Full Text of HB3235 098th General Assembly
HB3235 98TH GENERAL ASSEMBLY |
| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014 HB3235 Introduced , by Rep. Linda Chapa LaVia SYNOPSIS AS INTRODUCED: |
| 20 ILCS 405/405-105 | was 20 ILCS 405/64.1 |
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Amends the Department of Central Management Services Law of the Civil Administrative Code of Illinois. Provides that the Department of Central Management Services shall charge the employing State agency for workers' compensation payments for medical expenses and temporary total disability benefits (now, just for temporary total disability) paid to any employee (now, the Department shall charge the State agency only after the employee has received temporary total disability payments for 120 days if the employee's physician has issued a release to return to work but the employing State agency does not return the employee to work).
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| | A BILL FOR |
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| 1 | | AN ACT concerning State government.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Department of Central Management Services | 5 | | Law of the
Civil Administrative Code of Illinois is amended by | 6 | | changing Section 405-105 as follows:
| 7 | | (20 ILCS 405/405-105) (was 20 ILCS 405/64.1)
| 8 | | Sec. 405-105. Fidelity, surety, property, and casualty | 9 | | insurance. The Department
shall establish and implement a | 10 | | program to coordinate
the handling of all fidelity, surety, | 11 | | property, and casualty insurance
exposures of the State and the | 12 | | departments, divisions, agencies,
branches,
and universities | 13 | | of the State. In performing this responsibility, the
Department | 14 | | shall have the power and duty to do the following:
| 15 | | (1) Develop and maintain loss and exposure data on all | 16 | | State
property.
| 17 | | (2) Study the feasibility of establishing a | 18 | | self-insurance plan
for
State property and prepare | 19 | | estimates of the costs of reinsurance for
risks beyond the | 20 | | realistic limits of the self-insurance.
| 21 | | (3) Prepare a plan for centralizing the purchase of | 22 | | property and
casualty insurance on State property under a | 23 | | master policy or policies
and purchase the insurance |
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| 1 | | contracted for as provided in the
Illinois Purchasing Act.
| 2 | | (4) Evaluate existing provisions for fidelity bonds | 3 | | required of
State employees and recommend changes that are | 4 | | appropriate
commensurate with risk experience and the | 5 | | determinations respecting
self-insurance or reinsurance so | 6 | | as to permit reduction of costs without
loss of coverage.
| 7 | | (5) Investigate procedures for inclusion of school | 8 | | districts,
public community
college districts, and other | 9 | | units of local government in programs for
the centralized | 10 | | purchase of insurance.
| 11 | | (6) Implement recommendations of the State Property
| 12 | | Insurance
Study Commission that the Department finds | 13 | | necessary or desirable in
the
performance of its powers and | 14 | | duties under this Section to achieve
efficient and | 15 | | comprehensive risk management.
| 16 | | (7) Prepare and, in the discretion of the Director, | 17 | | implement a plan providing for the purchase of public
| 18 | | liability insurance or for self-insurance for public | 19 | | liability or for a
combination of purchased insurance and | 20 | | self-insurance for public
liability (i) covering the State | 21 | | and drivers of motor vehicles
owned,
leased, or controlled | 22 | | by the State of Illinois pursuant to the provisions
and | 23 | | limitations contained in the Illinois Vehicle Code, (ii)
| 24 | | covering
other public liability exposures of the State and | 25 | | its employees within
the scope of their employment, and | 26 | | (iii) covering drivers of motor
vehicles not owned, leased, |
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| 1 | | or controlled by the State but used by a
State employee on | 2 | | State business, in excess of liability covered by an
| 3 | | insurance policy obtained by the owner of the motor vehicle | 4 | | or in
excess of the dollar amounts that the Department | 5 | | shall
determine to be
reasonable. Any contract of insurance | 6 | | let under this Law shall be
by
bid in accordance with the | 7 | | procedure set forth in the Illinois
Purchasing Act. Any | 8 | | provisions for self-insurance shall conform to
subdivision | 9 | | (11).
| 10 | | The term "employee" as used in this subdivision (7) and | 11 | | in subdivision
(11)
means a person while in the employ of | 12 | | the State who is a member of the
staff or personnel of a | 13 | | State agency, bureau, board, commission,
committee, | 14 | | department, university, or college or who is a State | 15 | | officer,
elected official, commissioner, member of or ex | 16 | | officio member of a
State agency, bureau, board, | 17 | | commission, committee, department,
university, or college, | 18 | | or a member of the National Guard while on active
duty | 19 | | pursuant to orders of the Governor of the State of | 20 | | Illinois, or any
other person while using a licensed motor | 21 | | vehicle owned, leased, or
controlled by the State of | 22 | | Illinois with the authorization of the State
of Illinois, | 23 | | provided the actual use of the motor vehicle is
within the | 24 | | scope of that
authorization and within the course of State | 25 | | service.
| 26 | | Subsequent to payment of a claim on behalf of an |
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| 1 | | employee pursuant to this
Section and after reasonable | 2 | | advance written notice to the employee, the
Director may | 3 | | exclude the employee from future coverage or limit the
| 4 | | coverage under the plan if (i) the Director determines that | 5 | | the
claim
resulted from an incident in which the employee | 6 | | was grossly negligent or
had engaged in willful and wanton | 7 | | misconduct or (ii) the
Director
determines that the | 8 | | employee is no longer an acceptable risk based on a
review | 9 | | of prior accidents in which the employee was at fault and | 10 | | for which
payments were made pursuant to this Section.
| 11 | | The Director is authorized to
promulgate | 12 | | administrative rules that may be necessary to
establish and
| 13 | | administer the plan.
| 14 | | Appropriations from the Road Fund shall be used to pay | 15 | | auto liability claims
and related expenses involving | 16 | | employees of the Department of Transportation,
the | 17 | | Illinois State Police, and the Secretary of State.
| 18 | | (8) Charge, collect, and receive from all other | 19 | | agencies of
the State
government fees or monies equivalent | 20 | | to the cost of purchasing the insurance.
| 21 | | (9) Establish, through the Director, charges for risk
| 22 | | management
services
rendered to State agencies by the | 23 | | Department.
The State agencies so charged shall reimburse | 24 | | the Department by vouchers drawn
against their respective
| 25 | | appropriations. The reimbursement shall be determined by | 26 | | the Director as
amounts sufficient to reimburse the |
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| 1 | | Department
for expenditures incurred in rendering the | 2 | | service.
| 3 | | The Department shall charge the
employing State agency | 4 | | or university for workers' compensation payments for | 5 | | medical expenses and
temporary total disability benefits | 6 | | paid to any employee after the employee has
received | 7 | | temporary total disability payments for 120 days if the | 8 | | employee's
treating physician has issued a release to | 9 | | return to work with restrictions
and the employee is able | 10 | | to perform modified duty work but the employing
State | 11 | | agency or
university does not return the employee to work | 12 | | at modified duty. Modified
duty shall be duties assigned | 13 | | that may or may not be delineated
as part of the duties | 14 | | regularly performed by the employee. Modified duties
shall | 15 | | be assigned within the prescribed restrictions established | 16 | | by the
treating physician and the physician who performed | 17 | | the independent medical
examination . The amount of all | 18 | | reimbursements
shall be deposited into the Workers' | 19 | | Compensation Revolving Fund which is
hereby created as a | 20 | | revolving fund in the State treasury. In addition to any | 21 | | other purpose authorized by law, moneys in the Fund
shall | 22 | | be used, subject to appropriation, to pay medical these or | 23 | | other temporary
total disability claims of employees of | 24 | | State agencies and universities.
| 25 | | Beginning with fiscal year 1996, all amounts recovered | 26 | | by the
Department through subrogation in workers' |
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| 1 | | compensation and workers'
occupational disease cases shall | 2 | | be
deposited into the Workers' Compensation Revolving Fund | 3 | | created under
this subdivision (9).
| 4 | | (10) Establish rules, procedures, and forms to be used | 5 | | by
State agencies
in the administration and payment of | 6 | | workers' compensation claims. For claims filed prior to | 7 | | July 1, 2013, the
Department shall initially evaluate and | 8 | | determine the compensability of
any injury that is
the | 9 | | subject of a workers' compensation claim and provide for | 10 | | the
administration and payment of such a claim for all | 11 | | State agencies. For claims filed on or after July 1, 2013, | 12 | | the Department shall retain responsibility for certain | 13 | | administrative payments including, but not limited to, | 14 | | payments to the private vendor contracted to perform | 15 | | services under subdivision (10b) of this Section, payments | 16 | | related to travel expenses for employees of the Office of | 17 | | the Attorney General, and payments to internal Department | 18 | | staff responsible for the oversight and management of any | 19 | | contract awarded pursuant to subdivision (10b) of this | 20 | | Section. Through December 31, 2012, the
Director may | 21 | | delegate to any agency with the agreement of the agency | 22 | | head
the responsibility for evaluation, administration, | 23 | | and payment of that
agency's claims. Neither the Department | 24 | | nor the private vendor contracted to perform services under | 25 | | subdivision (10b) of this Section shall be responsible for | 26 | | providing workers' compensation services to the Illinois |
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| 1 | | State Toll Highway Authority or to State universities that | 2 | | maintain self-funded workers' compensation liability | 3 | | programs.
| 4 | | (10a) By April 1 of each year prior to calendar year | 5 | | 2013, the Director must report and provide information to | 6 | | the State Workers' Compensation Program Advisory Board | 7 | | concerning the status of the State workers' compensation | 8 | | program for the next fiscal year. Information that the | 9 | | Director must provide to the State Workers' Compensation | 10 | | Program Advisory Board includes, but is not limited to, | 11 | | documents, reports of negotiations, bid invitations, | 12 | | requests for proposals, specifications, copies of proposed | 13 | | and final contracts or agreements, and any other materials | 14 | | concerning contracts or agreements for the program. By the | 15 | | first of each month prior to calendar year 2013, the | 16 | | Director must provide updated, and any new, information to | 17 | | the State Workers' Compensation Program Advisory Board | 18 | | until the State workers' compensation program for the next | 19 | | fiscal year is determined. | 20 | | (10b) No later than January 1, 2013, the chief | 21 | | procurement officer appointed under paragraph (4) of | 22 | | subsection (a) of Section 10-20 of the Illinois Procurement | 23 | | Code (hereinafter "chief procurement officer"), in | 24 | | consultation with the Department of Central Management | 25 | | Services, shall procure one or more private vendors to | 26 | | administer the program providing payments for workers' |
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| 1 | | compensation liability with respect to the employees of all | 2 | | State agencies. The chief procurement officer may procure a | 3 | | single contract applicable to all State agencies or | 4 | | multiple contracts applicable to one or more State | 5 | | agencies. If the chief procurement officer procures a | 6 | | single contract applicable to all State agencies, then the | 7 | | Department of Central Management Services shall be | 8 | | designated as the agency that enters into the contract and | 9 | | shall be responsible for the contract. If the chief | 10 | | procurement officer procures multiple contracts applicable | 11 | | to one or more State agencies, each agency to which the | 12 | | contract applies shall be designated as the agency that | 13 | | shall enter into the contract and shall be responsible for | 14 | | the contract. If the chief procurement officer procures | 15 | | contracts applicable to an individual State agency, the | 16 | | agency subject to the contract shall be designated as the | 17 | | agency responsible for the contract. | 18 | | (10c) The procurement of private vendors for the | 19 | | administration of the workers' compensation program for | 20 | | State employees is subject to the provisions of the | 21 | | Illinois Procurement Code and administration by the chief | 22 | | procurement officer. | 23 | | (10d) Contracts for the procurement of private vendors | 24 | | for the administration of the workers' compensation | 25 | | program for State employees shall be based upon, but | 26 | | limited to, the following criteria: (i) administrative |
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| 1 | | cost, (ii) service capabilities of the vendor, and (iii) | 2 | | the compensation (including premiums, fees, or other | 3 | | charges). A vendor for the administration of the workers' | 4 | | compensation program for State employees shall provide | 5 | | services, including, but not limited to: | 6 | | (A) providing a web-based case management system | 7 | | and provide access to the Office of the Attorney | 8 | | General; | 9 | | (B) ensuring claims adjusters are available to | 10 | | provide testimony or information as requested by the | 11 | | Office of the Attorney General; | 12 | | (C) establishing a preferred provider program for | 13 | | all State agencies and facilities; and | 14 | | (D) authorizing the payment of medical bills at the | 15 | | preferred provider discount rate. | 16 | | (10e) By September 15, 2012, the Department of Central | 17 | | Management Services shall prepare a plan to effectuate the | 18 | | transfer of responsibility and administration of the | 19 | | workers' compensation program for State employees to the | 20 | | selected private vendors. The Department shall submit a | 21 | | copy of the plan to the General Assembly. | 22 | | (11) Any plan for public liability self-insurance | 23 | | implemented
under this
Section shall provide that (i) the | 24 | | Department
shall attempt to settle and may settle any | 25 | | public liability claim filed
against the State of Illinois | 26 | | or any public liability claim filed
against a State |
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| 1 | | employee on the basis of an occurrence in the course of
the | 2 | | employee's State employment; (ii) any settlement of
such a | 3 | | claim is not subject to fiscal year limitations and must be
| 4 | | approved by the Director and, in cases of
settlements | 5 | | exceeding $100,000, by the Governor; and (iii) a
settlement | 6 | | of
any public liability claim against the State or a State | 7 | | employee shall
require an unqualified release of any right | 8 | | of action against the State
and the employee for acts | 9 | | within the scope of the employee's employment
giving rise | 10 | | to the claim.
| 11 | | Whenever and to the extent that a State
employee | 12 | | operates a motor vehicle or engages in other activity | 13 | | covered
by self-insurance under this Section, the State of | 14 | | Illinois shall
defend, indemnify, and hold harmless the | 15 | | employee against any claim in
tort filed against the | 16 | | employee for acts or omissions within the scope
of the | 17 | | employee's employment in any proper judicial forum and not
| 18 | | settled pursuant
to this subdivision (11), provided that | 19 | | this obligation of
the State of
Illinois shall not exceed a | 20 | | maximum liability of $2,000,000 for any
single occurrence | 21 | | in connection with the operation of a motor vehicle or
| 22 | | $100,000 per person per occurrence for any other single | 23 | | occurrence,
or $500,000 for any single occurrence in | 24 | | connection with the provision of
medical care by a licensed | 25 | | physician employee.
| 26 | | Any
claims against the State of Illinois under a |
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| 1 | | self-insurance plan that
are not settled pursuant to this | 2 | | subdivision (11) shall be
heard and
determined by the Court | 3 | | of Claims and may not be filed or adjudicated
in any other | 4 | | forum. The Attorney General of the State of Illinois or
the | 5 | | Attorney General's designee shall be the attorney with | 6 | | respect
to all public liability
self-insurance claims that | 7 | | are not settled pursuant to this
subdivision (11)
and | 8 | | therefore result in litigation. The payment of any award of | 9 | | the
Court of Claims entered against the State relating to | 10 | | any public
liability self-insurance claim shall act as a | 11 | | release against any State
employee involved in the | 12 | | occurrence.
| 13 | | (12) Administer a plan the purpose of which is to make | 14 | | payments
on final
settlements or final judgments in | 15 | | accordance with the State Employee
Indemnification Act. | 16 | | The plan shall be funded through appropriations from the
| 17 | | General Revenue Fund specifically designated for that | 18 | | purpose, except that
indemnification expenses for | 19 | | employees of the Department of Transportation,
the | 20 | | Illinois State Police, and the Secretary of State
shall be | 21 | | paid
from the Road
Fund. The term "employee" as used in | 22 | | this subdivision (12) has the same
meaning as under | 23 | | subsection (b) of Section 1 of the State Employee
| 24 | | Indemnification Act. Subject to sufficient appropriation, | 25 | | the Director shall approve payment of any claim, without | 26 | | regard to fiscal year limitations, presented to
the |
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| 1 | | Director
that is supported by a final settlement or final | 2 | | judgment when the Attorney
General and the chief officer of | 3 | | the public body against whose employee the
claim or cause | 4 | | of action is asserted certify to the Director that
the | 5 | | claim is in
accordance with the State Employee | 6 | | Indemnification Act and that they
approve
of the payment. | 7 | | In no event shall an amount in excess of $150,000 be paid | 8 | | from
this plan to or for the benefit of any claimant.
| 9 | | (13) Administer a plan the purpose of which is to make | 10 | | payments
on final
settlements or final judgments for | 11 | | employee wage claims in situations where
there was an | 12 | | appropriation relevant to the wage claim, the fiscal year
| 13 | | and lapse period have expired, and sufficient funds were | 14 | | available
to
pay the claim. The plan shall be funded | 15 | | through
appropriations from the General Revenue Fund | 16 | | specifically designated for
that purpose.
| 17 | | Subject to sufficient appropriation, the Director is | 18 | | authorized to pay any wage claim presented to the
Director
| 19 | | that is supported by a final settlement or final judgment | 20 | | when the chief
officer of the State agency employing the | 21 | | claimant certifies to the
Director that
the claim is a | 22 | | valid wage claim and that the fiscal year and lapse period
| 23 | | have expired. Payment for claims that are properly | 24 | | submitted and certified
as valid by the Director
shall | 25 | | include interest accrued at the rate of 7% per annum from | 26 | | the
forty-fifth day after the claims are received by the |
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| 1 | | Department or 45 days from the date on which the amount of | 2 | | payment
is agreed upon, whichever is later, until the date | 3 | | the claims are submitted
to the Comptroller for payment. | 4 | | When the Attorney General has filed an
appearance in any | 5 | | proceeding concerning a wage claim settlement or
judgment, | 6 | | the Attorney General shall certify to the Director that the | 7 | | wage claim is valid before any payment is
made. In no event | 8 | | shall an amount in excess of $150,000 be paid from this
| 9 | | plan to or for the benefit of any claimant.
| 10 | | Nothing in Public Act 84-961 shall be construed to | 11 | | affect in any manner the jurisdiction of the
Court of | 12 | | Claims concerning wage claims made against the State of | 13 | | Illinois.
| 14 | | (14) Prepare and, in the discretion of the Director, | 15 | | implement a program for
self-insurance for official
| 16 | | fidelity and surety bonds for officers and employees as | 17 | | authorized by the
Official Bond Act.
| 18 | | (Source: P.A. 96-928, eff. 6-15-10; 97-18, eff. 6-28-11; | 19 | | 97-895, eff. 8-3-12; 97-1143, eff. 12-28-12.)
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