Full Text of SB3430 097th General Assembly
SB3430enr 97TH GENERAL ASSEMBLY |
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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 | | temporary total disability paid to any employee after the | 6 | | employee has
received temporary total disability payments | 7 | | for 120 days if the employee's
treating physician has | 8 | | issued a release to return to work with restrictions
and | 9 | | the employee is able to perform modified duty work but the | 10 | | employing
State agency or
university does not return the | 11 | | employee to work at modified duty. Modified
duty shall be | 12 | | duties assigned that may or may not be delineated
as part | 13 | | of the duties regularly performed by the employee. Modified | 14 | | duties
shall be assigned within the prescribed | 15 | | restrictions established by the
treating physician and the | 16 | | physician who performed the independent medical
| 17 | | examination. The amount of all reimbursements
shall be | 18 | | deposited into the Workers' Compensation Revolving Fund | 19 | | which is
hereby created as a revolving fund in the State | 20 | | treasury. In addition to any other purpose authorized by | 21 | | law, moneys in the Fund
shall be used, subject to | 22 | | appropriation, to pay these or other temporary
total | 23 | | disability claims of employees of State agencies and | 24 | | 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 Through December 31, 2012, establish | 5 | | rules, procedures, and forms to be used by
State agencies
| 6 | | in the administration and payment of workers' compensation | 7 | | claims. For claims filed prior to July 1, 2013 Through | 8 | | December 31, 2012 , the
Department shall initially evaluate | 9 | | and determine the compensability of
any injury that is
the | 10 | | subject of a workers' compensation claim and provide for | 11 | | the
administration and payment of such a claim for all | 12 | | State agencies. For claims filed on or after July 1, 2013, | 13 | | the Department shall retain responsibility for certain | 14 | | administrative payments including, but not limited to, | 15 | | payments to the private vendor contracted to perform | 16 | | services under subdivision (10b) of this Section, payments | 17 | | related to travel expenses for employees of the Office of | 18 | | the Attorney General, and payments to internal Department | 19 | | staff responsible for the oversight and management of any | 20 | | contract awarded pursuant to subdivision (10b) of this | 21 | | Section. Through December 31, 2012, the
Director may | 22 | | delegate to any agency with the agreement of the agency | 23 | | head
the responsibility for evaluation, administration, | 24 | | and payment of that
agency's claims. Neither the Department | 25 | | nor the private vendor contracted to perform services under | 26 | | subdivision (10b) of this Section shall be responsible for |
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| 1 | | providing workers' compensation services to the Illinois | 2 | | State Toll Highway Authority or to State universities that | 3 | | maintain self-funded workers' compensation liability | 4 | | programs.
| 5 | | (10a) By April 1 of each year prior to calendar year | 6 | | 2013, the Director must report and provide information to | 7 | | the State Workers' Compensation Program Advisory Board | 8 | | concerning the status of the State workers' compensation | 9 | | program for the next fiscal year. Information that the | 10 | | Director must provide to the State Workers' Compensation | 11 | | Program Advisory Board includes, but is not limited to, | 12 | | documents, reports of negotiations, bid invitations, | 13 | | requests for proposals, specifications, copies of proposed | 14 | | and final contracts or agreements, and any other materials | 15 | | concerning contracts or agreements for the program. By the | 16 | | first of each month prior to calendar year 2013, the | 17 | | Director must provide updated, and any new, information to | 18 | | the State Workers' Compensation Program Advisory Board | 19 | | until the State workers' compensation program for the next | 20 | | fiscal year is determined. | 21 | | (10b) No later than January 1, 2013, the chief | 22 | | procurement officer appointed under paragraph (4) of | 23 | | subsection (a) of Section 10-20 of the Illinois Procurement | 24 | | Code (hereinafter "chief procurement officer"), in | 25 | | consultation with the Department of Central Management | 26 | | Services, shall procure one or more private vendors to |
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| 1 | | administer , beginning January 1, 2013, the program | 2 | | providing payments for workers' compensation liability | 3 | | with respect to the employees of all State agencies. The | 4 | | chief procurement officer may procure a single contract | 5 | | applicable to all State agencies or multiple contracts | 6 | | applicable to one or more State agencies. If the chief | 7 | | procurement officer procures a single contract applicable | 8 | | to all State agencies, then the Department of Central | 9 | | Management Services shall be designated as the agency that | 10 | | enters into the contract and shall be responsible for the | 11 | | contract. If the chief procurement officer procures | 12 | | multiple contracts applicable to one or more State | 13 | | agencies, each agency to which the contract applies shall | 14 | | be designated as the agency that shall enter into the | 15 | | contract and shall be responsible for the contract. If the | 16 | | chief procurement officer procures contracts applicable to | 17 | | an individual State agency, the agency subject to the | 18 | | contract shall be designated as the agency responsible for | 19 | | the contract. | 20 | | (10c) The procurement of private vendors for the | 21 | | administration of the workers' compensation program for | 22 | | State employees is subject to the provisions of the | 23 | | Illinois Procurement Code and administration by the chief | 24 | | procurement officer. | 25 | | (10d) Contracts for the procurement of private vendors | 26 | | for the administration of the workers' compensation |
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| 1 | | program for State employees shall be based upon, but | 2 | | limited to, the following criteria: (i) administrative | 3 | | cost, (ii) service capabilities of the vendor, and (iii) | 4 | | the compensation (including premiums, fees, or other | 5 | | charges). A vendor for the administration of the workers' | 6 | | compensation program for State employees shall provide | 7 | | services, including, but not limited to: | 8 | | (A) providing a web-based case management system | 9 | | and provide access to the Office of the Attorney | 10 | | General; | 11 | | (B) ensuring claims adjusters are available to | 12 | | provide testimony or information as requested by the | 13 | | Office of the Attorney General; | 14 | | (C) establishing a preferred provider program for | 15 | | all State agencies and facilities; and | 16 | | (D) authorizing the payment of medical bills at the | 17 | | preferred provider discount rate. | 18 | | (10e) By September 15, 2012, the Department of Central | 19 | | Management Services shall prepare a plan to effectuate the | 20 | | transfer of responsibility and administration of the | 21 | | workers' compensation program for State employees to the | 22 | | selected private vendors. The Department shall submit a | 23 | | copy of the plan to the General Assembly. | 24 | | (11) Any plan for public liability self-insurance | 25 | | implemented
under this
Section shall provide that (i) the | 26 | | Department
shall attempt to settle and may settle any |
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| 1 | | public liability claim filed
against the State of Illinois | 2 | | or any public liability claim filed
against a State | 3 | | employee on the basis of an occurrence in the course of
the | 4 | | employee's State employment; (ii) any settlement of
such a | 5 | | claim is not subject to fiscal year limitations and must be
| 6 | | approved by the Director and, in cases of
settlements | 7 | | exceeding $100,000, by the Governor; and (iii) a
settlement | 8 | | of
any public liability claim against the State or a State | 9 | | employee shall
require an unqualified release of any right | 10 | | of action against the State
and the employee for acts | 11 | | within the scope of the employee's employment
giving rise | 12 | | to the claim.
| 13 | | Whenever and to the extent that a State
employee | 14 | | operates a motor vehicle or engages in other activity | 15 | | covered
by self-insurance under this Section, the State of | 16 | | Illinois shall
defend, indemnify, and hold harmless the | 17 | | employee against any claim in
tort filed against the | 18 | | employee for acts or omissions within the scope
of the | 19 | | employee's employment in any proper judicial forum and not
| 20 | | settled pursuant
to this subdivision (11), provided that | 21 | | this obligation of
the State of
Illinois shall not exceed a | 22 | | maximum liability of $2,000,000 for any
single occurrence | 23 | | in connection with the operation of a motor vehicle or
| 24 | | $100,000 per person per occurrence for any other single | 25 | | occurrence,
or $500,000 for any single occurrence in | 26 | | connection with the provision of
medical care by a licensed |
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| 1 | | physician employee.
| 2 | | Any
claims against the State of Illinois under a | 3 | | self-insurance plan that
are not settled pursuant to this | 4 | | subdivision (11) shall be
heard and
determined by the Court | 5 | | of Claims and may not be filed or adjudicated
in any other | 6 | | forum. The Attorney General of the State of Illinois or
the | 7 | | Attorney General's designee shall be the attorney with | 8 | | respect
to all public liability
self-insurance claims that | 9 | | are not settled pursuant to this
subdivision (11)
and | 10 | | therefore result in litigation. The payment of any award of | 11 | | the
Court of Claims entered against the State relating to | 12 | | any public
liability self-insurance claim shall act as a | 13 | | release against any State
employee involved in the | 14 | | occurrence.
| 15 | | (12) Administer a plan the purpose of which is to make | 16 | | payments
on final
settlements or final judgments in | 17 | | accordance with the State Employee
Indemnification Act. | 18 | | The plan shall be funded through appropriations from the
| 19 | | General Revenue Fund specifically designated for that | 20 | | purpose, except that
indemnification expenses for | 21 | | employees of the Department of Transportation,
the | 22 | | Illinois State Police, and the Secretary of State
shall be | 23 | | paid
from the Road
Fund. The term "employee" as used in | 24 | | this subdivision (12) has the same
meaning as under | 25 | | subsection (b) of Section 1 of the State Employee
| 26 | | Indemnification Act. Subject to sufficient appropriation, |
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| 1 | | the Director shall approve payment of any claim, without | 2 | | regard to fiscal year limitations, presented to
the | 3 | | Director
that is supported by a final settlement or final | 4 | | judgment when the Attorney
General and the chief officer of | 5 | | the public body against whose employee the
claim or cause | 6 | | of action is asserted certify to the Director that
the | 7 | | claim is in
accordance with the State Employee | 8 | | Indemnification Act and that they
approve
of the payment. | 9 | | In no event shall an amount in excess of $150,000 be paid | 10 | | from
this plan to or for the benefit of any claimant.
| 11 | | (13) Administer a plan the purpose of which is to make | 12 | | payments
on final
settlements or final judgments for | 13 | | employee wage claims in situations where
there was an | 14 | | appropriation relevant to the wage claim, the fiscal year
| 15 | | and lapse period have expired, and sufficient funds were | 16 | | available
to
pay the claim. The plan shall be funded | 17 | | through
appropriations from the General Revenue Fund | 18 | | specifically designated for
that purpose.
| 19 | | Subject to sufficient appropriation, the Director is | 20 | | authorized to pay any wage claim presented to the
Director
| 21 | | that is supported by a final settlement or final judgment | 22 | | when the chief
officer of the State agency employing the | 23 | | claimant certifies to the
Director that
the claim is a | 24 | | valid wage claim and that the fiscal year and lapse period
| 25 | | have expired. Payment for claims that are properly | 26 | | submitted and certified
as valid by the Director
shall |
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| 1 | | include interest accrued at the rate of 7% per annum from | 2 | | the
forty-fifth day after the claims are received by the | 3 | | Department or 45 days from the date on which the amount of | 4 | | payment
is agreed upon, whichever is later, until the date | 5 | | the claims are submitted
to the Comptroller for payment. | 6 | | When the Attorney General has filed an
appearance in any | 7 | | proceeding concerning a wage claim settlement or
judgment, | 8 | | the Attorney General shall certify to the Director that the | 9 | | wage claim is valid before any payment is
made. In no event | 10 | | shall an amount in excess of $150,000 be paid from this
| 11 | | plan to or for the benefit of any claimant.
| 12 | | Nothing in Public Act 84-961 shall be construed to | 13 | | affect in any manner the jurisdiction of the
Court of | 14 | | Claims concerning wage claims made against the State of | 15 | | Illinois.
| 16 | | (14) Prepare and, in the discretion of the Director, | 17 | | implement a program for
self-insurance for official
| 18 | | fidelity and surety bonds for officers and employees as | 19 | | authorized by the
Official Bond Act.
| 20 | | (Source: P.A. 96-928, eff. 6-15-10; 97-18, eff. 6-28-11; | 21 | | 97-895, eff. 8-3-12.)
| 22 | | Section 99. Effective date. This Act takes effect upon | 23 | | becoming law.
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