidation,
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| reorganization, or
reincorporation shall, for purposes of | 23 |
| determining the amount of the fee
imposed by this
Section, be | 24 |
| regarded as those of the surviving or new company.
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| (b)(1) (Blank).
Except as provided in subsection (b)(2) of | 26 |
| this Section, beginning on
July 1, 2004 and each year | 27 |
| thereafter,
the
Director shall
charge an annual Industrial | 28 |
| Commission Operations Fund Surcharge from every
company | 29 |
| subject to subsection (a) of this Section equal to 1.5% of its | 30 |
| direct
written
premium for insuring employers' liabilities | 31 |
| arising under the Workers'
Compensation Act or Workers' | 32 |
| Occupational Diseases Act as reported in each
company's
annual
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HB6892 |
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LRB093 20628 SAS 46463 b |
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| statement filed for the previous year as required by Section | 2 |
| 136. The
Industrial Commission Operations Fund Surcharge shall | 3 |
| be collected by companies
subject to subsection (a) of this | 4 |
| Section as a separately stated surcharge on
insured employers | 5 |
| at the rate of 1.5% of direct written premium. All sums
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| collected by
the Department of Insurance under the provisions | 7 |
| of this Section shall be paid
promptly
after the receipt of the | 8 |
| same, accompanied by a detailed statement thereof,
into the
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| Industrial Commission Operations Fund in the State treasury.
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| (b)(2) Prior to July 1, 2004, the Director shall charge and | 11 |
| collect the
surcharge set forth in subparagraph (b)(1) of this | 12 |
| Section on or before
September 1, 2003, December 1, 2003, March | 13 |
| 1, 2004 and June 1, 2004. For
purposes
of this subsection | 14 |
| (b)(2), the company shall remit the amounts to the Director
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| based on estimated direct premium for each quarter beginning on | 16 |
| July 1, 2003,
together with a sworn statement attesting to the | 17 |
| reasonableness of the
estimate, and the estimated amount of | 18 |
| direct premium written forming the bases
of the remittance.
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| (c) In addition to the authority specifically granted under | 20 |
| Article XXV of
this
Code, the Director shall have such | 21 |
| authority to adopt rules or establish forms
as may be
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| reasonably necessary for purposes of enforcing this Section. | 23 |
| The Director shall
also have
authority to defer, waive, or | 24 |
| abate the surcharge or any penalties imposed by
this
Section if | 25 |
| in
the Director's opinion the company's solvency and ability to | 26 |
| meet its insured
obligations
would be immediately threatened by | 27 |
| payment of the surcharge due.
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| (d) When a company fails to pay the full amount of any | 29 |
| annual
Industrial
Commission Operations Fund Surcharge of $100 | 30 |
| or more due under this Section,
there
shall be
added to the | 31 |
| amount due as a penalty the greater of $1,000 or an amount | 32 |
| equal
to 5% of
the deficiency for each month or part of a month | 33 |
| that the deficiency remains
unpaid.
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| (e) The Department of Insurance may enforce the collection | 35 |
| of any delinquent
payment, penalty, or portion thereof by legal | 36 |
| action or in any other manner by
which the
collection of debts |
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HB6892 |
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LRB093 20628 SAS 46463 b |
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| due the State of Illinois may be enforced under the laws of
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| this State.
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| (f) Whenever it appears to the satisfaction of the Director | 4 |
| that a company
has
paid
pursuant to this Act an Industrial | 5 |
| Commission Operations Fund Surcharge in
an amount
in excess of | 6 |
| the amount legally collectable from the company, the Director
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| shall issue a
credit memorandum for an amount equal to the | 8 |
| amount of such overpayment. A
credit
memorandum may be applied | 9 |
| for the 2-year period from the date of issuance,
against the
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| payment of any amount due during that period under the | 11 |
| surcharge imposed by
this
Section or,
subject to reasonable | 12 |
| rule of the Department of Insurance including requirement
of
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| notification, may be assigned to any other company subject to | 14 |
| regulation under
this Act.
Any application of credit memoranda | 15 |
| after the period provided for in this
Section is void.
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| (g) Annually, the Governor may direct a transfer of up to | 17 |
| 2% of all moneys
collected under this Section to the Insurance | 18 |
| Financial Regulation Fund.
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| (h) Notwithstanding any other provision of this Section, | 20 |
| the Industrial Commission Operations Fund Surcharge shall not | 21 |
| be imposed on and after July 1, 2004. This subsection (h) does | 22 |
| not affect the powers and duties of the Director under this | 23 |
| Section with regard to payments due under subsection (b)(2) and | 24 |
| any deliquencies, penalties, and overpayments with respect to | 25 |
| payments due under subsection (b)(2).
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| (Source: P.A. 93-32, eff. 6-20-03.)
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| Section 10. The Workers' Compensation Act is amended by | 28 |
| changing Section 4d as follows:
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| (820 ILCS 305/4d)
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| Sec. 4d. Industrial Commission Operations Fund Fee.
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| (a) As of the effective date of this amendatory Act of the | 32 |
| 93rd
General
Assembly, each employer that self-insures its | 33 |
| liabilities arising under this
Act
or Workers' Occupational | 34 |
| Diseases Act shall pay a fee measured by the annual
actual |
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HB6892 |
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LRB093 20628 SAS 46463 b |
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| wages paid in this State of such an employer in the manner | 2 |
| provided in
this Section. Such proceeds shall be deposited in | 3 |
| the Industrial Commission
Operations Fund. If an employer | 4 |
| survives or was formed by a merger,
consolidation, | 5 |
| reorganization, or reincorporation, the actual wages paid in
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| this
State of all employers party to the merger, consolidation, | 7 |
| reorganization, or
reincorporation shall, for purposes of | 8 |
| determining the amount of the fee
imposed
by this Section, be | 9 |
| regarded as those of the surviving or new employer.
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| (b) (Blank).
Beginning on the effective date of this | 11 |
| amendatory Act of the 93rd
General
Assembly and on July 1 of | 12 |
| each year thereafter, the Chairman shall charge and
collect an | 13 |
| annual Industrial Commission Operations Fund Fee from every | 14 |
| employer
subject to subsection (a) of this Section equal to | 15 |
| 0.045% of its annual actual
wages paid in this State as | 16 |
| reported in each employer's annual self-insurance
renewal | 17 |
| filed for the previous year as required by Section 4 of this | 18 |
| Act and
Section 4 of the Workers' Occupational Diseases Act. | 19 |
| All sums collected by the
Commission under the provisions of | 20 |
| this Section shall be paid promptly after
the
receipt of the | 21 |
| same, accompanied by a detailed statement thereof, into the
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| Industrial Commission Operations Fund.
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| (c) In addition to the authority specifically granted under | 24 |
| Section 16, the
Chairman shall have such authority to adopt | 25 |
| rules or establish forms as may be
reasonably necessary for | 26 |
| purposes of enforcing this Section. The Commission
shall have | 27 |
| authority to defer, waive, or abate the fee or any penalties | 28 |
| imposed
by this Section if in the Commission's opinion the | 29 |
| employer's solvency and
ability to meet its obligations to pay | 30 |
| workers' compensation benefits would be
immediately threatened | 31 |
| by payment of the fee due.
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| (d) When an employer fails to pay the full amount of any | 33 |
| annual Industrial
Commission Operations Fund Fee of $100 or | 34 |
| more due under this Section, there
shall be added to the amount | 35 |
| due as a penalty the greater of $1,000 or an
amount
equal to 5% | 36 |
| of the deficiency for each month or part of a month that the
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HB6892 |
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LRB093 20628 SAS 46463 b |
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| deficiency remains unpaid.
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| (e) The Commission may enforce the collection of any | 3 |
| delinquent payment,
penalty
or portion thereof by legal action | 4 |
| or in any other manner by which the
collection of debts due the | 5 |
| State of Illinois may be enforced under the laws of
this State.
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| (f) Whenever it appears to the satisfaction of the Chairman | 7 |
| that an employer
has
paid pursuant to this Act an Industrial | 8 |
| Commission Operations Fund Fee
in an amount in excess of the | 9 |
| amount legally collectable from the employer, the
Chairman | 10 |
| shall issue a credit memorandum for an amount equal to the | 11 |
| amount of
such overpayment. A credit memorandum may be applied | 12 |
| for the 2-year period from
the date of issuance against the | 13 |
| payment of any amount due during that period
under the fee | 14 |
| imposed by this Section or, subject to reasonable rule of the
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| Commission including requirement of notification, may be | 16 |
| assigned to any other
employer subject to regulation under this | 17 |
| Act. Any application of credit
memoranda after the period | 18 |
| provided for in this Section is void.
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| (g) Notwithstanding any other provision of this Section, | 20 |
| the Industrial Commission Operations Fund Fee shall not be | 21 |
| imposed on and after July 1, 2004. This subsection (g) does not | 22 |
| affect the powers and duties of the Chairman under this Section | 23 |
| with regard to payments that were due under subsection (b) | 24 |
| through June 30, 2004 and any deliquencies, penalties, and | 25 |
| overpayments with respect to those payments.
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| (Source: P.A. 93-32, eff. 6-20-03.)
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| Section 99. Effective date. This Act takes effect July 1, | 28 |
| 2004.
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