State of Illinois
90th General Assembly
Legislation

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90_SB0423sam002

                                           LRB9002251EGfgam02
 1                    AMENDMENT TO SENATE BILL 423
 2        AMENDMENT NO.     .  Amend Senate Bill 423  by  replacing
 3    everything after the enacting clause with the following:
 4        "Section  5.   The State Employees Group Insurance Act of
 5    1971 is amended by changing Sections 2, 3, and 15 and  adding
 6    Sections 6.9 and 6.10 as follows:
 7        (5 ILCS 375/2) (from Ch. 127, par. 522)
 8        Sec. 2. Purpose.  The purpose of this Act is to provide a
 9    program of group life insurance, a program of health benefits
10    and other employee benefits for persons in the service of the
11    State  of Illinois, employees of local governments, employees
12    of  rehabilitation  facilities  and  employees  of   domestic
13    violence   shelters   and  services,  and  certain  of  their
14    dependents.  It is also the purpose of this Act to provide  a
15    program of health benefits (i) for certain benefit recipients
16    of  the  Teachers' Retirement System of the State of Illinois
17    and  their  dependent  beneficiaries  and  (ii)  for  certain
18    eligible  retired  community  college  employees  and   their
19    dependent beneficiaries.
20    (Source: P.A. 89-25, eff. 6-21-95.)
21        (5 ILCS 375/3) (from Ch. 127, par. 523)
                            -2-            LRB9002251EGfgam02
 1        (Text of Section before amendment by P.A. 89-507)
 2        Sec.   3.  Definitions.   Unless  the  context  otherwise
 3    requires, the following words and phrases as used in this Act
 4    shall have the following meanings.  The Department may define
 5    these and other words and phrases separately for the  purpose
 6    of  implementing  specific  programs providing benefits under
 7    this Act.
 8        (a)  "Administrative  service  organization"  means   any
 9    person,  firm  or  corporation experienced in the handling of
10    claims  which  is  fully  qualified,  financially  sound  and
11    capable of meeting the service requirements of a contract  of
12    administration executed with the Department.
13        (b)  "Annuitant"  means  (1)  an employee who retires, or
14    has retired, on or after January  1,  1966  on  an  immediate
15    annuity under the provisions of Articles 2, 14, 15 (including
16    an  employee  who  has  retired and is receiving a retirement
17    annuity under an optional program established  under  Section
18    15-158.2  and  who  would  also  be eligible for a retirement
19    annuity had that person  been  a  participant  in  the  State
20    University  Retirement  System),  paragraphs  (b)  or  (c) of
21    Section 16-106, or Article 18 of the Illinois  Pension  Code;
22    (2)  any  person  who  was receiving group insurance coverage
23    under this Act as of March 31, 1978 by reason of  his  status
24    as an annuitant, even though the annuity in relation to which
25    such coverage was provided is a proportional annuity based on
26    less  than  the  minimum  period  of  service  required for a
27    retirement annuity in the system involved; (3) any person not
28    otherwise  covered  by  this  Act  who  has  retired   as   a
29    participating  member under Article 2 of the Illinois Pension
30    Code but is  ineligible  for  the  retirement  annuity  under
31    Section 2-119 of the Illinois Pension Code; (4) the spouse of
32    any  person  who  is  receiving  a  retirement  annuity under
33    Article 18 of the Illinois Pension Code and  who  is  covered
34    under  a  group  health  insurance  program  sponsored  by  a
                            -3-            LRB9002251EGfgam02
 1    governmental  employer  other  than the State of Illinois and
 2    who has irrevocably elected to  waive  his  or  her  coverage
 3    under  this  Act  and to have his or her spouse considered as
 4    the "annuitant" under this Act and not as a  "dependent";  or
 5    (5) an employee who retires, or has retired, from a qualified
 6    position, as determined according to rules promulgated by the
 7    Director,  under  a qualified local government or a qualified
 8    rehabilitation facility  or  a  qualified  domestic  violence
 9    shelter  or  service.  (For definition of "retired employee",
10    see (p) post).
11        (c)  "Carrier"  means  (1)  an   insurance   company,   a
12    corporation   organized  under  the  Limited  Health  Service
13    Organization Act or the Voluntary Health Services Plan Act, a
14    partnership, or other nongovernmental organization, which  is
15    authorized  to  do  group  life  or  group  health  insurance
16    business  in  Illinois,  or  (2)  the  State of Illinois as a
17    self-insurer.
18        (d)  "Compensation" means salary or wages  payable  on  a
19    regular  payroll  by  the State Treasurer on a warrant of the
20    State Comptroller out of any State, trust or federal fund, or
21    by the Governor of the State through a disbursing officer  of
22    the  State  out of a trust or out of federal funds, or by any
23    Department out of State, trust, federal or other  funds  held
24    by  the  State Treasurer or the Department, to any person for
25    personal  services  currently  performed,  and  ordinary   or
26    accidental  disability  benefits  under  Articles  2,  14, 15
27    (including ordinary or accidental disability  benefits  under
28    an  optional  program  established  under  Section 15-158.2),
29    paragraphs (b) or (c) of Section 16-106, or Article 18 of the
30    Illinois Pension Code, for disability incurred after  January
31    1,  1966, or benefits payable under the Workers' Compensation
32    or Occupational Diseases Act or benefits payable under a sick
33    pay plan established in accordance with  Section  36  of  the
34    State  Finance Act. "Compensation" also means salary or wages
                            -4-            LRB9002251EGfgam02
 1    paid to an employee of  any  qualified  local  government  or
 2    qualified  rehabilitation  facility  or  a qualified domestic
 3    violence shelter or service.
 4        (e)  "Commission"  means  the   State   Employees   Group
 5    Insurance   Advisory   Commission  authorized  by  this  Act.
 6    Commencing July 1, 1984, "Commission" as  used  in  this  Act
 7    means   the   Illinois  Economic  and  Fiscal  Commission  as
 8    established by the Legislative Commission Reorganization  Act
 9    of 1984.
10        (f)  "Contributory",  when  referred  to  as contributory
11    coverage, shall mean optional coverages or  benefits  elected
12    by  the  member  toward  the  cost of which such member makes
13    contribution, or which are funded in whole or in part through
14    the acceptance of a reduction in earnings or the foregoing of
15    an increase in earnings by an employee, as distinguished from
16    noncontributory coverage or benefits which are paid  entirely
17    by  the  State  of Illinois without reduction of the member's
18    salary.
19        (g)  "Department"  means  any  department,   institution,
20    board,  commission, officer, court or any agency of the State
21    government  receiving  appropriations  and  having  power  to
22    certify payrolls to the Comptroller authorizing  payments  of
23    salary  and  wages against such appropriations as are made by
24    the General Assembly from any State fund,  or  against  trust
25    funds  held  by  the  State  Treasurer and includes boards of
26    trustees of the retirement systems created by Articles 2, 14,
27    15, 16 and 18 of the  Illinois  Pension  Code.   "Department"
28    also  includes  the  Illinois  Comprehensive Health Insurance
29    Board and the Illinois Rural Bond Bank.
30        (h)  "Dependent", when the term is used in the context of
31    the health and life plan, means a  member's  spouse  and  any
32    unmarried child (1) from birth to age 19 including an adopted
33    child, a child who lives with the member from the time of the
34    filing  of a petition for adoption until entry of an order of
                            -5-            LRB9002251EGfgam02
 1    adoption, a stepchild or recognized child who lives with  the
 2    member  in  a parent-child relationship, or a child who lives
 3    with the member if such member is a court appointed  guardian
 4    of  the  child,  or  (2) age 19 to 23 enrolled as a full-time
 5    student in any accredited school, financially dependent  upon
 6    the  member,  and  eligible as a dependent for Illinois State
 7    income tax purposes, or (3) age 19 or over who is mentally or
 8    physically handicapped as defined in the  Illinois  Insurance
 9    Code.  For  the  health  plan only, the term "dependent" also
10    includes any person enrolled prior to the effective  date  of
11    this  Section  who is dependent upon the member to the extent
12    that the member may claim such  person  as  a  dependent  for
13    Illinois  State  income tax deduction purposes; no other such
14    person may be enrolled.
15        (i)  "Director"  means  the  Director  of  the   Illinois
16    Department of Central Management Services.
17        (j)  "Eligibility  period"  means  the  period  of time a
18    member has to elect  enrollment  in  programs  or  to  select
19    benefits without regard to age, sex or health.
20        (k)  "Employee"   means  and  includes  each  officer  or
21    employee in the service of a department who (1) receives  his
22    compensation  for  service  rendered  to  the department on a
23    warrant  issued  pursuant  to  a  payroll  certified   by   a
24    department  or  on  a  warrant or check issued and drawn by a
25    department upon a trust,  federal  or  other  fund  or  on  a
26    warrant  issued pursuant to a payroll certified by an elected
27    or duly appointed  officer  of  the  State  or  who  receives
28    payment  of the performance of personal services on a warrant
29    issued pursuant to a payroll certified by  a  Department  and
30    drawn  by  the  Comptroller  upon the State Treasurer against
31    appropriations made by the General Assembly from any fund  or
32    against  trust  funds held by the State Treasurer, and (2) is
33    employed  full-time  or  part-time  in  a  position  normally
34    requiring actual performance of duty during not less than 1/2
                            -6-            LRB9002251EGfgam02
 1    of a normal work period, as established by  the  Director  in
 2    cooperation with each department, except that persons elected
 3    by  popular  vote  will  be  considered  employees during the
 4    entire term for which they are elected  regardless  of  hours
 5    devoted  to  the  service  of  the State, and (3) except that
 6    "employee" does not include any person who is not eligible by
 7    reason of such person's employment to participate in  one  of
 8    the State retirement systems under Articles 2, 14, 15 (either
 9    the   regular  Article  15  system  or  an  optional  program
10    established under Section 15-158.2) or 18, or under paragraph
11    (b) or (c) of Section 16-106, of the Illinois  Pension  Code,
12    but  such  term  does include persons who are employed during
13    the 6  month  qualifying  period  under  Article  14  of  the
14    Illinois  Pension  Code.   Such term also includes any person
15    who (1) after January  1,  1966,  is  receiving  ordinary  or
16    accidental  disability  benefits  under  Articles  2,  14, 15
17    (including ordinary or accidental disability  benefits  under
18    an  optional  program  established  under  Section 15-158.2),
19    paragraphs (b) or (c) of Section 16-106, or Article 18 of the
20    Illinois Pension Code, for disability incurred after  January
21    1,  1966,  (2)  receives  total  permanent or total temporary
22    disability   under   the   Workers'   Compensation   Act   or
23    Occupational Disease Act as a result of injuries sustained or
24    illness contracted in the course of employment with the State
25    of Illinois, or (3) is not otherwise covered under  this  Act
26    and  has retired as a participating member under Article 2 of
27    the  Illinois  Pension  Code  but  is  ineligible   for   the
28    retirement  annuity  under  Section  2-119  of  the  Illinois
29    Pension  Code.   However, a person who satisfies the criteria
30    of the foregoing definition of "employee"  except  that  such
31    person  is  made  ineligible  to  participate  in  the  State
32    Universities  Retirement  System  by  clause (4) of the first
33    paragraph of Section 15-107 of the Illinois Pension  Code  is
34    also  an "employee" for the purposes of this Act.  "Employee"
                            -7-            LRB9002251EGfgam02
 1    also includes any person receiving or eligible  for  benefits
 2    under  a sick pay plan established in accordance with Section
 3    36 of the State Finance Act. "Employee"  also  includes  each
 4    officer  or  employee  in  the  service  of a qualified local
 5    government,  including  persons  appointed  as  trustees   of
 6    sanitary districts regardless of hours devoted to the service
 7    of the sanitary district, and each employee in the service of
 8    a   qualified  rehabilitation  facility  and  each  full-time
 9    employee in the service  of  a  qualified  domestic  violence
10    shelter   or   service,  as  determined  according  to  rules
11    promulgated by the Director.
12        (l)  "Member"  means  an  employee,  annuitant,   retired
13    employee or survivor.
14        (m)  "Optional   coverages   or   benefits"  means  those
15    coverages or benefits available to the member on his  or  her
16    voluntary election, and at his or her own expense.
17        (n)  "Program"  means  the  group  life insurance, health
18    benefits and other employee benefits designed and  contracted
19    for by the Director under this Act.
20        (o)  "Health  plan" means a self-insured health insurance
21    program offered by the State of Illinois for the purposes  of
22    benefiting  employees  by  means  of providing, among others,
23    wellness programs, utilization reviews, second  opinions  and
24    medical  fee  reviews, as well as for paying for hospital and
25    medical care up to the maximum coverage provided by the plan,
26    to its members and their dependents.
27        (p)  "Retired employee" means any person who would be  an
28    annuitant  as  that  term  is defined herein but for the fact
29    that such person retired prior to January 1, 1966.  Such term
30    also includes any person formerly employed by the  University
31    of Illinois in the Cooperative Extension Service who would be
32    an  annuitant  but  for  the  fact  that such person was made
33    ineligible  to  participate   in   the   State   Universities
34    Retirement  System  by  clause  (4) of the first paragraph of
                            -8-            LRB9002251EGfgam02
 1    Section 15-107 of the Illinois Pension Code.
 2        (q)  "Survivor" means a person receiving an annuity as  a
 3    survivor  of  an employee or of an annuitant. "Survivor" also
 4    includes:  (1)  the  surviving  dependent  of  a  person  who
 5    satisfies the  definition  of  "employee"  except  that  such
 6    person  is  made  ineligible  to  participate  in  the  State
 7    Universities  Retirement  System  by  clause (4) of the first
 8    paragraph of Section 15-107 of the Illinois Pension Code; and
 9    (2) the surviving dependent of any person  formerly  employed
10    by  the  University  of Illinois in the Cooperative Extension
11    Service who would be an annuitant except for  the  fact  that
12    such  person  was made ineligible to participate in the State
13    Universities Retirement System by clause  (4)  of  the  first
14    paragraph of Section 15-107 of the Illinois Pension Code.
15        (r)  "Medical   services"  means  the  services  provided
16    within the scope of their licenses by  practitioners  in  all
17    categories licensed under the Medical Practice Act of 1987.
18        (s)  "Unit   of   local  government"  means  any  county,
19    municipality, township, school district, special district  or
20    other  unit, designated as a unit of local government by law,
21    which exercises limited  governmental  powers  or  powers  in
22    respect  to limited governmental subjects, any not-for-profit
23    association  with  a  membership  that   primarily   includes
24    townships  and  township  officials,  that  has  duties  that
25    include  provision  of  research  service,  dissemination  of
26    information,  and  other  acts  for  the purpose of improving
27    township government, and that is funded wholly or  partly  in
28    accordance  with  Section  85-15  of  the  Township Code; any
29    not-for-profit corporation or association, with a  membership
30    consisting primarily of municipalities, that operates its own
31    utility    system,    and    provides   research,   training,
32    dissemination  of  information,  or  other  acts  to  promote
33    cooperation between and  among  municipalities  that  provide
34    utility  services  and  for  the advancement of the goals and
                            -9-            LRB9002251EGfgam02
 1    purposes of its membership; and the Illinois  Association  of
 2    Park Districts.  "Qualified local government" means a unit of
 3    local  government  approved by the Director and participating
 4    in a program created under subsection (i) of  Section  10  of
 5    this Act.
 6        (t)  "Qualified   rehabilitation   facility"   means  any
 7    not-for-profit  organization  that  is  accredited   by   the
 8    Commission  on  Accreditation of Rehabilitation Facilities or
 9    certified  by  the  Department     of   Mental   Health   and
10    Developmental  Disabilities  to  provide  services to persons
11    with disabilities and which receives funds from the State  of
12    Illinois  for  providing  those  services,  approved  by  the
13    Director   and  participating  in  a  program  created  under
14    subsection (j) of Section 10 of this Act.
15        (u)  "Qualified domestic  violence  shelter  or  service"
16    means  any  Illinois domestic violence shelter or service and
17    its administrative offices funded by the Illinois  Department
18    of  Public Aid, approved by the Director and participating in
19    a program created under subsection (k) of Section 10.
20        (v)  "TRS benefit recipient" means a person who:
21             (1)  is not a "member" as defined in  this  Section;
22        and
23             (2)  is  receiving  a  monthly benefit or retirement
24        annuity under Article 16 of the  Illinois  Pension  Code;
25        and
26             (3)  either  (i)  has at least 8 years of creditable
27        service under Article 16 of the Illinois Pension Code, or
28        (ii) was enrolled in the health insurance program offered
29        under that Article on January 1, 1996, or  (iii)  is  the
30        survivor  of a benefit recipient who had at least 8 years
31        of creditable service under Article 16  of  the  Illinois
32        Pension  Code  or  was  enrolled  in the health insurance
33        program offered under that Article on the effective  date
34        of this amendatory Act of 1995, or (iv) is a recipient or
                            -10-           LRB9002251EGfgam02
 1        survivor  of  a  recipient  of a disability benefit under
 2        Article 16 of the Illinois Pension Code.
 3        (w)  "TRS dependent beneficiary" means a person who:
 4             (1)  is not a "member" or "dependent" as defined  in
 5        this Section; and
 6             (2)  is  a  TRS benefit recipient's: (A) spouse, (B)
 7        dependent parent who is receiving at least half of his or
 8        her support  from  the  TRS  benefit  recipient,  or  (C)
 9        unmarried  natural  or adopted child who is (i) under age
10        19, or  (ii)  enrolled  as  a  full-time  student  in  an
11        accredited  school,  financially  dependent  upon the TRS
12        benefit recipient, eligible as a dependent  for  Illinois
13        State  income tax purposes, and either is under age 24 or
14        was, on January 1, 1996,  participating  as  a  dependent
15        beneficiary in the health insurance program offered under
16        Article  16 of the Illinois Pension Code, or (iii) age 19
17        or over who is  mentally  or  physically  handicapped  as
18        defined in the Illinois Insurance Code.
19        (x)  "Military  leave  with  pay  and benefits" refers to
20    individuals in basic training for reserves,  special/advanced
21    training,  annual  training, emergency call up, or activation
22    by the President of the United States with approved  pay  and
23    benefits.
24        (y)  "Military  leave without pay and benefits" refers to
25    individuals who enlist for active duty in a regular component
26    of the U.S. Armed Forces  or  other  duty  not  specified  or
27    authorized under military leave with pay and benefits.
28        (z)  "Community college benefit recipient" means a person
29    who:
30             (1)  is  not  a "member" as defined in this Section;
31        and
32             (2)  is receiving a monthly  survivor's  annuity  or
33        retirement  annuity  under  Article  15  of  the Illinois
34        Pension Code; and
                            -11-           LRB9002251EGfgam02
 1             (3)  either  (i)  was  a  full-time  employee  of  a
 2        community college district or an association of community
 3        college boards created under the Public Community College
 4        Act (other than an employee  whose  last  employer  under
 5        Article  15  of the Illinois Pension Code was a community
 6        college district subject to Article  VII  of  the  Public
 7        Community College Act) and was eligible to participate in
 8        a  group  health  benefit  plan as an employee during the
 9        time of employment  with  a  community  college  district
10        (other  than  a  community  college  district  subject to
11        Article VII of the Public Community College  Act)  or  an
12        association  of  community college boards, or (ii) is the
13        survivor of a person described in item (i).
14        (aa)  "Community college dependent beneficiary"  means  a
15    person who:
16             (1)  is  not a "member" or "dependent" as defined in
17        this Section; and
18             (2)  is a community college benefit recipient's: (A)
19        spouse, (B) dependent parent who is  receiving  at  least
20        half  of  his  or  her support from the community college
21        benefit recipient, or (C) unmarried  natural  or  adopted
22        child  who  is  (i)  under  age 19, or (ii) enrolled as a
23        full-time student in an  accredited  school,  financially
24        dependent  upon  the community college benefit recipient,
25        eligible as a dependent for  Illinois  State  income  tax
26        purposes  and  under  age 23, or (iii) age 19 or over and
27        mentally or physically  handicapped  as  defined  in  the
28        Illinois Insurance Code.
29    (Source:  P.A.  88-670,  eff.  12-2-94;  89-21, eff. 6-21-95;
30    89-25,  eff.  6-21-95;  89-76,  eff.  7-1-95;  89-324,   eff.
31    8-13-95;  89-430, eff. 12-15-95; 89-502, eff. 7-1-96; 89-628,
32    eff. 8-9-96; revised 8-23-96.)
33        (Text of Section after amendment by P.A. 89-507)
                            -12-           LRB9002251EGfgam02
 1        Sec.  3.  Definitions.   Unless  the  context   otherwise
 2    requires, the following words and phrases as used in this Act
 3    shall have the following meanings.  The Department may define
 4    these  and other words and phrases separately for the purpose
 5    of implementing specific programs  providing  benefits  under
 6    this Act.
 7        (a)  "Administrative   service  organization"  means  any
 8    person, firm or corporation experienced in  the  handling  of
 9    claims  which  is  fully  qualified,  financially  sound  and
10    capable  of meeting the service requirements of a contract of
11    administration executed with the Department.
12        (b)  "Annuitant" means (1) an employee  who  retires,  or
13    has  retired,  on  or  after  January 1, 1966 on an immediate
14    annuity under the provisions of Articles 2, 14, 15 (including
15    an employee who has retired and  is  receiving  a  retirement
16    annuity  under  an optional program established under Section
17    15-158.2 and who would also  be  eligible  for  a  retirement
18    annuity  had  that  person  been  a  participant in the State
19    University Retirement  System),  paragraphs  (b)  or  (c)  of
20    Section  16-106,  or Article 18 of the Illinois Pension Code;
21    (2) any person who was  receiving  group  insurance  coverage
22    under  this  Act as of March 31, 1978 by reason of his status
23    as an annuitant, even though the annuity in relation to which
24    such coverage was provided is a proportional annuity based on
25    less than the  minimum  period  of  service  required  for  a
26    retirement annuity in the system involved; (3) any person not
27    otherwise   covered   by  this  Act  who  has  retired  as  a
28    participating member under Article 2 of the Illinois  Pension
29    Code  but  is  ineligible  for  the  retirement annuity under
30    Section 2-119 of the Illinois Pension Code; (4) the spouse of
31    any person  who  is  receiving  a  retirement  annuity  under
32    Article  18  of  the Illinois Pension Code and who is covered
33    under  a  group  health  insurance  program  sponsored  by  a
34    governmental employer other than the State  of  Illinois  and
                            -13-           LRB9002251EGfgam02
 1    who  has  irrevocably  elected  to  waive his or her coverage
 2    under this Act and to have his or her  spouse  considered  as
 3    the  "annuitant"  under this Act and not as a "dependent"; or
 4    (5) an employee who retires, or has retired, from a qualified
 5    position, as determined according to rules promulgated by the
 6    Director, under a qualified local government or  a  qualified
 7    rehabilitation  facility  or  a  qualified  domestic violence
 8    shelter or service. (For definition  of  "retired  employee",
 9    see (p) post).
10        (c)  "Carrier"   means   (1)   an  insurance  company,  a
11    corporation  organized  under  the  Limited  Health   Service
12    Organization Act or the Voluntary Health Services Plan Act, a
13    partnership,  or other nongovernmental organization, which is
14    authorized  to  do  group  life  or  group  health  insurance
15    business in Illinois, or (2)  the  State  of  Illinois  as  a
16    self-insurer.
17        (d)  "Compensation"  means  salary  or wages payable on a
18    regular payroll by the State Treasurer on a  warrant  of  the
19    State Comptroller out of any State, trust or federal fund, or
20    by  the Governor of the State through a disbursing officer of
21    the State out of a trust or out of federal funds, or  by  any
22    Department  out  of State, trust, federal or other funds held
23    by the State Treasurer or the Department, to any  person  for
24    personal   services  currently  performed,  and  ordinary  or
25    accidental disability  benefits  under  Articles  2,  14,  15
26    (including  ordinary  or accidental disability benefits under
27    an optional  program  established  under  Section  15-158.2),
28    paragraphs (b) or (c) of Section 16-106, or Article 18 of the
29    Illinois  Pension Code, for disability incurred after January
30    1, 1966, or benefits payable under the Workers'  Compensation
31    or Occupational Diseases Act or benefits payable under a sick
32    pay  plan  established  in  accordance with Section 36 of the
33    State Finance Act. "Compensation" also means salary or  wages
34    paid  to  an  employee  of  any qualified local government or
                            -14-           LRB9002251EGfgam02
 1    qualified rehabilitation facility  or  a  qualified  domestic
 2    violence shelter or service.
 3        (e)  "Commission"   means   the   State  Employees  Group
 4    Insurance  Advisory  Commission  authorized  by   this   Act.
 5    Commencing  July  1,  1984,  "Commission" as used in this Act
 6    means  the  Illinois  Economic  and  Fiscal   Commission   as
 7    established  by the Legislative Commission Reorganization Act
 8    of 1984.
 9        (f)  "Contributory", when  referred  to  as  contributory
10    coverage,  shall  mean optional coverages or benefits elected
11    by the member toward the cost  of  which  such  member  makes
12    contribution, or which are funded in whole or in part through
13    the acceptance of a reduction in earnings or the foregoing of
14    an increase in earnings by an employee, as distinguished from
15    noncontributory  coverage or benefits which are paid entirely
16    by the State of Illinois without reduction  of  the  member's
17    salary.
18        (g)  "Department"   means  any  department,  institution,
19    board, commission, officer, court or any agency of the  State
20    government  receiving  appropriations  and  having  power  to
21    certify  payrolls  to the Comptroller authorizing payments of
22    salary and wages against such appropriations as are  made  by
23    the  General  Assembly  from any State fund, or against trust
24    funds held by the State  Treasurer  and  includes  boards  of
25    trustees of the retirement systems created by Articles 2, 14,
26    15,  16  and  18  of the Illinois Pension Code.  "Department"
27    also includes the  Illinois  Comprehensive  Health  Insurance
28    Board and the Illinois Rural Bond Bank.
29        (h)  "Dependent", when the term is used in the context of
30    the  health  and  life  plan, means a member's spouse and any
31    unmarried child (1) from birth to age 19 including an adopted
32    child, a child who lives with the member from the time of the
33    filing of a petition for adoption until entry of an order  of
34    adoption,  a stepchild or recognized child who lives with the
                            -15-           LRB9002251EGfgam02
 1    member in a parent-child relationship, or a child  who  lives
 2    with  the member if such member is a court appointed guardian
 3    of the child, or (2) age 19 to 23  enrolled  as  a  full-time
 4    student  in any accredited school, financially dependent upon
 5    the member, and eligible as a dependent  for  Illinois  State
 6    income tax purposes, or (3) age 19 or over who is mentally or
 7    physically  handicapped  as defined in the Illinois Insurance
 8    Code. For the health plan only,  the  term  "dependent"  also
 9    includes  any  person enrolled prior to the effective date of
10    this Section who is dependent upon the member to  the  extent
11    that  the  member  may  claim  such person as a dependent for
12    Illinois State income tax deduction purposes; no  other  such
13    person may be enrolled.
14        (i)  "Director"   means  the  Director  of  the  Illinois
15    Department of Central Management Services.
16        (j)  "Eligibility period" means  the  period  of  time  a
17    member  has  to  elect  enrollment  in  programs or to select
18    benefits without regard to age, sex or health.
19        (k)  "Employee"  means  and  includes  each  officer   or
20    employee  in the service of a department who (1) receives his
21    compensation for service rendered  to  the  department  on  a
22    warrant   issued   pursuant  to  a  payroll  certified  by  a
23    department or on a warrant or check issued  and  drawn  by  a
24    department  upon  a  trust,  federal  or  other  fund or on a
25    warrant issued pursuant to a payroll certified by an  elected
26    or  duly  appointed  officer  of  the  State  or who receives
27    payment of the performance of personal services on a  warrant
28    issued  pursuant  to  a payroll certified by a Department and
29    drawn by the Comptroller upon  the  State  Treasurer  against
30    appropriations  made by the General Assembly from any fund or
31    against trust funds held by the State Treasurer, and  (2)  is
32    employed  full-time  or  part-time  in  a  position  normally
33    requiring actual performance of duty during not less than 1/2
34    of  a  normal  work period, as established by the Director in
                            -16-           LRB9002251EGfgam02
 1    cooperation with each department, except that persons elected
 2    by popular vote  will  be  considered  employees  during  the
 3    entire  term  for  which they are elected regardless of hours
 4    devoted to the service of the  State,  and  (3)  except  that
 5    "employee" does not include any person who is not eligible by
 6    reason  of  such person's employment to participate in one of
 7    the State retirement systems under Articles 2, 14, 15 (either
 8    the  regular  Article  15  system  or  an  optional   program
 9    established under Section 15-158.2) or 18, or under paragraph
10    (b)  or  (c) of Section 16-106, of the Illinois Pension Code,
11    but such term does include persons who  are  employed  during
12    the  6  month  qualifying  period  under  Article  14  of the
13    Illinois Pension Code.  Such term also  includes  any  person
14    who  (1)  after  January  1,  1966,  is receiving ordinary or
15    accidental disability  benefits  under  Articles  2,  14,  15
16    (including  ordinary  or accidental disability benefits under
17    an optional  program  established  under  Section  15-158.2),
18    paragraphs (b) or (c) of Section 16-106, or Article 18 of the
19    Illinois  Pension Code, for disability incurred after January
20    1, 1966, (2) receives  total  permanent  or  total  temporary
21    disability   under   the   Workers'   Compensation   Act   or
22    Occupational Disease Act as a result of injuries sustained or
23    illness contracted in the course of employment with the State
24    of  Illinois,  or (3) is not otherwise covered under this Act
25    and has retired as a participating member under Article 2  of
26    the   Illinois   Pension  Code  but  is  ineligible  for  the
27    retirement  annuity  under  Section  2-119  of  the  Illinois
28    Pension Code.  However, a person who satisfies  the  criteria
29    of  the  foregoing  definition of "employee" except that such
30    person  is  made  ineligible  to  participate  in  the  State
31    Universities Retirement System by clause  (4)  of  the  first
32    paragraph  of  Section 15-107 of the Illinois Pension Code is
33    also an "employee" for the purposes of this Act.   "Employee"
34    also  includes  any person receiving or eligible for benefits
                            -17-           LRB9002251EGfgam02
 1    under a sick pay plan established in accordance with  Section
 2    36  of  the  State Finance Act. "Employee" also includes each
 3    officer or employee in  the  service  of  a  qualified  local
 4    government,   including  persons  appointed  as  trustees  of
 5    sanitary districts regardless of hours devoted to the service
 6    of the sanitary district, and each employee in the service of
 7    a  qualified  rehabilitation  facility  and  each   full-time
 8    employee  in  the  service  of  a qualified domestic violence
 9    shelter  or  service,  as  determined  according   to   rules
10    promulgated by the Director.
11        (l)  "Member"   means  an  employee,  annuitant,  retired
12    employee or survivor.
13        (m)  "Optional  coverages  or   benefits"   means   those
14    coverages  or  benefits available to the member on his or her
15    voluntary election, and at his or her own expense.
16        (n)  "Program" means the  group  life  insurance,  health
17    benefits  and other employee benefits designed and contracted
18    for by the Director under this Act.
19        (o)  "Health plan" means a self-insured health  insurance
20    program  offered by the State of Illinois for the purposes of
21    benefiting employees by means  of  providing,  among  others,
22    wellness  programs,  utilization reviews, second opinions and
23    medical fee reviews, as well as for paying for  hospital  and
24    medical care up to the maximum coverage provided by the plan,
25    to its members and their dependents.
26        (p)  "Retired  employee" means any person who would be an
27    annuitant as that term is defined herein  but  for  the  fact
28    that such person retired prior to January 1, 1966.  Such term
29    also  includes any person formerly employed by the University
30    of Illinois in the Cooperative Extension Service who would be
31    an annuitant but for the  fact  that  such  person  was  made
32    ineligible   to   participate   in   the  State  Universities
33    Retirement System by clause (4) of  the  first  paragraph  of
34    Section 15-107 of the Illinois Pension Code.
                            -18-           LRB9002251EGfgam02
 1        (q)  "Survivor"  means a person receiving an annuity as a
 2    survivor of an employee or of an annuitant.  "Survivor"  also
 3    includes:  (1)  the  surviving  dependent  of  a  person  who
 4    satisfies  the  definition  of  "employee"  except  that such
 5    person  is  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; and
 8    (2)  the  surviving dependent of any person formerly employed
 9    by the University of Illinois in  the  Cooperative  Extension
10    Service  who  would  be an annuitant except for the fact that
11    such person was made ineligible to participate in  the  State
12    Universities  Retirement  System  by  clause (4) of the first
13    paragraph of Section 15-107 of the Illinois Pension Code.
14        (r)  "Medical  services"  means  the  services   provided
15    within  the  scope  of their licenses by practitioners in all
16    categories licensed under the Medical Practice Act of 1987.
17        (s)  "Unit  of  local  government"  means   any   county,
18    municipality,  township, school district, special district or
19    other unit, designated as a unit of local government by  law,
20    which  exercises  limited  governmental  powers  or powers in
21    respect to limited governmental subjects, any  not-for-profit
22    association   with   a  membership  that  primarily  includes
23    townships  and  township  officials,  that  has  duties  that
24    include  provision  of  research  service,  dissemination  of
25    information, and other acts  for  the  purpose  of  improving
26    township  government,  and that is funded wholly or partly in
27    accordance with Section  85-15  of  the  Township  Code;  any
28    not-for-profit  corporation or association, with a membership
29    consisting primarily of municipalities, that operates its own
30    utility   system,   and    provides    research,    training,
31    dissemination  of  information,  or  other  acts  to  promote
32    cooperation  between  and  among  municipalities that provide
33    utility services and for the advancement  of  the  goals  and
34    purposes  of  its membership; and the Illinois Association of
                            -19-           LRB9002251EGfgam02
 1    Park Districts.  "Qualified local government" means a unit of
 2    local government approved by the Director  and  participating
 3    in  a  program  created under subsection (i) of Section 10 of
 4    this Act.
 5        (t)  "Qualified  rehabilitation   facility"   means   any
 6    not-for-profit   organization   that  is  accredited  by  the
 7    Commission on Accreditation of Rehabilitation  Facilities  or
 8    certified  by  the Department of Human Services (as successor
 9    to  the  Department  of  Mental  Health   and   Developmental
10    Disabilities)   to   provide   services   to   persons   with
11    disabilities  and  which  receives  funds  from  the State of
12    Illinois  for  providing  those  services,  approved  by  the
13    Director  and  participating  in  a  program  created   under
14    subsection (j) of Section 10 of this Act.
15        (u)  "Qualified  domestic  violence  shelter  or service"
16    means any Illinois domestic violence shelter or  service  and
17    its  administrative offices funded by the Department of Human
18    Services (as successor to the Illinois Department  of  Public
19    Aid), approved by the Director and participating in a program
20    created under subsection (k) of Section 10.
21        (v)  "TRS benefit recipient" means a person who:
22             (1)  is  not  a "member" as defined in this Section;
23        and
24             (2)  is receiving a monthly  benefit  or  retirement
25        annuity  under  Article  16 of the Illinois Pension Code;
26        and
27             (3)  either (i) has at least 8 years  of  creditable
28        service under Article 16 of the Illinois Pension Code, or
29        (ii) was enrolled in the health insurance program offered
30        under  that  Article  on January 1, 1996, or (iii) is the
31        survivor of a benefit recipient who had at least 8  years
32        of  creditable  service  under Article 16 of the Illinois
33        Pension Code or was  enrolled  in  the  health  insurance
34        program  offered under that Article on the effective date
                            -20-           LRB9002251EGfgam02
 1        of this amendatory Act of 1995, or (iv) is a recipient or
 2        survivor of a recipient of  a  disability  benefit  under
 3        Article 16 of the Illinois Pension Code.
 4        (w)  "TRS dependent beneficiary" means a person who:
 5             (1)  is  not a "member" or "dependent" as defined in
 6        this Section; and
 7             (2)  is a TRS benefit recipient's: (A)  spouse,  (B)
 8        dependent parent who is receiving at least half of his or
 9        her  support  from  the  TRS  benefit  recipient,  or (C)
10        unmarried natural or adopted child who is (i)  under  age
11        19,  or  (ii)  enrolled  as  a  full-time  student  in an
12        accredited school, financially  dependent  upon  the  TRS
13        benefit  recipient,  eligible as a dependent for Illinois
14        State income tax purposes, and either is under age 24  or
15        was,  on  January  1,  1996, participating as a dependent
16        beneficiary in the health insurance program offered under
17        Article 16 of the Illinois Pension Code, or (iii) age  19
18        or  over  who  is  mentally  or physically handicapped as
19        defined in the Illinois Insurance Code.
20        (x)  "Military leave with pay  and  benefits"  refers  to
21    individuals  in basic training for reserves, special/advanced
22    training, annual training, emergency call up,  or  activation
23    by  the  President of the United States with approved pay and
24    benefits.
25        (y)  "Military leave without pay and benefits" refers  to
26    individuals who enlist for active duty in a regular component
27    of  the  U.S.  Armed  Forces  or  other duty not specified or
28    authorized under military leave with pay and benefits.
29        (z)  "Community college benefit recipient" means a person
30    who:
31             (1)  is not a "member" as defined in  this  Section;
32        and
33             (2)  is  receiving  a  monthly survivor's annuity or
34        retirement annuity  under  Article  15  of  the  Illinois
                            -21-           LRB9002251EGfgam02
 1        Pension Code; and
 2             (3)  either  (i)  was  a  full-time  employee  of  a
 3        community college district or an association of community
 4        college boards created under the Public Community College
 5        Act  (other  than  an  employee whose last employer under
 6        Article 15 of the Illinois Pension Code was  a  community
 7        college  district  subject  to  Article VII of the Public
 8        Community College Act) and was eligible to participate in
 9        a group health benefit plan as  an  employee  during  the
10        time  of  employment  with  a  community college district
11        (other than  a  community  college  district  subject  to
12        Article  VII  of  the Public Community College Act) or an
13        association of community college boards, or (ii)  is  the
14        survivor of a person described in item (i).
15        (aa)  "Community  college  dependent beneficiary" means a
16    person who:
17             (1)  is not a "member" or "dependent" as defined  in
18        this Section; and
19             (2)  is a community college benefit recipient's: (A)
20        spouse,  (B)  dependent  parent who is receiving at least
21        half of his or her support  from  the  community  college
22        benefit  recipient,  or  (C) unmarried natural or adopted
23        child who is (i) under age 19,  or  (ii)  enrolled  as  a
24        full-time  student  in  an accredited school, financially
25        dependent upon the community college  benefit  recipient,
26        eligible  as  a  dependent  for Illinois State income tax
27        purposes and under age 23, or (iii) age 19  or  over  and
28        mentally  or  physically  handicapped  as  defined in the
29        Illinois Insurance Code.
30    (Source: P.A. 88-670,  eff.  12-2-94;  89-21,  eff.  6-21-95;
31    89-25,   eff.  6-21-95;  89-76,  eff.  7-1-95;  89-324,  eff.
32    8-13-95; 89-430, eff. 12-15-95; 89-502, eff. 7-1-96;  89-507,
33    eff. 7-1-97; 89-628, eff. 8-9-96; revised 8-23-96.)
                            -22-           LRB9002251EGfgam02
 1        (5 ILCS 375/6.9 new)
 2        Sec.  6.9.  Health benefits for community college benefit
 3    recipients and community college dependent beneficiaries.
 4        (a)  Purpose.  It is the purpose of this  amendatory  Act
 5    of 1997 to establish a uniform program of health benefits for
 6    community  college  benefit  recipients  and  their dependent
 7    beneficiaries under the administration of the  Department  of
 8    Central Management Services.
 9        (b)  Creation  of  program.   Beginning July 1, 1999, the
10    Department  of   Central   Management   Services   shall   be
11    responsible  for  administering  a program of health benefits
12    for  community  college  benefit  recipients  and   community
13    college  dependent  beneficiaries  under  this  Section.  The
14    State  Universities  Retirement  System  and  the  boards  of
15    trustees of the various  community  college  districts  shall
16    cooperate with the Department in this endeavor.
17        (c)  Eligibility.     All   community   college   benefit
18    recipients  and  community  college  dependent  beneficiaries
19    shall be eligible to participate in the  program  established
20    under  this  Section,  without  any  interruption or delay in
21    coverage or limitation as to pre-existing medical conditions.
22    Eligibility to participate shall be determined by  the  State
23    Universities  Retirement  System.    Eligibility  information
24    shall be communicated to the Department of Central Management
25    Services in a format acceptable to the Department.
26        (d)  Coverage.   The  health benefits provided under this
27    Section shall be the same as the benefits provided under  the
28    other  provisions  of  this  Act  for annuitants of the State
29    Universities   Retirement   System    and   their   dependent
30    beneficiaries.  However, group life  insurance  benefits  are
31    not  included  in  the  benefits  to be provided to community
32    college benefit recipients and  community  college  dependent
33    beneficiaries under this Act.
34        (e)  Insurance  rates  and  premiums.  The Director shall
                            -23-           LRB9002251EGfgam02
 1    determine the insurance  rates  and  premiums  for  community
 2    college  benefit  recipients  and community college dependent
 3    beneficiaries.  Rates and premiums may be based  in  part  on
 4    age and eligibility for federal medicare coverage.
 5        The  cost  of  health benefits under the program shall be
 6    paid as follows:
 7             (1)  For a community college benefit  recipient,  up
 8        to 75% of the total insurance rate shall be paid from the
 9        Community College Health Insurance Security Fund.
10             (2)  The balance of the rate of insurance, including
11        the entire premium for any coverage for community college
12        dependent  beneficiaries  that has been elected, shall be
13        paid by deductions authorized by  the  community  college
14        benefit  recipient to be withheld from his or her monthly
15        annuity or benefit payment from  the  State  Universities
16        Retirement  System; except that (i) if the balance of the
17        cost of  coverage  exceeds  the  amount  of  the  monthly
18        annuity  or benefit payment, the difference shall be paid
19        directly to the State Universities Retirement  System  by
20        the  community college benefit recipient, and (ii) all or
21        part of the balance of the cost of coverage may,  at  the
22        option  of the board of trustees of the community college
23        district, be paid to the  State  Universities  Retirement
24        System  by  the  board  of the community college district
25        from  which  the  community  college  benefit   recipient
26        retired.   The State Universities Retirement System shall
27        promptly deposit all moneys withheld by  or  paid  to  it
28        under  this subdivision (e)(2) into the Community College
29        Health Insurance Security Fund.  These moneys  shall  not
30        be considered assets of the State Universities Retirement
31        System.
32        This Act does not prohibit any community college district
33    from   paying   for   all  or  a  portion  of  the  premiums,
34    deductibles, or other costs of the  benefits  provided  under
                            -24-           LRB9002251EGfgam02
 1    this   Section  for  its  retirees  or  their  dependents  or
 2    survivors.
 3        (f)  Financing.    All   revenues   arising   from    the
 4    administration  of  the  health  benefit  program established
 5    under this Section shall  be  deposited  into  the  Community
 6    College  Health  Insurance  Security  Fund,  which  is hereby
 7    created as a nonappropriated trust fund to  be  held  outside
 8    the  State  Treasury,  with the State Treasurer as custodian.
 9    Any interest earned on moneys in the Community College Health
10    Insurance Security Fund shall be deposited into the Fund.
11        Moneys in the Community College Health Insurance Security
12    Fund shall be used only  to  pay  the  costs  of  the  health
13    benefit  program  established  under  this Section, including
14    associated administrative costs.  Beginning January 1,  1999,
15    the  Department  of  Central  Management  Services  may  make
16    expenditures  from  the  Community  College  Health Insurance
17    Security Fund for those costs.
18        (g)  Contract  for  benefits.   The  Director  shall   by
19    contract,  self-insurance,  or  otherwise  make available the
20    program of health  benefits  for  community  college  benefit
21    recipients    and    their    community   college   dependent
22    beneficiaries that is provided  for  in  this  Section.   The
23    contract  or  other  arrangement  for  the provision of these
24    health benefits shall be on terms deemed by the  Director  to
25    be  in  the  best  interest  of the State of Illinois and the
26    community  college  benefit  recipients  based  on,  but  not
27    limited to, such criteria  as  administrative  cost,  service
28    capabilities  of  the  carrier  or  other contractor, and the
29    costs of the benefits.
30        (h)  Continuation of program.  It is the intention of the
31    General Assembly that the program of health benefits provided
32    under this Section be maintained on  an  ongoing,  affordable
33    basis.   The  program  of health benefits provided under this
34    Section may be amended by the State and is not intended to be
                            -25-           LRB9002251EGfgam02
 1    a pension or retirement benefit subject to  protection  under
 2    Article XIII, Section 5 of the Illinois Constitution.
 3        (i)  Other  health  benefit plans.  A health benefit plan
 4    provided by  a  community  college  district  (other  than  a
 5    community  college  district  subject  to  Article VII of the
 6    Public Community College Act) under the terms of a collective
 7    bargaining agreement in effect on the effective date of  this
 8    amendatory  Act  of 1997 shall continue in force according to
 9    the terms of that agreement, unless otherwise mutually agreed
10    by the parties  to  that  agreement.    A  community  college
11    benefit  recipient or community college dependent beneficiary
12    whose coverage under such a plan expires shall be eligible to
13    begin participating in the  program  established  under  this
14    Section  without  any  interruption  or  delay in coverage or
15    limitation as to pre-existing medical conditions.
16        This Act does not prohibit any community college district
17    from offering additional health benefits for its retirees  or
18    their dependents or survivors.
19        (5 ILCS 375/6.10 new)
20        Sec.  6.10. Contributions to the Community College Health
21    Insurance Security Fund.
22        (a)  Beginning January 1, 1999, every active  contributor
23    of  the  State  Universities  Retirement  System (established
24    under Article 15 of the Illinois Pension Code) who (1)  is  a
25    full-time  employee  of  a  community college district (other
26    than a community college district subject to Article  VII  of
27    the  Public  Community  College  Act)  or  an  association of
28    community college boards  and  (2)  is  not  an  employee  as
29    defined  in  Section  3  of this Act shall make contributions
30    toward the cost of community college annuitant  and  survivor
31    health benefits at the rate of 0.35% of salary.
32        These contributions shall be deducted by the employer and
33    paid  to  the State Universities Retirement System as service
                            -26-           LRB9002251EGfgam02
 1    agent for the Department of Central Management Services.  The
 2    System  may  use  the  same  processes  for  collecting   the
 3    contributions  required  by  this  subsection that it uses to
 4    collect the contributions received from those employees under
 5    Section 15-157 of the Illinois Pension Code.  An employer may
 6    agree to pick up or pay the contributions required under this
 7    subsection on behalf  of  the  employee;  such  contributions
 8    shall be deemed to have been paid by the employee.
 9        A  person  required  to  make  contributions  under  this
10    subsection  (a)  who  purchases optional service credit under
11    Article 15 of the Illinois Pension Code  must  also  pay  the
12    contribution  required under this subsection (a) with respect
13    to that optional service credit.  This contribution  must  be
14    received by the System before that optional service credit is
15    granted.
16        The  State  Universities Retirement System shall promptly
17    deposit all moneys collected under this subsection  (a)  into
18    the  Community College Health Insurance Security Fund created
19    in Section 6.9 of this Act.  The moneys collected under  this
20    Section  shall  be  used  only for the purposes authorized in
21    Section 6.9 of this Act and shall not  be  considered  to  be
22    assets   of   the   State   Universities  Retirement  System.
23    Contributions made under this Section are not transferable to
24    other  pension  funds  or  retirement  systems  and  are  not
25    refundable upon termination of service.
26        (b)  Beginning January 1, 1999, every  community  college
27    district  (other than a community college district subject to
28    Article  VII  of  the  Public  Community  College   Act)   or
29    association  of  community college boards that is an employer
30    under  the  State  Universities   Retirement   System   shall
31    contribute  toward  the  cost of the community college health
32    benefits provided under Section 6.9 of  this  Act  an  amount
33    equal  to 0.35% of the salary paid to its full-time employees
34    who participate in the State Universities  Retirement  System
                            -27-           LRB9002251EGfgam02
 1    and are not members as defined in Section 3 of this Act.
 2        These  contributions shall be paid by the employer to the
 3    State Universities Retirement System as service agent for the
 4    Department of Central Management Services.   The  System  may
 5    use  the  same  processes  for  collecting  the contributions
 6    required by this subsection  that  it  uses  to  collect  the
 7    contributions  received  from  those  employers under Section
 8    15-155 of the Illinois Pension Code.
 9        The State Universities Retirement System  shall  promptly
10    deposit  all  moneys collected under this subsection (b) 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        (c)  On  or before November 15 of each year, the Board of
20    Trustees of the State Universities  Retirement  System  shall
21    certify  to  the Governor, the Director of Central Management
22    Services, and the State Comptroller its estimate of the total
23    amount of contributions to be paid under  subsection  (a)  of
24    this  Section  for  the  next fiscal year.  The certification
25    shall include a  detailed  explanation  of  the  methods  and
26    information  that  the  Board  relied  upon  in preparing its
27    estimate.  As soon as possible after the  effective  date  of
28    this  Section, the Board shall submit its estimate for fiscal
29    year 1999.
30        (d)  Beginning in fiscal year 1999, on the first  day  of
31    each  month,  or  as soon thereafter as may be practical, the
32    State Treasurer and the State Comptroller shall transfer from
33    the General Revenue Fund  to  the  Community  College  Health
34    Insurance   Security   Fund   1/12   of   the  annual  amount
                            -28-           LRB9002251EGfgam02
 1    appropriated for that fiscal year to  the  State  Comptroller
 2    for  deposit  into  the  Community  College  Health Insurance
 3    Security Fund under Section 1.4 of the  State  Pension  Funds
 4    Continuing Appropriation Act.
 5        (e)  Except  where  otherwise  specified in this Section,
 6    the definitions that apply to  Article  15  of  the  Illinois
 7    Pension Code apply to this Section.
 8        (5 ILCS 375/15) (from Ch. 127, par. 535)
 9        Sec. 15. Administration; rules; audit; review.
10        (a)  The  Director  shall  administer  this Act and shall
11    prescribe such rules and regulations as are necessary to give
12    full effect to the purposes of this Act.
13        (b)  These rules may fix  reasonable  standards  for  the
14    group  life  and  group  health  programs  and  other benefit
15    programs offered under this  Act,  and  for  the  contractors
16    providing them.
17        (c)  These  rules shall specify that covered and optional
18    medical services of the program are services provided  within
19    the   scope   of  their  licenses  by  practitioners  in  all
20    categories licensed under the Medical Practice  Act  of  1987
21    and shall provide that all eligible persons be fully informed
22    of this specification.
23        (d)  These rules shall establish eligibility requirements
24    for  members and dependents as may be necessary to supplement
25    or clarify requirements contained in this Act.
26        (e)  Each affected department of  the  State,  the  State
27    Universities  Retirement  System,  the  Teachers'  Retirement
28    System,  and  each qualified local government, rehabilitation
29    facility, or domestic violence shelter or service, shall keep
30    such records,  make  such  certifications,  and  furnish  the
31    Director  such  information  as  may  be  necessary  for  the
32    administration  of this Act, including information concerning
33    number and total amounts  of  payroll  of  employees  of  the
                            -29-           LRB9002251EGfgam02
 1    department who are paid from trust funds or federal funds.
 2        (f)  Each   member,   each   Community   College  benefit
 3    recipient to whom this Act  applies,  and  each  TRS  benefit
 4    recipient   to  whom  this  Act  applies  shall  furnish  the
 5    Director, in such form as may be  required,  any  information
 6    that  may  be  necessary to enroll such member or TRS benefit
 7    recipient and, if applicable, his or her  dependents  or  TRS
 8    dependent beneficiaries under the programs or plan, including
 9    such  data  as  may  be  required  to  allow  the Director to
10    accumulate  statistics  on  data   normally   considered   in
11    actuarial  studies  of  employee  groups.   Information about
12    community college benefit recipients  and  community  college
13    dependent  beneficiaries shall be furnished through the State
14    Universities  Retirement  System.   Information   about   TRS
15    benefit  recipients  and TRS dependent beneficiaries shall be
16    furnished through the Teachers' Retirement System.
17        (g)  There shall be an annual audit  and  report  on  the
18    programs  authorized  and established by this Act prepared by
19    the Director with the assistance of a qualified,  independent
20    accounting firm.  The annual report shall provide information
21    on  the  experience,  and  administrative  effectiveness  and
22    adequacy   of   the   program   including,  when  applicable,
23    recommendations on up-grading of benefits and improvement  of
24    the program.
25        (h)  Any  final  order,  decision  or other determination
26    made, issued or executed by the Director under the provisions
27    of this Act whereby any contractor  or  person  is  aggrieved
28    shall  be subject to review in accordance with the provisions
29    of the Administrative  Review  Law  and  all  amendments  and
30    modifications   thereof,   and  the  rules  adopted  pursuant
31    thereto, shall apply to and govern all  proceedings  for  the
32    judicial  review  of  final  administrative  decisions of the
33    Director.
34    (Source: P.A. 89-21, eff. 6-21-95; 89-25, eff. 6-21-95.)
                            -30-           LRB9002251EGfgam02
 1        Section  10.   The   State   Pension   Funds   Continuing
 2    Appropriation  Act  is  amended  by  adding  Section  1.4  as
 3    follows:
 4        (40 ILCS 15/1.4 new)
 5        Sec. 1.4. Appropriations for the Community College Health
 6    Insurance  Security  Fund.   Beginning  in  State fiscal year
 7    1999, there is hereby appropriated, on  a  continuing  annual
 8    basis, from the General Revenue Fund to the State Comptroller
 9    for  deposit  into  the  Community  College  Health Insurance
10    Security Fund, an amount equal to the amount certified by the
11    Board of Trustees of the State Universities Retirement System
12    under subsection (c) of Section 6.10 of the  State  Employees
13    Group  Insurance Act of 1971 as the estimated total amount of
14    contributions to be paid under subsection (a) of that Section
15    6.10 in that fiscal year.  The moneys appropriated under this
16    Section 1.4 shall be deposited  into  the  Community  College
17    Health Insurance Security Fund and used only for the purposes
18    authorized  in  Section  6.9  of  the  State  Employees Group
19    Insurance Act of 1971.
20        Section 15.  The Public Community College Act is  amended
21    by changing Section 2-16.02 as follows:
22        (110 ILCS 805/2-16.02) (from Ch. 122, par. 102-16.02)
23        Sec.  2-16.02.  Grants.   Any  community college district
24    that maintains a community college recognized  by  the  State
25    Board shall receive, when eligible, grants enumerated in this
26    Section.   Except  for  equalization  grants, retirees health
27    insurance grants, grants to districts established pursuant to
28    Section 6-6.1, and grants for special initiatives, all grants
29    specified in this Section shall be based on  funded  semester
30    credit hours.  Funded semester credit hours shall be defined,
31    for  purposes  of  this  Section,  as  the greater of (1) the
                            -31-           LRB9002251EGfgam02
 1    number of semester credit hours, or equivalent, in all funded
 2    instructional categories of  students who have been certified
 3    as being in attendance at midterm during the respective terms
 4    of the base fiscal year or (2) the average of semester credit
 5    hours, or equivalent, in all funded instructional  categories
 6    of students who have been certified as being in attendance at
 7    midterm  during  the respective terms of the base fiscal year
 8    and the 2 prior fiscal years.  For purposes of this  Section,
 9    "base fiscal year" means the fiscal year 2 years prior to the
10    fiscal  year  for  which  the  grants are appropriated.  Such
11    students shall have been residents of Illinois and shall have
12    been enrolled in  courses  that  are  part  of  instructional
13    program  categories  approved by the State Board and that are
14    applicable  toward  an  associate  degree   or   certificate.
15    Courses are not eligible for reimbursement where the district
16    receives federal or State financing or both, except financing
17    through the State Board, for 50% or more of the program costs
18    with  the  exception  of courses offered by contract with the
19    Department  of  Corrections  in  correctional   institutions.
20    After  distributing  a  grant of up to one-tenth of 1% of the
21    total available credit hour grant funding  to  each  district
22    with  less than 75,000 funded semester credit hours exclusive
23    of Department of  Corrections  credit  hours,  the  remaining
24    credit  hour  grants  shall be paid based on rates per funded
25    semester credit hour or equivalent calculated  by  the  State
26    Board  for  funded  instructional  categories  using  cost of
27    instruction,  enrollment,  inflation,  and   other   relevant
28    factors.
29        Grants  for  equalization  shall  be  distributed to each
30    district that falls below a statewide threshold calculated by
31    the State Board by: (A) adding  (1)  the  Corporate  Personal
32    Property  Replacement  Fund  allocations from the base fiscal
33    year or the average of the base fiscal year and  prior  year,
34    whichever  is less, divided by the applicable tax rate to (2)
                            -32-           LRB9002251EGfgam02
 1    the most recently audited year's equalized assessed valuation
 2    or the average of the most recently audited  year  and  prior
 3    year,  whichever  is less, (B) then dividing by the number of
 4    audited full-time equivalent resident students for  the  base
 5    fiscal  year or the average for the base  fiscal year and the
 6    2 prior fiscal years, whichever  is  greater,  and  (C)  then
 7    multiplying  by  the  applicable  tax  rate.  The State Board
 8    shall use the same methodology to calculate a  local  revenue
 9    factor   for   each  district.  The  difference  between  the
10    statewide threshold and the local revenue factor,  multiplied
11    by   the  number  of  full-time  equivalent  students,  shall
12    determine  the  amount  of  equalization  funding  that  each
13    district is eligible to receive.
14        A special populations  grant  of  $20,000  per  community
15    college  shall  be  distributed  to  each  community  college
16    district,  and  any  remaining appropriated funds for special
17    populations   programs   with   the   exception   of   moneys
18    appropriated  as  grants  for  unique   special   populations
19    initiatives  created  by the State Board shall be distributed
20    proportionately to each community  college  district  on  the
21    basis  of  each  district's  share  of the State total funded
22    semester     credit     hours,     or     equivalent,      in
23    remedial/developmental   and   adult   basic  education/adult
24    secondary  education   courses.    Each   community   college
25    district's  expenditures  of funds from those grants shall be
26    limited to courses  and  services  related  to  programs  for
27    educationally   disadvantaged   and   minority   students  as
28    specified by the State Board.
29        A  workforce  preparation  grant  of  $35,000  shall   be
30    distributed  to  each  community  college  district,  and any
31    remaining appropriated funds for workforce  preparation  with
32    the  exception  of  monies appropriated as grants for special
33    workforce preparation initiatives created by the State  Board
34    shall   be  distributed  proportionately  to  each  community
                            -33-           LRB9002251EGfgam02
 1    college district on the basis of each district's share of the
 2    State total funded semester credit hours, or  equivalent,  in
 3    business  occupational,  technical  occupational,  and health
 4    occupational  courses.   Each  community  college  district's
 5    expenditures of funds from those grants shall be  limited  to
 6    workforce preparation activities and services as specified by
 7    the State Board.
 8        An   advanced   technology   equipment   grant  shall  be
 9    distributed  proportionately  to   each   community   college
10    district  based  on  each district's share of the State total
11    funded semester credit  hours,  or  equivalent,  in  business
12    occupational, technical occupational, and health occupational
13    courses.   Each  community college district's expenditures of
14    funds from those grants shall be limited  to  procurement  of
15    equipment for curricula impacted by technological advances as
16    specified by the State Board.
17        A  retirees  health  insurance grant shall be distributed
18    proportionately  to  the  each  community  college   district
19    subject  to  Article  VII of this Act.  The or entity created
20    pursuant to Section 3-55 based on each  district's  share  of
21    the  total  number of community college retirees in the State
22    on July 1 of the fiscal year prior to  the  fiscal  year  for
23    which the grants are appropriated, as determined by the State
24    Board.   Each  community  college  district's expenditures of
25    funds from those grants shall be limited to payment of  costs
26    associated with the provision of retirees' health insurance.
27        A  grant  shall  be provided to the Illinois Occupational
28    Information  Coordinating  Committee  for  the   purpose   of
29    providing  the  State  Board with labor market information by
30    updating the Occupational  Information  System  and  HORIZONS
31    Career  Information  System  and  by  providing  labor market
32    information  and  technical  assistance,  that  grant  to  be
33    provided in its entirety during  the  first  quarter  of  the
34    fiscal year.
                            -34-           LRB9002251EGfgam02
 1        A  grant  shall be provided to Community College District
 2    #540, that district having been formed under  the  provisions
 3    of  Section 6-6.1, for the purpose of providing funds for the
 4    district to meet operating expenses.  The State  Board  shall
 5    certify,  prepare, and submit to the State Comptroller during
 6    August of the fiscal year a voucher setting forth a  one-time
 7    payment  of  any Education Assistance Fund appropriation, and
 8    during November, February, and  May  of  the  fiscal  year  a
 9    voucher  setting forth equal payments of General Revenue Fund
10    appropriations.  The Comptroller shall cause a warrant to  be
11    drawn  for  the  amount  due,  payable  to  Community College
12    District #540, within 15 days following the receipt  of  each
13    such voucher.
14        The  State  Board  shall  distribute  such  other special
15    grants as may be authorized or appropriated  by  the  General
16    Assembly.
17        Each  community college district entitled to State grants
18    under this Section must submit a report of its enrollment  to
19    the  State  Board not later than 30 days following the end of
20    each semester, quarter, or term in a format prescribed by the
21    State Board.  These semester  credit  hours,  or  equivalent,
22    shall  be certified by each district on forms provided by the
23    State  Board.   Each  district's  certified  semester  credit
24    hours, or  equivalent,  are  subject  to  audit  pursuant  to
25    Section 3-22.1.
26        The State Board shall certify, prepare, and submit to the
27    State  Comptroller during August, November, February, and May
28    of each fiscal year vouchers setting forth an amount equal to
29    25% of the districts' total  grants  approved  by  the  State
30    Board  for  credit  hour  grants, special populations grants,
31    workforce preparation grants, equalization  grants,  advanced
32    technology  equipment  grants,  and retirees health insurance
33    grants. The State Board shall prepare and submit to the State
34    Comptroller vouchers for special initiatives  grant  payments
                            -35-           LRB9002251EGfgam02
 1    as   set   forth   in  the  contracts  executed  pursuant  to
 2    appropriations  received   for   special   initiatives.   The
 3    Comptroller  shall  cause  his  warrants  to be drawn for the
 4    respective amounts due, payable  to  each  community  college
 5    district,  within  15  days  following  the  receipt  of such
 6    vouchers.  If the amount appropriated for grants is different
 7    from the amount provided for such grants under this Act,  the
 8    grants   shall   be   proportionately  reduced  or  increased
 9    accordingly.
10        For the purposes  of  this  Section,  "resident  student"
11    means a student in a community college district who maintains
12    residency   in   that   district  or  meets  other  residency
13    definitions established by  the  State  Board,  and  who  was
14    enrolled  either in one of the approved instructional program
15    categories in that district, or in another community  college
16    district  to  which the resident's district is paying tuition
17    under Section 6-2 or with which the resident's  district  has
18    entered into a cooperative agreement in lieu of such tuition.
19        For   the   purposes   of   this  Section,  a  "full-time
20    equivalent" student is equal to 30 semester credit hours.
21        The Illinois Community College Board Contracts and Grants
22    Fund is hereby created  in  the  State  Treasury.   Items  of
23    income  to  this  fund  shall  include  any  grants,  awards,
24    endowments,  or  like  proceeds, and where appropriate, other
25    funds made available  through  contracts  with  governmental,
26    public,   and  private  agencies  or  persons.   The  General
27    Assembly shall from time to time make appropriations  payable
28    from  such fund for the support, improvement, and expenses of
29    the State Board and Illinois community college districts.
30    (Source: P.A. 88-103; 88-553; 89-141, eff.  7-14-95;  89-281,
31    eff. 8-10-95; 89-473, eff. 6-18-96; 89-626, eff. 8-9-96.)
32        Section  90.  The State Mandates Act is amended by adding
33    Section 8.21 as follows:
                            -36-           LRB9002251EGfgam02
 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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