|
|||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||
| |||||||||||||||||||||||||||
| |||||||||||||||||||||||||||
| |||||||||||||||||||||||||||
1 | AN ACT concerning workers' compensation.
| ||||||||||||||||||||||||||
2 | Be it enacted by the People of the State of Illinois,
| ||||||||||||||||||||||||||
3 | represented in the General Assembly:
| ||||||||||||||||||||||||||
4 | Section 5. The Illinois Insurance Code is amended by | ||||||||||||||||||||||||||
5 | changing Section 416 as follows:
| ||||||||||||||||||||||||||
6 | (215 ILCS 5/416)
| ||||||||||||||||||||||||||
7 | Sec. 416. Illinois Workers' Compensation
Commission | ||||||||||||||||||||||||||
8 | Operations Fund Surcharge.
| ||||||||||||||||||||||||||
9 | (a) As of July 30, 2004 ( the effective date of Public Act | ||||||||||||||||||||||||||
10 | 93-840)
this amendatory Act of 2004 , every company licensed or
| ||||||||||||||||||||||||||
11 | authorized by the Illinois Department of Insurance and insuring | ||||||||||||||||||||||||||
12 | employers'
liabilities arising under the Workers' Compensation | ||||||||||||||||||||||||||
13 | Act or the Workers'
Occupational Diseases Act shall remit to | ||||||||||||||||||||||||||
14 | the Director a surcharge based upon
the annual direct written | ||||||||||||||||||||||||||
15 | premium, as reported under Section 136 of this Act,
of the | ||||||||||||||||||||||||||
16 | company in the manner provided in this
Section. Such
proceeds | ||||||||||||||||||||||||||
17 | shall
be deposited into the Illinois Workers' Compensation
| ||||||||||||||||||||||||||
18 | Commission Operations Fund as
established in
the Workers' | ||||||||||||||||||||||||||
19 | Compensation Act. If a company
survives or
was formed by a | ||||||||||||||||||||||||||
20 | merger, consolidation, reorganization, or reincorporation, the
| ||||||||||||||||||||||||||
21 | direct
written premiums of all companies party to the merger, | ||||||||||||||||||||||||||
22 | consolidation,
reorganization, or
reincorporation shall, for | ||||||||||||||||||||||||||
23 | purposes of determining the amount of the fee
imposed by this
| ||||||||||||||||||||||||||
24 | Section, be regarded as those of the surviving or new company.
| ||||||||||||||||||||||||||
25 | (b)(1) Except as provided in subsection (b)(2) of this | ||||||||||||||||||||||||||
26 | Section, beginning on
July 30, 2004 ( the effective date of | ||||||||||||||||||||||||||
27 | Public Act 93-840) through June 30, 2005
this amendatory Act of | ||||||||||||||||||||||||||
28 | 2004 and on July 1 of each year thereafter ,
the
Director shall
| ||||||||||||||||||||||||||
29 | charge an annual Illinois Workers' Compensation Commission | ||||||||||||||||||||||||||
30 | Operations Fund Surcharge from every
company subject to | ||||||||||||||||||||||||||
31 | subsection (a) of this Section equal to 1.01% of its direct
| ||||||||||||||||||||||||||
32 | written
premium for insuring employers' liabilities arising |
| |||||||
| |||||||
1 | under the Workers'
Compensation Act or Workers' Occupational | ||||||
2 | Diseases Act as reported in each
company's
annual
statement | ||||||
3 | filed for the previous year as required by Section 136. The
| ||||||
4 | Illinois Workers' Compensation Commission Operations Fund | ||||||
5 | Surcharge shall be collected by companies
subject to subsection | ||||||
6 | (a) of this Section as a separately stated surcharge on
insured | ||||||
7 | employers at the rate of 1.01% of direct written premium. The
| ||||||
8 | Illinois Workers' Compensation
Industrial Commission | ||||||
9 | Operations Fund Surcharge shall not be collected by companies
| ||||||
10 | subject to subsection (a) of this Section from any employer | ||||||
11 | that self-insures its liabilities arising under the Workers' | ||||||
12 | Compensation Act or Workers' Occupational Diseases Act, | ||||||
13 | provided that the employer has paid the Illinois Workers' | ||||||
14 | Compensation
Industrial Commission Operations Fund Fee | ||||||
15 | pursuant to Section 4d of the Workers' Compensation Act. All | ||||||
16 | sums
collected by
the Department of Insurance under the | ||||||
17 | provisions of this Section shall be paid
promptly
after the | ||||||
18 | receipt of the same, accompanied by a detailed statement | ||||||
19 | thereof,
into the
Illinois Workers' Compensation Commission | ||||||
20 | Operations Fund in the State treasury.
| ||||||
21 | (b)(2) The surcharge due pursuant to Public Act 93-840
this | ||||||
22 | amendatory Act of 2004 shall be collected instead of the | ||||||
23 | surcharge due on July 1, 2004 under Public Act 93-32. Payment | ||||||
24 | of the surcharge due under Public Act 93-840
this amendatory | ||||||
25 | Act of 2004 shall discharge the employer's obligations due on | ||||||
26 | July 1, 2004.
| ||||||
27 | (c) In addition to the authority specifically granted under | ||||||
28 | Article XXV of
this
Code, the Director shall have such | ||||||
29 | authority to adopt rules or establish forms
as may be
| ||||||
30 | reasonably necessary for purposes of enforcing this Section. | ||||||
31 | The Director shall
also have
authority to defer, waive, or | ||||||
32 | abate the surcharge or any penalties imposed by
this
Section if | ||||||
33 | in
the Director's opinion the company's solvency and ability to | ||||||
34 | meet its insured
obligations
would be immediately threatened by | ||||||
35 | payment of the surcharge due.
| ||||||
36 | (d) When a company fails to pay the full amount of any |
| |||||||
| |||||||
1 | annual
Illinois Workers' Compensation
Commission Operations | ||||||
2 | Fund Surcharge of $100 or more due under this Section,
there
| ||||||
3 | shall be
added to the amount due as a penalty the greater of | ||||||
4 | $1,000 or an amount equal
to 5% of
the deficiency for each | ||||||
5 | month or part of a month that the deficiency remains
unpaid.
| ||||||
6 | (e) The Department of Insurance may enforce the collection | ||||||
7 | of any delinquent
payment, penalty, or portion thereof by legal | ||||||
8 | action or in any other manner by
which the
collection of debts | ||||||
9 | due the State of Illinois may be enforced under the laws of
| ||||||
10 | this State.
| ||||||
11 | (f) Whenever it appears to the satisfaction of the Director | ||||||
12 | that a company
has
paid
pursuant to this Act an Illinois | ||||||
13 | Workers' Compensation Commission Operations Fund Surcharge in
| ||||||
14 | an amount
in excess of the amount legally collectable from the | ||||||
15 | company, the Director
shall issue a
credit memorandum for an | ||||||
16 | amount equal to the amount of such overpayment. A
credit
| ||||||
17 | memorandum may be applied for the 2-year period from the date | ||||||
18 | of issuance,
against the
payment of any amount due during that | ||||||
19 | period under the surcharge imposed by
this
Section or,
subject | ||||||
20 | to reasonable rule of the Department of Insurance including | ||||||
21 | requirement
of
notification, may be assigned to any other | ||||||
22 | company subject to regulation under
this Act.
Any application | ||||||
23 | of credit memoranda after the period provided for in this
| ||||||
24 | Section is void.
| ||||||
25 | (g) Annually, the Governor may direct a transfer of up to | ||||||
26 | 2% of all moneys
collected under this Section to the Insurance | ||||||
27 | Financial Regulation Fund.
| ||||||
28 | (h) Notwithstanding any other provision of this Section, | ||||||
29 | the Illinois Workers' Compensation
Commission Operations Fund | ||||||
30 | Surcharge shall not be imposed on and after July 1, 2005. This | ||||||
31 | subsection (h) does not affect the powers and duties of the | ||||||
32 | Director under this Section with regard to payments due under | ||||||
33 | subsection (b) and any delinquencies, penalties, and | ||||||
34 | overpayments with respect to payments due under subsection (b).
| ||||||
35 | (Source: P.A. 93-32, eff. 6-20-03; 93-721, eff. 1-1-05; 93-840, | ||||||
36 | eff. 7-30-04; revised 12-29-04.)
|
| |||||||
| |||||||
1 | Section 10. The Workers' Compensation Act is amended by | ||||||
2 | changing Section 4d as follows:
| ||||||
3 | (820 ILCS 305/4d)
| ||||||
4 | Sec. 4d. Illinois Workers' Compensation Commission | ||||||
5 | Operations Fund Fee.
| ||||||
6 | (a) As of the effective date of this amendatory Act of the | ||||||
7 | 93rd
General
Assembly, each employer that self-insures its | ||||||
8 | liabilities arising under this
Act
or Workers' Occupational | ||||||
9 | Diseases Act shall pay a fee measured by the annual
actual | ||||||
10 | wages paid in this State of such an employer in the manner | ||||||
11 | provided in
this Section. Such proceeds shall be deposited in | ||||||
12 | the Illinois Workers' Compensation Commission
Operations Fund. | ||||||
13 | If an employer survives or was formed by a merger,
| ||||||
14 | consolidation, reorganization, or reincorporation, the actual | ||||||
15 | wages paid in
this
State of all employers party to the merger, | ||||||
16 | consolidation, reorganization, or
reincorporation shall, for | ||||||
17 | purposes of determining the amount of the fee
imposed
by this | ||||||
18 | Section, be regarded as those of the surviving or new employer.
| ||||||
19 | (b) Beginning on July 30, 2004 ( the effective date of | ||||||
20 | Public Act 93-840) through June 30, 2005
this amendatory Act of | ||||||
21 | 2004 and on July 1 of each year thereafter , the Chairman shall | ||||||
22 | charge and
collect an annual Illinois Workers' Compensation | ||||||
23 | Commission Operations Fund Fee from every employer
subject to | ||||||
24 | subsection (a) of this Section equal to 0.0075% of its annual | ||||||
25 | actual
wages paid in this State as reported in each employer's | ||||||
26 | annual self-insurance
renewal filed for the previous year as | ||||||
27 | required by Section 4 of this Act and
Section 4 of the Workers' | ||||||
28 | Occupational Diseases Act. All sums collected by the
Commission | ||||||
29 | under the provisions of this Section shall be paid promptly | ||||||
30 | after
the
receipt of the same, accompanied by a detailed | ||||||
31 | statement thereof, into the
Illinois Workers' Compensation | ||||||
32 | Commission Operations Fund. The fee due pursuant to Public Act | ||||||
33 | 93-840
this amendatory Act of 2004 shall be collected instead | ||||||
34 | of the fee due on July 1, 2004 under Public Act 93-32. Payment |
| |||||||
| |||||||
1 | of the fee due under Public Act 93-840
this amendatory Act of | ||||||
2 | 2004 shall discharge the employer's obligations due on July 1, | ||||||
3 | 2004.
| ||||||
4 | (c) In addition to the authority specifically granted under | ||||||
5 | Section 16, the
Chairman shall have such authority to adopt | ||||||
6 | rules or establish forms as may be
reasonably necessary for | ||||||
7 | purposes of enforcing this Section. The Commission
shall have | ||||||
8 | authority to defer, waive, or abate the fee or any penalties | ||||||
9 | imposed
by this Section if in the Commission's opinion the | ||||||
10 | employer's solvency and
ability to meet its obligations to pay | ||||||
11 | workers' compensation benefits would be
immediately threatened | ||||||
12 | by payment of the fee due.
| ||||||
13 | (d) When an employer fails to pay the full amount of any | ||||||
14 | annual Illinois Workers' Compensation
Commission Operations | ||||||
15 | Fund Fee of $100 or more due under this Section, there
shall be | ||||||
16 | added to the amount due as a penalty the greater of $1,000 or | ||||||
17 | an
amount
equal to 5% of the deficiency for each month or part | ||||||
18 | of a month that the
deficiency remains unpaid.
| ||||||
19 | (e) The Commission may enforce the collection of any | ||||||
20 | delinquent payment,
penalty
or portion thereof by legal action | ||||||
21 | or in any other manner by which the
collection of debts due the | ||||||
22 | State of Illinois may be enforced under the laws of
this State.
| ||||||
23 | (f) Whenever it appears to the satisfaction of the Chairman | ||||||
24 | that an employer
has
paid pursuant to this Act an Illinois | ||||||
25 | Workers' Compensation Commission Operations Fund Fee
in an | ||||||
26 | amount in excess of the amount legally collectable from the | ||||||
27 | employer, the
Chairman shall issue a credit memorandum for an | ||||||
28 | amount equal to the amount of
such overpayment. A credit | ||||||
29 | memorandum may be applied for the 2-year period from
the date | ||||||
30 | of issuance against the payment of any amount due during that | ||||||
31 | period
under the fee imposed by this Section or, subject to | ||||||
32 | reasonable rule of the
Commission including requirement of | ||||||
33 | notification, may be assigned to any other
employer subject to | ||||||
34 | regulation under this Act. Any application of credit
memoranda | ||||||
35 | after the period provided for in this Section is void.
| ||||||
36 | (g) Notwithstanding any other provision of this Section, |
| |||||||
| |||||||
1 | the Illinois Workers' Compensation Commission Operations Fund | ||||||
2 | Fee shall not be imposed on and after July 1, 2005. This | ||||||
3 | subsection (g) does not affect the powers and duties of the | ||||||
4 | Chairman under this Section with regard to payments that were | ||||||
5 | due under subsection (b) through June 30, 2005 and any | ||||||
6 | delinquencies, penalties, and overpayments with respect to | ||||||
7 | those payments.
| ||||||
8 | (Source: P.A. 93-32, eff. 6-20-03; 93-721, eff. 1-1-05; 93-840, | ||||||
9 | eff. 7-30-04; revised 10-25-04.)
| ||||||
10 | Section 99. Effective date. This Act takes effect July 1, | ||||||
11 | 2005.
|