State of Illinois
90th General Assembly
Legislation

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

90_SB0423eng

      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 Engrossed                                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 Engrossed             -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
SB423 Engrossed             -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
SB423 Engrossed             -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 Engrossed             -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 Engrossed             -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
SB423 Engrossed             -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
SB423 Engrossed             -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 Engrossed             -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 Engrossed             -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
SB423 Engrossed             -11-               LRB9002251EGfg
 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 Engrossed             -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
SB423 Engrossed             -13-               LRB9002251EGfg
 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
SB423 Engrossed             -14-               LRB9002251EGfg
 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
SB423 Engrossed             -15-               LRB9002251EGfg
 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
SB423 Engrossed             -16-               LRB9002251EGfg
 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
SB423 Engrossed             -17-               LRB9002251EGfg
 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
SB423 Engrossed             -18-               LRB9002251EGfg
 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
SB423 Engrossed             -19-               LRB9002251EGfg
 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)
SB423 Engrossed             -20-               LRB9002251EGfg
 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
SB423 Engrossed             -21-               LRB9002251EGfg
 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
SB423 Engrossed             -22-               LRB9002251EGfg
 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 benefits provided under this
20    Section shall be the same as the benefits provided under  the
21    other  provisions  of  this  Act  for annuitants of the State
22    Universities   Retirement   System    and   their   dependent
23    beneficiaries.  However, group life  insurance  benefits  are
24    not  included  in  the  benefits  to be provided to community
25    college benefit recipients and  community  college  dependent
26    beneficiaries under this Act.
27        (e)  Insurance  rates  and  premiums.  The Director shall
28    determine the insurance  rates  and  premiums  for  community
29    college  benefit  recipients  and community college dependent
30    beneficiaries.  Rates and premiums may be based  in  part  on
31    age and eligibility for federal Medicare coverage.
32        The  cost  of  health benefits under the program shall be
33    paid as follows:
34             (1)  For a community college benefit  recipient,  up
SB423 Engrossed             -23-               LRB9002251EGfg
 1        to 75% of the total insurance rate shall be paid from the
 2        Community College Health Insurance Security Fund.
 3             (2)  The balance of the rate of insurance, including
 4        the entire premium for any coverage for community college
 5        dependent  beneficiaries  that has been elected, shall be
 6        paid by deductions authorized by  the  community  college
 7        benefit  recipient to be withheld from his or her monthly
 8        annuity or benefit payment from  the  State  Universities
 9        Retirement  System; except that (i) if the balance of the
10        cost of  coverage  exceeds  the  amount  of  the  monthly
11        annuity  or benefit payment, the difference shall be paid
12        directly to the State Universities Retirement  System  by
13        the  community college benefit recipient, and (ii) all or
14        part of the balance of the cost of coverage may,  at  the
15        option  of the board of trustees of the community college
16        district, be paid to the  State  Universities  Retirement
17        System  by  the  board  of the community college district
18        from  which  the  community  college  benefit   recipient
19        retired.   The State Universities Retirement System shall
20        promptly deposit all moneys withheld by  or  paid  to  it
21        under  this subdivision (e)(2) into the Community College
22        Health Insurance Security Fund.  These moneys  shall  not
23        be considered assets of the State Universities Retirement
24        System.
25        This Act does not prohibit any community college district
26    from   paying   for   all  or  a  portion  of  the  premiums,
27    deductibles, or other costs of the  benefits  provided  under
28    this   Section  for  its  retirees  or  their  dependents  or
29    survivors.
30        (f)  Financing.    All   revenues   arising   from    the
31    administration  of  the  health  benefit  program established
32    under this Section shall  be  deposited  into  the  Community
33    College  Health  Insurance  Security  Fund,  which  is hereby
34    created as a nonappropriated trust fund to  be  held  outside
SB423 Engrossed             -24-               LRB9002251EGfg
 1    the  State  Treasury,  with the State Treasurer as custodian.
 2    Any interest earned on moneys in the Community College Health
 3    Insurance Security Fund shall be deposited into the Fund.
 4        Moneys in the Community College Health Insurance Security
 5    Fund shall be used only  to  pay  the  costs  of  the  health
 6    benefit  program  established  under  this Section, including
 7    associated administrative costs.  Beginning January 1,  1999,
 8    the  Department  of  Central  Management  Services  may  make
 9    expenditures  from  the  Community  College  Health Insurance
10    Security Fund for those 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 the effective date of  this
SB423 Engrossed             -25-               LRB9002251EGfg
 1    amendatory  Act  of 1997 shall continue in force according to
 2    the terms of that agreement, unless otherwise mutually agreed
 3    by the parties  to  that  agreement.    A  community  college
 4    benefit  recipient or community college dependent beneficiary
 5    whose coverage under such a plan expires shall be eligible to
 6    begin participating in the  program  established  under  this
 7    Section  without  any  interruption  or  delay in coverage or
 8    limitation as to pre-existing medical conditions.
 9        This Act does not prohibit any community college district
10    from offering additional health benefits for its retirees  or
11    their dependents or survivors.
12        (5 ILCS 375/6.10 new)
13        Sec.  6.10. Contributions to the Community College Health
14    Insurance Security Fund.
15        (a)  Beginning January 1, 1999, every active  contributor
16    of  the  State  Universities  Retirement  System (established
17    under Article 15 of the Illinois Pension Code) who (1)  is  a
18    full-time  employee  of  a  community college district (other
19    than a community college district subject to Article  VII  of
20    the  Public  Community  College  Act)  or  an  association of
21    community college boards  and  (2)  is  not  an  employee  as
22    defined  in  Section  3  of this Act shall make contributions
23    toward the cost of community college annuitant  and  survivor
24    health benefits at the rate of 0.35% of salary.
25        These contributions shall be deducted by the employer and
26    paid  to  the State Universities Retirement System as service
27    agent for the Department of Central Management Services.  The
28    System  may  use  the  same  processes  for  collecting   the
29    contributions  required  by  this  subsection that it uses to
30    collect the contributions received from those employees under
31    Section 15-157 of the Illinois Pension Code.  An employer may
32    agree to pick up or pay the contributions required under this
33    subsection on behalf  of  the  employee;  such  contributions
SB423 Engrossed             -26-               LRB9002251EGfg
 1    shall be deemed to have been paid by the employee.
 2        A  person  required  to  make  contributions  under  this
 3    subsection  (a)  who  purchases optional service credit under
 4    Article 15 of the Illinois Pension Code  must  also  pay  the
 5    contribution  required under this subsection (a) with respect
 6    to that optional service credit.  This contribution  must  be
 7    received by the System before that optional service credit is
 8    granted.
 9        The  State  Universities Retirement System shall promptly
10    deposit all moneys collected under this subsection  (a)  into
11    the  Community College Health Insurance Security Fund created
12    in Section 6.9 of this Act.  The moneys collected under  this
13    Section  shall  be  used  only for the purposes authorized in
14    Section 6.9 of this Act and shall not  be  considered  to  be
15    assets   of   the   State   Universities  Retirement  System.
16    Contributions made under this Section are not transferable to
17    other  pension  funds  or  retirement  systems  and  are  not
18    refundable upon termination of service.
19        (b)  Beginning January 1, 1999, every  community  college
20    district  (other than a community college district subject to
21    Article  VII  of  the  Public  Community  College   Act)   or
22    association  of  community college boards that is an employer
23    under  the  State  Universities   Retirement   System   shall
24    contribute  toward  the  cost of the community college health
25    benefits provided under Section 6.9 of  this  Act  an  amount
26    equal  to 0.35% of the salary paid to its full-time employees
27    who participate in the State Universities  Retirement  System
28    and are not members as defined in Section 3 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
SB423 Engrossed             -27-               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.
SB423 Engrossed             -28-               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
SB423 Engrossed             -29-               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
SB423 Engrossed             -30-               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
SB423 Engrossed             -31-               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
SB423 Engrossed             -32-               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.
SB423 Engrossed             -33-               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.   Beginning
20    January 1, 1999, the retirees health insurance grant shall be
21    limited to community college districts subject to Article VII
22    of  this  Act.   The  retirees  health  insurance  grants  to
23    community college districts not subject to  Article  VII  for
24    fiscal  year  1998-1999  shall be calculated so as to reflect
25    the January 1, 1999 termination date.
26        A grant shall be provided to  the  Illinois  Occupational
27    Information   Coordinating   Committee  for  the  purpose  of
28    providing the State Board with labor  market  information  by
29    updating  the  Occupational  Information  System and HORIZONS
30    Career Information  System  and  by  providing  labor  market
31    information  and  technical  assistance,  that  grant  to  be
32    provided  in  its  entirety  during  the first quarter of the
33    fiscal year.
34        A grant shall be provided to Community  College  District
SB423 Engrossed             -34-               LRB9002251EGfg
 1    #540,  that  district having been formed under the provisions
 2    of Section 6-6.1, for the purpose of providing funds for  the
 3    district  to  meet operating expenses.  The State Board shall
 4    certify, prepare, and submit to the State Comptroller  during
 5    August  of the fiscal year a voucher setting forth a one-time
 6    payment of any Education Assistance Fund  appropriation,  and
 7    during  November,  February,  and  May  of  the fiscal year a
 8    voucher setting forth equal payments of General Revenue  Fund
 9    appropriations.   The Comptroller shall cause a warrant to be
10    drawn for  the  amount  due,  payable  to  Community  College
11    District  #540,  within 15 days following the receipt of each
12    such voucher.
13        The State  Board  shall  distribute  such  other  special
14    grants  as  may  be authorized or appropriated by the General
15    Assembly.
16        Each community college district entitled to State  grants
17    under  this Section must submit a report of its enrollment to
18    the State Board not later than 30 days following the  end  of
19    each semester, quarter, or term in a format prescribed by the
20    State  Board.   These  semester  credit hours, or equivalent,
21    shall be certified by each district on forms provided by  the
22    State  Board.   Each  district's  certified  semester  credit
23    hours,  or  equivalent,  are  subject  to  audit  pursuant to
24    Section 3-22.1.
25        The State Board shall certify, prepare, and submit to the
26    State Comptroller during August, November, February, and  May
27    of each fiscal year vouchers setting forth an amount equal to
28    25%  of  the  districts'  total  grants approved by the State
29    Board for credit hour  grants,  special  populations  grants,
30    workforce  preparation  grants, equalization grants, advanced
31    technology equipment grants, and  retirees  health  insurance
32    grants. The State Board shall prepare and submit to the State
33    Comptroller  vouchers  for special initiatives grant payments
34    as  set  forth  in  the  contracts   executed   pursuant   to
SB423 Engrossed             -35-               LRB9002251EGfg
 1    appropriations   received   for   special   initiatives.  The
 2    Comptroller shall cause his warrants  to  be  drawn  for  the
 3    respective  amounts  due,  payable  to each community college
 4    district, within  15  days  following  the  receipt  of  such
 5    vouchers.  If the amount appropriated for grants is different
 6    from  the amount provided for such grants under this Act, the
 7    grants  shall  be  proportionately   reduced   or   increased
 8    accordingly.
 9        For  the  purposes  of  this  Section, "resident student"
10    means a student in a community college district who maintains
11    residency  in  that  district  or   meets   other   residency
12    definitions  established  by  the  State  Board,  and who was
13    enrolled either in one of the approved instructional  program
14    categories  in that district, or in another community college
15    district to which the resident's district is  paying  tuition
16    under  Section  6-2 or with which the resident's district has
17    entered into a cooperative agreement in lieu of such tuition.
18        For  the  purposes  of   this   Section,   a   "full-time
19    equivalent" student is equal to 30 semester credit hours.
20        The Illinois Community College Board Contracts and Grants
21    Fund  is  hereby  created  in  the  State Treasury.  Items of
22    income  to  this  fund  shall  include  any  grants,  awards,
23    endowments, or like proceeds, and  where  appropriate,  other
24    funds  made  available  through  contracts with governmental,
25    public,  and  private  agencies  or  persons.   The   General
26    Assembly  shall from time to time make appropriations payable
27    from such fund for the support, improvement, and expenses  of
28    the State Board and Illinois community college districts.
29    (Source:  P.A.  88-103; 88-553; 89-141, eff. 7-14-95; 89-281,
30    eff. 8-10-95; 89-473, eff. 6-18-96; 89-626, eff. 8-9-96.)
31        Section 90.  The State Mandates Act is amended by  adding
32    Section 8.21 as follows:
SB423 Engrossed             -36-               LRB9002251EGfg
 1        (30 ILCS 805/8.21 new)
 2        Sec.  8.21.  Exempt  mandate.  Notwithstanding Sections 6
 3    and 8 of this Act, no reimbursement by the State is  required
 4    for  the  implementation  of  any  mandate  created  by  this
 5    amendatory Act of 1997.
 6        Section  95.   No  acceleration or delay.  Where this Act
 7    makes changes in a statute that is represented in this Act by
 8    text that is not yet or no longer in effect (for  example,  a
 9    Section  represented  by  multiple versions), the use of that
10    text does not accelerate or delay the taking  effect  of  (i)
11    the  changes made by this Act or (ii) provisions derived from
12    any other Public Act.
13        Section 99. Effective date.  This Act takes  effect  upon
14    becoming law.

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