Full Text of SB2188 95th General Assembly
SB2188ham001 95TH GENERAL ASSEMBLY
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Labor Committee
Adopted in House Comm. on May 14, 2008
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LRB095 14707 AMC 50846 a |
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| AMENDMENT TO SENATE BILL 2188
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| AMENDMENT NO. ______. Amend Senate Bill 2188 by replacing | 3 |
| everything after the enacting clause with the following:
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| "Section 5. The Employee Leasing Company Act is amended by | 5 |
| changing Sections 15 and 30 as follows:
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| (215 ILCS 113/15)
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| Sec. 15. Definitions. In this Act:
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| "Department" means the Illinois Department of Insurance.
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| "Employee leasing arrangement" means a contractual | 10 |
| arrangement,
including long-term temporary arrangements | 11 |
| whereby a lessor obligates itself
to perform specified employer | 12 |
| responsibilities as to leased employees . The contract shall | 13 |
| specifically identify either the employee leasing company or | 14 |
| the client responsible for including
the securing of workers' | 15 |
| compensation insurance for leased employees . For purposes of | 16 |
| this Act,
"employee leasing arrangement" does not include |
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| "temporary help arrangement".
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| "Leased employee" or "worker" means a person performing | 3 |
| services for a
lessee under an
employee leasing arrangement.
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| "Lessee" or "client company" means an entity that obtains | 5 |
| any of its
work force from
another entity through an employee | 6 |
| leasing arrangement.
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| "Lessor" or "employee leasing company" means an entity that | 8 |
| leases any of
its workers to a lessee through an
employee | 9 |
| leasing arrangement.
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| "Long-term temporary arrangement" means an arrangement | 11 |
| where one company
leases all or a
majority number of workers | 12 |
| from
another for a
period in excess of 6 months or consecutive | 13 |
| periods equal to or greater than
one year.
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| "Residual market mechanism" means the residual market | 15 |
| mechanism as
defined in Section 468 of the Illinois Insurance | 16 |
| Code.
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| "Temporary help arrangement" means a service whereby an | 18 |
| organization hires
its own employees and assigns them to | 19 |
| clients for a finite time period to
support or supplement the | 20 |
| client's work force in special work situations such
as, but not | 21 |
| limited to, employee absences, temporary skill shortages, | 22 |
| seasonal
workloads, and special assignments and projects.
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| Notwithstanding any other rulemaking authority that may | 24 |
| exist, neither the Governor nor any agency or agency head under | 25 |
| the jurisdiction of the Governor has any authority to make or | 26 |
| promulgate rules to implement or enforce the provisions of this |
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LRB095 14707 AMC 50846 a |
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| amendatory Act of the 95th General Assembly. If, however, the | 2 |
| Governor believes that rules are necessary to implement or | 3 |
| enforce the provisions of this amendatory Act of the 95th | 4 |
| General Assembly, the Governor may suggest rules to the General | 5 |
| Assembly by filing them with the Clerk of the House and the | 6 |
| Secretary of the Senate and by requesting that the General | 7 |
| Assembly authorize such rulemaking by law, enact those | 8 |
| suggested rules into law, or take any other appropriate action | 9 |
| in the General Assembly's discretion. Nothing contained in this | 10 |
| amendatory Act of the 95th General Assembly shall be | 11 |
| interpreted to grant rulemaking authority under any other | 12 |
| Illinois statute where such authority is not otherwise | 13 |
| explicitly given. For the purposes of this amendatory Act of | 14 |
| the 95th General Assembly, "rules" is given the meaning | 15 |
| contained in Section 1-70 of the Illinois Administrative | 16 |
| Procedure Act, and "agency" and "agency head" are given the | 17 |
| meanings contained in Sections 1-20 and 1-25 of the Illinois | 18 |
| Administrative Procedure Act to the extent that such | 19 |
| definitions apply to agencies or agency heads under the | 20 |
| jurisdiction of the Governor. | 21 |
| (Source: P.A. 90-499, eff. 1-1-98; 90-794, eff. 8-14-98.)
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| (215 ILCS 113/30)
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| Sec. 30. Responsibility for policy issuance and | 24 |
| continuance.
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| (a) When a workers' compensation policy written to cover |
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| leased
employees is issued to the lessor as the named
insured : | 2 |
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| (1) The the lessee shall be identified thereon by the
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| attachment of
an appropriate endorsement indicating that | 5 |
| the policy provides coverage solely for
leased
employees. | 6 |
| The endorsement shall, at a
minimum, provide for the | 7 |
| following:
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| (i) (1) Coverage under the endorsement shall be | 9 |
| limited to the
named insured's
employees leased to the | 10 |
| lessees.
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| (ii) (2) The experience of the employees leased to | 12 |
| the particular
lessee shall be separately maintained | 13 |
| by the lessor as provided in Section
25.
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| (b) (Blank).
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| (2) (c) The lessor shall notify the insurer or a | 16 |
| licensed rating organization 30
days prior to the effective | 17 |
| date of termination or immediately upon
notification of | 18 |
| cancellation by the lessor of an employee leasing | 19 |
| arrangement
with the lessee in order to allow sufficient | 20 |
| time to calculate an experience
modification factor for
the | 21 |
| lessee.
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| (3) (d) The insurer shall provide proof of workers' | 23 |
| compensation
insurance to
the lessor and to each applicable | 24 |
| lessee within 30 days of the coverage
being effected or | 25 |
| changed.
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| (4) (e) Calculation of a lessor's or lessee's premium |
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| shall be done in
accordance with the insurer's rating | 2 |
| manual filed with the
Department.
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| (b) When a workers' compensation policy that covers leased | 4 |
| employees is issued to the lessee as the named insured, | 5 |
| coverage under the policy shall cover all exposure of the | 6 |
| client for both leased and non-leased workers. | 7 |
| (c) Where the client is the party responsible for worker's | 8 |
| compensation coverage of leased employees under the leasing | 9 |
| arrangement, coverage under any policy issued to the lessor as | 10 |
| named insured for direct employees of the lessor or for leased | 11 |
| employees of the lessor at any other client shall not be | 12 |
| extended to the leased employees at the client lessee. | 13 |
| (d) Notwithstanding any other rulemaking authority that | 14 |
| may exist, neither the Governor nor any agency or agency head | 15 |
| under the jurisdiction of the Governor has any authority to | 16 |
| make or promulgate rules to implement or enforce the provisions | 17 |
| of this amendatory Act of the 95th General Assembly. If, | 18 |
| however, the Governor believes that rules are necessary to | 19 |
| implement or enforce the provisions of this amendatory Act of | 20 |
| the 95th General Assembly, the Governor may suggest rules to | 21 |
| the General Assembly by filing them with the Clerk of the House | 22 |
| and the Secretary of the Senate and by requesting that the | 23 |
| General Assembly authorize such rulemaking by law, enact those | 24 |
| suggested rules into law, or take any other appropriate action | 25 |
| in the General Assembly's discretion. Nothing contained in this | 26 |
| amendatory Act of the 95th General Assembly shall be |
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LRB095 14707 AMC 50846 a |
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| interpreted to grant rulemaking authority under any other | 2 |
| Illinois statute where such authority is not otherwise | 3 |
| explicitly given. For the purposes of this amendatory Act of | 4 |
| the 95th General Assembly, "rules" is given the meaning | 5 |
| contained in Section 1-70 of the Illinois Administrative | 6 |
| Procedure Act, and "agency" and "agency head" are given the | 7 |
| meanings contained in Sections 1-20 and 1-25 of the Illinois | 8 |
| Administrative Procedure Act to the extent that such | 9 |
| definitions apply to agencies or agency heads under the | 10 |
| jurisdiction of the Governor. | 11 |
| (Source: P.A. 90-499, eff. 1-1-98; 90-794, eff. 8-14-98.)
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| Section 99. Effective date. This Act takes effect upon | 13 |
| becoming law.".
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