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90_HB0815
20 ILCS 405/64.1 from Ch. 127, par. 63b4
820 ILCS 405/1403 from Ch. 48, par. 553
Amends the Civil Administrative Code of Illinois and the
Unemployment Insurance Act. Provides that the Department of
Central Management Services shall establish rules,
procedures, and forms for the processing of unemployment
insurance claims of individuals who were employed by
executive branch State agencies. Provides that the
Department shall evaluate and determine the compensability of
unemployment insurance claims and administer and process
those claims for executive branch agencies (except agencies
to which the Director has delegated responsibility for
evaluation, administration, and processing of its claims).
Sets forth responsibilities of executive branch agencies, the
Department of Central Management Services, and the Department
of Employment Security with respect to claims of individuals
who performed insured work for executive branch agencies.
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1 AN ACT to amend certain Acts in relation to unemployment
2 insurance.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Civil Administrative Code of Illinois is
6 amended by changing Section 64.1 as follows:
7 (20 ILCS 405/64.1) (from Ch. 127, par. 63b4)
8 Sec. 64.1. The Department of Central Management Services
9 shall establish and implement a program to coordinate the
10 handling of all fidelity, surety, property and casualty
11 insurance exposures, of the State and the departments,
12 divisions, agencies, branches and universities of the State.
13 In performing this responsibility, the Department shall have
14 the power and duty to:
15 (a) Develop and maintain loss and exposure data on all
16 State property.
17 (b) Study the feasibility of establishing a
18 self-insurance plan for State property and prepare estimates
19 of the costs of reinsurance for risks beyond the realistic
20 limits of the self-insurance.
21 (c) Prepare a plan for centralizing the purchase of
22 property and casualty insurance on State property under a
23 master policy or policies, and to purchase the insurance
24 contracted for as provided in the Illinois Purchasing Act.
25 (d) Evaluate existing provisions for fidelity bonds
26 required of State employees and recommend such changes as are
27 appropriate commensurate with risk experience and the
28 determinations respecting self-insurance or reinsurance so as
29 to permit reduction of costs without loss of coverage.
30 (e) Investigate procedures for inclusion of school
31 districts, junior college districts and other units of local
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1 government in programs for the centralized purchase of
2 insurance.
3 (f) Implement such recommendations of the State Property
4 Insurance Study Commission as the Department finds necessary
5 or desirable in the performance of its powers and duties
6 under this Section to achieve efficient and comprehensive
7 risk management.
8 (g) Prepare and, in the discretion of the Director of
9 Central Management Services, implement a plan providing for
10 the purchase of public liability insurance or for
11 self-insurance for public liability or for a combination of
12 purchased insurance and self-insurance for public liability
13 (1) covering the State and drivers of motor vehicles owned,
14 leased or controlled by the State of Illinois pursuant to the
15 provisions and limitations contained in the Illinois Vehicle
16 Code, (2) covering other public liability exposures of the
17 State and its employees within the scope of their employment,
18 and (3) covering drivers of motor vehicles not owned, leased
19 or controlled by the State but used by a State employee on
20 State business, in excess of liability covered by an
21 insurance policy obtained by the owner of the motor vehicle
22 or in excess of such dollar amounts as the Department shall
23 determine to be reasonable. Any contract of insurance let
24 under this Act shall be by bid in accordance with the
25 procedure set forth in the Illinois Purchasing Act. Any
26 provisions for self-insurance shall conform to subsection
27 (k). The term "employee" as used in subsections (g) and (k)
28 means a person while in the employ of the State who is a
29 member of the staff or personnel of a State agency, bureau,
30 board, commission, committee, department, university or
31 college or who is a State officer, elected official,
32 commissioner, member of or ex officio member of a State
33 agency, bureau, board, commission, committee, department,
34 university or college, or a member of the National Guard
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1 while on active duty pursuant to orders of the Governor of
2 the State of Illinois or any other person while using a
3 licensed motor vehicle owned, leased or controlled by the
4 State of Illinois with the authorization of the State of
5 Illinois, provided the actual use thereof is within the scope
6 of such authorization and within the course of State service.
7 Subsequent to payment of a claim on behalf of an employee
8 pursuant to this Section and after reasonable advance written
9 notice to the employee, the Director may exclude the employee
10 from future coverage or limit such coverage under the plan if
11 (1) the Director determines that the claim resulted from an
12 incident in which the employee was grossly negligent or had
13 engaged in willful and wanton misconduct; or (2) the Director
14 determines that the employee is no longer an acceptable risk
15 based on a review of prior accidents in which the employee
16 was at fault and for which payments were made pursuant to
17 this Section. The Director is authorized to promulgate such
18 administrative rules as may be necessary to establish and
19 administer the plan. Appropriations from the Road Fund
20 shall be used to pay auto liability claims and related
21 expenses involving employees of the Department of
22 Transportation, the Illinois State Police, and the Secretary
23 of State.
24 (h) Charge, collect and receive from all other agencies
25 of the State government fees or monies equivalent to the cost
26 of purchasing the insurance.
27 (i) (1) Establish through the Director, charges for risk
28 management services rendered to State agencies by the
29 Department of Central Management Services. The State agencies
30 so charged shall reimburse the Department of Central
31 Management Services by vouchers drawn against their
32 respective appropriations. The reimbursement shall be
33 determined by the Director of Central Management Services as
34 amounts sufficient to reimburse the Department for
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1 expenditures incurred in rendering the service.
2 (2) The Department of Central Management Services shall
3 charge the employing State agency or university for workers'
4 compensation payments for temporary total disability paid to
5 any employee after the employee has received temporary total
6 disability payments for 120 days if the employee's treating
7 physician has issued a release to return to work with
8 restrictions and is able to perform modified duty work but
9 the employing State agency or university does not return the
10 employee to work at modified duty. Modified duty shall be
11 duties assigned that may or may not be delineated as part of
12 the duties regularly performed by the employee. Modified
13 duties shall be assigned within the prescribed restrictions
14 established by the treating physician and the physician who
15 performed the independent medical examination. The amount of
16 all reimbursements shall be deposited into the Workers'
17 Compensation Revolving Fund which is hereby created as a
18 special fund in the State Treasury. Moneys in the Fund shall
19 be used, subject to appropriation, to pay these or other
20 temporary total disability claims of employees of State
21 agencies and universities.
22 (3) Beginning with fiscal year 1996, all amounts
23 recovered by the Department through subrogation in workers'
24 compensation and workers' occupational disease cases shall be
25 deposited into the Workers' Compensation Revolving Fund
26 created under subdivision (i)(2).
27 (j) Establish rules, procedures and forms to be used by
28 State agencies in the administration and payment of workers'
29 compensation claims. Initially evaluate and determine the
30 compensability of any injury which is the subject of a
31 workers' compensation claim and provide for the
32 administration and payment of such claim for all State
33 agencies. The Director may delegate to any agency with the
34 agreement of the agency head the responsibility for
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1 evaluation, administration and payment of that agency's
2 claims.
3 (k) Any plan for public liability self-insurance
4 implemented under this Section shall provide that (1) the
5 Department of Central Management Services shall attempt to
6 settle and may settle any public liability claim filed
7 against the State of Illinois or any public liability claim
8 filed against a State employee on the basis of an occurrence
9 in the course of his State employment; (2) any settlement of
10 such a claim must be approved by the Director of Central
11 Management Services and, in cases of settlements exceeding
12 $100,000, by the Governor; and (3) a settlement of any public
13 liability claim against the State or a State employee shall
14 require an unqualified release of any right of action against
15 the State and the employee for acts within the scope of the
16 employee's employment giving rise to the claim. Whenever and
17 to the extent that a State employee operates a motor vehicle
18 or engages in other activity covered by self-insurance under
19 this Section, the State of Illinois shall defend, indemnify
20 and hold harmless the employee against any claim in tort
21 filed against the employee for acts or omissions within the
22 scope of his employment in any proper judicial forum and not
23 settled pursuant to this subsection, provided that this
24 obligation of the State of Illinois shall not exceed a
25 maximum liability of $2,000,000 for any single occurrence in
26 connection with the operation of a motor vehicle or $100,000
27 per person per occurrence for any other single occurrence, or
28 $500,000 for any single occurrence in connection with the
29 provision of medical care by a licensed physician employee.
30 Any claims against the State of Illinois under a
31 self-insurance plan which are not settled pursuant to this
32 subsection shall be heard and determined by the Court of
33 Claims, and may not be filed or adjudicated in any other
34 forum. The Attorney General of the State of Illinois or his
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1 designee shall be the attorney with respect to all public
2 liability self-insurance claims which are not settled
3 pursuant to this subsection and therefore result in
4 litigation. The payment of any award of the Court of Claims
5 entered against the State relating to any public liability
6 self-insurance claim shall act as a release against any State
7 employee involved in the occurrence.
8 (l) Administer a plan the purpose of which is to make
9 payments on final settlements or final judgments in
10 accordance with the State Employee Indemnification Act. The
11 plan shall be funded through appropriations from the General
12 Revenue Fund specifically designated for that purpose, except
13 that indemnification expenses for employees of the Department
14 of Transportation, Illinois State Police, and Secretary of
15 State shall be paid from the Road Fund. The term "employee"
16 as used in this subsection shall have the same meaning as
17 under subsection (b) of Section 1 of the State Employee
18 Indemnification Act. Subject to sufficient appropriation,
19 the Director of Central Management Services shall approve
20 payment of any claim presented to him that is supported by a
21 final settlement or final judgment when the Attorney General
22 and the chief officer of the public body against whose
23 employee the claim or cause of action is asserted certify to
24 him that the claim is in accordance with the State Employee
25 Indemnification Act, and that they approve of the payment.
26 In no event shall an amount in excess of $150,000 be paid
27 from this plan to or for the benefit of any claimant.
28 (m) Administer a plan the purpose of which is to make
29 payments on final settlements or final judgments for employee
30 wage claims in situations where there was an appropriation
31 relevant to the wage claim, and the fiscal year and lapse
32 period have expired and that sufficient funds were available
33 to pay such claim. The plan shall be funded through
34 appropriations from the General Revenue Fund specifically
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1 designated for that purpose. Subject to sufficient
2 appropriation, the Director of Central Management Services is
3 authorized to pay any wage claim presented to him that is
4 supported by a final settlement or final judgment when the
5 chief officer of the State agency employing the claimant
6 certifies to him that the claim is a valid wage claim and
7 that the fiscal year and lapse period have expired. Payment
8 for claims that are properly submitted and certified as valid
9 by the Director of Central Management Services shall include
10 interest accrued at the rate of 7% per annum from the
11 forty-fifth day after the claims are received by the
12 Department of Central Management Services or 45 days from the
13 date on which the amount of payment is agreed upon, whichever
14 is later, until the date the claims are submitted to the
15 Comptroller for payment. When the Attorney General has filed
16 an appearance in any proceeding concerning a wage claim
17 settlement or judgment, the Attorney General shall certify to
18 the Director of Central Management Services that the wage
19 claim is valid before any payment is made. In no event shall
20 an amount in excess of $150,000 be paid from this plan to or
21 for the benefit of any claimant. Nothing in this Amendatory
22 Act of 1985 shall be construed to affect in any manner the
23 jurisdiction of the Court of Claims concerning wage claims
24 made against the State of Illinois.
25 (n) Prepare and, in the discretion of the Director of
26 Central Management Services, implement a program for
27 self-insurance for official fidelity and surety bonds for
28 officers and employees as authorized by the Official Bond
29 Act.
30 (o) Establish rules, procedures, and forms to be used in
31 the processing of unemployment insurance claims. The
32 Department shall evaluate and determine the compensability of
33 any unemployment insurance claim and administer and process
34 those claims for executive branch State agencies. The
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1 Director may delegate to any executive branch State agency,
2 with the agreement of the agency head, the responsibility for
3 evaluation, administration, and processing of that agency's
4 claims.
5 (Source: P.A. 89-21, eff. 7-1-95; 89-262, eff. 8-10-95;
6 89-626, eff. 8-9-96.)
7 Section 10. The Unemployment Insurance Act is amended by
8 changing Section 1403 as follows:
9 (820 ILCS 405/1403) (from Ch. 48, par. 553)
10 Sec. 1403. Financing benefits paid to state employees.
11 Benefits paid to individuals on the basis of wages paid to
12 them for insured work in the employ of this State or any of
13 its wholly owned instrumentalities shall be financed by
14 appropriations to the Department of Employment Security.
15 There is hereby established a special fund to be known as the
16 State Employees' Unemployment Benefit Fund. Such Fund shall
17 consist of and there shall be deposited in such Fund all
18 moneys appropriated to the Department of Employment Security
19 pursuant to this Section, all interest earned upon such
20 moneys, any property or securities acquired through the use
21 thereof, all earnings of such property or securities, and all
22 other moneys for the Fund received from any other source. The
23 Fund shall be held by the State Treasurer, as ex-officio
24 custodian thereof, separate and apart from all public moneys
25 or funds of this State, but the moneys in the Fund shall be
26 deposited as required by law and maintained in a separate
27 account on the books of a savings and loan association or
28 bank. The Fund shall be administered by the Director
29 exclusively for the purposes of this Section. No moneys in
30 the Fund shall be paid or expended except upon the direction
31 of the Director exclusively for the purposes of this Section.
32 The State Treasurer shall be liable on his general
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1 official bond for the faithful performance of his duties as
2 custodian of such moneys as may come into his hands by virtue
3 of this Section. Such liability on his official bond shall
4 exist in addition to the liability upon any separate bond
5 given by him. All sums recovered for losses sustained by the
6 Fund herein described shall be deposited therein.
7 In lieu of contributions required of other employers
8 under this Act, the State Treasurer, upon the direction of
9 the Director, shall transfer to and deposit in the clearing
10 account established by Section 2100, an amount equivalent to
11 the amount of regular benefits and one-half the amount of
12 extended benefits (defined in Section 409) paid for weeks
13 which begin before January 1, 1979, and to the amount of all
14 benefits paid for weeks which begin on and after January 1,
15 1979, to individuals who, during there respective base
16 periods, were paid wages for insured work by the State or any
17 of its wholly owned instrumentalities. If an individual was
18 paid such wages during his base period both by the State or
19 any of such instrumentalities and by one or more other
20 employers, the amount to be so transferred by the State
21 Treasurer with respect to such individual shall be a sum
22 which bears the same ratio to the total benefits paid to the
23 individual as the wages for insured work paid to the
24 individual during his base period by the State and any such
25 instrumentalities bear to the total wages for insured work
26 paid to the individual during the base period by all of the
27 employers. Notwithstanding the previous provisions of this
28 Section with respect to benefit years beginning prior to July
29 1, 1989, any adjustment after September 30, 1989 to the base
30 period wages paid to the individual by any employer shall not
31 affect the ratio for determining the amount to be transferred
32 to the clearing account by the State Treasurer. Provided,
33 however, that with respect to benefit years beginning on or
34 after July 1, 1989, the State Treasurer shall transfer to and
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1 deposit in the clearing account an amount equal to 100% of
2 regular benefits, including dependents' allowances, and 100%
3 of extended benefits, including dependents' allowances paid
4 to an individual, but only if the State: (a) is the last
5 employer as provided in Section 1502.1 and (b) paid, to the
6 individual receiving benefits, wages for insured work during
7 his base period. If the State meets the requirements of (a)
8 but not (b), with respect to benefit years beginning on or
9 after July 1, 1989, it shall be required to make payments in
10 an amount equal to 50% of regular benefits, including
11 dependents' allowances, and 50% of extended benefits,
12 including dependents' allowances, paid to an individual.
13 The Director shall ascertain the amount to be so
14 transferred and deposited by the State Treasurer as soon as
15 practicable after the end of each calendar quarter. The
16 provisions of paragraphs 4 and 5 of Section 1404B shall be
17 applicable to a determination of the amount to be so
18 transferred and deposited. Such deposit shall be made by the
19 State Treasurer at such times and in such manner as the
20 Director may determine and direct.
21 Every judicial and legislative branch department,
22 institution, agency and instrumentality of the State of
23 Illinois (and any executive branch agency to which the
24 evaluation, administration, and processing of claims has been
25 delegated by the Department of Central Management Services
26 under subdivision (o) of Section 64.1 of the Civil
27 Administrative Code of Illinois) shall make available to the
28 Director such information with respect to any individual who
29 has performed insured work for it as the Director may find
30 practicable and necessary for the determination of such
31 individual's rights under this Act. Each such department,
32 institution, agency and instrumentality shall file such
33 reports with the Director as he may by regulation prescribe.
34 In the case of every executive branch department,
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1 institution, agency, and instrumentality of the State of
2 Illinois for which the Department of Central Management
3 Services has responsibility with regard to unemployment
4 insurance claims under subdivision (o) of Section 64.1 of the
5 Civil Administrative Code of Illinois:
6 (i) the department, institution, agency, or
7 instrumentality shall make available to the Department of
8 Central Management Services and the Department of
9 Employment Security information with respect to any
10 individual that is requested by the Department of Central
11 Management Services to perform its duties and that is
12 requested by the Department of Employment Security for
13 the determination of the individual's rights under this
14 Act;
15 (ii) the department, institution, agency, and
16 instrumentality shall file reports with the Department of
17 Employment Security as prescribed by rule; and
18 (iii) all notices required to be given to an
19 employer by the Department of Employment Security with
20 regard to a claim filed by an individual under this Act
21 shall be given by the Department of Employment Security
22 to both the Department of Central Management Services and
23 the department, institution, agency, and instrumentality
24 that employed the individual.
25 (Source: P.A. 86-3.)