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90_HB2112
5 ILCS 350/1 from Ch. 127, par. 1301
20 ILCS 405/64.1 from Ch. 127, par. 63b4
Amends the State Employee Indemnification Act to include
individual students in State university authorized
internships, externships, professional practice programs, and
similar work or learning opportunities in the definition of
"employee". Amends the Civil Administrative Code of
Illinois. Requires any plan for public liability
self-insurance to be funded through appropriations from the
General Revenue Fund specifically designated for that
purpose, except that claim settlement expenses for officers
and employees of State universities, the Department of
Transportation, the Illinois State Police, and the Secretary
of State shall be paid from the Road Fund. Provides that the
Department of Central Management Services shall attempt to
settle and may settle any public liability claim filed
against a State employee or a student in State university
authorized internships, externships, professional practice
programs, and similar work or learning opportunities (now, a
State employee). Provides that in no event shall an amount
in excess of $350,000 (now, $150,000) be paid from a plan
whose purpose is to make payments on final settlements or
judgments in accordance with the State Employee
Indemnification Act to or for the benefit of any claimant.
LRB9004185DNmb
LRB9004185DNmb
1 AN ACT concerning indemnification.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The State Employee Indemnification Act is
5 amended by changing Section 1 as follows:
6 (5 ILCS 350/1) (from Ch. 127, par. 1301)
7 (Text of Section before amendment by P.A. 89-507)
8 Sec. 1. Definitions. For the purpose of this Act:
9 (a) The term "State" means the State of Illinois, the
10 General Assembly, the court, or any State office, department,
11 division, bureau, board, commission, or committee, the
12 governing boards of the public institutions of higher
13 education created by the State, the Illinois National Guard,
14 the Comprehensive Health Insurance Board, any poison control
15 center designated under the Poison Control System Act that
16 receives State funding, or any other agency or
17 instrumentality of the State. It does not mean any local
18 public entity as that term is defined in Section 1-206 of the
19 Local Governmental and Governmental Employees Tort Immunity
20 Act or a pension fund.
21 (b) The term "employee" means any present or former
22 elected or appointed officer, trustee or employee of the
23 State, or of a pension fund, any present or former member of
24 the Illinois National Guard while on active duty, individuals
25 or organizations who contract with the Department of
26 Corrections, the Comprehensive Health Insurance Board, or the
27 Department of Veterans' Affairs to provide services,
28 individuals or organizations who contract with the Department
29 of Mental Health and Developmental Disabilities to provide
30 services including participating mental health centers as
31 defined in the Mental Health and Developmental Disabilities
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1 Code, individuals or organizations who contract with the
2 Department of Military Affairs for youth programs,
3 individuals or organizations who contract to perform carnival
4 and amusement ride safety inspections for the Department of
5 Labor, individual representatives of or designated
6 organizations authorized to represent the Office of State
7 Long-Term Ombudsman for the Department on Aging, individual
8 representatives of or organizations designated by the
9 Department on Aging in the performance of their duties as
10 elder abuse provider agencies or regional administrative
11 agencies under the Elder Abuse and Neglect Act, individuals
12 or organizations who perform volunteer services for the State
13 where such volunteer relationship is reduced to writing,
14 individuals who serve on any public entity (whether created
15 by law or administrative action) described in paragraph (a)
16 of this Section, individuals or not for profit organizations
17 who, either as volunteers, where such volunteer relationship
18 is reduced to writing, or pursuant to contract, furnish
19 professional advice or consultation to any agency or
20 instrumentality of the State, individuals who serve as foster
21 parents for the Department of Children and Family Services
22 when caring for a Department ward, and individuals who serve
23 as arbitrators pursuant to Part 10A of Article II of the Code
24 of Civil Procedure and the rules of the Supreme Court
25 implementing Part 10A, each as now or hereafter amended, but
26 does not mean an independent contractor except as provided in
27 this Section. The term includes an individual appointed as an
28 inspector by the Director of State Police when performing
29 duties within the scope of the activities of a Metropolitan
30 Enforcement Group or a law enforcement organization
31 established under the Intergovernmental Cooperation Act. An
32 individual who renders professional advice and consultation
33 to the State through an organization which qualifies as an
34 "employee" under the Act is also an employee. The term
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1 includes the estate or personal representative of an
2 employee.
3 (c) The term "pension fund" means a retirement system or
4 pension fund created under the Illinois Pension Code.
5 (Source: P.A. 87-972; 87-1145; 88-14; 88-45; 88-198; 88-484;
6 88-670, eff. 12-2-94.)
7 (Text of Section after amendment by P.A. 89-507)
8 Sec. 1. Definitions. For the purpose of this Act:
9 (a) The term "State" means the State of Illinois, the
10 General Assembly, the court, or any State office, department,
11 division, bureau, board, commission, or committee, the
12 governing boards of the public institutions of higher
13 education created by the State, the Illinois National Guard,
14 the Comprehensive Health Insurance Board, any poison control
15 center designated under the Poison Control System Act that
16 receives State funding, or any other agency or
17 instrumentality of the State. It does not mean any local
18 public entity as that term is defined in Section 1-206 of the
19 Local Governmental and Governmental Employees Tort Immunity
20 Act or a pension fund.
21 (b) The term "employee" means any present or former
22 elected or appointed officer, trustee or employee of the
23 State, or of a pension fund, any present or former member of
24 the Illinois National Guard while on active duty, individual
25 students in State university authorized internships,
26 externships, professional practice programs, and similar work
27 or learning opportunities, individuals or organizations who
28 contract with the Department of Corrections, the
29 Comprehensive Health Insurance Board, or the Department of
30 Veterans' Affairs to provide services, individuals or
31 organizations who contract with the Department of Human
32 Services (as successor to the Department of Mental Health and
33 Developmental Disabilities) to provide services including
34 participating mental health centers as defined in the Mental
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1 Health and Developmental Disabilities Code, individuals or
2 organizations who contract with the Department of Military
3 Affairs for youth programs, individuals or organizations who
4 contract to perform carnival and amusement ride safety
5 inspections for the Department of Labor, individual
6 representatives of or designated organizations authorized to
7 represent the Office of State Long-Term Ombudsman for the
8 Department on Aging, individual representatives of or
9 organizations designated by the Department on Aging in the
10 performance of their duties as elder abuse provider agencies
11 or regional administrative agencies under the Elder Abuse and
12 Neglect Act, individuals or organizations who perform
13 volunteer services for the State where such volunteer
14 relationship is reduced to writing, individuals who serve on
15 any public entity (whether created by law or administrative
16 action) described in paragraph (a) of this Section,
17 individuals or not for profit organizations who, either as
18 volunteers, where such volunteer relationship is reduced to
19 writing, or pursuant to contract, furnish professional advice
20 or consultation to any agency or instrumentality of the
21 State, individuals who serve as foster parents for the
22 Department of Children and Family Services when caring for a
23 Department ward, and individuals who serve as arbitrators
24 pursuant to Part 10A of Article II of the Code of Civil
25 Procedure and the rules of the Supreme Court implementing
26 Part 10A, each as now or hereafter amended, but does not mean
27 an independent contractor except as provided in this Section.
28 The term includes an individual appointed as an inspector by
29 the Director of State Police when performing duties within
30 the scope of the activities of a Metropolitan Enforcement
31 Group or a law enforcement organization established under the
32 Intergovernmental Cooperation Act. An individual who renders
33 professional advice and consultation to the State through an
34 organization which qualifies as an "employee" under the Act
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1 is also an employee. The term includes the estate or personal
2 representative of an employee.
3 (c) The term "pension fund" means a retirement system or
4 pension fund created under the Illinois Pension Code.
5 (Source: P.A. 88-14; 88-45; 88-198; 88-484; 88-670, eff.
6 12-2-94; 89-507, eff. 7-1-97.)
7 Section 10. The Civil Administrative Code of Illinois is
8 amended by changing Section 64.1 as follows:
9 (20 ILCS 405/64.1) (from Ch. 127, par. 63b4)
10 Sec. 64.1. The Department of Central Management Services
11 shall establish and implement a program to coordinate the
12 handling of all fidelity, surety, property and casualty
13 insurance exposures, of the State and the departments,
14 divisions, agencies, branches and universities of the State.
15 In performing this responsibility, the Department shall have
16 the power and duty to:
17 (a) Develop and maintain loss and exposure data on all
18 State property.
19 (b) Study the feasibility of establishing a
20 self-insurance plan for State property and prepare estimates
21 of the costs of reinsurance for risks beyond the realistic
22 limits of the self-insurance.
23 (c) Prepare a plan for centralizing the purchase of
24 property and casualty insurance on State property under a
25 master policy or policies, and to purchase the insurance
26 contracted for as provided in the Illinois Purchasing Act.
27 (d) Evaluate existing provisions for fidelity bonds
28 required of State employees and recommend such changes as are
29 appropriate commensurate with risk experience and the
30 determinations respecting self-insurance or reinsurance so as
31 to permit reduction of costs without loss of coverage.
32 (e) Investigate procedures for inclusion of school
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1 districts, junior college districts and other units of local
2 government in programs for the centralized purchase of
3 insurance.
4 (f) Implement such recommendations of the State Property
5 Insurance Study Commission as the Department finds necessary
6 or desirable in the performance of its powers and duties
7 under this Section to achieve efficient and comprehensive
8 risk management.
9 (g) Prepare and, in the discretion of the Director of
10 Central Management Services, implement a plan providing for
11 the purchase of public liability insurance or for
12 self-insurance for public liability or for a combination of
13 purchased insurance and self-insurance for public liability
14 (1) covering the State and drivers of motor vehicles owned,
15 leased or controlled by the State of Illinois pursuant to the
16 provisions and limitations contained in the Illinois Vehicle
17 Code, (2) covering other public liability exposures of the
18 State and its employees within the scope of their employment,
19 and (3) covering drivers of motor vehicles not owned, leased
20 or controlled by the State but used by a State employee on
21 State business, in excess of liability covered by an
22 insurance policy obtained by the owner of the motor vehicle
23 or in excess of such dollar amounts as the Department shall
24 determine to be reasonable. Any contract of insurance let
25 under this Act shall be by bid in accordance with the
26 procedure set forth in the Illinois Purchasing Act. Any
27 provisions for self-insurance shall conform to subsection
28 (k). The term "employee" as used in subsections (g) and (k)
29 means a person while in the employ of the State who is a
30 member of the staff or personnel of a State agency, bureau,
31 board, commission, committee, department, university or
32 college or who is a State officer, elected official,
33 commissioner, member of or ex officio member of a State
34 agency, bureau, board, commission, committee, department,
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1 university or college, or a member of the National Guard
2 while on active duty pursuant to orders of the Governor of
3 the State of Illinois, or any other person while using a
4 licensed motor vehicle owned, leased or controlled by the
5 State of Illinois with the authorization of the State of
6 Illinois, provided the actual use thereof is within the scope
7 of such authorization and within the course of State service
8 or State university service. Subsequent to payment of a claim
9 on behalf of an employee pursuant to this Section and after
10 reasonable advance written notice to the employee, the
11 Director may exclude the employee from future coverage or
12 limit such coverage under the plan if (1) the Director
13 determines that the claim resulted from an incident in which
14 the employee was grossly negligent or had engaged in willful
15 and wanton misconduct; or (2) the Director determines that
16 the employee is no longer an acceptable risk based on a
17 review of prior accidents in which the employee was at fault
18 and for which payments were made pursuant to this Section.
19 The Director is authorized to promulgate such administrative
20 rules as may be necessary to establish and administer the
21 plan. Appropriations from the Road Fund shall be used to
22 pay auto liability claims and related expenses involving
23 employees of the Department of Transportation, the Illinois
24 State Police, and the Secretary of State.
25 (h) Charge, collect and receive from all other agencies
26 of the State government fees or monies equivalent to the cost
27 of purchasing the insurance.
28 (i) (1) Establish through the Director, charges for risk
29 management services rendered to State agencies by the
30 Department of Central Management Services. The State agencies
31 so charged shall reimburse the Department of Central
32 Management Services by vouchers drawn against their
33 respective appropriations. The reimbursement shall be
34 determined by the Director of Central Management Services as
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1 amounts sufficient to reimburse the Department for
2 expenditures incurred in rendering the service.
3 (2) The Department of Central Management Services shall
4 charge the employing State agency or university for workers'
5 compensation payments for temporary total disability paid to
6 any employee after the employee has received temporary total
7 disability payments for 120 days if the employee's treating
8 physician has issued a release to return to work with
9 restrictions and is able to perform modified duty work but
10 the 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 of
13 the duties regularly performed by the employee. Modified
14 duties shall be assigned within the prescribed restrictions
15 established by the treating physician and the physician who
16 performed the independent medical examination. The amount of
17 all reimbursements shall be deposited into the Workers'
18 Compensation Revolving Fund which is hereby created as a
19 special fund in the State Treasury. Moneys in the Fund shall
20 be used, subject to appropriation, to pay these or other
21 temporary total disability claims of employees of State
22 agencies and universities.
23 (3) Beginning with fiscal year 1996, all amounts
24 recovered by the Department through subrogation in workers'
25 compensation and workers' occupational disease cases shall be
26 deposited into the Workers' Compensation Revolving Fund
27 created under subdivision (i)(2).
28 (j) Establish rules, procedures and forms to be used by
29 State agencies in the administration and payment of workers'
30 compensation claims. Initially evaluate and determine the
31 compensability of any injury which is the subject of a
32 workers' compensation claim and provide for the
33 administration and payment of such claim for all State
34 agencies. The Director may delegate to any agency with the
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1 agreement of the agency head the responsibility for
2 evaluation, administration and payment of that agency's
3 claims.
4 (k) Any plan for public liability self-insurance
5 implemented under this Section shall be funded through
6 appropriations from the General Revenue Fund specifically
7 designated for that purpose, except that claim settlement
8 expenses for officers and employees of State universities,
9 the Department of Transportation, the Illinois State Police,
10 and the Secretary of State shall be paid from the Road Fund.
11 The plan shall provide that (1) the Department of Central
12 Management Services shall attempt to settle and may settle
13 any public liability claim filed against the State of
14 Illinois or any public liability claim filed against a State
15 employee or a student in a State university authorized
16 internship, externship, professional practice program, or
17 similar work or learning opportunity on the basis of an
18 occurrence in the course of his State employment or study;
19 (2) any settlement of such a claim must be approved by the
20 Director of Central Management Services and, in cases of
21 settlements exceeding $100,000, by the Governor; and (3) a
22 settlement of any public liability claim against the State,
23 or a State employee, or a student shall require an
24 unqualified release of any right of action against the State,
25 and the employee, and the student for acts within the scope
26 of the employee's or student's activity employment giving
27 rise to the claim. Whenever and to the extent that a State
28 employee operates a motor vehicle or engages in other
29 activity covered by self-insurance under this Section, the
30 State of Illinois shall defend, indemnify and hold harmless
31 the employee against any claim in tort filed against the
32 employee for acts or omissions within the scope of his
33 employment in any proper judicial forum and not settled
34 pursuant to this subsection, provided that this obligation of
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1 the State of Illinois shall not exceed a maximum liability of
2 $2,000,000 for any single occurrence in connection with the
3 operation of a motor vehicle or $100,000 per person per
4 occurrence for any other single occurrence, or $500,000 for
5 any single occurrence in connection with the provision of
6 medical care by a licensed physician employee. Any claims
7 against the State of Illinois under a self-insurance plan
8 which are not settled pursuant to this subsection shall be
9 heard and determined by the Court of Claims, and may not be
10 filed or adjudicated in any other forum. The Attorney
11 General of the State of Illinois or his designee shall be the
12 attorney with respect to all public liability self-insurance
13 claims which are not settled pursuant to this subsection and
14 therefore result in litigation. The payment of any award of
15 the Court of Claims entered against the State relating to any
16 public liability self-insurance claim shall act as a release
17 against any State employee or State university student
18 involved in the occurrence.
19 (l) Administer a plan the purpose of which is to make
20 payments on final settlements or final judgments in
21 accordance with the State Employee Indemnification Act. The
22 plan shall be funded through appropriations from the General
23 Revenue Fund specifically designated for that purpose, except
24 that indemnification expenses for employees of the Department
25 of Transportation, Illinois State Police, and Secretary of
26 State shall be paid from the Road Fund. The term "employee"
27 as used in this subsection shall have the same meaning as
28 under subsection (b) of Section 1 of the State Employee
29 Indemnification Act. Subject to sufficient appropriation,
30 the Director of Central Management Services shall approve
31 payment of any claim presented to him that is supported by a
32 final settlement or final judgment when the Attorney General
33 and the chief officer of the public body against whose
34 employee the claim or cause of action is asserted certify to
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1 him that the claim is in accordance with the State Employee
2 Indemnification Act, and that they approve of the payment.
3 In no event shall an amount in excess of $350,000 $150,000 be
4 paid from this plan to or for the benefit of any claimant.
5 (m) Administer a plan the purpose of which is to make
6 payments on final settlements or final judgments for employee
7 wage claims in situations where there was an appropriation
8 relevant to the wage claim, and the fiscal year and lapse
9 period have expired and that sufficient funds were available
10 to pay such claim. The plan shall be funded through
11 appropriations from the General Revenue Fund specifically
12 designated for that purpose. Subject to sufficient
13 appropriation, the Director of Central Management Services is
14 authorized to pay any wage claim presented to him that is
15 supported by a final settlement or final judgment when the
16 chief officer of the State agency employing the claimant
17 certifies to him that the claim is a valid wage claim and
18 that the fiscal year and lapse period have expired. Payment
19 for claims that are properly submitted and certified as valid
20 by the Director of Central Management Services shall include
21 interest accrued at the rate of 7% per annum from the
22 forty-fifth day after the claims are received by the
23 Department of Central Management Services or 45 days from the
24 date on which the amount of payment is agreed upon, whichever
25 is later, until the date the claims are submitted to the
26 Comptroller for payment. When the Attorney General has filed
27 an appearance in any proceeding concerning a wage claim
28 settlement or judgment, the Attorney General shall certify to
29 the Director of Central Management Services that the wage
30 claim is valid before any payment is made. In no event shall
31 an amount in excess of $150,000 be paid from this plan to or
32 for the benefit of any claimant. Nothing in this Amendatory
33 Act of 1985 shall be construed to affect in any manner the
34 jurisdiction of the Court of Claims concerning wage claims
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1 made against the State of Illinois.
2 (n) Prepare and, in the discretion of the Director of
3 Central Management Services, implement a program for
4 self-insurance for official fidelity and surety bonds for
5 officers and employees as authorized by the Official Bond Act
6 and funded by appropriations from the General Revenue Fund.
7 (Source: P.A. 89-21, eff. 7-1-95; 89-262, eff. 8-10-95;
8 89-626, eff. 8-9-96.)
9 Section 95. No acceleration or delay. Where this Act
10 makes changes in a statute that is represented in this Act by
11 text that is not yet or no longer in effect (for example, a
12 Section represented by multiple versions), the use of that
13 text does not accelerate or delay the taking effect of (i)
14 the changes made by this Act or (ii) provisions derived from
15 any other Public Act.