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90_SB0423enr
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
SB423 Enrolled 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.
SB423 Enrolled -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
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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
SB423 Enrolled -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
SB423 Enrolled -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
SB423 Enrolled -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
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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
SB423 Enrolled -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
SB423 Enrolled -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
SB423 Enrolled -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 (other than an employee whose last employer under
32 Article 15 of the Illinois Pension Code was a community
33 college district subject to Article VII of the Public
34 Community College Act) and was eligible to participate in
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1 a group health benefit plan as an employee during the
2 time of employment with a community college district
3 (other than a community college district subject to
4 Article VII of the Public Community College Act) or an
5 association of community college boards, or (ii) is the
6 survivor of a person described in item (i).
7 (aa) "Community college dependent beneficiary" means a
8 person who:
9 (1) is not a "member" or "dependent" as defined in
10 this Section; and
11 (2) is a community college benefit recipient's: (A)
12 spouse, (B) dependent parent who is receiving at least
13 half of his or her support from the community college
14 benefit recipient, or (C) unmarried natural or adopted
15 child who is (i) under age 19, or (ii) enrolled as a
16 full-time student in an accredited school, financially
17 dependent upon the community college benefit recipient,
18 eligible as a dependent for Illinois State income tax
19 purposes and under age 23, or (iii) age 19 or over and
20 mentally or physically handicapped as defined in the
21 Illinois Insurance Code.
22 (Source: P.A. 88-670, eff. 12-2-94; 89-21, eff. 6-21-95;
23 89-25, eff. 6-21-95; 89-76, eff. 7-1-95; 89-324, eff.
24 8-13-95; 89-430, eff. 12-15-95; 89-502, eff. 7-1-96; 89-628,
25 eff. 8-9-96; revised 8-23-96.)
26 (Text of Section after amendment by P.A. 89-507)
27 Sec. 3. Definitions. Unless the context otherwise
28 requires, the following words and phrases as used in this Act
29 shall have the following meanings. The Department may define
30 these and other words and phrases separately for the purpose
31 of implementing specific programs providing benefits under
32 this Act.
33 (a) "Administrative service organization" means any
SB423 Enrolled -12- LRB9002251EGfg
1 person, firm or corporation experienced in the handling of
2 claims which is fully qualified, financially sound and
3 capable of meeting the service requirements of a contract of
4 administration executed with the Department.
5 (b) "Annuitant" means (1) an employee who retires, or
6 has retired, on or after January 1, 1966 on an immediate
7 annuity under the provisions of Articles 2, 14, 15 (including
8 an employee who has retired and is receiving a retirement
9 annuity under an optional program established under Section
10 15-158.2 and who would also be eligible for a retirement
11 annuity had that person been a participant in the State
12 University Retirement System), paragraphs (b) or (c) of
13 Section 16-106, or Article 18 of the Illinois Pension Code;
14 (2) any person who was receiving group insurance coverage
15 under this Act as of March 31, 1978 by reason of his status
16 as an annuitant, even though the annuity in relation to which
17 such coverage was provided is a proportional annuity based on
18 less than the minimum period of service required for a
19 retirement annuity in the system involved; (3) any person not
20 otherwise covered by this Act who has retired as a
21 participating member under Article 2 of the Illinois Pension
22 Code but is ineligible for the retirement annuity under
23 Section 2-119 of the Illinois Pension Code; (4) the spouse of
24 any person who is receiving a retirement annuity under
25 Article 18 of the Illinois Pension Code and who is covered
26 under a group health insurance program sponsored by a
27 governmental employer other than the State of Illinois and
28 who has irrevocably elected to waive his or her coverage
29 under this Act and to have his or her spouse considered as
30 the "annuitant" under this Act and not as a "dependent"; or
31 (5) an employee who retires, or has retired, from a qualified
32 position, as determined according to rules promulgated by the
33 Director, under a qualified local government or a qualified
34 rehabilitation facility or a qualified domestic violence
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1 shelter or service. (For definition of "retired employee",
2 see (p) post).
3 (c) "Carrier" means (1) an insurance company, a
4 corporation organized under the Limited Health Service
5 Organization Act or the Voluntary Health Services Plan Act, a
6 partnership, or other nongovernmental organization, which is
7 authorized to do group life or group health insurance
8 business in Illinois, or (2) the State of Illinois as a
9 self-insurer.
10 (d) "Compensation" means salary or wages payable on a
11 regular payroll by the State Treasurer on a warrant of the
12 State Comptroller out of any State, trust or federal fund, or
13 by the Governor of the State through a disbursing officer of
14 the State out of a trust or out of federal funds, or by any
15 Department out of State, trust, federal or other funds held
16 by the State Treasurer or the Department, to any person for
17 personal services currently performed, and ordinary or
18 accidental disability benefits under Articles 2, 14, 15
19 (including ordinary or accidental disability benefits under
20 an optional program established under Section 15-158.2),
21 paragraphs (b) or (c) of Section 16-106, or Article 18 of the
22 Illinois Pension Code, for disability incurred after January
23 1, 1966, or benefits payable under the Workers' Compensation
24 or Occupational Diseases Act or benefits payable under a sick
25 pay plan established in accordance with Section 36 of the
26 State Finance Act. "Compensation" also means salary or wages
27 paid to an employee of any qualified local government or
28 qualified rehabilitation facility or a qualified domestic
29 violence shelter or service.
30 (e) "Commission" means the State Employees Group
31 Insurance Advisory Commission authorized by this Act.
32 Commencing July 1, 1984, "Commission" as used in this Act
33 means the Illinois Economic and Fiscal Commission as
34 established by the Legislative Commission Reorganization Act
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1 of 1984.
2 (f) "Contributory", when referred to as contributory
3 coverage, shall mean optional coverages or benefits elected
4 by the member toward the cost of which such member makes
5 contribution, or which are funded in whole or in part through
6 the acceptance of a reduction in earnings or the foregoing of
7 an increase in earnings by an employee, as distinguished from
8 noncontributory coverage or benefits which are paid entirely
9 by the State of Illinois without reduction of the member's
10 salary.
11 (g) "Department" means any department, institution,
12 board, commission, officer, court or any agency of the State
13 government receiving appropriations and having power to
14 certify payrolls to the Comptroller authorizing payments of
15 salary and wages against such appropriations as are made by
16 the General Assembly from any State fund, or against trust
17 funds held by the State Treasurer and includes boards of
18 trustees of the retirement systems created by Articles 2, 14,
19 15, 16 and 18 of the Illinois Pension Code. "Department"
20 also includes the Illinois Comprehensive Health Insurance
21 Board and the Illinois Rural Bond Bank.
22 (h) "Dependent", when the term is used in the context of
23 the health and life plan, means a member's spouse and any
24 unmarried child (1) from birth to age 19 including an adopted
25 child, a child who lives with the member from the time of the
26 filing of a petition for adoption until entry of an order of
27 adoption, a stepchild or recognized child who lives with the
28 member in a parent-child relationship, or a child who lives
29 with the member if such member is a court appointed guardian
30 of the child, or (2) age 19 to 23 enrolled as a full-time
31 student in any accredited school, financially dependent upon
32 the member, and eligible as a dependent for Illinois State
33 income tax purposes, or (3) age 19 or over who is mentally or
34 physically handicapped as defined in the Illinois Insurance
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1 Code. For the health plan only, the term "dependent" also
2 includes any person enrolled prior to the effective date of
3 this Section who is dependent upon the member to the extent
4 that the member may claim such person as a dependent for
5 Illinois State income tax deduction purposes; no other such
6 person may be enrolled.
7 (i) "Director" means the Director of the Illinois
8 Department of Central Management Services.
9 (j) "Eligibility period" means the period of time a
10 member has to elect enrollment in programs or to select
11 benefits without regard to age, sex or health.
12 (k) "Employee" means and includes each officer or
13 employee in the service of a department who (1) receives his
14 compensation for service rendered to the department on a
15 warrant issued pursuant to a payroll certified by a
16 department or on a warrant or check issued and drawn by a
17 department upon a trust, federal or other fund or on a
18 warrant issued pursuant to a payroll certified by an elected
19 or duly appointed officer of the State or who receives
20 payment of the performance of personal services on a warrant
21 issued pursuant to a payroll certified by a Department and
22 drawn by the Comptroller upon the State Treasurer against
23 appropriations made by the General Assembly from any fund or
24 against trust funds held by the State Treasurer, and (2) is
25 employed full-time or part-time in a position normally
26 requiring actual performance of duty during not less than 1/2
27 of a normal work period, as established by the Director in
28 cooperation with each department, except that persons elected
29 by popular vote will be considered employees during the
30 entire term for which they are elected regardless of hours
31 devoted to the service of the State, and (3) except that
32 "employee" does not include any person who is not eligible by
33 reason of such person's employment to participate in one of
34 the State retirement systems under Articles 2, 14, 15 (either
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1 the regular Article 15 system or an optional program
2 established under Section 15-158.2) or 18, or under paragraph
3 (b) or (c) of Section 16-106, of the Illinois Pension Code,
4 but such term does include persons who are employed during
5 the 6 month qualifying period under Article 14 of the
6 Illinois Pension Code. Such term also includes any person
7 who (1) after January 1, 1966, is receiving ordinary or
8 accidental disability benefits under Articles 2, 14, 15
9 (including ordinary or accidental disability benefits under
10 an optional program established under Section 15-158.2),
11 paragraphs (b) or (c) of Section 16-106, or Article 18 of the
12 Illinois Pension Code, for disability incurred after January
13 1, 1966, (2) receives total permanent or total temporary
14 disability under the Workers' Compensation Act or
15 Occupational Disease Act as a result of injuries sustained or
16 illness contracted in the course of employment with the State
17 of Illinois, or (3) is not otherwise covered under this Act
18 and has retired as a participating member under Article 2 of
19 the Illinois Pension Code but is ineligible for the
20 retirement annuity under Section 2-119 of the Illinois
21 Pension Code. However, a person who satisfies the criteria
22 of the foregoing definition of "employee" except that such
23 person is made ineligible to participate in the State
24 Universities Retirement System by clause (4) of the first
25 paragraph of Section 15-107 of the Illinois Pension Code is
26 also an "employee" for the purposes of this Act. "Employee"
27 also includes any person receiving or eligible for benefits
28 under a sick pay plan established in accordance with Section
29 36 of the State Finance Act. "Employee" also includes each
30 officer or employee in the service of a qualified local
31 government, including persons appointed as trustees of
32 sanitary districts regardless of hours devoted to the service
33 of the sanitary district, and each employee in the service of
34 a qualified rehabilitation facility and each full-time
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1 employee in the service of a qualified domestic violence
2 shelter or service, as determined according to rules
3 promulgated by the Director.
4 (l) "Member" means an employee, annuitant, retired
5 employee or survivor.
6 (m) "Optional coverages or benefits" means those
7 coverages or benefits available to the member on his or her
8 voluntary election, and at his or her own expense.
9 (n) "Program" means the group life insurance, health
10 benefits and other employee benefits designed and contracted
11 for by the Director under this Act.
12 (o) "Health plan" means a self-insured health insurance
13 program offered by the State of Illinois for the purposes of
14 benefiting employees by means of providing, among others,
15 wellness programs, utilization reviews, second opinions and
16 medical fee reviews, as well as for paying for hospital and
17 medical care up to the maximum coverage provided by the plan,
18 to its members and their dependents.
19 (p) "Retired employee" means any person who would be an
20 annuitant as that term is defined herein but for the fact
21 that such person retired prior to January 1, 1966. Such term
22 also includes any person formerly employed by the University
23 of Illinois in the Cooperative Extension Service who would be
24 an annuitant but for the fact that such person was made
25 ineligible to participate in the State Universities
26 Retirement System by clause (4) of the first paragraph of
27 Section 15-107 of the Illinois Pension Code.
28 (q) "Survivor" means a person receiving an annuity as a
29 survivor of an employee or of an annuitant. "Survivor" also
30 includes: (1) the surviving dependent of a person who
31 satisfies the definition of "employee" except that such
32 person is made ineligible to participate in the State
33 Universities Retirement System by clause (4) of the first
34 paragraph of Section 15-107 of the Illinois Pension Code; and
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1 (2) the surviving dependent of any person formerly employed
2 by the University of Illinois in the Cooperative Extension
3 Service who would be an annuitant except for the fact that
4 such person was made ineligible to participate in the State
5 Universities Retirement System by clause (4) of the first
6 paragraph of Section 15-107 of the Illinois Pension Code.
7 (r) "Medical services" means the services provided
8 within the scope of their licenses by practitioners in all
9 categories licensed under the Medical Practice Act of 1987.
10 (s) "Unit of local government" means any county,
11 municipality, township, school district, special district or
12 other unit, designated as a unit of local government by law,
13 which exercises limited governmental powers or powers in
14 respect to limited governmental subjects, any not-for-profit
15 association with a membership that primarily includes
16 townships and township officials, that has duties that
17 include provision of research service, dissemination of
18 information, and other acts for the purpose of improving
19 township government, and that is funded wholly or partly in
20 accordance with Section 85-15 of the Township Code; any
21 not-for-profit corporation or association, with a membership
22 consisting primarily of municipalities, that operates its own
23 utility system, and provides research, training,
24 dissemination of information, or other acts to promote
25 cooperation between and among municipalities that provide
26 utility services and for the advancement of the goals and
27 purposes of its membership; and the Illinois Association of
28 Park Districts. "Qualified local government" means a unit of
29 local government approved by the Director and participating
30 in a program created under subsection (i) of Section 10 of
31 this Act.
32 (t) "Qualified rehabilitation facility" means any
33 not-for-profit organization that is accredited by the
34 Commission on Accreditation of Rehabilitation Facilities or
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1 certified by the Department of Human Services (as successor
2 to the Department of Mental Health and Developmental
3 Disabilities) to provide services to persons with
4 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 Department of Human
11 Services (as successor to the Illinois Department of Public
12 Aid), approved by the Director and participating in a program
13 created under subsection (k) of Section 10.
14 (v) "TRS benefit recipient" means a person who:
15 (1) is not a "member" as defined in this Section;
16 and
17 (2) is receiving a monthly benefit or retirement
18 annuity under Article 16 of the Illinois Pension Code;
19 and
20 (3) either (i) has at least 8 years of creditable
21 service under Article 16 of the Illinois Pension Code, or
22 (ii) was enrolled in the health insurance program offered
23 under that Article on January 1, 1996, or (iii) is the
24 survivor of a benefit recipient who had at least 8 years
25 of creditable service under Article 16 of the Illinois
26 Pension Code or was enrolled in the health insurance
27 program offered under that Article on the effective date
28 of this amendatory Act of 1995, or (iv) is a recipient or
29 survivor of a recipient of a disability benefit under
30 Article 16 of the Illinois Pension Code.
31 (w) "TRS dependent beneficiary" means a person who:
32 (1) is not a "member" or "dependent" as defined in
33 this Section; and
34 (2) is a TRS benefit recipient's: (A) spouse, (B)
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1 dependent parent who is receiving at least half of his or
2 her support from the TRS benefit recipient, or (C)
3 unmarried natural or adopted child who is (i) under age
4 19, or (ii) enrolled as a full-time student in an
5 accredited school, financially dependent upon the TRS
6 benefit recipient, eligible as a dependent for Illinois
7 State income tax purposes, and either is under age 24 or
8 was, on January 1, 1996, participating as a dependent
9 beneficiary in the health insurance program offered under
10 Article 16 of the Illinois Pension Code, or (iii) age 19
11 or over who is mentally or physically handicapped as
12 defined in the Illinois Insurance Code.
13 (x) "Military leave with pay and benefits" refers to
14 individuals in basic training for reserves, special/advanced
15 training, annual training, emergency call up, or activation
16 by the President of the United States with approved pay and
17 benefits.
18 (y) "Military leave without pay and benefits" refers to
19 individuals who enlist for active duty in a regular component
20 of the U.S. Armed Forces or other duty not specified or
21 authorized under military leave with pay and benefits.
22 (z) "Community college benefit recipient" means a person
23 who:
24 (1) is not a "member" as defined in this Section;
25 and
26 (2) is receiving a monthly survivor's annuity or
27 retirement annuity under Article 15 of the Illinois
28 Pension Code; and
29 (3) either (i) was a full-time employee of a
30 community college district or an association of community
31 college boards created under the Public Community College
32 Act (other than an employee whose last employer under
33 Article 15 of the Illinois Pension Code was a community
34 college district subject to Article VII of the Public
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1 Community College Act) and was eligible to participate in
2 a group health benefit plan as an employee during the
3 time of employment with a community college district
4 (other than a community college district subject to
5 Article VII of the Public Community College Act) or an
6 association of community college boards, or (ii) is the
7 survivor of a person described in item (i).
8 (aa) "Community college dependent beneficiary" means a
9 person who:
10 (1) is not a "member" or "dependent" as defined in
11 this Section; and
12 (2) is a community college benefit recipient's: (A)
13 spouse, (B) dependent parent who is receiving at least
14 half of his or her support from the community college
15 benefit recipient, or (C) unmarried natural or adopted
16 child who is (i) under age 19, or (ii) enrolled as a
17 full-time student in an accredited school, financially
18 dependent upon the community college benefit recipient,
19 eligible as a dependent for Illinois State income tax
20 purposes and under age 23, or (iii) age 19 or over and
21 mentally or physically handicapped as defined in the
22 Illinois Insurance Code.
23 (Source: P.A. 88-670, eff. 12-2-94; 89-21, eff. 6-21-95;
24 89-25, eff. 6-21-95; 89-76, eff. 7-1-95; 89-324, eff.
25 8-13-95; 89-430, eff. 12-15-95; 89-502, eff. 7-1-96; 89-507,
26 eff. 7-1-97; 89-628, eff. 8-9-96; revised 8-23-96.)
27 (5 ILCS 375/6.9 new)
28 Sec. 6.9. Health benefits for community college benefit
29 recipients and community college dependent beneficiaries.
30 (a) Purpose. It is the purpose of this amendatory Act
31 of 1997 to establish a uniform program of health benefits for
32 community college benefit recipients and their dependent
33 beneficiaries under the administration of the Department of
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1 Central Management Services.
2 (b) Creation of program. Beginning July 1, 1999, the
3 Department of Central Management Services shall be
4 responsible for administering a program of health benefits
5 for community college benefit recipients and community
6 college dependent beneficiaries under this Section. The
7 State Universities Retirement System and the boards of
8 trustees of the various community college districts shall
9 cooperate with the Department in this endeavor.
10 (c) Eligibility. All community college benefit
11 recipients and community college dependent beneficiaries
12 shall be eligible to participate in the program established
13 under this Section, without any interruption or delay in
14 coverage or limitation as to pre-existing medical conditions.
15 Eligibility to participate shall be determined by the State
16 Universities Retirement System. Eligibility information
17 shall be communicated to the Department of Central Management
18 Services in a format acceptable to the Department.
19 (d) Coverage. The health benefit coverage provided
20 under this Section shall be a program of health, dental, and
21 vision benefits.
22 The program of health benefits under this Section may
23 include any or all of the benefit limitations, including but
24 not limited to a reduction in benefits based on eligibility
25 for federal medicare benefits, that are provided under
26 subsection (a) of Section 6 of this Act for other health
27 benefit programs under this Act.
28 (e) Insurance rates and premiums. The Director shall
29 determine the insurance rates and premiums for community
30 college benefit recipients and community college dependent
31 beneficiaries. Rates and premiums may be based in part on
32 age and eligibility for federal Medicare coverage. The
33 Director shall also determine premiums that will allow for
34 the establishment of an actuarially sound reserve for this
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1 program.
2 The cost of health benefits under the program shall be
3 paid as follows:
4 (1) For a community college benefit recipient, up
5 to 75% of the total insurance rate shall be paid from the
6 Community College Health Insurance Security Fund.
7 (2) The balance of the rate of insurance, including
8 the entire premium for any coverage for community college
9 dependent beneficiaries that has been elected, shall be
10 paid by deductions authorized by the community college
11 benefit recipient to be withheld from his or her monthly
12 annuity or benefit payment from the State Universities
13 Retirement System; except that (i) if the balance of the
14 cost of coverage exceeds the amount of the monthly
15 annuity or benefit payment, the difference shall be paid
16 directly to the State Universities Retirement System by
17 the community college benefit recipient, and (ii) all or
18 part of the balance of the cost of coverage may, at the
19 option of the board of trustees of the community college
20 district, be paid to the State Universities Retirement
21 System by the board of the community college district
22 from which the community college benefit recipient
23 retired. The State Universities Retirement System shall
24 promptly deposit all moneys withheld by or paid to it
25 under this subdivision (e)(2) into the Community College
26 Health Insurance Security Fund. These moneys shall not
27 be considered assets of the State Universities Retirement
28 System.
29 (f) Financing. All revenues arising from the
30 administration of the health benefit program established
31 under this Section shall be deposited into the Community
32 College Health Insurance Security Fund, which is hereby
33 created as a nonappropriated trust fund to be held outside
34 the State Treasury, with the State Treasurer as custodian.
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1 Any interest earned on moneys in the Community College Health
2 Insurance Security Fund shall be deposited into the Fund.
3 Moneys in the Community College Health Insurance Security
4 Fund shall be used only to pay the costs of the health
5 benefit program established under this Section, including
6 associated administrative costs and the establishment of a
7 program reserve. Beginning January 1, 1999, the Department
8 of Central Management Services may make expenditures from the
9 Community College Health Insurance Security Fund for those
10 costs.
11 (g) Contract for benefits. The Director shall by
12 contract, self-insurance, or otherwise make available the
13 program of health benefits for community college benefit
14 recipients and their community college dependent
15 beneficiaries that is provided for in this Section. The
16 contract or other arrangement for the provision of these
17 health benefits shall be on terms deemed by the Director to
18 be in the best interest of the State of Illinois and the
19 community college benefit recipients based on, but not
20 limited to, such criteria as administrative cost, service
21 capabilities of the carrier or other contractor, and the
22 costs of the benefits.
23 (h) Continuation of program. It is the intention of the
24 General Assembly that the program of health benefits provided
25 under this Section be maintained on an ongoing, affordable
26 basis. The program of health benefits provided under this
27 Section may be amended by the State and is not intended to be
28 a pension or retirement benefit subject to protection under
29 Article XIII, Section 5 of the Illinois Constitution.
30 (i) Other health benefit plans. A health benefit plan
31 provided by a community college district (other than a
32 community college district subject to Article VII of the
33 Public Community College Act) under the terms of a collective
34 bargaining agreement in effect on or prior to the effective
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1 date of this amendatory Act of 1997 shall continue in force
2 according to the terms of that agreement, unless otherwise
3 mutually agreed by the parties to that agreement and the
4 affected retiree. A community college benefit recipient or
5 community college dependent beneficiary whose coverage under
6 such a plan expires shall be eligible to begin participating
7 in the program established under this Section without any
8 interruption or delay in coverage or limitation as to
9 pre-existing medical conditions.
10 This Act does not prohibit any community college district
11 from offering additional health benefits for its retirees or
12 their dependents or survivors.
13 (5 ILCS 375/6.10 new)
14 Sec. 6.10. Contributions to the Community College Health
15 Insurance Security Fund.
16 (a) Beginning January 1, 1999, every active contributor
17 of the State Universities Retirement System (established
18 under Article 15 of the Illinois Pension Code) who (1) is a
19 full-time employee of a community college district (other
20 than a community college district subject to Article VII of
21 the Public Community College Act) or an association of
22 community college boards and (2) is not an employee as
23 defined in Section 3 of this Act shall make contributions
24 toward the cost of community college annuitant and survivor
25 health benefits at the rate of 0.50% 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
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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 January 1, 1999, every community college
21 district (other than a community college district subject to
22 Article VII of the Public Community College Act) or
23 association of community college boards that is an employer
24 under the State Universities Retirement System shall
25 contribute toward the cost of the community college health
26 benefits provided under Section 6.9 of this Act an amount
27 equal to 0.50% of the salary paid to its full-time employees
28 who participate in the State Universities Retirement System
29 and are not members as defined in Section 3 of this Act.
30 These contributions shall be paid by the employer to the
31 State Universities Retirement System as service agent for the
32 Department of Central Management Services. The System may
33 use the same processes for collecting the contributions
34 required by this subsection that it uses to collect the
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1 contributions received from those employers under Section
2 15-155 of the Illinois Pension Code.
3 The State Universities Retirement System shall promptly
4 deposit all moneys collected under this subsection (b) into
5 the Community College Health Insurance Security Fund created
6 in Section 6.9 of this Act. The moneys collected under this
7 Section shall be used only for the purposes authorized in
8 Section 6.9 of this Act and shall not be considered to be
9 assets of the State Universities Retirement System.
10 Contributions made under this Section are not transferable to
11 other pension funds or retirement systems and are not
12 refundable upon termination of service.
13 (c) On or before November 15 of each year, the Board of
14 Trustees of the State Universities Retirement System shall
15 certify to the Governor, the Director of Central Management
16 Services, and the State Comptroller its estimate of the total
17 amount of contributions to be paid under subsection (a) of
18 this Section for the next fiscal year. The certification
19 shall include a detailed explanation of the methods and
20 information that the Board relied upon in preparing its
21 estimate. As soon as possible after the effective date of
22 this Section, the Board shall submit its estimate for fiscal
23 year 1999.
24 (d) Beginning in fiscal year 1999, on the first day of
25 each month, or as soon thereafter as may be practical, the
26 State Treasurer and the State Comptroller shall transfer from
27 the General Revenue Fund to the Community College Health
28 Insurance Security Fund 1/12 of the annual amount
29 appropriated for that fiscal year to the State Comptroller
30 for deposit into the Community College Health Insurance
31 Security Fund under Section 1.4 of the State Pension Funds
32 Continuing Appropriation Act.
33 (e) Except where otherwise specified in this Section,
34 the definitions that apply to Article 15 of the Illinois
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1 Pension Code apply to this Section.
2 (5 ILCS 375/15) (from Ch. 127, par. 535)
3 Sec. 15. Administration; rules; audit; review.
4 (a) The Director shall administer this Act and shall
5 prescribe such rules and regulations as are necessary to give
6 full effect to the purposes of this Act.
7 (b) These rules may fix reasonable standards for the
8 group life and group health programs and other benefit
9 programs offered under this Act, and for the contractors
10 providing them.
11 (c) These rules shall specify that covered and optional
12 medical services of the program are services provided within
13 the scope of their licenses by practitioners in all
14 categories licensed under the Medical Practice Act of 1987
15 and shall provide that all eligible persons be fully informed
16 of this specification.
17 (d) These rules shall establish eligibility requirements
18 for members and dependents as may be necessary to supplement
19 or clarify requirements contained in this Act.
20 (e) Each affected department of the State, the State
21 Universities Retirement System, the Teachers' Retirement
22 System, and each qualified local government, rehabilitation
23 facility, or domestic violence shelter or service, shall keep
24 such records, make such certifications, and furnish the
25 Director such information as may be necessary for the
26 administration of this Act, including information concerning
27 number and total amounts of payroll of employees of the
28 department who are paid from trust funds or federal funds.
29 (f) Each member, each community college benefit
30 recipient to whom this Act applies, and each TRS benefit
31 recipient to whom this Act applies shall furnish the
32 Director, in such form as may be required, any information
33 that may be necessary to enroll such member or TRS benefit
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1 recipient and, if applicable, his or her dependents or TRS
2 dependent beneficiaries under the programs or plan, including
3 such data as may be required to allow the Director to
4 accumulate statistics on data normally considered in
5 actuarial studies of employee groups. Information about
6 community college benefit recipients and community college
7 dependent beneficiaries shall be furnished through the State
8 Universities Retirement System. Information about TRS
9 benefit recipients and TRS dependent beneficiaries shall be
10 furnished through the Teachers' Retirement System.
11 (g) There shall be an annual audit and report on the
12 programs authorized and established by this Act prepared by
13 the Director with the assistance of a qualified, independent
14 accounting firm. The annual report shall provide information
15 on the experience, and administrative effectiveness and
16 adequacy of the program including, when applicable,
17 recommendations on up-grading of benefits and improvement of
18 the program.
19 (h) Any final order, decision or other determination
20 made, issued or executed by the Director under the provisions
21 of this Act whereby any contractor or person is aggrieved
22 shall be subject to review in accordance with the provisions
23 of the Administrative Review Law and all amendments and
24 modifications thereof, and the rules adopted pursuant
25 thereto, shall apply to and govern all proceedings for the
26 judicial review of final administrative decisions of the
27 Director.
28 (Source: P.A. 89-21, eff. 6-21-95; 89-25, eff. 6-21-95.)
29 Section 10. The State Pension Funds Continuing
30 Appropriation Act is amended by adding Section 1.4 as
31 follows:
32 (40 ILCS 15/1.4 new)
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1 Sec. 1.4. Appropriations for the Community College Health
2 Insurance Security Fund. Beginning in State fiscal year
3 1999, there is hereby appropriated, on a continuing annual
4 basis, from the General Revenue Fund to the State Comptroller
5 for deposit into the Community College Health Insurance
6 Security Fund, an amount equal to the amount certified by the
7 Board of Trustees of the State Universities Retirement System
8 under subsection (c) of Section 6.10 of the State Employees
9 Group Insurance Act of 1971 as the estimated total amount of
10 contributions to be paid under subsection (a) of that Section
11 6.10 in that fiscal year. The moneys appropriated under this
12 Section 1.4 shall be deposited into the Community College
13 Health Insurance Security Fund and used only for the purposes
14 authorized in Section 6.9 of the State Employees Group
15 Insurance Act of 1971.
16 Section 15. The Public Community College Act is amended
17 by changing Section 2-16.02 as follows:
18 (110 ILCS 805/2-16.02) (from Ch. 122, par. 102-16.02)
19 Sec. 2-16.02. Grants. Any community college district
20 that maintains a community college recognized by the State
21 Board shall receive, when eligible, grants enumerated in this
22 Section. Except for equalization grants, retirees health
23 insurance grants, grants to districts established pursuant to
24 Section 6-6.1, and grants for special initiatives, all grants
25 specified in this Section shall be based on funded semester
26 credit hours. Funded semester credit hours shall be defined,
27 for purposes of this Section, as the greater of (1) the
28 number of semester credit hours, or equivalent, in all funded
29 instructional categories of students who have been certified
30 as being in attendance at midterm during the respective terms
31 of the base fiscal year or (2) the average of semester credit
32 hours, or equivalent, in all funded instructional categories
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1 of students who have been certified as being in attendance at
2 midterm during the respective terms of the base fiscal year
3 and the 2 prior fiscal years. For purposes of this Section,
4 "base fiscal year" means the fiscal year 2 years prior to the
5 fiscal year for which the grants are appropriated. Such
6 students shall have been residents of Illinois and shall have
7 been enrolled in courses that are part of instructional
8 program categories approved by the State Board and that are
9 applicable toward an associate degree or certificate.
10 Courses are not eligible for reimbursement where the district
11 receives federal or State financing or both, except financing
12 through the State Board, for 50% or more of the program costs
13 with the exception of courses offered by contract with the
14 Department of Corrections in correctional institutions.
15 After distributing a grant of up to one-tenth of 1% of the
16 total available credit hour grant funding to each district
17 with less than 75,000 funded semester credit hours exclusive
18 of Department of Corrections credit hours, the remaining
19 credit hour grants shall be paid based on rates per funded
20 semester credit hour or equivalent calculated by the State
21 Board for funded instructional categories using cost of
22 instruction, enrollment, inflation, and other relevant
23 factors.
24 Grants for equalization shall be distributed to each
25 district that falls below a statewide threshold calculated by
26 the State Board by: (A) adding (1) the Corporate Personal
27 Property Replacement Fund allocations from the base fiscal
28 year or the average of the base fiscal year and prior year,
29 whichever is less, divided by the applicable tax rate to (2)
30 the most recently audited year's equalized assessed valuation
31 or the average of the most recently audited year and prior
32 year, whichever is less, (B) then dividing by the number of
33 audited full-time equivalent resident students for the base
34 fiscal year or the average for the base fiscal year and the
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1 2 prior fiscal years, whichever is greater, and (C) then
2 multiplying by the applicable tax rate. The State Board
3 shall use the same methodology to calculate a local revenue
4 factor for each district. The difference between the
5 statewide threshold and the local revenue factor, multiplied
6 by the number of full-time equivalent students, shall
7 determine the amount of equalization funding that each
8 district is eligible to receive.
9 A special populations grant of $20,000 per community
10 college shall be distributed to each community college
11 district, and any remaining appropriated funds for special
12 populations programs with the exception of moneys
13 appropriated as grants for unique special populations
14 initiatives created by the State Board shall be distributed
15 proportionately to each community college district on the
16 basis of each district's share of the State total funded
17 semester credit hours, or equivalent, in
18 remedial/developmental and adult basic education/adult
19 secondary education courses. Each community college
20 district's expenditures of funds from those grants shall be
21 limited to courses and services related to programs for
22 educationally disadvantaged and minority students as
23 specified by the State Board.
24 A workforce preparation grant of $35,000 shall be
25 distributed to each community college district, and any
26 remaining appropriated funds for workforce preparation with
27 the exception of monies appropriated as grants for special
28 workforce preparation initiatives created by the State Board
29 shall be distributed proportionately to each community
30 college district on the basis of each district's share of the
31 State total funded semester credit hours, or equivalent, in
32 business occupational, technical occupational, and health
33 occupational courses. Each community college district's
34 expenditures of funds from those grants shall be limited to
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1 workforce preparation activities and services as specified by
2 the State Board.
3 An advanced technology equipment grant shall be
4 distributed proportionately to each community college
5 district based on each district's share of the State total
6 funded semester credit hours, or equivalent, in business
7 occupational, technical occupational, and health occupational
8 courses. Each community college district's expenditures of
9 funds from those grants shall be limited to procurement of
10 equipment for curricula impacted by technological advances as
11 specified by the State Board.
12 Until January 1, 1999, a retirees health insurance grant
13 shall be distributed proportionately to each community
14 college district or entity created pursuant to Section 3-55
15 based on each district's share of the total number of
16 community college retirees in the State on July 1 of the
17 fiscal year prior to the fiscal year for which the grants are
18 appropriated, as determined by the State Board. Each
19 community college district's expenditures of funds from those
20 grants shall be limited to payment of costs associated with
21 the provision of retirees' health insurance. Beginning
22 January 1, 1999, the retirees health insurance grant shall be
23 limited to community college districts subject to Article VII
24 of this Act. The retirees health insurance grants to
25 community college districts not subject to Article VII for
26 fiscal year 1998-1999 shall be calculated so as to reflect
27 the January 1, 1999 termination date.
28 A grant shall be provided to the Illinois Occupational
29 Information Coordinating Committee for the purpose of
30 providing the State Board with labor market information by
31 updating the Occupational Information System and HORIZONS
32 Career Information System and by providing labor market
33 information and technical assistance, that grant to be
34 provided in its entirety during the first quarter of the
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1 fiscal year.
2 A grant shall be provided to Community College District
3 #540, that district having been formed under the provisions
4 of Section 6-6.1, for the purpose of providing funds for the
5 district to meet operating expenses. The State Board shall
6 certify, prepare, and submit to the State Comptroller during
7 August of the fiscal year a voucher setting forth a one-time
8 payment of any Education Assistance Fund appropriation, and
9 during November, February, and May of the fiscal year a
10 voucher setting forth equal payments of General Revenue Fund
11 appropriations. The Comptroller shall cause a warrant to be
12 drawn for the amount due, payable to Community College
13 District #540, within 15 days following the receipt of each
14 such voucher.
15 The State Board shall distribute such other special
16 grants as may be authorized or appropriated by the General
17 Assembly.
18 Each community college district entitled to State grants
19 under this Section must submit a report of its enrollment to
20 the State Board not later than 30 days following the end of
21 each semester, quarter, or term in a format prescribed by the
22 State Board. These semester credit hours, or equivalent,
23 shall be certified by each district on forms provided by the
24 State Board. Each district's certified semester credit
25 hours, or equivalent, are subject to audit pursuant to
26 Section 3-22.1.
27 The State Board shall certify, prepare, and submit to the
28 State Comptroller during August, November, February, and May
29 of each fiscal year vouchers setting forth an amount equal to
30 25% of the districts' total grants approved by the State
31 Board for credit hour grants, special populations grants,
32 workforce preparation grants, equalization grants, advanced
33 technology equipment grants, and retirees health insurance
34 grants. The State Board shall prepare and submit to the State
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1 Comptroller vouchers for special initiatives grant payments
2 as set forth in the contracts executed pursuant to
3 appropriations received for special initiatives. The
4 Comptroller shall cause his warrants to be drawn for the
5 respective amounts due, payable to each community college
6 district, within 15 days following the receipt of such
7 vouchers. If the amount appropriated for grants is different
8 from the amount provided for such grants under this Act, the
9 grants shall be proportionately reduced or increased
10 accordingly.
11 For the purposes of this Section, "resident student"
12 means a student in a community college district who maintains
13 residency in that district or meets other residency
14 definitions established by the State Board, and who was
15 enrolled either in one of the approved instructional program
16 categories in that district, or in another community college
17 district to which the resident's district is paying tuition
18 under Section 6-2 or with which the resident's district has
19 entered into a cooperative agreement in lieu of such tuition.
20 For the purposes of this Section, a "full-time
21 equivalent" student is equal to 30 semester credit hours.
22 The Illinois Community College Board Contracts and Grants
23 Fund is hereby created in the State Treasury. Items of
24 income to this fund shall include any grants, awards,
25 endowments, or like proceeds, and where appropriate, other
26 funds made available through contracts with governmental,
27 public, and private agencies or persons. The General
28 Assembly shall from time to time make appropriations payable
29 from such fund for the support, improvement, and expenses of
30 the State Board and Illinois community college districts.
31 (Source: P.A. 88-103; 88-553; 89-141, eff. 7-14-95; 89-281,
32 eff. 8-10-95; 89-473, eff. 6-18-96; 89-626, eff. 8-9-96.)
33 Section 90. The State Mandates Act is amended by adding
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1 Section 8.21 as follows:
2 (30 ILCS 805/8.21 new)
3 Sec. 8.21. Exempt mandate. Notwithstanding Sections 6
4 and 8 of this Act, no reimbursement by the State is required
5 for the implementation of any mandate created by this
6 amendatory Act of 1997.
7 Section 95. No acceleration or delay. Where this Act
8 makes changes in a statute that is represented in this Act by
9 text that is not yet or no longer in effect (for example, a
10 Section represented by multiple versions), the use of that
11 text does not accelerate or delay the taking effect of (i)
12 the changes made by this Act or (ii) provisions derived from
13 any other Public Act.
14 Section 99. Effective date. This Act takes effect upon
15 becoming law.