Full Text of SB2339 98th General Assembly
SB2339sam001 98TH GENERAL ASSEMBLY | Sen. John G. Mulroe Filed: 3/15/2013
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| 1 | | AMENDMENT TO SENATE BILL 2339
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 2339 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Intergovernmental Cooperation Act is | 5 | | amended by changing Section 6 as follows:
| 6 | | (5 ILCS 220/6) (from Ch. 127, par. 746)
| 7 | | Sec. 6. Joint self-insurance. An intergovernmental | 8 | | contract may, among
other undertakings,
authorize public | 9 | | agencies to jointly self-insure and authorize each public
| 10 | | agency member of the contract to utilize its funds to pay to a | 11 | | joint
insurance pool its costs and reserves to protect, wholly | 12 | | or partially,
itself or any public agency member of the | 13 | | contract against liability or
loss in the designated insurable | 14 | | area. | 15 | | A joint insurance pool shall have an
annual audit performed | 16 | | by an independent certified public accountant and shall
file an |
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| 1 | | annual audited financial report with the Director of Insurance | 2 | | no later
than 150 days after the end of the pool's immediately | 3 | | preceding fiscal year.
The
Director of Insurance shall issue | 4 | | rules necessary to implement this audit and
report requirement. | 5 | | The rule shall establish the due date for filing the
initial | 6 | | annual audited financial report. Within 30 days after January | 7 | | 1,
1991, and within 30 days after each January 1 thereafter, | 8 | | public agencies
that are jointly self-insured to protect | 9 | | against liability under the
Workers' Compensation Act and the | 10 | | Workers' Occupational Diseases Act shall
file with the Illinois | 11 | | Workers' Compensation Commission a report indicating an | 12 | | election to
self-insure. | 13 | | The joint insurance pool shall also annually file with the | 14 | | Director a certification by an independent actuary that the | 15 | | pool's reserves are in accordance with sound loss-reserving and | 16 | | adequate for the payment of claims. This certification must be | 17 | | filed no later than 150 days after the end of each fiscal year. | 18 | | If the joint insurance pool obtains aggregate coverage or uses | 19 | | any other reinsurance mechanism, then the independent | 20 | | actuary's certification need only account for the primary level | 21 | | of coverage provided by the joint insurance pool prior to | 22 | | reinsurance. The independent actuary's certification shall | 23 | | also indicate the conditions under which the aggregate coverage | 24 | | or other reinsurance mechanism takes effect. In addition, the | 25 | | joint insurance pool must annually provide the Department with | 26 | | an accurate statement of the amount of coverage provided |
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| 1 | | through aggregate coverage or any other reinsurance mechanism.
| 2 | | The Director may adopt, by administrative rule, | 3 | | appropriate penalties for joint insurance pools that fail to | 4 | | comply with the auditing, reporting, and certification | 5 | | requirements of this Section. The Director, or his or her | 6 | | designees, may examine the affairs, transactions, accounts, | 7 | | records, and assets and liabilities of each joint insurance | 8 | | pool as often as the Director deems advisable. The joint | 9 | | insurance pool shall cooperate fully with the Director's | 10 | | representatives in all evaluations and audits of the joint | 11 | | insurance pool and resolve issues raised in those evaluations | 12 | | and audits. The failure to resolve those issues shall | 13 | | constitute a violation of this Section, and may, after notice | 14 | | and an opportunity to be heard, result in the imposition of | 15 | | penalties established by the Director by administrative rule. | 16 | | No sanctions under this Section may become effective until 30 | 17 | | days after the date that a notice of sanctions is delivered by | 18 | | registered or certified mail to the joint insurance pool. | 19 | | If a joint insurance pool requires a member to submit | 20 | | written notice in order for the member to withdraw from a | 21 | | qualified pool, then the period in which the member must | 22 | | provide the written notice cannot be greater than 90 days, | 23 | | except that this requirement applies only to joint insurance | 24 | | pool agreements entered into, modified, or renewed on or after | 25 | | the effective date of this amendatory Act of the 98th General | 26 | | Assembly and this requirement does not apply during the initial |
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| 1 | | year of membership in the joint insurance pool. | 2 | | The joint insurance pool shall notify each public agency | 3 | | member of the deadline for withdrawing from the pool at least | 4 | | 30 days before the deadline for withdrawal. | 5 | | For purposes of this Section, "public agency member" means | 6 | | any public
agency
defined or created under this Act, any local | 7 | | public entity as defined in
Section 1-206 of
the Local | 8 | | Governmental and Governmental Employees Tort Immunity Act, and | 9 | | any
public agency, authority, instrumentality, council, board, | 10 | | service region,
district,
unit, bureau,
or, commission, or any | 11 | | municipal corporation, college, or university, whether
| 12 | | corporate or
otherwise,
and any other local governmental body | 13 | | or similar entity that is presently
existing or
created after | 14 | | the effective date of this amendatory Act of the 92nd General
| 15 | | Assembly,
whether or not specified in this Section.
Only public | 16 | | agency members with tax receipts, tax revenues, taxing
| 17 | | authority, or other
resources sufficient to pay costs and to | 18 | | service debt related to
intergovernmental activities
described | 19 | | in this Section, or public agency members created by or as part | 20 | | of a
public
agency with these powers, may enter into contracts | 21 | | or otherwise associate among
themselves as permitted in this | 22 | | Section.
| 23 | | No joint insurance pool or other intergovernmental | 24 | | cooperative offering health insurance shall interfere with the | 25 | | statutory obligation of any public agency member to bargain | 26 | | over or to reach agreement with a labor organization over a |
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| 1 | | mandatory subject of collective bargaining as those terms are | 2 | | used in the Illinois Public Labor Relations Act. No | 3 | | intergovernmental contract of insurance offering health | 4 | | insurance shall limit the rights or obligations of public | 5 | | agency members to engage in collective bargaining, and it shall | 6 | | be unlawful for a joint insurance pool or other | 7 | | intergovernmental cooperative offering health insurance to | 8 | | discriminate against public agency members or otherwise | 9 | | retaliate against such members for limiting their | 10 | | participation in a joint insurance pool as a result of a | 11 | | collective bargaining agreement.
| 12 | | It shall not be considered a violation of this Section for | 13 | | an intergovernmental contract of insurance relating to health | 14 | | insurance coverage, life insurance coverage, or both to permit | 15 | | the pool or cooperative, if a member withdraws employees or | 16 | | officers into a union-sponsored program, to re-price the costs | 17 | | of benefits provided to the continuing employees or officers | 18 | | based upon the same underwriting criteria used by that pool or | 19 | | cooperative in the normal course of its business, but no member | 20 | | shall be expelled from a pool or cooperative if the continuing | 21 | | employees or officers meet the general criteria required of | 22 | | other members.
| 23 | | (Source: P.A. 93-721, eff. 1-1-05; 94-685, eff. 11-2-05.)".
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