Illinois General Assembly - Full Text of HB6185
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Full Text of HB6185  97th General Assembly




State of Illinois
2011 and 2012


Introduced , by Rep. Dan Brady


20 ILCS 405/405-105  was 20 ILCS 405/64.1

    Amends the Department of Central Management Services Law of the Civil Administrative Code of Illinois. Provides that the appeal of a decision by the Workers' Compensation Commission on compensability of a State employee's claim for workers' compensation benefits may be made to the circuit court.

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HB6185LRB097 21405 PJG 69394 b

1    AN ACT concerning State government.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Department of Central Management Services
5Law of the Civil Administrative Code of Illinois is amended by
6changing Section 405-105 as follows:
7    (20 ILCS 405/405-105)  (was 20 ILCS 405/64.1)
8    Sec. 405-105. Fidelity, surety, property, and casualty
9insurance. The Department shall establish and implement a
10program to coordinate the handling of all fidelity, surety,
11property, and casualty insurance exposures of the State and the
12departments, divisions, agencies, branches, and universities
13of the State. In performing this responsibility, the Department
14shall have the power and duty to do the following:
15        (1) Develop and maintain loss and exposure data on all
16    State property.
17        (2) Study the feasibility of establishing a
18    self-insurance plan for State property and prepare
19    estimates of the costs of reinsurance for risks beyond the
20    realistic limits of the self-insurance.
21        (3) Prepare a plan for centralizing the purchase of
22    property and casualty insurance on State property under a
23    master policy or policies and purchase the insurance



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1    contracted for as provided in the Illinois Purchasing Act.
2        (4) Evaluate existing provisions for fidelity bonds
3    required of State employees and recommend changes that are
4    appropriate commensurate with risk experience and the
5    determinations respecting self-insurance or reinsurance so
6    as to permit reduction of costs without loss of coverage.
7        (5) Investigate procedures for inclusion of school
8    districts, public community college districts, and other
9    units of local government in programs for the centralized
10    purchase of insurance.
11        (6) Implement recommendations of the State Property
12    Insurance Study Commission that the Department finds
13    necessary or desirable in the performance of its powers and
14    duties under this Section to achieve efficient and
15    comprehensive risk management.
16        (7) Prepare and, in the discretion of the Director,
17    implement a plan providing for the purchase of public
18    liability insurance or for self-insurance for public
19    liability or for a combination of purchased insurance and
20    self-insurance for public liability (i) covering the State
21    and drivers of motor vehicles owned, leased, or controlled
22    by the State of Illinois pursuant to the provisions and
23    limitations contained in the Illinois Vehicle Code, (ii)
24    covering other public liability exposures of the State and
25    its employees within the scope of their employment, and
26    (iii) covering drivers of motor vehicles not owned, leased,



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1    or controlled by the State but used by a State employee on
2    State business, in excess of liability covered by an
3    insurance policy obtained by the owner of the motor vehicle
4    or in excess of the dollar amounts that the Department
5    shall determine to be reasonable. Any contract of insurance
6    let under this Law shall be by bid in accordance with the
7    procedure set forth in the Illinois Purchasing Act. Any
8    provisions for self-insurance shall conform to subdivision
9    (11).
10        The term "employee" as used in this subdivision (7) and
11    in subdivision (11) means a person while in the employ of
12    the State who is a member of the staff or personnel of a
13    State agency, bureau, board, commission, committee,
14    department, university, or college or who is a State
15    officer, elected official, commissioner, member of or ex
16    officio member of a State agency, bureau, board,
17    commission, committee, department, university, or college,
18    or a member of the National Guard while on active duty
19    pursuant to orders of the Governor of the State of
20    Illinois, or any other person while using a licensed motor
21    vehicle owned, leased, or controlled by the State of
22    Illinois with the authorization of the State of Illinois,
23    provided the actual use of the motor vehicle is within the
24    scope of that authorization and within the course of State
25    service.
26        Subsequent to payment of a claim on behalf of an



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1    employee pursuant to this Section and after reasonable
2    advance written notice to the employee, the Director may
3    exclude the employee from future coverage or limit the
4    coverage under the plan if (i) the Director determines that
5    the claim resulted from an incident in which the employee
6    was grossly negligent or had engaged in willful and wanton
7    misconduct or (ii) the Director determines that the
8    employee is no longer an acceptable risk based on a review
9    of prior accidents in which the employee was at fault and
10    for which payments were made pursuant to this Section.
11        The Director is authorized to promulgate
12    administrative rules that may be necessary to establish and
13    administer the plan.
14        Appropriations from the Road Fund shall be used to pay
15    auto liability claims and related expenses involving
16    employees of the Department of Transportation, the
17    Illinois State Police, and the Secretary of State.
18        (8) Charge, collect, and receive from all other
19    agencies of the State government fees or monies equivalent
20    to the cost of purchasing the insurance.
21        (9) Establish, through the Director, charges for risk
22    management services rendered to State agencies by the
23    Department. The State agencies so charged shall reimburse
24    the Department by vouchers drawn against their respective
25    appropriations. The reimbursement shall be determined by
26    the Director as amounts sufficient to reimburse the



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1    Department for expenditures incurred in rendering the
2    service.
3        The Department shall charge the employing State agency
4    or university for workers' compensation payments for
5    temporary total disability paid to any employee after the
6    employee has received temporary total disability payments
7    for 120 days if the employee's treating physician has
8    issued a release to return to work with restrictions and
9    the employee is able to perform modified duty work but the
10    employing State agency or university does not return the
11    employee to work at modified duty. Modified duty shall be
12    duties assigned that may or may not be delineated as part
13    of the duties regularly performed by the employee. Modified
14    duties shall be assigned within the prescribed
15    restrictions established by the treating physician and the
16    physician who performed the independent medical
17    examination. The amount of all reimbursements shall be
18    deposited into the Workers' Compensation Revolving Fund
19    which is hereby created as a revolving fund in the State
20    treasury. In addition to any other purpose authorized by
21    law, moneys in the Fund shall be used, subject to
22    appropriation, to pay these or other temporary total
23    disability claims of employees of State agencies and
24    universities.
25        Beginning with fiscal year 1996, all amounts recovered
26    by the Department through subrogation in workers'



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1    compensation and workers' occupational disease cases shall
2    be deposited into the Workers' Compensation Revolving Fund
3    created under this subdivision (9).
4        (10) Establish rules, procedures, and forms to be used
5    by State agencies in the administration and payment of
6    workers' compensation claims. The Department shall
7    initially evaluate and determine the compensability of any
8    injury that is the subject of a workers' compensation claim
9    and provide for the administration and payment of such a
10    claim for all State agencies. The appeal of a decision of
11    the Workers' Compensation Commission on compensability of
12    a State employee's claim for workers' compensation
13    benefits may be made to the circuit court. The Director may
14    delegate to any agency with the agreement of the agency
15    head the responsibility for evaluation, administration,
16    and payment of that agency's claims.
17        (10a) If the Director determines it would be in the
18    best interests of the State and its employees, prepare and
19    implement a plan providing for: (i) the purchase of
20    workers' compensation insurance for workers' compensation
21    liability; (ii) third-party administration of
22    self-insurance, in whole or in part, for workers'
23    compensation liability; or (iii) a combination of
24    purchased insurance and self-insurance for workers'
25    compensation liability, including reinsurance or stop-loss
26    insurance. Any contract for insurance or third-party



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1    administration shall be on terms consistent with State
2    policy; awarded in compliance with the Illinois
3    Procurement Code; and based on, but not limited to, the
4    following criteria: administrative cost, service
5    capabilities of the carrier or other contractor and
6    premiums, fees, or charges. By April 1 of each year, the
7    Director must report and provide information to the State
8    Workers' Compensation Program Advisory Board concerning
9    the status of the State workers' compensation program for
10    the next fiscal year. Information includes, but is not
11    limited to, documents, reports of negotiations, bid
12    invitations, requests for proposals, specifications,
13    copies of proposed and final contracts or agreements, and
14    any other materials concerning contracts or agreements for
15    the program. By the first of each month thereafter, the
16    Director must provide updated, and any new, information to
17    the State Workers' Compensation Program Advisory Board
18    until the State workers' compensation program for the next
19    fiscal year is determined.
20        (11) Any plan for public liability self-insurance
21    implemented under this Section shall provide that (i) the
22    Department shall attempt to settle and may settle any
23    public liability claim filed against the State of Illinois
24    or any public liability claim filed against a State
25    employee on the basis of an occurrence in the course of the
26    employee's State employment; (ii) any settlement of such a



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1    claim is not subject to fiscal year limitations and must be
2    approved by the Director and, in cases of settlements
3    exceeding $100,000, by the Governor; and (iii) a settlement
4    of any public liability claim against the State or a State
5    employee shall require an unqualified release of any right
6    of action against the State and the employee for acts
7    within the scope of the employee's employment giving rise
8    to the claim.
9        Whenever and to the extent that a State employee
10    operates a motor vehicle or engages in other activity
11    covered by self-insurance under this Section, the State of
12    Illinois shall defend, indemnify, and hold harmless the
13    employee against any claim in tort filed against the
14    employee for acts or omissions within the scope of the
15    employee's employment in any proper judicial forum and not
16    settled pursuant to this subdivision (11), provided that
17    this obligation of the State of Illinois shall not exceed a
18    maximum liability of $2,000,000 for any single occurrence
19    in connection with the operation of a motor vehicle or
20    $100,000 per person per occurrence for any other single
21    occurrence, or $500,000 for any single occurrence in
22    connection with the provision of medical care by a licensed
23    physician employee.
24        Any claims against the State of Illinois under a
25    self-insurance plan that are not settled pursuant to this
26    subdivision (11) shall be heard and determined by the Court



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1    of Claims and may not be filed or adjudicated in any other
2    forum. The Attorney General of the State of Illinois or the
3    Attorney General's designee shall be the attorney with
4    respect to all public liability self-insurance claims that
5    are not settled pursuant to this subdivision (11) and
6    therefore result in litigation. The payment of any award of
7    the Court of Claims entered against the State relating to
8    any public liability self-insurance claim shall act as a
9    release against any State employee involved in the
10    occurrence.
11        (12) Administer a plan the purpose of which is to make
12    payments on final settlements or final judgments in
13    accordance with the State Employee Indemnification Act.
14    The plan shall be funded through appropriations from the
15    General Revenue Fund specifically designated for that
16    purpose, except that indemnification expenses for
17    employees of the Department of Transportation, the
18    Illinois State Police, and the Secretary of State shall be
19    paid from the Road Fund. The term "employee" as used in
20    this subdivision (12) has the same meaning as under
21    subsection (b) of Section 1 of the State Employee
22    Indemnification Act. Subject to sufficient appropriation,
23    the Director shall approve payment of any claim, without
24    regard to fiscal year limitations, presented to the
25    Director that is supported by a final settlement or final
26    judgment when the Attorney General and the chief officer of



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1    the public body against whose employee the claim or cause
2    of action is asserted certify to the Director that the
3    claim is in accordance with the State Employee
4    Indemnification Act and that they approve of the payment.
5    In no event shall an amount in excess of $150,000 be paid
6    from this plan to or for the benefit of any claimant.
7        (13) Administer a plan the purpose of which is to make
8    payments on final settlements or final judgments for
9    employee wage claims in situations where there was an
10    appropriation relevant to the wage claim, the fiscal year
11    and lapse period have expired, and sufficient funds were
12    available to pay the claim. The plan shall be funded
13    through appropriations from the General Revenue Fund
14    specifically designated for that purpose.
15        Subject to sufficient appropriation, the Director is
16    authorized to pay any wage claim presented to the Director
17    that is supported by a final settlement or final judgment
18    when the chief officer of the State agency employing the
19    claimant certifies to the Director that the claim is a
20    valid wage claim and that the fiscal year and lapse period
21    have expired. Payment for claims that are properly
22    submitted and certified as valid by the Director shall
23    include interest accrued at the rate of 7% per annum from
24    the forty-fifth day after the claims are received by the
25    Department or 45 days from the date on which the amount of
26    payment is agreed upon, whichever is later, until the date



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1    the claims are submitted to the Comptroller for payment.
2    When the Attorney General has filed an appearance in any
3    proceeding concerning a wage claim settlement or judgment,
4    the Attorney General shall certify to the Director that the
5    wage claim is valid before any payment is made. In no event
6    shall an amount in excess of $150,000 be paid from this
7    plan to or for the benefit of any claimant.
8        Nothing in Public Act 84-961 shall be construed to
9    affect in any manner the jurisdiction of the Court of
10    Claims concerning wage claims made against the State of
11    Illinois.
12        (14) Prepare and, in the discretion of the Director,
13    implement a program for self-insurance for official
14    fidelity and surety bonds for officers and employees as
15    authorized by the Official Bond Act.
16(Source: P.A. 96-928, eff. 6-15-10; 97-18, eff. 6-28-11.)