State of Illinois
90th General Assembly
Legislation

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[ Engrossed ][ Enrolled ][ House Amendment 002 ]
[ Senate Amendment 002 ][ Senate Amendment 003 ][ Conference Committee Report 001 ]

90_SB0423

      5 ILCS 375/2              from Ch. 127, par. 522
      5 ILCS 375/3              from Ch. 127, par. 523
      5 ILCS 375/6.9 new
      5 ILCS 375/6.10 new
      5 ILCS 375/15             from Ch. 127, par. 535
      40 ILCS 15/1.4 new
      110 ILCS 805/2-16.02      from Ch. 122, par. 102-16.02
      30 ILCS 805/8.21 new
          Amends the State Employees Group Insurance Act of 1971 to
      provide a program of  group  health  insurance  benefits  for
      certain   retired   community  college  employees  and  their
      survivors and dependents, under  the  administration  of  the
      Department   of   Central   Management   Services.   Requires
      contributions toward the cost of these benefits from  current
      community college employees, community college employers, and
      the   State.   Amends  the  State  Pension  Funds  Continuing
      Appropriation Act to provide a continuing  appropriation  for
      this  purpose.    Amends  the Public Community College Act to
      discontinue the retirees health insurance grant beginning  on
      January  1,  1999.   Amends the State Mandates Act to require
      implementation without reimbursement.  Effective immediately.
                                                     LRB9002251EGfg
                                               LRB9002251EGfg
 1        AN ACT in relation to health care  benefits  for  certain
 2    retired  community  college  employees  and their dependents,
 3    amending named Acts.
 4        Be it enacted by the People of  the  State  of  Illinois,
 5    represented in the General Assembly:
 6        Section  5.   The  State Employees Group Insurance Act of
 7    1971 is amended by changing Sections 2, 3, and 15 and  adding
 8    Sections 6.9 and 6.10 as follows:
 9        (5 ILCS 375/2) (from Ch. 127, par. 522)
10        Sec. 2. Purpose.  The purpose of this Act is to provide a
11    program of group life insurance, a program of health benefits
12    and other employee benefits for persons in the service of the
13    State  of Illinois, employees of local governments, employees
14    of  rehabilitation  facilities  and  employees  of   domestic
15    violence   shelters   and  services,  and  certain  of  their
16    dependents.  It is also the purpose of this Act to provide  a
17    program of health benefits (i) for certain benefit recipients
18    of  the  Teachers' Retirement System of the State of Illinois
19    and  their  dependent  beneficiaries  and  (ii)  for  certain
20    eligible  retired  community  college  employees  and   their
21    dependent beneficiaries.
22    (Source: P.A. 89-25, eff. 6-21-95.)
23        (5 ILCS 375/3) (from Ch. 127, par. 523)
24        (Text of Section before amendment by P.A. 89-507)
25        Sec.   3.  Definitions.   Unless  the  context  otherwise
26    requires, the following words and phrases as used in this Act
27    shall have the following meanings.  The Department may define
28    these and other words and phrases separately for the  purpose
29    of  implementing  specific  programs providing benefits under
30    this Act.
                            -2-                LRB9002251EGfg
 1        (a)  "Administrative  service  organization"  means   any
 2    person,  firm  or  corporation experienced in the handling of
 3    claims  which  is  fully  qualified,  financially  sound  and
 4    capable of meeting the service requirements of a contract  of
 5    administration executed with the Department.
 6        (b)  "Annuitant"  means  (1)  an employee who retires, or
 7    has retired, on or after January  1,  1966  on  an  immediate
 8    annuity under the provisions of Articles 2, 14, 15 (including
 9    an  employee  who  has  retired and is receiving a retirement
10    annuity under an optional program established  under  Section
11    15-158.2  and  who  would  also  be eligible for a retirement
12    annuity had that person  been  a  participant  in  the  State
13    University  Retirement  System),  paragraphs  (b)  or  (c) of
14    Section 16-106, or Article 18 of the Illinois  Pension  Code;
15    (2)  any  person  who  was receiving group insurance coverage
16    under this Act as of March 31, 1978 by reason of  his  status
17    as an annuitant, even though the annuity in relation to which
18    such coverage was provided is a proportional annuity based on
19    less  than  the  minimum  period  of  service  required for a
20    retirement annuity in the system involved; (3) any person not
21    otherwise  covered  by  this  Act  who  has  retired   as   a
22    participating  member under Article 2 of the Illinois Pension
23    Code but is  ineligible  for  the  retirement  annuity  under
24    Section 2-119 of the Illinois Pension Code; (4) the spouse of
25    any  person  who  is  receiving  a  retirement  annuity under
26    Article 18 of the Illinois Pension Code and  who  is  covered
27    under  a  group  health  insurance  program  sponsored  by  a
28    governmental  employer  other  than the State of Illinois and
29    who has irrevocably elected to  waive  his  or  her  coverage
30    under  this  Act  and to have his or her spouse considered as
31    the "annuitant" under this Act and not as a  "dependent";  or
32    (5) an employee who retires, or has retired, from a qualified
33    position, as determined according to rules promulgated by the
34    Director,  under  a qualified local government or a qualified
                            -3-                LRB9002251EGfg
 1    rehabilitation facility  or  a  qualified  domestic  violence
 2    shelter  or  service.  (For definition of "retired employee",
 3    see (p) post).
 4        (c)  "Carrier"  means  (1)  an   insurance   company,   a
 5    corporation   organized  under  the  Limited  Health  Service
 6    Organization Act or the Voluntary Health Services Plan Act, a
 7    partnership, or other nongovernmental organization, which  is
 8    authorized  to  do  group  life  or  group  health  insurance
 9    business  in  Illinois,  or  (2)  the  State of Illinois as a
10    self-insurer.
11        (d)  "Compensation" means salary or wages  payable  on  a
12    regular  payroll  by  the State Treasurer on a warrant of the
13    State Comptroller out of any State, trust or federal fund, or
14    by the Governor of the State through a disbursing officer  of
15    the  State  out of a trust or out of federal funds, or by any
16    Department out of State, trust, federal or other  funds  held
17    by  the  State Treasurer or the Department, to any person for
18    personal  services  currently  performed,  and  ordinary   or
19    accidental  disability  benefits  under  Articles  2,  14, 15
20    (including ordinary or accidental disability  benefits  under
21    an  optional  program  established  under  Section 15-158.2),
22    paragraphs (b) or (c) of Section 16-106, or Article 18 of the
23    Illinois Pension Code, for disability incurred after  January
24    1,  1966, or benefits payable under the Workers' Compensation
25    or Occupational Diseases Act or benefits payable under a sick
26    pay plan established in accordance with  Section  36  of  the
27    State  Finance Act. "Compensation" also means salary or wages
28    paid to an employee of  any  qualified  local  government  or
29    qualified  rehabilitation  facility  or  a qualified domestic
30    violence shelter or service.
31        (e)  "Commission"  means  the   State   Employees   Group
32    Insurance   Advisory   Commission  authorized  by  this  Act.
33    Commencing July 1, 1984, "Commission" as  used  in  this  Act
34    means   the   Illinois  Economic  and  Fiscal  Commission  as
                            -4-                LRB9002251EGfg
 1    established by the Legislative Commission Reorganization  Act
 2    of 1984.
 3        (f)  "Contributory",  when  referred  to  as contributory
 4    coverage, shall mean optional coverages or  benefits  elected
 5    by  the  member  toward  the  cost of which such member makes
 6    contribution, or which are funded in whole or in part through
 7    the acceptance of a reduction in earnings or the foregoing of
 8    an increase in earnings by an employee, as distinguished from
 9    noncontributory coverage or benefits which are paid  entirely
10    by  the  State  of Illinois without reduction of the member's
11    salary.
12        (g)  "Department"  means  any  department,   institution,
13    board,  commission, officer, court or any agency of the State
14    government  receiving  appropriations  and  having  power  to
15    certify payrolls to the Comptroller authorizing  payments  of
16    salary  and  wages against such appropriations as are made by
17    the General Assembly from any State fund,  or  against  trust
18    funds  held  by  the  State  Treasurer and includes boards of
19    trustees of the retirement systems created by Articles 2, 14,
20    15, 16 and 18 of the  Illinois  Pension  Code.   "Department"
21    also  includes  the  Illinois  Comprehensive Health Insurance
22    Board and the Illinois Rural Bond Bank.
23        (h)  "Dependent", when the term is used in the context of
24    the health and life plan, means a  member's  spouse  and  any
25    unmarried child (1) from birth to age 19 including an adopted
26    child, a child who lives with the member from the time of the
27    filing  of a petition for adoption until entry of an order of
28    adoption, a stepchild or recognized child who lives with  the
29    member  in  a parent-child relationship, or a child who lives
30    with the member if such member is a court appointed  guardian
31    of  the  child,  or  (2) age 19 to 23 enrolled as a full-time
32    student in any accredited school, financially dependent  upon
33    the  member,  and  eligible as a dependent for Illinois State
34    income tax purposes, or (3) age 19 or over who is mentally or
                            -5-                LRB9002251EGfg
 1    physically handicapped as defined in the  Illinois  Insurance
 2    Code.  For  the  health  plan only, the term "dependent" also
 3    includes any person enrolled prior to the effective  date  of
 4    this  Section  who is dependent upon the member to the extent
 5    that the member may claim such  person  as  a  dependent  for
 6    Illinois  State  income tax deduction purposes; no other such
 7    person may be enrolled.
 8        (i)  "Director"  means  the  Director  of  the   Illinois
 9    Department of Central Management Services.
10        (j)  "Eligibility  period"  means  the  period  of time a
11    member has to elect  enrollment  in  programs  or  to  select
12    benefits without regard to age, sex or health.
13        (k)  "Employee"   means  and  includes  each  officer  or
14    employee in the service of a department who (1) receives  his
15    compensation  for  service  rendered  to  the department on a
16    warrant  issued  pursuant  to  a  payroll  certified   by   a
17    department  or  on  a  warrant or check issued and drawn by a
18    department upon a trust,  federal  or  other  fund  or  on  a
19    warrant  issued pursuant to a payroll certified by an elected
20    or duly appointed  officer  of  the  State  or  who  receives
21    payment  of the performance of personal services on a warrant
22    issued pursuant to a payroll certified by  a  Department  and
23    drawn  by  the  Comptroller  upon the State Treasurer against
24    appropriations made by the General Assembly from any fund  or
25    against  trust  funds held by the State Treasurer, and (2) is
26    employed  full-time  or  part-time  in  a  position  normally
27    requiring actual performance of duty during not less than 1/2
28    of a normal work period, as established by  the  Director  in
29    cooperation with each department, except that persons elected
30    by  popular  vote  will  be  considered  employees during the
31    entire term for which they are elected  regardless  of  hours
32    devoted  to  the  service  of  the State, and (3) except that
33    "employee" does not include any person who is not eligible by
34    reason of such person's employment to participate in  one  of
                            -6-                LRB9002251EGfg
 1    the State retirement systems under Articles 2, 14, 15 (either
 2    the   regular  Article  15  system  or  an  optional  program
 3    established under Section 15-158.2) or 18, or under paragraph
 4    (b) or (c) of Section 16-106, of the Illinois  Pension  Code,
 5    but  such  term  does include persons who are employed during
 6    the 6  month  qualifying  period  under  Article  14  of  the
 7    Illinois  Pension  Code.   Such term also includes any person
 8    who (1) after January  1,  1966,  is  receiving  ordinary  or
 9    accidental  disability  benefits  under  Articles  2,  14, 15
10    (including ordinary or accidental disability  benefits  under
11    an  optional  program  established  under  Section 15-158.2),
12    paragraphs (b) or (c) of Section 16-106, or Article 18 of the
13    Illinois Pension Code, for disability incurred after  January
14    1,  1966,  (2)  receives  total  permanent or total temporary
15    disability   under   the   Workers'   Compensation   Act   or
16    Occupational Disease Act as a result of injuries sustained or
17    illness contracted in the course of employment with the State
18    of Illinois, or (3) is not otherwise covered under  this  Act
19    and  has retired as a participating member under Article 2 of
20    the  Illinois  Pension  Code  but  is  ineligible   for   the
21    retirement  annuity  under  Section  2-119  of  the  Illinois
22    Pension  Code.   However, a person who satisfies the criteria
23    of the foregoing definition of "employee"  except  that  such
24    person  is  made  ineligible  to  participate  in  the  State
25    Universities  Retirement  System  by  clause (4) of the first
26    paragraph of Section 15-107 of the Illinois Pension  Code  is
27    also  an "employee" for the purposes of this Act.  "Employee"
28    also includes any person receiving or eligible  for  benefits
29    under  a sick pay plan established in accordance with Section
30    36 of the State Finance Act. "Employee"  also  includes  each
31    officer  or  employee  in  the  service  of a qualified local
32    government,  including  persons  appointed  as  trustees   of
33    sanitary districts regardless of hours devoted to the service
34    of the sanitary district, and each employee in the service of
                            -7-                LRB9002251EGfg
 1    a   qualified  rehabilitation  facility  and  each  full-time
 2    employee in the service  of  a  qualified  domestic  violence
 3    shelter   or   service,  as  determined  according  to  rules
 4    promulgated by the Director.
 5        (l)  "Member"  means  an  employee,  annuitant,   retired
 6    employee or survivor.
 7        (m)  "Optional   coverages   or   benefits"  means  those
 8    coverages or benefits available to the member on his  or  her
 9    voluntary election, and at his or her own expense.
10        (n)  "Program"  means  the  group  life insurance, health
11    benefits and other employee benefits designed and  contracted
12    for by the Director under this Act.
13        (o)  "Health  plan" means a self-insured health insurance
14    program offered by the State of Illinois for the purposes  of
15    benefiting  employees  by  means  of providing, among others,
16    wellness programs, utilization reviews, second  opinions  and
17    medical  fee  reviews, as well as for paying for hospital and
18    medical care up to the maximum coverage provided by the plan,
19    to its members and their dependents.
20        (p)  "Retired employee" means any person who would be  an
21    annuitant  as  that  term  is defined herein but for the fact
22    that such person retired prior to January 1, 1966.  Such term
23    also includes any person formerly employed by the  University
24    of Illinois in the Cooperative Extension Service who would be
25    an  annuitant  but  for  the  fact  that such person was made
26    ineligible  to  participate   in   the   State   Universities
27    Retirement  System  by  clause  (4) of the first paragraph of
28    Section 15-107 of the Illinois Pension Code.
29        (q)  "Survivor" means a person receiving an annuity as  a
30    survivor  of  an employee or of an annuitant. "Survivor" also
31    includes:  (1)  the  surviving  dependent  of  a  person  who
32    satisfies the  definition  of  "employee"  except  that  such
33    person  is  made  ineligible  to  participate  in  the  State
34    Universities  Retirement  System  by  clause (4) of the first
                            -8-                LRB9002251EGfg
 1    paragraph of Section 15-107 of the Illinois Pension Code; and
 2    (2) the surviving dependent of any person  formerly  employed
 3    by  the  University  of Illinois in the Cooperative Extension
 4    Service who would be an annuitant except for  the  fact  that
 5    such  person  was made ineligible to participate in the State
 6    Universities Retirement System by clause  (4)  of  the  first
 7    paragraph of Section 15-107 of the Illinois Pension Code.
 8        (r)  "Medical   services"  means  the  services  provided
 9    within the scope of their licenses by  practitioners  in  all
10    categories licensed under the Medical Practice Act of 1987.
11        (s)  "Unit   of   local  government"  means  any  county,
12    municipality, township, school district, special district  or
13    other  unit, designated as a unit of local government by law,
14    which exercises limited  governmental  powers  or  powers  in
15    respect  to limited governmental subjects, any not-for-profit
16    association  with  a  membership  that   primarily   includes
17    townships  and  township  officials,  that  has  duties  that
18    include  provision  of  research  service,  dissemination  of
19    information,  and  other  acts  for  the purpose of improving
20    township government, and that is funded wholly or  partly  in
21    accordance  with  Section  85-15  of  the  Township Code; any
22    not-for-profit corporation or association, with a  membership
23    consisting primarily of municipalities, that operates its own
24    utility    system,    and    provides   research,   training,
25    dissemination  of  information,  or  other  acts  to  promote
26    cooperation between and  among  municipalities  that  provide
27    utility  services  and  for  the advancement of the goals and
28    purposes of its membership; and the Illinois  Association  of
29    Park Districts.  "Qualified local government" means a unit of
30    local  government  approved by the Director and participating
31    in a program created under subsection (i) of  Section  10  of
32    this Act.
33        (t)  "Qualified   rehabilitation   facility"   means  any
34    not-for-profit  organization  that  is  accredited   by   the
                            -9-                LRB9002251EGfg
 1    Commission  on  Accreditation of Rehabilitation Facilities or
 2    certified  by  the  Department     of   Mental   Health   and
 3    Developmental  Disabilities  to  provide  services to persons
 4    with disabilities and which receives funds from the State  of
 5    Illinois  for  providing  those  services,  approved  by  the
 6    Director   and  participating  in  a  program  created  under
 7    subsection (j) of Section 10 of this Act.
 8        (u)  "Qualified domestic  violence  shelter  or  service"
 9    means  any  Illinois domestic violence shelter or service and
10    its administrative offices funded by the Illinois  Department
11    of  Public Aid, approved by the Director and participating in
12    a program created under subsection (k) of Section 10.
13        (v)  "TRS benefit recipient" means a person who:
14             (1)  is not a "member" as defined in  this  Section;
15        and
16             (2)  is  receiving  a  monthly benefit or retirement
17        annuity under Article 16 of the  Illinois  Pension  Code;
18        and
19             (3)  either  (i)  has at least 8 years of creditable
20        service under Article 16 of the Illinois Pension Code, or
21        (ii) was enrolled in the health insurance program offered
22        under that Article on January 1, 1996, or  (iii)  is  the
23        survivor  of a benefit recipient who had at least 8 years
24        of creditable service under Article 16  of  the  Illinois
25        Pension  Code  or  was  enrolled  in the health insurance
26        program offered under that Article on the effective  date
27        of this amendatory Act of 1995, or (iv) is a recipient or
28        survivor  of  a  recipient  of a disability benefit under
29        Article 16 of the Illinois Pension Code.
30        (w)  "TRS dependent beneficiary" means a person who:
31             (1)  is not a "member" or "dependent" as defined  in
32        this Section; and
33             (2)  is  a  TRS benefit recipient's: (A) spouse, (B)
34        dependent parent who is receiving at least half of his or
                            -10-               LRB9002251EGfg
 1        her support  from  the  TRS  benefit  recipient,  or  (C)
 2        unmarried  natural  or adopted child who is (i) under age
 3        19, or  (ii)  enrolled  as  a  full-time  student  in  an
 4        accredited  school,  financially  dependent  upon the TRS
 5        benefit recipient, eligible as a dependent  for  Illinois
 6        State  income tax purposes, and either is under age 24 or
 7        was, on January 1, 1996,  participating  as  a  dependent
 8        beneficiary in the health insurance program offered under
 9        Article  16 of the Illinois Pension Code, or (iii) age 19
10        or over who is  mentally  or  physically  handicapped  as
11        defined in the Illinois Insurance Code.
12        (x)  "Military  leave  with  pay  and benefits" refers to
13    individuals in basic training for reserves,  special/advanced
14    training,  annual  training, emergency call up, or activation
15    by the President of the United States with approved  pay  and
16    benefits.
17        (y)  "Military  leave without pay and benefits" refers to
18    individuals who enlist for active duty in a regular component
19    of the U.S. Armed Forces  or  other  duty  not  specified  or
20    authorized under military leave with pay and benefits.
21        (z)  "Community college benefit recipient" means a person
22    who:
23             (1)  is  not  a "member" as defined in this Section;
24        and
25             (2)  is receiving a monthly  survivor's  annuity  or
26        retirement  annuity  under  Article  15  of  the Illinois
27        Pension Code; and
28             (3)  either  (i)  was  a  full-time  employee  of  a
29        community college district or an association of community
30        college boards created under the Public Community College
31        Act and was eligible to participate  in  a  group  health
32        benefit plan as an employee during the time of employment
33        with  a  community  college district or an association of
34        community college boards, or (ii) is the  survivor  of  a
                            -11-               LRB9002251EGfg
 1        person described in item (i).
 2        (aa)  "Community  college  dependent beneficiary" means a
 3    person who:
 4             (1)  is not a "member" or "dependent" as defined  in
 5        this Section; and
 6             (2)  is a community college benefit recipient's: (A)
 7        spouse,  (B)  dependent  parent who is receiving at least
 8        half of his or her support  from  the  community  college
 9        benefit  recipient,  or  (C) unmarried natural or adopted
10        child who is (i) under age 19,  or  (ii)  enrolled  as  a
11        full-time  student  in  an accredited school, financially
12        dependent upon the community college  benefit  recipient,
13        eligible  as  a  dependent  for Illinois State income tax
14        purposes and under age 23, or (iii) age 19  or  over  and
15        mentally  or  physically  handicapped  as  defined in the
16        Illinois Insurance Code.
17    (Source: P.A. 88-670,  eff.  12-2-94;  89-21,  eff.  6-21-95;
18    89-25,   eff.  6-21-95;  89-76,  eff.  7-1-95;  89-324,  eff.
19    8-13-95; 89-430, eff. 12-15-95; 89-502, eff. 7-1-96;  89-628,
20    eff. 8-9-96; revised 8-23-96.)
21        (Text of Section after amendment by P.A. 89-507)
22        Sec.   3.  Definitions.   Unless  the  context  otherwise
23    requires, the following words and phrases as used in this Act
24    shall have the following meanings.  The Department may define
25    these and other words and phrases separately for the  purpose
26    of  implementing  specific  programs providing benefits under
27    this Act.
28        (a)  "Administrative  service  organization"  means   any
29    person,  firm  or  corporation experienced in the handling of
30    claims  which  is  fully  qualified,  financially  sound  and
31    capable of meeting the service requirements of a contract  of
32    administration executed with the Department.
33        (b)  "Annuitant"  means  (1)  an employee who retires, or
                            -12-               LRB9002251EGfg
 1    has retired, on or after January  1,  1966  on  an  immediate
 2    annuity under the provisions of Articles 2, 14, 15 (including
 3    an  employee  who  has  retired and is receiving a retirement
 4    annuity under an optional program established  under  Section
 5    15-158.2  and  who  would  also  be eligible for a retirement
 6    annuity had that person  been  a  participant  in  the  State
 7    University  Retirement  System),  paragraphs  (b)  or  (c) of
 8    Section 16-106, or Article 18 of the Illinois  Pension  Code;
 9    (2)  any  person  who  was receiving group insurance coverage
10    under this Act as of March 31, 1978 by reason of  his  status
11    as an annuitant, even though the annuity in relation to which
12    such coverage was provided is a proportional annuity based on
13    less  than  the  minimum  period  of  service  required for a
14    retirement annuity in the system involved; (3) any person not
15    otherwise  covered  by  this  Act  who  has  retired   as   a
16    participating  member under Article 2 of the Illinois Pension
17    Code but is  ineligible  for  the  retirement  annuity  under
18    Section 2-119 of the Illinois Pension Code; (4) the spouse of
19    any  person  who  is  receiving  a  retirement  annuity under
20    Article 18 of the Illinois Pension Code and  who  is  covered
21    under  a  group  health  insurance  program  sponsored  by  a
22    governmental  employer  other  than the State of Illinois and
23    who has irrevocably elected to  waive  his  or  her  coverage
24    under  this  Act  and to have his or her spouse considered as
25    the "annuitant" under this Act and not as a  "dependent";  or
26    (5) an employee who retires, or has retired, from a qualified
27    position, as determined according to rules promulgated by the
28    Director,  under  a qualified local government or a qualified
29    rehabilitation facility  or  a  qualified  domestic  violence
30    shelter  or  service.  (For definition of "retired employee",
31    see (p) post).
32        (c)  "Carrier"  means  (1)  an   insurance   company,   a
33    corporation   organized  under  the  Limited  Health  Service
34    Organization Act or the Voluntary Health Services Plan Act, a
                            -13-               LRB9002251EGfg
 1    partnership, or other nongovernmental organization, which  is
 2    authorized  to  do  group  life  or  group  health  insurance
 3    business  in  Illinois,  or  (2)  the  State of Illinois as a
 4    self-insurer.
 5        (d)  "Compensation" means salary or wages  payable  on  a
 6    regular  payroll  by  the State Treasurer on a warrant of the
 7    State Comptroller out of any State, trust or federal fund, or
 8    by the Governor of the State through a disbursing officer  of
 9    the  State  out of a trust or out of federal funds, or by any
10    Department out of State, trust, federal or other  funds  held
11    by  the  State Treasurer or the Department, to any person for
12    personal  services  currently  performed,  and  ordinary   or
13    accidental  disability  benefits  under  Articles  2,  14, 15
14    (including ordinary or accidental disability  benefits  under
15    an  optional  program  established  under  Section 15-158.2),
16    paragraphs (b) or (c) of Section 16-106, or Article 18 of the
17    Illinois Pension Code, for disability incurred after  January
18    1,  1966, or benefits payable under the Workers' Compensation
19    or Occupational Diseases Act or benefits payable under a sick
20    pay plan established in accordance with  Section  36  of  the
21    State  Finance Act. "Compensation" also means salary or wages
22    paid to an employee of  any  qualified  local  government  or
23    qualified  rehabilitation  facility  or  a qualified domestic
24    violence shelter or service.
25        (e)  "Commission"  means  the   State   Employees   Group
26    Insurance   Advisory   Commission  authorized  by  this  Act.
27    Commencing July 1, 1984, "Commission" as  used  in  this  Act
28    means   the   Illinois  Economic  and  Fiscal  Commission  as
29    established by the Legislative Commission Reorganization  Act
30    of 1984.
31        (f)  "Contributory",  when  referred  to  as contributory
32    coverage, shall mean optional coverages or  benefits  elected
33    by  the  member  toward  the  cost of which such member makes
34    contribution, or which are funded in whole or in part through
                            -14-               LRB9002251EGfg
 1    the acceptance of a reduction in earnings or the foregoing of
 2    an increase in earnings by an employee, as distinguished from
 3    noncontributory coverage or benefits which are paid  entirely
 4    by  the  State  of Illinois without reduction of the member's
 5    salary.
 6        (g)  "Department"  means  any  department,   institution,
 7    board,  commission, officer, court or any agency of the State
 8    government  receiving  appropriations  and  having  power  to
 9    certify payrolls to the Comptroller authorizing  payments  of
10    salary  and  wages against such appropriations as are made by
11    the General Assembly from any State fund,  or  against  trust
12    funds  held  by  the  State  Treasurer and includes boards of
13    trustees of the retirement systems created by Articles 2, 14,
14    15, 16 and 18 of the  Illinois  Pension  Code.   "Department"
15    also  includes  the  Illinois  Comprehensive Health Insurance
16    Board and the Illinois Rural Bond Bank.
17        (h)  "Dependent", when the term is used in the context of
18    the health and life plan, means a  member's  spouse  and  any
19    unmarried child (1) from birth to age 19 including an adopted
20    child, a child who lives with the member from the time of the
21    filing  of a petition for adoption until entry of an order of
22    adoption, a stepchild or recognized child who lives with  the
23    member  in  a parent-child relationship, or a child who lives
24    with the member if such member is a court appointed  guardian
25    of  the  child,  or  (2) age 19 to 23 enrolled as a full-time
26    student in any accredited school, financially dependent  upon
27    the  member,  and  eligible as a dependent for Illinois State
28    income tax purposes, or (3) age 19 or over who is mentally or
29    physically handicapped as defined in the  Illinois  Insurance
30    Code.  For  the  health  plan only, the term "dependent" also
31    includes any person enrolled prior to the effective  date  of
32    this  Section  who is dependent upon the member to the extent
33    that the member may claim such  person  as  a  dependent  for
34    Illinois  State  income tax deduction purposes; no other such
                            -15-               LRB9002251EGfg
 1    person may be enrolled.
 2        (i)  "Director"  means  the  Director  of  the   Illinois
 3    Department of Central Management Services.
 4        (j)  "Eligibility  period"  means  the  period  of time a
 5    member has to elect  enrollment  in  programs  or  to  select
 6    benefits without regard to age, sex or health.
 7        (k)  "Employee"   means  and  includes  each  officer  or
 8    employee in the service of a department who (1) receives  his
 9    compensation  for  service  rendered  to  the department on a
10    warrant  issued  pursuant  to  a  payroll  certified   by   a
11    department  or  on  a  warrant or check issued and drawn by a
12    department upon a trust,  federal  or  other  fund  or  on  a
13    warrant  issued pursuant to a payroll certified by an elected
14    or duly appointed  officer  of  the  State  or  who  receives
15    payment  of the performance of personal services on a warrant
16    issued pursuant to a payroll certified by  a  Department  and
17    drawn  by  the  Comptroller  upon the State Treasurer against
18    appropriations made by the General Assembly from any fund  or
19    against  trust  funds held by the State Treasurer, and (2) is
20    employed  full-time  or  part-time  in  a  position  normally
21    requiring actual performance of duty during not less than 1/2
22    of a normal work period, as established by  the  Director  in
23    cooperation with each department, except that persons elected
24    by  popular  vote  will  be  considered  employees during the
25    entire term for which they are elected  regardless  of  hours
26    devoted  to  the  service  of  the State, and (3) except that
27    "employee" does not include any person who is not eligible by
28    reason of such person's employment to participate in  one  of
29    the State retirement systems under Articles 2, 14, 15 (either
30    the   regular  Article  15  system  or  an  optional  program
31    established under Section 15-158.2) or 18, or under paragraph
32    (b) or (c) of Section 16-106, of the Illinois  Pension  Code,
33    but  such  term  does include persons who are employed during
34    the 6  month  qualifying  period  under  Article  14  of  the
                            -16-               LRB9002251EGfg
 1    Illinois  Pension  Code.   Such term also includes any person
 2    who (1) after January  1,  1966,  is  receiving  ordinary  or
 3    accidental  disability  benefits  under  Articles  2,  14, 15
 4    (including ordinary or accidental disability  benefits  under
 5    an  optional  program  established  under  Section 15-158.2),
 6    paragraphs (b) or (c) of Section 16-106, or Article 18 of the
 7    Illinois Pension Code, for disability incurred after  January
 8    1,  1966,  (2)  receives  total  permanent or total temporary
 9    disability   under   the   Workers'   Compensation   Act   or
10    Occupational Disease Act as a result of injuries sustained or
11    illness contracted in the course of employment with the State
12    of Illinois, or (3) is not otherwise covered under  this  Act
13    and  has retired as a participating member under Article 2 of
14    the  Illinois  Pension  Code  but  is  ineligible   for   the
15    retirement  annuity  under  Section  2-119  of  the  Illinois
16    Pension  Code.   However, a person who satisfies the criteria
17    of the foregoing definition of "employee"  except  that  such
18    person  is  made  ineligible  to  participate  in  the  State
19    Universities  Retirement  System  by  clause (4) of the first
20    paragraph of Section 15-107 of the Illinois Pension  Code  is
21    also  an "employee" for the purposes of this Act.  "Employee"
22    also includes any person receiving or eligible  for  benefits
23    under  a sick pay plan established in accordance with Section
24    36 of the State Finance Act. "Employee"  also  includes  each
25    officer  or  employee  in  the  service  of a qualified local
26    government,  including  persons  appointed  as  trustees   of
27    sanitary districts regardless of hours devoted to the service
28    of the sanitary district, and each employee in the service of
29    a   qualified  rehabilitation  facility  and  each  full-time
30    employee in the service  of  a  qualified  domestic  violence
31    shelter   or   service,  as  determined  according  to  rules
32    promulgated by the Director.
33        (l)  "Member"  means  an  employee,  annuitant,   retired
34    employee or survivor.
                            -17-               LRB9002251EGfg
 1        (m)  "Optional   coverages   or   benefits"  means  those
 2    coverages or benefits available to the member on his  or  her
 3    voluntary election, and at his or her own expense.
 4        (n)  "Program"  means  the  group  life insurance, health
 5    benefits and other employee benefits designed and  contracted
 6    for by the Director under this Act.
 7        (o)  "Health  plan" means a self-insured health insurance
 8    program offered by the State of Illinois for the purposes  of
 9    benefiting  employees  by  means  of providing, among others,
10    wellness programs, utilization reviews, second  opinions  and
11    medical  fee  reviews, as well as for paying for hospital and
12    medical care up to the maximum coverage provided by the plan,
13    to its members and their dependents.
14        (p)  "Retired employee" means any person who would be  an
15    annuitant  as  that  term  is defined herein but for the fact
16    that such person retired prior to January 1, 1966.  Such term
17    also includes any person formerly employed by the  University
18    of Illinois in the Cooperative Extension Service who would be
19    an  annuitant  but  for  the  fact  that such person was made
20    ineligible  to  participate   in   the   State   Universities
21    Retirement  System  by  clause  (4) of the first paragraph of
22    Section 15-107 of the Illinois Pension Code.
23        (q)  "Survivor" means a person receiving an annuity as  a
24    survivor  of  an employee or of an annuitant. "Survivor" also
25    includes:  (1)  the  surviving  dependent  of  a  person  who
26    satisfies the  definition  of  "employee"  except  that  such
27    person  is  made  ineligible  to  participate  in  the  State
28    Universities  Retirement  System  by  clause (4) of the first
29    paragraph of Section 15-107 of the Illinois Pension Code; and
30    (2) the surviving dependent of any person  formerly  employed
31    by  the  University  of Illinois in the Cooperative Extension
32    Service who would be an annuitant except for  the  fact  that
33    such  person  was made ineligible to participate in the State
34    Universities Retirement System by clause  (4)  of  the  first
                            -18-               LRB9002251EGfg
 1    paragraph of Section 15-107 of the Illinois Pension Code.
 2        (r)  "Medical   services"  means  the  services  provided
 3    within the scope of their licenses by  practitioners  in  all
 4    categories licensed under the Medical Practice Act of 1987.
 5        (s)  "Unit   of   local  government"  means  any  county,
 6    municipality, township, school district, special district  or
 7    other  unit, designated as a unit of local government by law,
 8    which exercises limited  governmental  powers  or  powers  in
 9    respect  to limited governmental subjects, any not-for-profit
10    association  with  a  membership  that   primarily   includes
11    townships  and  township  officials,  that  has  duties  that
12    include  provision  of  research  service,  dissemination  of
13    information,  and  other  acts  for  the purpose of improving
14    township government, and that is funded wholly or  partly  in
15    accordance  with  Section  85-15  of  the  Township Code; any
16    not-for-profit corporation or association, with a  membership
17    consisting primarily of municipalities, that operates its own
18    utility    system,    and    provides   research,   training,
19    dissemination  of  information,  or  other  acts  to  promote
20    cooperation between and  among  municipalities  that  provide
21    utility  services  and  for  the advancement of the goals and
22    purposes of its membership; and the Illinois  Association  of
23    Park Districts.  "Qualified local government" means a unit of
24    local  government  approved by the Director and participating
25    in a program created under subsection (i) of  Section  10  of
26    this Act.
27        (t)  "Qualified   rehabilitation   facility"   means  any
28    not-for-profit  organization  that  is  accredited   by   the
29    Commission  on  Accreditation of Rehabilitation Facilities or
30    certified by the Department of Human Services  (as  successor
31    to   the   Department  of  Mental  Health  and  Developmental
32    Disabilities)   to   provide   services   to   persons   with
33    disabilities and which  receives  funds  from  the  State  of
34    Illinois  for  providing  those  services,  approved  by  the
                            -19-               LRB9002251EGfg
 1    Director   and  participating  in  a  program  created  under
 2    subsection (j) of Section 10 of this Act.
 3        (u)  "Qualified domestic  violence  shelter  or  service"
 4    means  any  Illinois domestic violence shelter or service and
 5    its administrative offices funded by the Department of  Human
 6    Services  (as  successor to the Illinois Department of Public
 7    Aid), approved by the Director and participating in a program
 8    created under subsection (k) of Section 10.
 9        (v)  "TRS benefit recipient" means a person who:
10             (1)  is not a "member" as defined in  this  Section;
11        and
12             (2)  is  receiving  a  monthly benefit or retirement
13        annuity under Article 16 of the  Illinois  Pension  Code;
14        and
15             (3)  either  (i)  has at least 8 years of creditable
16        service under Article 16 of the Illinois Pension Code, or
17        (ii) was enrolled in the health insurance program offered
18        under that Article on January 1, 1996, or  (iii)  is  the
19        survivor  of a benefit recipient who had at least 8 years
20        of creditable service under Article 16  of  the  Illinois
21        Pension  Code  or  was  enrolled  in the health insurance
22        program offered under that Article on the effective  date
23        of this amendatory Act of 1995, or (iv) is a recipient or
24        survivor  of  a  recipient  of a disability benefit under
25        Article 16 of the Illinois Pension Code.
26        (w)  "TRS dependent beneficiary" means a person who:
27             (1)  is not a "member" or "dependent" as defined  in
28        this Section; and
29             (2)  is  a  TRS benefit recipient's: (A) spouse, (B)
30        dependent parent who is receiving at least half of his or
31        her support  from  the  TRS  benefit  recipient,  or  (C)
32        unmarried  natural  or adopted child who is (i) under age
33        19, or  (ii)  enrolled  as  a  full-time  student  in  an
34        accredited  school,  financially  dependent  upon the TRS
                            -20-               LRB9002251EGfg
 1        benefit recipient, eligible as a dependent  for  Illinois
 2        State  income tax purposes, and either is under age 24 or
 3        was, on January 1, 1996,  participating  as  a  dependent
 4        beneficiary in the health insurance program offered under
 5        Article  16 of the Illinois Pension Code, or (iii) age 19
 6        or over who is  mentally  or  physically  handicapped  as
 7        defined in the Illinois Insurance Code.
 8        (x)  "Military  leave  with  pay  and benefits" refers to
 9    individuals in basic training for reserves,  special/advanced
10    training,  annual  training, emergency call up, or activation
11    by the President of the United States with approved  pay  and
12    benefits.
13        (y)  "Military  leave without pay and benefits" refers to
14    individuals who enlist for active duty in a regular component
15    of the U.S. Armed Forces  or  other  duty  not  specified  or
16    authorized under military leave with pay and benefits.
17        (z)  "Community college benefit recipient" means a person
18    who:
19             (1)  is  not  a "member" as defined in this Section;
20        and
21             (2)  is receiving a monthly  survivor's  annuity  or
22        retirement  annuity  under  Article  15  of  the Illinois
23        Pension Code; and
24             (3)  either  (i)  was  a  full-time  employee  of  a
25        community college district or an association of community
26        college boards created under the Public Community College
27        Act and was eligible to participate  in  a  group  health
28        benefit plan as an employee during the time of employment
29        with  a  community  college district or an association of
30        community college boards, or (ii) is the  survivor  of  a
31        person described in item (i).
32        (aa)  "Community  college  dependent beneficiary" means a
33    person who:
34             (1)  is not a "member" or "dependent" as defined  in
                            -21-               LRB9002251EGfg
 1        this Section; and
 2             (2)  is a community college benefit recipient's: (A)
 3        spouse,  (B)  dependent  parent who is receiving at least
 4        half of his or her support  from  the  community  college
 5        benefit  recipient,  or  (C) unmarried natural or adopted
 6        child who is (i) under age 19,  or  (ii)  enrolled  as  a
 7        full-time  student  in  an accredited school, financially
 8        dependent upon the community college  benefit  recipient,
 9        eligible  as  a  dependent  for Illinois State income tax
10        purposes and under age 23, or (iii) age 19  or  over  and
11        mentally  or  physically  handicapped  as  defined in the
12        Illinois Insurance Code.
13    (Source: P.A. 88-670,  eff.  12-2-94;  89-21,  eff.  6-21-95;
14    89-25,   eff.  6-21-95;  89-76,  eff.  7-1-95;  89-324,  eff.
15    8-13-95; 89-430, eff. 12-15-95; 89-502, eff. 7-1-96;  89-507,
16    eff. 7-1-97; 89-628, eff. 8-9-96; revised 8-23-96.)
17        (5 ILCS 375/6.9 new)
18        Sec.  6.9.  Health benefits for community college benefit
19    recipients and community college dependent beneficiaries.
20        (a)  Purpose.  It is the purpose of this  amendatory  Act
21    of 1997 to establish a uniform program of health benefits for
22    community  college  benefit  recipients  and  their dependent
23    beneficiaries under the administration of the  Department  of
24    Central Management Services.
25        (b)  Creation of program.  Beginning January 1, 1999, the
26    Department   of   Central   Management   Services   shall  be
27    responsible for administering a program  of  health  benefits
28    for   community  college  benefit  recipients  and  community
29    college dependent  beneficiaries  under  this  Section.   The
30    State  Universities  Retirement  System  and  the  boards  of
31    trustees  of  the  various  community college districts shall
32    cooperate with the Department in this endeavor.
33        (c)  Eligibility.    All   community   college    benefit
                            -22-               LRB9002251EGfg
 1    recipients  and  community  college  dependent  beneficiaries
 2    shall  be  eligible to participate in the program established
 3    under this Section, without  any  interruption  or  delay  in
 4    coverage or limitation as to pre-existing medical conditions.
 5    Eligibility  to  participate shall be determined by the State
 6    Universities  Retirement  System.    Eligibility  information
 7    shall be communicated to the Department of Central Management
 8    Services in a format acceptable to the Department.
 9        (d)  Coverage.  The health benefits provided  under  this
10    Section  shall be the same as the benefits provided under the
11    other provisions of this Act  for  annuitants  of  the  State
12    Universities   Retirement   System    and   their   dependent
13    beneficiaries.   However,  group  life insurance benefits are
14    not included in the benefits  to  be  provided  to  community
15    college  benefit  recipients  and community college dependent
16    beneficiaries under this Act.
17        (e)  Insurance rates and premiums.   The  Director  shall
18    determine  the  insurance  rates  and  premiums for community
19    college benefit recipients and  community  college  dependent
20    beneficiaries.   Rates  and  premiums may be based in part on
21    age and eligibility for federal medicare coverage.
22        The cost of health benefits under the  program  shall  be
23    paid as follows:
24             (1)  For  a  community college benefit recipient, up
25        to 75% of the total insurance rate shall be paid from the
26        Community College Health Insurance Security Fund.
27             (2)  The balance of the rate of insurance, including
28        the entire premium for any coverage for community college
29        dependent beneficiaries that has been elected,  shall  be
30        paid  by  deductions  authorized by the community college
31        benefit recipient to be withheld from his or her  monthly
32        annuity  or  benefit  payment from the State Universities
33        Retirement System; except that (i) if the balance of  the
34        cost  of  coverage  exceeds  the  amount  of  the monthly
                            -23-               LRB9002251EGfg
 1        annuity or benefit payment, the difference shall be  paid
 2        directly  to  the State Universities Retirement System by
 3        the community college benefit recipient, and (ii) all  or
 4        part  of  the balance of the cost of coverage may, at the
 5        option of the board of trustees of the community  college
 6        district,  be  paid  to the State Universities Retirement
 7        System by the board of  the  community  college  district
 8        from   which  the  community  college  benefit  recipient
 9        retired.  The State Universities Retirement System  shall
10        promptly  deposit  all  moneys  withheld by or paid to it
11        under this subdivision (e)(2) into the Community  College
12        Health  Insurance  Security Fund.  These moneys shall not
13        be considered assets of the State Universities Retirement
14        System.
15        (f)  Financing.    All   revenues   arising   from    the
16    administration  of  the  health  benefit  program established
17    under this Section shall  be  deposited  into  the  Community
18    College  Health  Insurance  Security  Fund,  which  is hereby
19    created as a nonappropriated trust fund to  be  held  outside
20    the  State  Treasury,  with the State Treasurer as custodian.
21    Any interest earned on moneys in the Community College Health
22    Insurance Security Fund shall be deposited into the Fund.
23        Moneys in the Community College Health Insurance Security
24    Fund shall be used only  to  pay  the  costs  of  the  health
25    benefit  program  established  under  this Section, including
26    associated administrative costs.  Beginning July 1, 1998, the
27    Department  of   Central   Management   Services   may   make
28    expenditures  from  the  Community  College  Health Insurance
29    Security Fund for those costs.
30        (g)  Contract  for  benefits.   The  Director  shall   by
31    contract,  self-insurance,  or  otherwise  make available the
32    program of health  benefits  for  community  college  benefit
33    recipients    and    their    community   college   dependent
34    beneficiaries that is provided  for  in  this  Section.   The
                            -24-               LRB9002251EGfg
 1    contract  or  other  arrangement  for  the provision of these
 2    health benefits shall be on terms deemed by the  Director  to
 3    be  in  the  best  interest  of the State of Illinois and the
 4    community  college  benefit  recipients  based  on,  but  not
 5    limited to, such criteria  as  administrative  cost,  service
 6    capabilities  of  the  carrier  or  other contractor, and the
 7    costs of the benefits.
 8        (h)  Continuation of program.  It is the intention of the
 9    General Assembly that the program of health benefits provided
10    under this Section be maintained on  an  ongoing,  affordable
11    basis.   The  program  of health benefits provided under this
12    Section may be amended by the State and is not intended to be
13    a pension or retirement benefit subject to  protection  under
14    Article XIII, Section 5 of the Illinois Constitution.
15        (5 ILCS 375/6.10 new)
16        Sec.  6.10. Contributions to the Community College Health
17    Insurance Security Fund.
18        (a)  Beginning July 1, 1998, every active contributor  of
19    the  State  Universities Retirement System (established under
20    Article 15 of  the  Illinois  Pension  Code)  who  (1)  is  a
21    full-time  employee  of  a  community  college district or an
22    association of community college boards and  (2)  is  not  an
23    employee  as  defined  in  Section  3  of this Act shall make
24    contributions toward the cost of community college  annuitant
25    and survivor health benefits at the rate of 0.35% of salary.
26        These contributions shall be deducted by the employer and
27    paid  to  the State Universities Retirement System as service
28    agent for the Department of Central Management Services.  The
29    System  may  use  the  same  processes  for  collecting   the
30    contributions  required  by  this  subsection that it uses to
31    collect the contributions received from those employees under
32    Section 15-157 of the Illinois Pension Code.  An employer may
33    agree to pick up or pay the contributions required under this
                            -25-               LRB9002251EGfg
 1    subsection on behalf  of  the  employee;  such  contributions
 2    shall be deemed to have been paid by the employee.
 3        A  person  required  to  make  contributions  under  this
 4    subsection  (a)  who  purchases optional service credit under
 5    Article 15 of the Illinois Pension Code  must  also  pay  the
 6    contribution  required under this subsection (a) with respect
 7    to that optional service credit.  This contribution  must  be
 8    received by the System before that optional service credit is
 9    granted.
10        The  State  Universities Retirement System shall promptly
11    deposit all moneys collected under this subsection  (a)  into
12    the  Community College Health Insurance Security Fund created
13    in Section 6.9 of this Act.  The moneys collected under  this
14    Section  shall  be  used  only for the purposes authorized in
15    Section 6.9 of this Act and shall not  be  considered  to  be
16    assets   of   the   State   Universities  Retirement  System.
17    Contributions made under this Section are not transferable to
18    other  pension  funds  or  retirement  systems  and  are  not
19    refundable upon termination of service.
20        (b)  Beginning July  1,  1998,  every  community  college
21    district  or  association of community college boards that is
22    an employer under the State  Universities  Retirement  System
23    shall  contribute  toward  the  cost of the community college
24    health benefits provided under Section 6.9  of  this  Act  an
25    amount  equal  to  0.35%  of the salary paid to its full-time
26    employees  who  participate   in   the   State   Universities
27    Retirement System and are not members as defined in Section 3
28    of this Act.
29        These  contributions shall be paid by the employer to the
30    State Universities Retirement System as service agent for the
31    Department of Central Management Services.   The  System  may
32    use  the  same  processes  for  collecting  the contributions
33    required by this subsection  that  it  uses  to  collect  the
34    contributions  received  from  those  employers under Section
                            -26-               LRB9002251EGfg
 1    15-155 of the Illinois Pension Code.
 2        The State Universities Retirement System  shall  promptly
 3    deposit  all  moneys collected under this subsection (b) into
 4    the Community College Health Insurance Security Fund  created
 5    in  Section 6.9 of this Act.  The moneys collected under this
 6    Section shall be used only for  the  purposes  authorized  in
 7    Section  6.9  of  this  Act and shall not be considered to be
 8    assets  of  the   State   Universities   Retirement   System.
 9    Contributions made under this Section are not transferable to
10    other  pension  funds  or  retirement  systems  and  are  not
11    refundable upon termination of service.
12        (c)  On  or before November 15 of each year, the Board of
13    Trustees of the State Universities  Retirement  System  shall
14    certify  to  the Governor, the Director of Central Management
15    Services, and the State Comptroller its estimate of the total
16    amount of contributions to be paid under  subsection  (a)  of
17    this  Section  for  the  next fiscal year.  The certification
18    shall include a  detailed  explanation  of  the  methods  and
19    information  that  the  Board  relied  upon  in preparing its
20    estimate.  As soon as possible after the  effective  date  of
21    this  Section, the Board shall submit its estimate for fiscal
22    year 1999.
23        (d)  Beginning in fiscal year 1999, on the first  day  of
24    each  month,  or  as soon thereafter as may be practical, the
25    State Treasurer and the State Comptroller shall transfer from
26    the General Revenue Fund  to  the  Community  College  Health
27    Insurance   Security   Fund   1/12   of   the  annual  amount
28    appropriated for that fiscal year to  the  State  Comptroller
29    for  deposit  into  the  Community  College  Health Insurance
30    Security Fund under Section 1.4 of the  State  Pension  Funds
31    Continuing Appropriation Act.
32        (e)  Except  where  otherwise  specified in this Section,
33    the definitions that apply to  Article  15  of  the  Illinois
34    Pension Code apply to this Section.
                            -27-               LRB9002251EGfg
 1        (5 ILCS 375/15) (from Ch. 127, par. 535)
 2        Sec. 15. Administration; rules; audit; review.
 3        (a)  The  Director  shall  administer  this Act and shall
 4    prescribe such rules and regulations as are necessary to give
 5    full effect to the purposes of this Act.
 6        (b)  These rules may fix  reasonable  standards  for  the
 7    group  life  and  group  health  programs  and  other benefit
 8    programs offered under this  Act,  and  for  the  contractors
 9    providing them.
10        (c)  These  rules shall specify that covered and optional
11    medical services of the program are services provided  within
12    the   scope   of  their  licenses  by  practitioners  in  all
13    categories licensed under the Medical Practice  Act  of  1987
14    and shall provide that all eligible persons be fully informed
15    of this specification.
16        (d)  These rules shall establish eligibility requirements
17    for  members and dependents as may be necessary to supplement
18    or clarify requirements contained in this Act.
19        (e)  Each affected department of  the  State,  the  State
20    Universities  Retirement  System,  the  Teachers'  Retirement
21    System,  and  each qualified local government, rehabilitation
22    facility, or domestic violence shelter or service, shall keep
23    such records,  make  such  certifications,  and  furnish  the
24    Director  such  information  as  may  be  necessary  for  the
25    administration  of this Act, including information concerning
26    number and total amounts  of  payroll  of  employees  of  the
27    department who are paid from trust funds or federal funds.
28        (f)  Each   member,   each   Community   College  benefit
29    recipient to whom this Act  applies,  and  each  TRS  benefit
30    recipient   to  whom  this  Act  applies  shall  furnish  the
31    Director, in such form as may be  required,  any  information
32    that  may  be  necessary to enroll such member or TRS benefit
33    recipient and, if applicable, his or her  dependents  or  TRS
34    dependent beneficiaries under the programs or plan, including
                            -28-               LRB9002251EGfg
 1    such  data  as  may  be  required  to  allow  the Director to
 2    accumulate  statistics  on  data   normally   considered   in
 3    actuarial  studies  of  employee  groups.   Information about
 4    community college benefit recipients  and  community  college
 5    dependent  beneficiaries shall be furnished through the State
 6    Universities  Retirement  System.   Information   about   TRS
 7    benefit  recipients  and TRS dependent beneficiaries shall be
 8    furnished through the Teachers' Retirement System.
 9        (g)  There shall be an annual audit  and  report  on  the
10    programs  authorized  and established by this Act prepared by
11    the Director with the assistance of a qualified,  independent
12    accounting firm.  The annual report shall provide information
13    on  the  experience,  and  administrative  effectiveness  and
14    adequacy   of   the   program   including,  when  applicable,
15    recommendations on up-grading of benefits and improvement  of
16    the program.
17        (h)  Any  final  order,  decision  or other determination
18    made, issued or executed by the Director under the provisions
19    of this Act whereby any contractor  or  person  is  aggrieved
20    shall  be subject to review in accordance with the provisions
21    of the Administrative  Review  Law  and  all  amendments  and
22    modifications   thereof,   and  the  rules  adopted  pursuant
23    thereto, shall apply to and govern all  proceedings  for  the
24    judicial  review  of  final  administrative  decisions of the
25    Director.
26    (Source: P.A. 89-21, eff. 6-21-95; 89-25, eff. 6-21-95.)
27        Section  10.   The   State   Pension   Funds   Continuing
28    Appropriation  Act  is  amended  by  adding  Section  1.4  as
29    follows:
30        (40 ILCS 15/1.4 new)
31        Sec. 1.4. Appropriations for the Community College Health
32    Insurance  Security  Fund.   Beginning  in  State fiscal year
                            -29-               LRB9002251EGfg
 1    1999, there is hereby appropriated, on  a  continuing  annual
 2    basis, from the General Revenue Fund to the State Comptroller
 3    for  deposit  into  the  Community  College  Health Insurance
 4    Security Fund, an amount equal to the amount certified by the
 5    Board of Trustees of the State Universities Retirement System
 6    under subsection (c) of Section 6.10 of the  State  Employees
 7    Group  Insurance Act of 1971 as the estimated total amount of
 8    contributions to be paid under subsection (a) of that Section
 9    6.10 in that fiscal year.  The moneys appropriated under this
10    Section 1.4 shall be deposited  into  the  Community  College
11    Health Insurance Security Fund and used only for the purposes
12    authorized  in  Section  6.9  of  the  State  Employees Group
13    Insurance Act of 1971.
14        Section 15.  The Public Community College Act is  amended
15    by changing Section 2-16.02 as follows:
16        (110 ILCS 805/2-16.02) (from Ch. 122, par. 102-16.02)
17        Sec.  2-16.02.  Grants.   Any  community college district
18    that maintains a community college recognized  by  the  State
19    Board shall receive, when eligible, grants enumerated in this
20    Section.   Except  for  equalization  grants, retirees health
21    insurance grants, grants to districts established pursuant to
22    Section 6-6.1, and grants for special initiatives, all grants
23    specified in this Section shall be based on  funded  semester
24    credit hours.  Funded semester credit hours shall be defined,
25    for  purposes  of  this  Section,  as  the greater of (1) the
26    number of semester credit hours, or equivalent, in all funded
27    instructional categories of  students who have been certified
28    as being in attendance at midterm during the respective terms
29    of the base fiscal year or (2) the average of semester credit
30    hours, or equivalent, in all funded instructional  categories
31    of students who have been certified as being in attendance at
32    midterm  during  the respective terms of the base fiscal year
                            -30-               LRB9002251EGfg
 1    and the 2 prior fiscal years.  For purposes of this  Section,
 2    "base fiscal year" means the fiscal year 2 years prior to the
 3    fiscal  year  for  which  the  grants are appropriated.  Such
 4    students shall have been residents of Illinois and shall have
 5    been enrolled in  courses  that  are  part  of  instructional
 6    program  categories  approved by the State Board and that are
 7    applicable  toward  an  associate  degree   or   certificate.
 8    Courses are not eligible for reimbursement where the district
 9    receives federal or State financing or both, except financing
10    through the State Board, for 50% or more of the program costs
11    with  the  exception  of courses offered by contract with the
12    Department  of  Corrections  in  correctional   institutions.
13    After  distributing  a  grant of up to one-tenth of 1% of the
14    total available credit hour grant funding  to  each  district
15    with  less than 75,000 funded semester credit hours exclusive
16    of Department of  Corrections  credit  hours,  the  remaining
17    credit  hour  grants  shall be paid based on rates per funded
18    semester credit hour or equivalent calculated  by  the  State
19    Board  for  funded  instructional  categories  using  cost of
20    instruction,  enrollment,  inflation,  and   other   relevant
21    factors.
22        Grants  for  equalization  shall  be  distributed to each
23    district that falls below a statewide threshold calculated by
24    the State Board by: (A) adding  (1)  the  Corporate  Personal
25    Property  Replacement  Fund  allocations from the base fiscal
26    year or the average of the base fiscal year and  prior  year,
27    whichever  is less, divided by the applicable tax rate to (2)
28    the most recently audited year's equalized assessed valuation
29    or the average of the most recently audited  year  and  prior
30    year,  whichever  is less, (B) then dividing by the number of
31    audited full-time equivalent resident students for  the  base
32    fiscal  year or the average for the base  fiscal year and the
33    2 prior fiscal years, whichever  is  greater,  and  (C)  then
34    multiplying  by  the  applicable  tax  rate.  The State Board
                            -31-               LRB9002251EGfg
 1    shall use the same methodology to calculate a  local  revenue
 2    factor   for   each  district.  The  difference  between  the
 3    statewide threshold and the local revenue factor,  multiplied
 4    by   the  number  of  full-time  equivalent  students,  shall
 5    determine  the  amount  of  equalization  funding  that  each
 6    district is eligible to receive.
 7        A special populations  grant  of  $20,000  per  community
 8    college  shall  be  distributed  to  each  community  college
 9    district,  and  any  remaining appropriated funds for special
10    populations   programs   with   the   exception   of   moneys
11    appropriated  as  grants  for  unique   special   populations
12    initiatives  created  by the State Board shall be distributed
13    proportionately to each community  college  district  on  the
14    basis  of  each  district's  share  of the State total funded
15    semester     credit     hours,     or     equivalent,      in
16    remedial/developmental   and   adult   basic  education/adult
17    secondary  education   courses.    Each   community   college
18    district's  expenditures  of funds from those grants shall be
19    limited to courses  and  services  related  to  programs  for
20    educationally   disadvantaged   and   minority   students  as
21    specified by the State Board.
22        A  workforce  preparation  grant  of  $35,000  shall   be
23    distributed  to  each  community  college  district,  and any
24    remaining appropriated funds for workforce  preparation  with
25    the  exception  of  monies appropriated as grants for special
26    workforce preparation initiatives created by the State  Board
27    shall   be  distributed  proportionately  to  each  community
28    college district on the basis of each district's share of the
29    State total funded semester credit hours, or  equivalent,  in
30    business  occupational,  technical  occupational,  and health
31    occupational  courses.   Each  community  college  district's
32    expenditures of funds from those grants shall be  limited  to
33    workforce preparation activities and services as specified by
34    the State Board.
                            -32-               LRB9002251EGfg
 1        An   advanced   technology   equipment   grant  shall  be
 2    distributed  proportionately  to   each   community   college
 3    district  based  on  each district's share of the State total
 4    funded semester credit  hours,  or  equivalent,  in  business
 5    occupational, technical occupational, and health occupational
 6    courses.   Each  community college district's expenditures of
 7    funds from those grants shall be limited  to  procurement  of
 8    equipment for curricula impacted by technological advances as
 9    specified by the State Board.
10        Until  January 1, 1999, a retirees health insurance grant
11    shall  be  distributed  proportionately  to  each   community
12    college  district  or entity created pursuant to Section 3-55
13    based on  each  district's  share  of  the  total  number  of
14    community  college  retirees  in  the  State on July 1 of the
15    fiscal year prior to the fiscal year for which the grants are
16    appropriated,  as  determined  by  the  State  Board.    Each
17    community college district's expenditures of funds from those
18    grants  shall  be limited to payment of costs associated with
19    the provision of retirees' health  insurance.   The  retirees
20    health insurance grant is discontinued on January 1, 1999.
21        A  grant  shall  be provided to the Illinois Occupational
22    Information  Coordinating  Committee  for  the   purpose   of
23    providing  the  State  Board with labor market information by
24    updating the Occupational  Information  System  and  HORIZONS
25    Career  Information  System  and  by  providing  labor market
26    information  and  technical  assistance,  that  grant  to  be
27    provided in its entirety during  the  first  quarter  of  the
28    fiscal year.
29        A  grant  shall be provided to Community College District
30    #540, that district having been formed under  the  provisions
31    of  Section 6-6.1, for the purpose of providing funds for the
32    district to meet operating expenses.  The State  Board  shall
33    certify,  prepare, and submit to the State Comptroller during
34    August of the fiscal year a voucher setting forth a  one-time
                            -33-               LRB9002251EGfg
 1    payment  of  any Education Assistance Fund appropriation, and
 2    during November, February, and  May  of  the  fiscal  year  a
 3    voucher  setting forth equal payments of General Revenue Fund
 4    appropriations.  The Comptroller shall cause a warrant to  be
 5    drawn  for  the  amount  due,  payable  to  Community College
 6    District #540, within 15 days following the receipt  of  each
 7    such voucher.
 8        The  State  Board  shall  distribute  such  other special
 9    grants as may be authorized or appropriated  by  the  General
10    Assembly.
11        Each  community college district entitled to State grants
12    under this Section must submit a report of its enrollment  to
13    the  State  Board not later than 30 days following the end of
14    each semester, quarter, or term in a format prescribed by the
15    State Board.  These semester  credit  hours,  or  equivalent,
16    shall  be certified by each district on forms provided by the
17    State  Board.   Each  district's  certified  semester  credit
18    hours, or  equivalent,  are  subject  to  audit  pursuant  to
19    Section 3-22.1.
20        The State Board shall certify, prepare, and submit to the
21    State  Comptroller during August, November, February, and May
22    of each fiscal year vouchers setting forth an amount equal to
23    25% of the districts' total  grants  approved  by  the  State
24    Board  for  credit  hour  grants, special populations grants,
25    workforce preparation grants, equalization  grants,  advanced
26    technology  equipment  grants,  and retirees health insurance
27    grants. The State Board shall prepare and submit to the State
28    Comptroller vouchers for special initiatives  grant  payments
29    as   set   forth   in  the  contracts  executed  pursuant  to
30    appropriations  received   for   special   initiatives.   The
31    Comptroller  shall  cause  his  warrants  to be drawn for the
32    respective amounts due, payable  to  each  community  college
33    district,  within  15  days  following  the  receipt  of such
34    vouchers.  If the amount appropriated for grants is different
                            -34-               LRB9002251EGfg
 1    from the amount provided for such grants under this Act,  the
 2    grants   shall   be   proportionately  reduced  or  increased
 3    accordingly.
 4        For the purposes  of  this  Section,  "resident  student"
 5    means a student in a community college district who maintains
 6    residency   in   that   district  or  meets  other  residency
 7    definitions established by  the  State  Board,  and  who  was
 8    enrolled  either in one of the approved instructional program
 9    categories in that district, or in another community  college
10    district  to  which the resident's district is paying tuition
11    under Section 6-2 or with which the resident's  district  has
12    entered into a cooperative agreement in lieu of such tuition.
13        For   the   purposes   of   this  Section,  a  "full-time
14    equivalent" student is equal to 30 semester credit hours.
15        The Illinois Community College Board Contracts and Grants
16    Fund is hereby created  in  the  State  Treasury.   Items  of
17    income  to  this  fund  shall  include  any  grants,  awards,
18    endowments,  or  like  proceeds, and where appropriate, other
19    funds made available  through  contracts  with  governmental,
20    public,   and  private  agencies  or  persons.   The  General
21    Assembly shall from time to time make appropriations  payable
22    from  such fund for the support, improvement, and expenses of
23    the State Board and Illinois community college districts.
24    (Source: P.A. 88-103; 88-553; 89-141, eff.  7-14-95;  89-281,
25    eff. 8-10-95; 89-473, eff. 6-18-96; 89-626, eff. 8-9-96.)
26        Section  90.  The State Mandates Act is amended by adding
27    Section 8.21 as follows:
28        (30 ILCS 805/8.21 new)
29        Sec. 8.21. Exempt mandate.   Notwithstanding  Sections  6
30    and  8 of this Act, no reimbursement by the State is required
31    for  the  implementation  of  any  mandate  created  by  this
32    amendatory Act of 1997.
                            -35-               LRB9002251EGfg
 1        Section 95.  No acceleration or delay.   Where  this  Act
 2    makes changes in a statute that is represented in this Act by
 3    text  that  is not yet or no longer in effect (for example, a
 4    Section represented by multiple versions), the  use  of  that
 5    text  does  not  accelerate or delay the taking effect of (i)
 6    the changes made by this Act or (ii) provisions derived  from
 7    any other Public Act.
 8        Section  99.  Effective date.  This Act takes effect upon
 9    becoming law.

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