Full Text of SB1967 97th General Assembly
SB1967ham004 97TH GENERAL ASSEMBLY | Rep. Barbara Flynn Currie Filed: 5/31/2011
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| 1 | | AMENDMENT TO SENATE BILL 1967
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 1967 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The State Employees Group Insurance Act of 1971 | 5 | | is amended by changing Sections 3, 6.9, and 6.10 and adding | 6 | | Section 6.10A as follows:
| 7 | | (5 ILCS 375/3) (from Ch. 127, par. 523)
| 8 | | Sec. 3. Definitions. Unless the context otherwise | 9 | | requires, the
following words and phrases as used in this Act | 10 | | shall have the following
meanings. The Department may define | 11 | | these and other words and phrases
separately for the purpose of | 12 | | implementing specific programs providing benefits
under this | 13 | | Act.
| 14 | | (a) "Administrative service organization" means any | 15 | | person, firm or
corporation experienced in the handling of | 16 | | claims which is
fully qualified, financially sound and capable |
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| 1 | | of meeting the service
requirements of a contract of | 2 | | administration executed with the Department.
| 3 | | (b) "Annuitant" means (1) an employee who retires, or has | 4 | | retired,
on or after January 1, 1966 on an immediate annuity | 5 | | under the provisions
of Articles 2, 14 (including an employee | 6 | | who has elected to receive an alternative retirement | 7 | | cancellation payment under Section 14-108.5 of the Illinois | 8 | | Pension Code in lieu of an annuity), 15 (including an employee | 9 | | who has retired under the optional
retirement program | 10 | | established under Section 15-158.2),
paragraphs (2), (3), or | 11 | | (5) of Section 16-106, or
Article 18 of the Illinois Pension | 12 | | Code; (2) any person who was receiving
group insurance coverage | 13 | | under this Act as of March 31, 1978 by
reason of his status as | 14 | | an annuitant, even though the annuity in relation
to which such | 15 | | coverage was provided is a proportional annuity based on less
| 16 | | than the minimum period of service required for a retirement | 17 | | annuity in
the system involved; (3) any person not otherwise | 18 | | covered by this Act
who has retired as a participating member | 19 | | under Article 2 of the Illinois
Pension Code but is ineligible | 20 | | for the retirement annuity under Section
2-119 of the Illinois | 21 | | Pension Code; (4) the spouse of any person who
is receiving a | 22 | | retirement annuity under Article 18 of the Illinois Pension
| 23 | | Code and who is covered under a group health insurance program | 24 | | sponsored
by a governmental employer other than the State of | 25 | | Illinois and who has
irrevocably elected to waive his or her | 26 | | coverage under this Act and to have
his or her spouse |
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| 1 | | considered as the "annuitant" under this Act and not as
a | 2 | | "dependent"; or (5) an employee who retires, or has retired, | 3 | | from a
qualified position, as determined according to rules | 4 | | promulgated by the
Director, under a qualified local | 5 | | government, a qualified rehabilitation
facility, a qualified | 6 | | domestic violence shelter or service, or a qualified child | 7 | | advocacy center. (For definition
of "retired employee", see (p) | 8 | | post).
| 9 | | (b-5) "New SERS annuitant" means a person who, on or after | 10 | | January 1,
1998, becomes an annuitant, as defined in subsection | 11 | | (b), by virtue of
beginning to receive a retirement annuity | 12 | | under Article 14 of the Illinois
Pension Code (including an | 13 | | employee who has elected to receive an alternative retirement | 14 | | cancellation payment under Section 14-108.5 of that Code in | 15 | | lieu of an annuity), and is eligible to participate in the | 16 | | basic program of group
health benefits provided for annuitants | 17 | | under this Act.
| 18 | | (b-6) "New SURS annuitant" means a person who (1) on or | 19 | | after January 1,
1998, becomes an annuitant, as defined in | 20 | | subsection (b), by virtue of
beginning to receive a retirement | 21 | | annuity under Article 15 of the Illinois
Pension Code, (2) has | 22 | | not made the election authorized under Section 15-135.1
of the | 23 | | Illinois Pension Code, and (3) is eligible to participate in | 24 | | the basic
program of group
health benefits provided for | 25 | | annuitants under this Act.
| 26 | | (b-7) "New TRS State annuitant" means a person who, on or |
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| 1 | | after July
1, 1998, becomes an annuitant, as defined in | 2 | | subsection (b), by virtue of
beginning to receive a retirement | 3 | | annuity under Article 16 of the Illinois
Pension Code based on | 4 | | service as a teacher as defined in
paragraph (2), (3), or (5) | 5 | | of Section 16-106 of that Code, and is eligible
to participate | 6 | | in the basic program of group health benefits provided for
| 7 | | annuitants under this Act.
| 8 | | (c) "Carrier" means (1) an insurance company, a corporation | 9 | | organized
under the Limited Health Service Organization Act or | 10 | | the Voluntary Health
Services Plan Act, a partnership, or other | 11 | | nongovernmental organization,
which is authorized to do group | 12 | | life or group health insurance business in
Illinois, or (2) the | 13 | | State of Illinois as a self-insurer.
| 14 | | (d) "Compensation" means salary or wages payable on a | 15 | | regular
payroll by the State Treasurer on a warrant of the | 16 | | State Comptroller out
of any State, trust or federal fund, or | 17 | | by the Governor of the State
through a disbursing officer of | 18 | | the State out of a trust or out of
federal funds, or by any | 19 | | Department out of State, trust, federal or
other funds held by | 20 | | the State Treasurer or the Department, to any person
for | 21 | | personal services currently performed, and ordinary or | 22 | | accidental
disability benefits under Articles 2, 14, 15 | 23 | | (including ordinary or accidental
disability benefits under | 24 | | the optional retirement program established under
Section | 25 | | 15-158.2), paragraphs (2), (3), or (5) of
Section 16-106, or | 26 | | Article 18 of the Illinois Pension Code, for disability
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| 1 | | incurred after January 1, 1966, or benefits payable under the | 2 | | Workers'
Compensation or Occupational Diseases Act or benefits | 3 | | payable under a sick
pay plan established in accordance with | 4 | | Section 36 of the State Finance Act.
"Compensation" also means | 5 | | salary or wages paid to an employee of any
qualified local | 6 | | government, qualified rehabilitation facility,
qualified | 7 | | domestic violence shelter or service, or qualified child | 8 | | advocacy center.
| 9 | | (e) "Commission" means the State Employees Group Insurance | 10 | | Advisory
Commission authorized by this Act. Commencing July 1, | 11 | | 1984, "Commission"
as used in this Act means the Commission on | 12 | | Government Forecasting and Accountability as
established by | 13 | | the Legislative Commission Reorganization Act of 1984.
| 14 | | (f) "Contributory", when referred to as contributory | 15 | | coverage, shall
mean optional coverages or benefits elected by | 16 | | the member toward the cost of
which such member makes | 17 | | contribution, or which are funded in whole or in part
through | 18 | | the acceptance of a reduction in earnings or the foregoing of | 19 | | an
increase in earnings by an employee, as distinguished from | 20 | | noncontributory
coverage or benefits which are paid entirely by | 21 | | the State of Illinois
without reduction of the member's salary.
| 22 | | (g) "Department" means any department, institution, board,
| 23 | | commission, officer, court or any agency of the State | 24 | | government
receiving appropriations and having power to | 25 | | certify payrolls to the
Comptroller authorizing payments of | 26 | | salary and wages against such
appropriations as are made by the |
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| 1 | | General Assembly from any State fund, or
against trust funds | 2 | | held by the State Treasurer and includes boards of
trustees of | 3 | | the retirement systems created by Articles 2, 14, 15, 16 and
18 | 4 | | of the Illinois Pension Code. "Department" also includes the | 5 | | Illinois
Comprehensive Health Insurance Board, the Board of | 6 | | Examiners established under
the Illinois Public Accounting | 7 | | Act, and the Illinois Finance Authority.
| 8 | | (h) "Dependent", when the term is used in the context of | 9 | | the health
and life plan, means a member's spouse and any child | 10 | | (1) from
birth to age 26 including an adopted child, a child | 11 | | who lives with the
member from the time of the filing of a | 12 | | petition for adoption until entry
of an order of adoption, a | 13 | | stepchild or adjudicated child, or a child who lives with the | 14 | | member
if such member is a court appointed guardian of the | 15 | | child or (2)
age 19 or over who is mentally
or physically | 16 | | disabled from a cause originating prior to the age of 19 (age | 17 | | 26 if enrolled as an adult child dependent). For
the health | 18 | | plan only, the term "dependent" also includes (1) any person
| 19 | | enrolled prior to the effective date of this Section who is | 20 | | dependent upon
the member to the extent that the member may | 21 | | claim such person as a
dependent for income tax deduction | 22 | | purposes and (2) any person who
has received after June 30, | 23 | | 2000 an organ transplant and who is financially
dependent upon | 24 | | the member and eligible to be claimed as a dependent for income
| 25 | | tax purposes. A member requesting to cover any dependent must | 26 | | provide documentation as requested by the Department of Central |
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| 1 | | Management Services and file with the Department any and all | 2 | | forms required by the Department.
| 3 | | (i) "Director" means the Director of the Illinois | 4 | | Department of Central
Management Services or of any successor | 5 | | agency designated to administer this Act.
| 6 | | (j) "Eligibility period" means the period of time a member | 7 | | has to
elect enrollment in programs or to select benefits | 8 | | without regard to
age, sex or health.
| 9 | | (k) "Employee" means and includes each officer or employee | 10 | | in the
service of a department who (1) receives his | 11 | | compensation for
service rendered to the department on a | 12 | | warrant issued pursuant to a payroll
certified by a department | 13 | | or on a warrant or check issued and drawn by a
department upon | 14 | | a trust, federal or other fund or on a warrant issued
pursuant | 15 | | to a payroll certified by an elected or duly appointed officer
| 16 | | of the State or who receives payment of the performance of | 17 | | personal
services on a warrant issued pursuant to a payroll | 18 | | certified by a
Department and drawn by the Comptroller upon the | 19 | | State Treasurer against
appropriations made by the General | 20 | | Assembly from any fund or against
trust funds held by the State | 21 | | Treasurer, and (2) is employed full-time or
part-time in a | 22 | | position normally requiring actual performance of duty
during | 23 | | not less than 1/2 of a normal work period, as established by | 24 | | the
Director in cooperation with each department, except that | 25 | | persons elected
by popular vote will be considered employees | 26 | | during the entire
term for which they are elected regardless of |
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| 1 | | hours devoted to the
service of the State, and (3) except that | 2 | | "employee" does not include any
person who is not eligible by | 3 | | reason of such person's employment to
participate in one of the | 4 | | State retirement systems under Articles 2, 14, 15
(either the | 5 | | regular Article 15 system or the optional retirement program
| 6 | | established under Section 15-158.2) or 18, or under paragraph | 7 | | (2), (3), or
(5) of Section 16-106, of the Illinois
Pension | 8 | | Code, but such term does include persons who are employed | 9 | | during
the 6 month qualifying period under Article 14 of the | 10 | | Illinois Pension
Code. Such term also includes any person who | 11 | | (1) after January 1, 1966,
is receiving ordinary or accidental | 12 | | disability benefits under Articles
2, 14, 15 (including | 13 | | ordinary or accidental disability benefits under the
optional | 14 | | retirement program established under Section 15-158.2), | 15 | | paragraphs
(2), (3), or (5) of Section 16-106, or Article 18 of | 16 | | the
Illinois Pension Code, for disability incurred after | 17 | | January 1, 1966, (2)
receives total permanent or total | 18 | | temporary disability under the Workers'
Compensation Act or | 19 | | Occupational Disease Act as a result of injuries
sustained or | 20 | | illness contracted in the course of employment with the
State | 21 | | of Illinois, or (3) is not otherwise covered under this Act and | 22 | | has
retired as a participating member under Article 2 of the | 23 | | Illinois Pension
Code but is ineligible for the retirement | 24 | | annuity under Section 2-119 of
the Illinois Pension Code. | 25 | | However, a person who satisfies the criteria
of the foregoing | 26 | | definition of "employee" except that such person is made
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| 1 | | ineligible to participate in the State Universities Retirement | 2 | | System by
clause (4) of subsection (a) of Section 15-107 of the | 3 | | Illinois Pension
Code is also an "employee" for the purposes of | 4 | | this Act. "Employee" also
includes any person receiving or | 5 | | eligible for benefits under a sick pay
plan established in | 6 | | accordance with Section 36 of the State Finance Act.
"Employee" | 7 | | also includes (i) each officer or employee in the service of a
| 8 | | qualified local government, including persons appointed as | 9 | | trustees of
sanitary districts regardless of hours devoted to | 10 | | the service of the
sanitary district, (ii) each employee in the | 11 | | service of a qualified
rehabilitation facility, (iii) each | 12 | | full-time employee in the service of a
qualified domestic | 13 | | violence shelter or service, and (iv) each full-time employee | 14 | | in the service of a qualified child advocacy center, as | 15 | | determined according to
rules promulgated by the Director.
| 16 | | (l) "Member" means an employee, annuitant, retired | 17 | | employee or survivor.
| 18 | | (m) "Optional coverages or benefits" means those coverages | 19 | | or
benefits available to the member on his or her voluntary | 20 | | election, and at
his or her own expense.
| 21 | | (n) "Program" means the group life insurance, health | 22 | | benefits and other
employee benefits designed and contracted | 23 | | for by the Director under this Act.
| 24 | | (o) "Health plan" means a health benefits
program offered
| 25 | | by the State of Illinois for persons eligible for the plan.
| 26 | | (p) "Retired employee" means any person who would be an |
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| 1 | | annuitant as
that term is defined herein but for the fact that | 2 | | such person retired prior to
January 1, 1966. Such term also | 3 | | includes any person formerly employed by
the University of | 4 | | Illinois in the Cooperative Extension Service who would
be an | 5 | | annuitant but for the fact that such person was made ineligible | 6 | | to
participate in the State Universities Retirement System by | 7 | | clause (4) of
subsection (a) of Section 15-107 of the Illinois
| 8 | | Pension Code.
| 9 | | (q) "Survivor" means a person receiving an annuity as a | 10 | | survivor of an
employee or of an annuitant. "Survivor" also | 11 | | includes: (1) the surviving
dependent of a person who satisfies | 12 | | the definition of "employee" except that
such person is made | 13 | | ineligible to participate in the State Universities
Retirement | 14 | | System by clause (4) of subsection (a)
of Section 15-107 of the | 15 | | Illinois Pension Code; (2) the surviving
dependent of any | 16 | | person formerly employed by the University of Illinois in
the | 17 | | Cooperative Extension Service who would be an annuitant except | 18 | | for the
fact that such person was made ineligible to | 19 | | participate in the State
Universities Retirement System by | 20 | | clause (4) of subsection (a) of Section
15-107 of the Illinois | 21 | | Pension Code; and (3) the surviving dependent of a person who | 22 | | was an annuitant under this Act by virtue of receiving an | 23 | | alternative retirement cancellation payment under Section | 24 | | 14-108.5 of the Illinois Pension Code.
| 25 | | (q-2) "SERS" means the State Employees' Retirement System | 26 | | of Illinois, created under Article 14 of the Illinois Pension |
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| 1 | | Code.
| 2 | | (q-3) "SURS" means the State Universities Retirement | 3 | | System, created under Article 15 of the Illinois Pension Code.
| 4 | | (q-4) "TRS" means the Teachers' Retirement System of the | 5 | | State of Illinois, created under Article 16 of the Illinois | 6 | | Pension Code.
| 7 | | (q-5) "New SERS survivor" means a survivor, as defined in | 8 | | subsection (q),
whose annuity is paid under Article 14 of the | 9 | | Illinois Pension Code and is
based on the death of (i) an | 10 | | employee whose death occurs on or after January 1,
1998, or | 11 | | (ii) a new SERS annuitant as defined in subsection (b-5). "New | 12 | | SERS survivor" includes the surviving dependent of a person who | 13 | | was an annuitant under this Act by virtue of receiving an | 14 | | alternative retirement cancellation payment under Section | 15 | | 14-108.5 of the Illinois Pension Code.
| 16 | | (q-6) "New SURS survivor" means a survivor, as defined in | 17 | | subsection (q),
whose annuity is paid under Article 15 of the | 18 | | Illinois Pension Code and is
based on the death of (i) an | 19 | | employee whose death occurs on or after January 1,
1998, or | 20 | | (ii) a new SURS annuitant as defined in subsection (b-6).
| 21 | | (q-7) "New TRS State survivor" means a survivor, as defined | 22 | | in subsection
(q), whose annuity is paid under Article 16 of | 23 | | the Illinois Pension Code and is
based on the death of (i) an | 24 | | employee who is a teacher as defined in paragraph
(2), (3), or | 25 | | (5) of Section 16-106 of that Code and whose death occurs on or
| 26 | | after July 1, 1998, or (ii) a new TRS State annuitant as |
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| 1 | | defined in subsection
(b-7).
| 2 | | (r) "Medical services" means the services provided within | 3 | | the scope
of their licenses by practitioners in all categories | 4 | | licensed under the
Medical Practice Act of 1987.
| 5 | | (s) "Unit of local government" means any county, | 6 | | municipality,
township, school district (including a | 7 | | combination of school districts under
the Intergovernmental | 8 | | Cooperation Act), special district or other unit,
designated as | 9 | | a
unit of local government by law, which exercises limited | 10 | | governmental
powers or powers in respect to limited | 11 | | governmental subjects, any
not-for-profit association with a | 12 | | membership that primarily includes
townships and township | 13 | | officials, that has duties that include provision of
research | 14 | | service, dissemination of information, and other acts for the
| 15 | | purpose of improving township government, and that is funded | 16 | | wholly or
partly in accordance with Section 85-15 of the | 17 | | Township Code; any
not-for-profit corporation or association, | 18 | | with a membership consisting
primarily of municipalities, that | 19 | | operates its own utility system, and
provides research, | 20 | | training, dissemination of information, or other acts to
| 21 | | promote cooperation between and among municipalities that | 22 | | provide utility
services and for the advancement of the goals | 23 | | and purposes of its
membership;
the Southern Illinois | 24 | | Collegiate Common Market, which is a consortium of higher
| 25 | | education institutions in Southern Illinois; the Illinois | 26 | | Association of
Park Districts; and any hospital provider that |
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| 1 | | is owned by a county that has 100 or fewer hospital beds and | 2 | | has not already joined the program. "Qualified
local | 3 | | government" means a unit of local government approved by the | 4 | | Director and
participating in a program created under | 5 | | subsection (i) of Section 10 of this
Act.
| 6 | | (t) "Qualified rehabilitation facility" means any | 7 | | not-for-profit
organization that is accredited by the | 8 | | Commission on Accreditation of
Rehabilitation Facilities or | 9 | | certified by the Department
of Human Services (as successor to | 10 | | the Department of Mental Health
and Developmental | 11 | | Disabilities) to provide services to persons with
disabilities
| 12 | | and which receives funds from the State of Illinois for | 13 | | providing those
services, approved by the Director and | 14 | | participating in a program created
under subsection (j) of | 15 | | Section 10 of this Act.
| 16 | | (u) "Qualified domestic violence shelter or service" means | 17 | | any Illinois
domestic violence shelter or service and its | 18 | | administrative offices funded
by the Department of Human | 19 | | Services (as successor to the Illinois Department of
Public | 20 | | Aid),
approved by the Director and
participating in a program | 21 | | created under subsection (k) of Section 10.
| 22 | | (v) "TRS benefit recipient" means a person who:
| 23 | | (1) is not a "member" as defined in this Section; and
| 24 | | (2) is receiving a monthly benefit or retirement | 25 | | annuity
under Article 16 of the Illinois Pension Code; and
| 26 | | (3) either (i) has at least 8 years of creditable |
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| 1 | | service under Article
16 of the Illinois Pension Code, or | 2 | | (ii) was enrolled in the health insurance
program offered | 3 | | under that Article on January 1, 1996, or (iii) is the | 4 | | survivor
of a benefit recipient who had at least 8
years of | 5 | | creditable service under Article 16 of the Illinois Pension | 6 | | Code or
was enrolled in the health insurance program | 7 | | offered under that Article on
the effective date of this | 8 | | amendatory Act of 1995, or (iv) is a recipient or
survivor | 9 | | of a recipient of a disability benefit under Article 16 of | 10 | | the
Illinois Pension Code.
| 11 | | (w) "TRS dependent beneficiary" means a person who:
| 12 | | (1) is not a "member" or "dependent" as defined in this | 13 | | Section; and
| 14 | | (2) is a TRS benefit recipient's: (A) spouse, (B) | 15 | | dependent parent who
is receiving at least half of his or | 16 | | her support from the TRS benefit
recipient, or (C) natural, | 17 | | step, adjudicated, or adopted child who is (i) under age | 18 | | 26, (ii) was, on January 1, 1996, participating as a | 19 | | dependent
beneficiary in the health insurance program | 20 | | offered under Article 16 of the
Illinois Pension Code, or | 21 | | (iii) age 19 or over who is mentally or physically disabled | 22 | | from a cause originating prior to the age of 19 (age 26 if | 23 | | enrolled as an adult child).
| 24 | | (x) "Military leave" refers to individuals in basic
| 25 | | training for reserves, special/advanced training, annual | 26 | | training, emergency
call up, activation by the President of the |
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| 1 | | United States, or any other training or duty in service to the | 2 | | United States Armed Forces.
| 3 | | (y) (Blank).
| 4 | | (z) "Community college benefit recipient" means a person | 5 | | who:
| 6 | | (1) is not a "member" as defined in this Section; and
| 7 | | (2) is receiving a monthly survivor's annuity or | 8 | | retirement annuity
under Article 15 of the Illinois Pension | 9 | | Code; and
| 10 | | (3) either (i) was a full-time employee of a community | 11 | | college district or
an association of community college | 12 | | boards created under the Public Community
College Act | 13 | | (other than , until July 1, 2012, an employee whose last | 14 | | employer under Article 15 of the
Illinois Pension Code was | 15 | | a community college district subject to Article VII
of the | 16 | | Public Community College Act) and was eligible to | 17 | | participate in a group
health benefit plan as an employee | 18 | | during the time of employment with a
community college | 19 | | district (other than , until July 1, 2012, a community | 20 | | college district subject to
Article VII of the Public | 21 | | Community College Act) or an association of community
| 22 | | college boards, or (ii) is the survivor of a person | 23 | | described in item (i).
| 24 | | "Community college benefit recipient" does not include: | 25 | | (1) an individual who was a full-time employee of a | 26 | | community college district subject to Article VII of the |
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| 1 | | Public Community College Act and who, prior to the | 2 | | effective date of this amendatory Act of the 97th General | 3 | | Assembly, (i) opted not to participate in the health | 4 | | benefits program provided by the community college | 5 | | district subject to Article VII of the Public Community | 6 | | College Act and (ii) is ineligible for benefits under the | 7 | | federal Medicare health insurance program (Title XVIII of | 8 | | the Social Security Act as added by P.L. 89-97, 89th | 9 | | Congress); or | 10 | | (2) an individual receiving a monthly survivor's | 11 | | annuity under Article 15 of the Illinois Pension Code if | 12 | | the individual upon whom the annuity is based was (i) last | 13 | | employed by a community college subject to Article VII of | 14 | | the Public Community College Act and (ii) was not enrolled | 15 | | in the program established under Section 6.9 of this Act. | 16 | | (aa) "Community college dependent beneficiary" means a | 17 | | person who:
| 18 | | (1) is not a "member" or "dependent" as defined in this | 19 | | Section; and
| 20 | | (2) is a community college benefit recipient's: (A) | 21 | | spouse, (B) dependent
parent who is receiving at least half | 22 | | of his or her support from the community
college benefit | 23 | | recipient, or (C) natural, step, adjudicated, or adopted | 24 | | child who is (i)
under age 26, or (ii)
age 19 or over and | 25 | | mentally or physically disabled from a cause originating | 26 | | prior to the age of 19 (age 26 if enrolled as an adult |
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| 1 | | child).
| 2 | | (bb) "Qualified child advocacy center" means any Illinois | 3 | | child advocacy center and its administrative offices funded by | 4 | | the Department of Children and Family Services, as defined by | 5 | | the Children's Advocacy Center Act (55 ILCS 80/), approved by | 6 | | the Director and participating in a program created under | 7 | | subsection (n) of Section 10.
| 8 | | (cc) "Community College Fiscal Board" means the board of | 9 | | trustees created under Section 6.10A of this Act. | 10 | | (Source: P.A. 95-331, eff. 8-21-07; 95-632, eff. 9-25-07; | 11 | | 96-756, eff. 1-1-10; 96-1519, eff. 2-4-11.)
| 12 | | (5 ILCS 375/6.9)
| 13 | | Sec. 6.9.
Health benefits for community college benefit | 14 | | recipients and
community college dependent beneficiaries.
| 15 | | (a) Purpose. It is the purpose of this amendatory Act of | 16 | | 1997 and this amendatory Act of the 97th General Assembly to | 17 | | establish
a uniform program of health benefits for community | 18 | | college benefit recipients
and their dependent beneficiaries | 19 | | under the administration of the Department of
Central | 20 | | Management Services.
| 21 | | (b) Creation of program. Beginning July 1, 1999, the | 22 | | Department of
Central Management Services shall be responsible | 23 | | for administering a program of
health benefits for community | 24 | | college benefit recipients and community college
dependent | 25 | | beneficiaries under this Section. The State Universities |
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| 1 | | Retirement
System and the boards of trustees of the various | 2 | | community college districts
shall cooperate with the | 3 | | Department in this endeavor. Beginning July 1, 2012, this | 4 | | program shall include health benefits for community college | 5 | | benefit recipients and community college dependent | 6 | | beneficiaries subject to Article VII of the Public Community | 7 | | College Act.
| 8 | | (c) Eligibility. All community college benefit recipients | 9 | | and community
college dependent beneficiaries shall be | 10 | | eligible to participate in the program
established under this | 11 | | Section, without any interruption or delay in coverage
or | 12 | | limitation as to pre-existing medical conditions. Eligibility | 13 | | to
participate shall be determined by the State Universities | 14 | | Retirement System.
Eligibility information shall be | 15 | | communicated to the Department of Central
Management Services | 16 | | in a format acceptable to the Department.
| 17 | | (d) Coverage. The health benefit coverage provided under | 18 | | this Section
shall be a program of health, dental, and vision | 19 | | benefits.
| 20 | | The program of health benefits under this Section may | 21 | | include any or all of
the benefit limitations, including but | 22 | | not limited to a reduction in benefits
based on eligibility for | 23 | | federal medicare benefits, that are provided under
subsection | 24 | | (a) of Section 6 of this Act for other health benefit programs | 25 | | under
this Act.
| 26 | | (e) Insurance rates and premiums. The Director at the |
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| 1 | | direction of the Community College Fiscal Board shall determine | 2 | | the
insurance rates and premiums for community college benefit | 3 | | recipients and
community college dependent beneficiaries. | 4 | | Rates and premiums may be based
in part on age and eligibility | 5 | | for federal Medicare coverage. These
The Director shall also | 6 | | determine premiums shall that will allow for the
establishment | 7 | | of an actuarially sound reserve for this program.
| 8 | | Subject to the provisions of Section 6.10A, the The cost of | 9 | | health benefits under the program shall be paid as follows:
| 10 | | (1) For a community college benefit recipient, up to | 11 | | 75% of the total
insurance rate shall be paid from the | 12 | | Community College Health Insurance
Security Fund.
| 13 | | (2) The balance of the rate of insurance, including the | 14 | | entire premium
for any coverage for community college | 15 | | dependent beneficiaries that has been
elected, shall be | 16 | | paid by deductions authorized by the community college
| 17 | | benefit recipient to be withheld from his or her monthly | 18 | | annuity or benefit
payment from the State Universities | 19 | | Retirement System; except that (i) if the
balance of the | 20 | | cost of coverage exceeds the amount of the monthly annuity | 21 | | or
benefit payment, the difference shall be paid directly | 22 | | to the State
Universities Retirement System by the | 23 | | community college benefit recipient, and
(ii) all or part | 24 | | of the balance of the cost of coverage may, at the option | 25 | | of
the board of trustees of the community college district, | 26 | | be paid to
the State Universities Retirement System by the |
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| 1 | | board of the community college
district from which the | 2 | | community college benefit recipient retired. The State
| 3 | | Universities Retirement System shall promptly deposit all | 4 | | moneys withheld by or
paid to it under this subdivision | 5 | | (e)(2) into the Community College Health
Insurance | 6 | | Security Fund. These moneys shall not be considered assets | 7 | | of the
State Universities Retirement System.
| 8 | | (f) Financing. All revenues arising from the | 9 | | administration of the health
benefit program established under | 10 | | this Section shall be deposited into the
Community College | 11 | | Health Insurance Security Fund, which is hereby created as a
| 12 | | nonappropriated trust fund to be held outside the State | 13 | | Treasury, with the
State Treasurer as custodian. The Community | 14 | | College Health Insurance Security Fund is not subject to | 15 | | administrative charges or charge backs, including, but not | 16 | | limited to, those authorized under Section 8h of the State | 17 | | Finance Act. Any interest earned on moneys in the Community
| 18 | | College Health Insurance Security Fund shall be deposited into | 19 | | the Fund.
| 20 | | Moneys in the Community College Health Insurance Security | 21 | | Fund shall be used
only to pay the costs of the health benefit | 22 | | program established under this
Section, including associated | 23 | | administrative costs and the establishment of a
program | 24 | | reserve. Beginning January 1, 1999,
the Department of Central | 25 | | Management Services may make expenditures from the
Community | 26 | | College Health Insurance Security Fund for those costs.
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| 1 | | (g) Contract for benefits. The Director shall by contract, | 2 | | self-insurance,
or otherwise make available the program of | 3 | | health benefits for community
college benefit recipients and | 4 | | their community college dependent beneficiaries
that is | 5 | | provided for in this Section. The contract or other arrangement | 6 | | for
the provision of these health benefits shall be on terms | 7 | | deemed by the Director
to be in the best interest of the State | 8 | | of Illinois and the community college
benefit recipients based | 9 | | on, but not limited to, such criteria as
administrative cost, | 10 | | service capabilities of the carrier or other contractor,
and | 11 | | the costs of the benefits. If made after the effective of this | 12 | | amendatory Act of the 97th General Assembly, these contracts or | 13 | | other arrangements for the provision of health benefits shall | 14 | | also provide that health benefits are not to be paid from | 15 | | moneys in the Fund if the Commission on Government Forecasting | 16 | | and Accountability determines that plan changes that it has | 17 | | approved under Section 6.10A have not been implemented.
| 18 | | (h) Continuation of program. It is the intention of the | 19 | | General Assembly
that the program of health benefits provided | 20 | | under this Section be maintained
on an ongoing, affordable | 21 | | basis. The program of health benefits provided under
this | 22 | | Section may be amended by the State and is not intended to be a | 23 | | pension or
retirement benefit subject to protection under | 24 | | Article XIII, Section 5 of the
Illinois Constitution.
| 25 | | (i) Other health benefit plans. A health benefit plan | 26 | | provided by a
community college district (other than , until |
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| 1 | | July 1, 2012, a community college district subject to
Article | 2 | | VII of the Public Community College Act) under the terms of a
| 3 | | collective bargaining agreement in effect on or prior to the | 4 | | effective date of
this amendatory Act of 1997 shall continue in | 5 | | force according to the terms of
that agreement, unless | 6 | | otherwise mutually agreed by the parties to that
agreement and | 7 | | the affected retiree.
A community college benefit recipient or | 8 | | community college dependent
beneficiary whose coverage under | 9 | | such a plan expires shall be eligible to begin
participating in | 10 | | the program established under this Section without any
| 11 | | interruption or delay in coverage or limitation as to | 12 | | pre-existing medical
conditions.
| 13 | | (j) This Act does not prohibit any community college | 14 | | district from offering
additional health benefits for its | 15 | | retirees or their dependents or survivors.
| 16 | | (Source: P.A. 90-497, eff. 8-18-97; 90-655, eff. 7-30-98.)
| 17 | | (5 ILCS 375/6.10)
| 18 | | Sec. 6.10. Contributions to the Community College Health | 19 | | Insurance
Security Fund.
| 20 | | (a) Beginning January 1, 1999, every active contributor of | 21 | | the State
Universities Retirement System (established under | 22 | | Article 15 of the Illinois
Pension Code) who (1) is a full-time | 23 | | employee of a community college district
(other than , until | 24 | | January 1, 2012, a community college district subject to | 25 | | Article VII of the Public
Community College Act)
or an |
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| 1 | | association of community college boards and (2) is not an | 2 | | employee as
defined in Section 3 of this Act shall make | 3 | | contributions toward the cost of
community college annuitant | 4 | | and survivor health benefits at the rate of 0.50%
of salary. | 5 | | Beginning on the effective date of this amendatory Act of the | 6 | | 97th General Assembly and until revised under Section 6.10A of | 7 | | this Act, these contributions shall be at the rate of 0.97% of | 8 | | salary. If revised under Section 6.10A, these contributions | 9 | | shall be at the rate set by the Community College Fiscal Board | 10 | | and approved by the Commission on Government Forecasting and | 11 | | Accountability as specified in Section 6.10A of this Act.
| 12 | | These contributions shall be deducted by the employer and | 13 | | paid to the State
Universities Retirement System as service | 14 | | agent for the Department of Central
Management Services. The | 15 | | System may use the same processes for collecting the
| 16 | | contributions required by this subsection that it uses to | 17 | | collect the
contributions received from those employees under | 18 | | Section 15-157 of the
Illinois Pension Code. An employer may | 19 | | agree to pick up or pay the
contributions required under this | 20 | | subsection on behalf of the employee;
such contributions shall | 21 | | be deemed to have been paid by the employee.
| 22 | | The State Universities Retirement System shall promptly | 23 | | deposit all moneys
collected under this subsection (a) into the | 24 | | Community College Health Insurance
Security Fund created in | 25 | | Section 6.9 of this Act. The moneys collected under
this | 26 | | Section shall be used only for the purposes authorized in |
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| 1 | | Section 6.9 of
this Act and shall not be considered to be | 2 | | assets of the State Universities
Retirement System. | 3 | | Contributions made under this Section are not transferable
to | 4 | | other pension funds or retirement systems and are not | 5 | | refundable upon
termination of service.
| 6 | | (b) Beginning January 1, 1999, every community college | 7 | | district
(other than , until January 1, 2012, a community | 8 | | college district subject to Article VII of the Public
Community | 9 | | College Act) or association
of community college boards that is | 10 | | an employer under the State Universities
Retirement System | 11 | | shall contribute toward the cost of the community college
| 12 | | health benefits provided under Section 6.9 of this Act an | 13 | | amount equal to 0.50%
of the salary paid to its full-time | 14 | | employees who participate in the State
Universities Retirement | 15 | | System and are not members as defined in Section 3 of
this Act. | 16 | | Beginning on the effective date of this amendatory Act of the | 17 | | 97th General Assembly and until revised under Section 6.10A of | 18 | | this Act, these contributions shall be at the rate of 0.97% of | 19 | | salary. If revised under Section 6.10A, these contributions | 20 | | shall be at the rate set by the Community College Fiscal Board | 21 | | and approved by the Commission on Government Forecasting and | 22 | | Accountability as specified in Section 6.10A of this Act.
| 23 | | These contributions shall be paid by the employer to the | 24 | | State Universities
Retirement System as service agent for the | 25 | | Department of Central Management
Services. The System may use | 26 | | the same processes for collecting the
contributions required by |
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| 1 | | this subsection that it uses to collect the
contributions | 2 | | received from those employers under Section 15-155 of the
| 3 | | Illinois Pension Code.
| 4 | | The State Universities Retirement System shall promptly | 5 | | deposit all moneys
collected under this subsection (b) into the | 6 | | Community College Health Insurance
Security Fund created in | 7 | | Section 6.9 of this Act. The moneys collected under
this | 8 | | Section shall be used only for the purposes authorized in | 9 | | Section 6.9 of
this Act and shall not be considered to be | 10 | | assets of the State Universities
Retirement System. | 11 | | Contributions made under this Section are not transferable
to | 12 | | other pension funds or retirement systems and are not | 13 | | refundable upon
termination of service.
| 14 | | The Department of Healthcare and Family Services, or any | 15 | | successor agency designated to procure healthcare contracts | 16 | | pursuant to this Act, is authorized to establish funds, | 17 | | separate accounts provided by any bank or banks as defined by | 18 | | the Illinois Banking Act, or separate accounts provided by any | 19 | | savings and loan association or associations as defined by the | 20 | | Illinois Savings and Loan Act of 1985 to be held by the | 21 | | Director, outside the State treasury, for the purpose of | 22 | | receiving the transfer of moneys from the Community College | 23 | | Health Insurance Security Fund. The Department may promulgate | 24 | | rules further defining the methodology for the transfers. Any | 25 | | interest earned by moneys in the funds or accounts shall inure | 26 | | to the Community College Health Insurance Security Fund. The |
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| 1 | | transferred moneys, and interest accrued thereon, shall be used | 2 | | exclusively for transfers to administrative service | 3 | | organizations or their financial institutions for payments of | 4 | | claims to claimants and providers under the self-insurance | 5 | | health plan. The transferred moneys, and interest accrued | 6 | | thereon, shall not be used for any other purpose including, but | 7 | | not limited to, reimbursement of administration fees due the | 8 | | administrative service organization pursuant to its contract | 9 | | or contracts with the Department.
| 10 | | (b-5) On or before March 30, 2012, a community college | 11 | | district subject to Article VII of the Public Community College | 12 | | Act shall contribute an amount equal to $7,800,000 toward the | 13 | | cost of the community college health benefits provided under | 14 | | Section 6.9 of this Act. The contribution shall be in addition | 15 | | to any percentage of salary contribution paid pursuant to | 16 | | subsection (b) of Section 6.10 of this Act. | 17 | | (b-10) On or before September 1, 2012, a community college | 18 | | district subject to Article VII of the Public Community College | 19 | | Act shall contribute an amount equal to 3 times the product | 20 | | resulting from multiplying (i) the difference between the | 21 | | fiscal year 2013 per annuitant cost of the community college | 22 | | health benefits provided under Section 6.9 of this Act and the | 23 | | fiscal year 2013 per annuitant premium paid by the annuitant by | 24 | | (ii) the number of annuitants enrolled in the community college | 25 | | health benefits program under Section 6.9 of this Act who | 26 | | became annuitants on or before the effective date of this |
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| 1 | | amendatory date of the 97th General Assembly and who, prior to | 2 | | that date, opted not to participate in the health benefits | 3 | | program provided by the community college district subject to | 4 | | Article VII of the Public Community College Act. The | 5 | | calculation of the contribution created under this subsection | 6 | | (b-10) shall be subject to review and approval by the | 7 | | Commission on Governmental Forecasting and Accountability. | 8 | | (c) On or before November 15 of each year, the Board of | 9 | | Trustees of the
State Universities Retirement System shall | 10 | | certify to the Governor, the
Director of Central Management | 11 | | Services, and the State
Comptroller its estimate of the total | 12 | | amount of contributions to be paid under
subsection (a) of this | 13 | | Section for the next fiscal year. Beginning in fiscal year | 14 | | 2008, the amount certified shall be decreased or increased each | 15 | | year by the amount that the actual active employee | 16 | | contributions either fell short of or exceeded the estimate | 17 | | used by the Board in making the certification for the previous | 18 | | fiscal year. The State Universities Retirement System shall | 19 | | calculate the amount of actual active employee contributions in | 20 | | fiscal years 1999 through 2005. Based upon this calculation, | 21 | | the fiscal year 2008 certification shall include an amount | 22 | | equal to the cumulative amount that the actual active employee | 23 | | contributions either fell short of or exceeded the estimate | 24 | | used by the Board in making the certification for those fiscal | 25 | | years. The certification
shall include a detailed explanation | 26 | | of the methods and information that the
Board relied upon in |
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| 1 | | preparing its estimate. As soon as possible after the
effective | 2 | | date of this Section, the Board shall submit its estimate for | 3 | | fiscal
year 1999.
| 4 | | (d) Beginning in fiscal year 1999 and through June 30, | 5 | | 2011 , on the first day of each month, or as
soon thereafter as | 6 | | may be practical, the State Treasurer and the State
Comptroller | 7 | | shall transfer from the General Revenue Fund to the Community
| 8 | | College Health Insurance Security Fund 1/12 of the annual | 9 | | amount appropriated
for that fiscal year to the State | 10 | | Comptroller for deposit into the Community
College Health | 11 | | Insurance Security Fund under Section 1.4 of the State Pension
| 12 | | Funds Continuing Appropriation Act.
| 13 | | (d-1) In fiscal year 2012, the State Treasurer and the | 14 | | State Comptroller shall transfer from the General Revenue Fund | 15 | | to the Community College Health Insurance Security Fund an | 16 | | amount equal to the annual amount that was transferred from the | 17 | | General Revenue Fund to the Community College Health Insurance | 18 | | Security Fund under subsection (d) of this Section in fiscal | 19 | | year 2011. | 20 | | (d-2) In fiscal year 2013, the State Treasurer and the | 21 | | State Comptroller shall transfer from the General Revenue Fund | 22 | | to the Community College Health Insurance Security Fund: (i) | 23 | | $600,000 and (ii) an amount equal to two-thirds of the annual | 24 | | amount transferred from the General Revenue Fund to the | 25 | | Community College Health Insurance Security Fund under | 26 | | subsection (d-1) of this Section. |
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| 1 | | (d-3) In fiscal year 2014, the State Treasurer and the | 2 | | State Comptroller shall transfer from the General Revenue Fund | 3 | | to the Community College Health Insurance Security Fund: (i) | 4 | | $600,000 and (ii) an amount equal to one-third of the annual | 5 | | amount transferred from the General Revenue Fund to the | 6 | | Community College Health Insurance Security Fund under | 7 | | subsection (d-1) of this Section. | 8 | | (e) Except where otherwise specified in this Section, the | 9 | | definitions
that apply to Article 15 of the Illinois Pension | 10 | | Code apply to this Section.
| 11 | | (Source: P.A. 94-839, eff. 6-6-06; 95-632, eff. 9-25-07.)
| 12 | | (5 ILCS 375/6.10A new) | 13 | | Sec. 6.10A. Community College Fiscal Board. | 14 | | (a) The Community College Fiscal Board is hereby created | 15 | | and shall consist of the following 8 members appointed as | 16 | | follows: | 17 | | (1) 3 trustees shall be appointed by the organization | 18 | | that represents the largest number of community college | 19 | | trustees; | 20 | | (2) one trustee shall be appointed by the organization | 21 | | that represents the largest number of community college | 22 | | employees; | 23 | | (3) one trustee shall be appointed by the organization | 24 | | that represents the second largest number of community | 25 | | college employees; |
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| 1 | | (4) one trustee shall be appointed by an organization | 2 | | that represents community college benefit recipients; | 3 | | (5) one trustee who is a professional fiduciary with | 4 | | experience in the area of collectively bargained retiree | 5 | | health plans shall be appointed by the Illinois Community | 6 | | College Board; and | 7 | | (6) one trustee shall be appointed by a community | 8 | | college district subject to Article VII of the Public | 9 | | Community College Act. | 10 | | Trustees shall serve until a successor has been appointed | 11 | | and qualified or until resignation, death, incapacity, or | 12 | | disqualification. | 13 | | Any person appointed as a trustee of the Community College | 14 | | Fiscal Board shall qualify by taking an oath of office that he | 15 | | or she will diligently and honestly administer the affairs of | 16 | | the Community College Health Insurance
Security Fund and will | 17 | | not knowingly violate or willfully permit the violation of any | 18 | | of the provisions of law applicable to the Fund.
Each trustee | 19 | | shall cast individual votes, and a majority vote shall be final | 20 | | and binding upon all interested parties. | 21 | | (b) The Community College Fiscal Board shall make an annual
| 22 | | assessment of the funding levels of the Community College | 23 | | Health Insurance Security Fund and shall submit a report to the | 24 | | Commission on Government Forecasting and Accountability at | 25 | | least 90 days before the end of fiscal year 2011, or as soon | 26 | | thereafter as is possible, and, again, at least 90 days before |
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| 1 | | the end of each fiscal year thereafter. The report shall | 2 | | provide the following: | 3 | | (1) the actuarial present value of projected
benefits | 4 | | expected to be paid to current and future community college | 5 | | benefit recipients and community college dependent | 6 | | beneficiaries; | 7 | | (2) the actuarial present value of projected
| 8 | | contributions and other income; and | 9 | | (3) an assessment of whether the actuarial
present | 10 | | value of projected benefits expected to be paid to those | 11 | | benefit recipients and their dependents exceeds or is less | 12 | | than the actuarial present value of projected | 13 | | contributions and other income. | 14 | | If the actuarial present value of projected
benefits | 15 | | expected to be paid to these current and future community | 16 | | college benefit recipients and community college dependent | 17 | | beneficiaries exceeds the actuarial present value of projected | 18 | | contributions and other income, then the report shall provide a | 19 | | plan that will (i) be implemented over a period of not more | 20 | | than 5 years from each valuation date and (ii) make the | 21 | | actuarial present value of projected contributions and other | 22 | | income equal to or exceed the actuarial present value of | 23 | | projected benefits expected to be paid to current and future | 24 | | community college benefit recipients and community college | 25 | | dependent beneficiaries. The plan may consist of increases in | 26 | | contribution levels, decreases in benefit levels, or other plan |
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| 1 | | changes or any combination thereof. If the actuarial present | 2 | | value of projected benefits expected to be paid to current and | 3 | | future community college benefit recipients and community | 4 | | college dependent beneficiaries is less than the actuarial | 5 | | present value of projected contributions and other income, then | 6 | | the report may provide a plan of decreases, to the extent of | 7 | | the surplus, in contribution levels, increases in benefit | 8 | | levels, other plan changes, or any combination thereof. | 9 | | (c) The Commission on Government Forecasting and | 10 | | Accountability shall review the report
and plan provided in | 11 | | subsection (b) and issue a determination within 90 days after | 12 | | receiving the report and plan, with a copy of the determination | 13 | | provided to the General Assembly and to the Community College | 14 | | Fiscal Board, as follows: | 15 | | (1) In the event of a projected shortfall, if
the | 16 | | Commission on Government Forecasting and Accountability | 17 | | determines that the assumptions stated in the report are | 18 | | not unreasonable in the aggregate and that the plan of | 19 | | increases in contribution levels, decreases in benefit | 20 | | levels, other plan changes, or any combination thereof to | 21 | | be implemented over a period of not more than 5 years from | 22 | | each valuation date is reasonably projected to make the | 23 | | actuarial present value of projected contributions and | 24 | | other income plus assets equal to or in excess of the | 25 | | actuarial present value of projected benefits expected to | 26 | | be paid to current and future community college benefit |
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| 1 | | recipients and community college dependent beneficiaries, | 2 | | then the Community College Fiscal Board shall implement the | 3 | | plan. If the Commission on Government Forecasting and | 4 | | Accountability determines that the assumptions stated in | 5 | | the report are unreasonable in the aggregate, or that the | 6 | | plan of increases in contribution levels, decreases in | 7 | | benefit levels, or other plan changes to be implemented | 8 | | over a period of not more than 5 years from each valuation | 9 | | date are not reasonably projected to make the actuarial | 10 | | present value of projected contributions and other income | 11 | | plus assets equal to or in excess of the actuarial present | 12 | | value of projected benefits expected to be paid to current | 13 | | and future community college benefit recipients and | 14 | | community college dependent beneficiaries, then the | 15 | | Community College Fiscal Board shall not implement the | 16 | | plan, the Commission on Government Forecasting and | 17 | | Accountability shall explain the basis for that | 18 | | determination to the Community College Fiscal Board, and | 19 | | the Commission on Government Forecasting and | 20 | | Accountability may make recommendations as to an | 21 | | alternative report and plan. | 22 | | (2) In the event of a projected surplus, if
the | 23 | | Commission on Government Forecasting and Accountability | 24 | | determines that the assumptions stated in the report are | 25 | | not unreasonable in the aggregate and that the plan of | 26 | | decreases in contribution levels, increases in benefit |
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| 1 | | levels, or both are not unreasonable in the aggregate, then | 2 | | the Community College Fiscal Board shall implement the | 3 | | plan. If the Commission on Government Forecasting and | 4 | | Accountability determines that the assumptions stated in | 5 | | the report are unreasonable in the aggregate, or that the | 6 | | plan of decreases in contribution levels, increases in | 7 | | benefit levels, or both are unreasonable in the aggregate, | 8 | | then the Community College Fiscal Board shall not implement | 9 | | the plan, the Commission on Government Forecasting and | 10 | | Accountability shall explain the basis for such | 11 | | determination to the Community College Fiscal Board, and | 12 | | the Commission on Government Forecasting and | 13 | | Accountability may make recommendations as to an | 14 | | alternative report and plan. | 15 | | (3) The Community College Fiscal Board shall submit an
| 16 | | alternative report and plan within 45 days after receiving | 17 | | a rejection determination by the Commission on Government | 18 | | Forecasting and Accountability. A determination by the | 19 | | Commission on Government Forecasting and Accountability on | 20 | | any alternative report and plan submitted by the Community | 21 | | College Fiscal Board shall be made within 90 days after | 22 | | receiving the alternative report and plan and shall be | 23 | | accepted or rejected according to the requirements of this | 24 | | subsection. The Community College Fiscal Board shall | 25 | | continue to submit alternative reports and plans to the | 26 | | Commission on Government Forecasting and Accountability, |
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| 1 | | as necessary, until a favorable determination is made by | 2 | | the Commission on Government Forecasting and | 3 | | Accountability.
| 4 | | Section 90. The State Mandates Act is amended by adding | 5 | | Section 8.35 as follows: | 6 | | (30 ILCS 805/8.35 new) | 7 | | Sec. 8.35. Exempt mandate. Notwithstanding Sections 6 and 8 | 8 | | of this Act, no reimbursement by the State is required for the | 9 | | implementation of any mandate created by this amendatory Act of | 10 | | the 97th General Assembly. | 11 | | Section 93. The Public Community College Act is amended by | 12 | | changing Sections 2-16.02, 3-27.1, and 6-4 as follows:
| 13 | | (110 ILCS 805/2-16.02) (from Ch. 122, par. 102-16.02)
| 14 | | Sec. 2-16.02. Grants. Any community college district that | 15 | | maintains a
community college recognized by the State Board | 16 | | shall receive, when eligible,
grants enumerated in this | 17 | | Section. Funded semester credit hours or other
measures or both | 18 | | as specified by the State Board shall be used to distribute
| 19 | | grants to community colleges. Funded semester credit hours | 20 | | shall be defined,
for purposes of this Section, as the greater | 21 | | of
(1) the number of semester credit hours, or equivalent, in | 22 | | all funded
instructional categories of students who have been |
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| 1 | | certified as being in
attendance at midterm during the | 2 | | respective terms of the base fiscal year or
(2) the average of | 3 | | semester credit hours, or equivalent, in all funded
| 4 | | instructional categories of students who have been certified as | 5 | | being in
attendance at midterm during the respective terms of | 6 | | the base fiscal year and
the 2 prior fiscal years. For purposes | 7 | | of this Section, "base fiscal year"
means the fiscal year 2 | 8 | | years prior to the fiscal year for which the grants are
| 9 | | appropriated. Such students shall have been residents of | 10 | | Illinois and shall
have been enrolled in courses that are part | 11 | | of instructional program categories
approved by the State Board | 12 | | and that are applicable toward an associate degree
or | 13 | | certificate.
Courses that are eligible for reimbursement are | 14 | | those courses for which
the district pays 50% or more of the | 15 | | program costs from unrestricted
revenue sources, with the | 16 | | exception of courses offered by contract with
the Department of | 17 | | Corrections in correctional institutions. For the
purposes of | 18 | | this Section, "unrestricted revenue sources" means those
| 19 | | revenues in which the provider of the revenue imposes no | 20 | | financial
limitations upon the district as it relates to the | 21 | | expenditure of the funds. Base operating grants shall be paid | 22 | | based on rates per funded
semester credit hour or equivalent | 23 | | calculated by the State Board for funded
instructional | 24 | | categories using cost of instruction, enrollment, inflation, | 25 | | and
other relevant factors. A portion of the base operating | 26 | | grant shall be
allocated on the basis of non-residential gross |
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| 1 | | square footage of space
maintained by the district.
| 2 | | Equalization grants shall be calculated by the State Board | 3 | | by determining a
local revenue factor for each district by: (A) | 4 | | adding (1)
each district's Corporate Personal Property | 5 | | Replacement Fund
allocations from the base
fiscal year or the | 6 | | average of the base fiscal year and prior year, whichever is
| 7 | | less, divided by the applicable statewide average tax rate to | 8 | | (2) the
district's most recently audited
year's equalized | 9 | | assessed valuation or the average of the most recently audited
| 10 | | year and prior year, whichever is less, (B) then dividing by | 11 | | the district's
audited full-time equivalent resident students | 12 | | for the base fiscal year or the
average for the base fiscal | 13 | | year and the 2 prior fiscal years, whichever is
greater, and | 14 | | (C) then multiplying by the applicable statewide average tax
| 15 | | rate. The State Board
shall calculate a statewide weighted | 16 | | average threshold by applying
the same methodology to the | 17 | | totals of all districts' Corporate Personal
Property Tax | 18 | | Replacement Fund allocations, equalized assessed valuations, | 19 | | and
audited full-time equivalent district resident students | 20 | | and multiplying by the
applicable statewide average tax rate. | 21 | | The difference between the statewide
weighted average | 22 | | threshold and the local revenue
factor, multiplied by the | 23 | | number of full-time equivalent resident students,
shall | 24 | | determine the amount of equalization funding that each district | 25 | | is
eligible to receive. A percentage factor, as determined by | 26 | | the State Board,
may be applied to the statewide threshold as a |
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| 1 | | method for allocating
equalization funding. A minimum | 2 | | equalization grant of an amount per district
as determined by | 3 | | the State Board shall be established for any community college
| 4 | | district which qualifies for an equalization grant based upon | 5 | | the preceding
criteria, but becomes ineligible for | 6 | | equalization funding, or would have
received a grant of less | 7 | | than the minimum equalization grant, due to threshold
| 8 | | prorations applied to reduce equalization funding.
As of July | 9 | | 1, 2012 2004 , a community college district must maintain a
| 10 | | minimum required combined in-district tuition and universal | 11 | | fee rate per
semester credit hour equal to 70% 85% of the | 12 | | State-average combined rate, as
determined by the State Board, | 13 | | or the total revenue received by the community college district | 14 | | from combined in-district tuition and universal fees must be at | 15 | | least 30% of the total revenue received by the community | 16 | | college district, as determined by the State Board, for | 17 | | equalization funding. As of July 1,
2004, a community college | 18 | | district must maintain a minimum required
operating tax rate | 19 | | equal to at least 95% of its maximum authorized tax
rate to | 20 | | qualify for equalization funding. This 95% minimum tax rate
| 21 | | requirement shall be based upon the maximum operating tax rate | 22 | | as
limited by the Property Tax Extension Limitation Law.
| 23 | | The State Board shall distribute such other grants as may | 24 | | be
authorized or appropriated by the General Assembly.
| 25 | | Each community college district entitled to State grants | 26 | | under this
Section must submit a report of its enrollment to |
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| 1 | | the State Board not later
than 30 days following the end of | 2 | | each semester, quarter, or term in a
format prescribed by the | 3 | | State Board. These semester credit hours, or
equivalent, shall | 4 | | be certified by each district on forms provided by the
State | 5 | | Board. Each district's certified semester credit hours, or | 6 | | equivalent,
are subject to audit pursuant to Section 3-22.1.
| 7 | | The State Board shall certify, prepare, and submit monthly | 8 | | vouchers to the State Comptroller
setting
forth an amount equal | 9 | | to one-twelfth of the grants approved by the State Board for | 10 | | base
operating grants and equalization grants. The State Board | 11 | | shall prepare and
submit to the State Comptroller vouchers for | 12 | | payments of other grants as
appropriated by the General | 13 | | Assembly. If the amount appropriated for grants
is different | 14 | | from the amount provided for such grants under this Act, the
| 15 | | grants shall be proportionately reduced or increased | 16 | | accordingly.
| 17 | | For the purposes of this Section, "resident student" means | 18 | | a student in a
community college district who maintains | 19 | | residency in that district or
meets other residency definitions | 20 | | established by the State Board, and who
was enrolled either in | 21 | | one of the approved instructional program categories
in that | 22 | | district, or in another community college district to which the
| 23 | | resident's district is paying tuition under Section 6-2 or with | 24 | | which the
resident's district has entered into a cooperative | 25 | | agreement in lieu of such
tuition.
| 26 | | For the purposes of this Section, a "full-time equivalent" |
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| 1 | | student is
equal to 30 semester credit hours.
| 2 | | The Illinois Community College Board Contracts and Grants | 3 | | Fund is hereby
created in the State Treasury. Items of income | 4 | | to this fund shall include
any grants, awards, endowments, or | 5 | | like proceeds, and where appropriate,
other funds made | 6 | | available through contracts with governmental, public, and
| 7 | | private agencies or persons. The General Assembly shall from | 8 | | time to time
make appropriations payable from such fund for the | 9 | | support, improvement,
and expenses of the State Board and | 10 | | Illinois community college
districts.
| 11 | | (Source: P.A. 96-911, eff. 7-1-10.)
| 12 | | (110 ILCS 805/3-27.1) (from Ch. 122, par. 103-27.1)
| 13 | | Sec. 3-27.1. Contracts. To award all contracts for purchase | 14 | | of
supplies, materials or work involving an expenditure in | 15 | | excess of $25,000 or a lower amount as required by board policy | 16 | | to
the lowest responsible bidder considering conformity with | 17 | | specifications,
terms of delivery, quality, and | 18 | | serviceability; after due advertisement,
except the following: | 19 | | (a) contracts for the services of individuals
possessing a high | 20 | | degree of professional skill where the ability or fitness
of | 21 | | the individual plays an important part; (b) contracts for
the | 22 | | printing of finance committee reports and departmental | 23 | | reports; (c)
contracts for the printing or engraving of bonds, | 24 | | tax warrants and other
evidences of indebtedness; (d) contracts | 25 | | for materials and work which
have been awarded to the lowest |
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| 1 | | responsible bidder after due advertisement,
but due to | 2 | | unforeseen revisions, not the fault of the contractor for
| 3 | | materials and work, must be revised causing expenditures not in | 4 | | excess of
10% of the contract price; (e) contracts for the | 5 | | maintenance or servicing
of, or provision of repair parts for, | 6 | | equipment which are made with the
manufacturer or authorized | 7 | | service agent of that equipment where the
provision of parts, | 8 | | maintenance, or servicing can best be performed by the
| 9 | | manufacturer or authorized service agent; (f) purchases and | 10 | | contracts for
the use, purchase, delivery, movement, or | 11 | | installation of data processing
equipment, software, or | 12 | | services and telecommunications and inter-connect
equipment, | 13 | | software, and services; (g) contracts for duplicating machines
| 14 | | and supplies; (h) contracts for the purchase of natural gas | 15 | | when the cost
is less than that offered by a public utility; | 16 | | (i) purchases of equipment
previously owned by some entity | 17 | | other than the district itself; (j)
contracts for repair, | 18 | | maintenance, remodeling, renovation, or construction,
or a | 19 | | single project involving an expenditure not to exceed $50,000 | 20 | | and not
involving a change or increase in the size, type, or | 21 | | extent of an existing
facility; (k) contracts for goods or | 22 | | services procured from another
governmental agency; (l) | 23 | | contracts for goods or services which are economically
| 24 | | procurable from only one source, such as for the purchase of | 25 | | magazines,
books, periodicals, pamphlets and reports, and for | 26 | | utility services such
as water, light, heat, telephone or |
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| 1 | | telegraph; and (m) where funds are
expended in an emergency and | 2 | | such emergency expenditure is approved by 3/4
of the members of | 3 | | the board.
| 4 | | All competitive bids for contracts involving an | 5 | | expenditure in excess of
$25,000 or a lower amount as required | 6 | | by board policy must be sealed by the bidder and must be opened | 7 | | by a member or
employee of the board at a public bid opening at | 8 | | which the contents of the
bids must be announced. Each bidder | 9 | | must receive at least 3 days' notice of
the time and place of | 10 | | such bid opening. For purposes of this Section due
| 11 | | advertisement includes, but is not limited to, at least one | 12 | | public notice
at least 10 days before the bid date in a | 13 | | newspaper published in the
district, or if no newspaper is | 14 | | published in the district, in a newspaper
of general | 15 | | circulation in the area of the district. Electronic bid | 16 | | submissions shall be considered a sealed document for | 17 | | competitive bid requests if they are received at the designated | 18 | | office by the time and date set for receipt for bids. However, | 19 | | bids for construction purposes are prohibited from being | 20 | | submitted electronically. Electronic bid submissions must be | 21 | | authorized by specific language in the bid documents in order | 22 | | to be considered and must be opened in accordance with | 23 | | electronic security measures in effect at the community college | 24 | | at the time of opening. Unless the electronic submission | 25 | | procedures provide for a secure receipt, the vendor assumes the | 26 | | risk of premature disclosure due to submission in an unsealed |
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| 1 | | form.
| 2 | | The provisions of this Section do not apply to guaranteed | 3 | | energy savings
contracts entered into under Article V-A. The | 4 | | provisions of this Section do not prevent a community college | 5 | | from complying with the terms and conditions of a grant, gift, | 6 | | or bequest that calls for the procurement of a particular good | 7 | | or service or the use of a particular contractor, provided that | 8 | | the grant, gift, or bequest provides the majority funding for | 9 | | the contract.
| 10 | | (Source: P.A. 95-990, eff. 10-3-08; 96-380, eff. 8-13-09.)
| 11 | | (110 ILCS 805/6-4) (from Ch. 122, par. 106-4)
| 12 | | Sec. 6-4. Variable rates and fees. Any community college | 13 | | district, by
resolution of the board, may establish variable | 14 | | tuition rates and fees for
students attending its college in an | 15 | | amount not to exceed , until the effective date of this | 16 | | amendatory Act of the 97th General Assembly and beginning again | 17 | | 3 years after the effective date of this amendatory Act of the | 18 | | 97th General Assembly, 1/3 of the per capita
cost as defined in | 19 | | Section 6-2, provided that voluntary contributions, as
defined | 20 | | in Section 65 of the Higher Education Student Assistance Act, | 21 | | shall not
be included in any calculation
of community college | 22 | | tuition and fee rates for the purpose of this Section.
| 23 | | (Source: P.A. 90-14, eff. 7-1-97.)
| 24 | | Section 99. Effective date. This Act takes effect upon |
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| 1 | | becoming law.".
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