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90_SB1633eng
20 ILCS 405/64.1 from Ch. 127, par. 63b4
Amends the Civil Administrative Code of Illinois. Adds a
caption to a Section concerning the Department of Central
Management Services' powers and duties regarding insurance
exposures.
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1 AN ACT to amend the Civil Administrative Code of Illinois
2 by changing Section 64.1.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Civil Administrative Code of Illinois is
6 amended by changing Section 64.1 as follows:
7 (20 ILCS 405/64.1) (from Ch. 127, par. 63b4)
8 Sec. 64.1. Fidelity, surety, property, and casualty
9 insurance exposures; powers and duties of Department. The
10 Department of Central Management Services shall establish and
11 implement a program to coordinate the handling of all
12 fidelity, surety, property and casualty insurance exposures,
13 of the State and the departments, divisions, agencies,
14 branches and universities of the State. In performing this
15 responsibility, the Department shall have the power and duty
16 to:
17 (a) Develop and maintain loss and exposure data on all
18 State property.
19 (b) Study the feasibility of establishing a
20 self-insurance plan for State property and prepare estimates
21 of the costs of reinsurance for risks beyond the realistic
22 limits of the self-insurance.
23 (c) Prepare a plan for centralizing the purchase of
24 property and casualty insurance on State property under a
25 master policy or policies, and to purchase the insurance
26 contracted for as provided in the Illinois Purchasing Act.
27 (d) Evaluate existing provisions for fidelity bonds
28 required of State employees and recommend such changes as are
29 appropriate commensurate with risk experience and the
30 determinations respecting self-insurance or reinsurance so as
31 to permit reduction of costs without loss of coverage.
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1 (e) Investigate procedures for inclusion of school
2 districts, junior college districts and other units of local
3 government in programs for the centralized purchase of
4 insurance.
5 (f) Implement such recommendations of the State Property
6 Insurance Study Commission as the Department finds necessary
7 or desirable in the performance of its powers and duties
8 under this Section to achieve efficient and comprehensive
9 risk management.
10 (g) Prepare and, in the discretion of the Director of
11 Central Management Services, implement a plan providing for
12 the purchase of public liability insurance or for
13 self-insurance for public liability or for a combination of
14 purchased insurance and self-insurance for public liability
15 (1) covering the State and drivers of motor vehicles owned,
16 leased or controlled by the State of Illinois pursuant to the
17 provisions and limitations contained in the Illinois Vehicle
18 Code, (2) covering other public liability exposures of the
19 State and its employees within the scope of their employment,
20 and (3) covering drivers of motor vehicles not owned, leased
21 or controlled by the State but used by a State employee on
22 State business, in excess of liability covered by an
23 insurance policy obtained by the owner of the motor vehicle
24 or in excess of such dollar amounts as the Department shall
25 determine to be reasonable. Any contract of insurance let
26 under this Act shall be by bid in accordance with the
27 procedure set forth in the Illinois Purchasing Act. Any
28 provisions for self-insurance shall conform to subsection
29 (k). The term "employee" as used in subsections (g) and (k)
30 means a person while in the employ of the State who is a
31 member of the staff or personnel of a State agency, bureau,
32 board, commission, committee, department, university or
33 college or who is a State officer, elected official,
34 commissioner, member of or ex officio member of a State
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1 agency, bureau, board, commission, committee, department,
2 university or college, or a member of the National Guard
3 while on active duty pursuant to orders of the Governor of
4 the State of Illinois or any other person while using a
5 licensed motor vehicle owned, leased or controlled by the
6 State of Illinois with the authorization of the State of
7 Illinois, provided the actual use thereof is within the scope
8 of such authorization and within the course of State service.
9 Subsequent to payment of a claim on behalf of an employee
10 pursuant to this Section and after reasonable advance written
11 notice to the employee, the Director may exclude the employee
12 from future coverage or limit such coverage under the plan if
13 (1) the Director determines that the claim resulted from an
14 incident in which the employee was grossly negligent or had
15 engaged in willful and wanton misconduct; or (2) the Director
16 determines that the employee is no longer an acceptable risk
17 based on a review of prior accidents in which the employee
18 was at fault and for which payments were made pursuant to
19 this Section. The Director is authorized to promulgate such
20 administrative rules as may be necessary to establish and
21 administer the plan. Appropriations from the Road Fund
22 shall be used to pay auto liability claims and related
23 expenses involving employees of the Department of
24 Transportation, the Illinois State Police, and the Secretary
25 of State.
26 (h) Charge, collect and receive from all other agencies
27 of the State government fees or monies equivalent to the cost
28 of purchasing the insurance.
29 (i) (1) Establish through the Director, charges for risk
30 management services rendered to State agencies by the
31 Department of Central Management Services. The State agencies
32 so charged shall reimburse the Department of Central
33 Management Services by vouchers drawn against their
34 respective appropriations. The reimbursement shall be
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1 determined by the Director of Central Management Services as
2 amounts sufficient to reimburse the Department for
3 expenditures incurred in rendering the service.
4 (2) The Department of Central Management Services shall
5 charge the employing State agency or university for workers'
6 compensation payments for temporary total disability paid to
7 any employee after the employee has received temporary total
8 disability payments for 120 days if the employee's treating
9 physician has issued a release to return to work with
10 restrictions and is able to perform modified duty work but
11 the employing State agency or university does not return the
12 employee to work at modified duty. Modified duty shall be
13 duties assigned that may or may not be delineated as part of
14 the duties regularly performed by the employee. Modified
15 duties shall be assigned within the prescribed restrictions
16 established by the treating physician and the physician who
17 performed the independent medical examination. The amount of
18 all reimbursements shall be deposited into the Workers'
19 Compensation Revolving Fund which is hereby created as a
20 special fund in the State Treasury. Moneys in the Fund shall
21 be used, subject to appropriation, to pay these or other
22 temporary total disability claims of employees of State
23 agencies and universities.
24 (3) Beginning with fiscal year 1996, all amounts
25 recovered by the Department through subrogation in workers'
26 compensation and workers' occupational disease cases shall be
27 deposited into the Workers' Compensation Revolving Fund
28 created under subdivision (i)(2).
29 (j) Establish rules, procedures and forms to be used by
30 State agencies in the administration and payment of workers'
31 compensation claims. Initially evaluate and determine the
32 compensability of any injury which is the subject of a
33 workers' compensation claim and provide for the
34 administration and payment of such claim for all State
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1 agencies. The Director may delegate to any agency with the
2 agreement of the agency head the responsibility for
3 evaluation, administration and payment of that agency's
4 claims.
5 (k) Any plan for public liability self-insurance
6 implemented under this Section shall provide that (1) the
7 Department of Central Management Services shall attempt to
8 settle and may settle any public liability claim filed
9 against the State of Illinois or any public liability claim
10 filed against a State employee on the basis of an occurrence
11 in the course of his State employment; (2) any settlement of
12 such a claim must be approved by the Director of Central
13 Management Services and, in cases of settlements exceeding
14 $100,000, by the Governor; and (3) a settlement of any public
15 liability claim against the State or a State employee shall
16 require an unqualified release of any right of action against
17 the State and the employee for acts within the scope of the
18 employee's employment giving rise to the claim. Whenever and
19 to the extent that a State employee operates a motor vehicle
20 or engages in other activity covered by self-insurance under
21 this Section, the State of Illinois shall defend, indemnify
22 and hold harmless the employee against any claim in tort
23 filed against the employee for acts or omissions within the
24 scope of his employment in any proper judicial forum and not
25 settled pursuant to this subsection, provided that this
26 obligation of the State of Illinois shall not exceed a
27 maximum liability of $2,000,000 for any single occurrence in
28 connection with the operation of a motor vehicle or $100,000
29 per person per occurrence for any other single occurrence, or
30 $500,000 for any single occurrence in connection with the
31 provision of medical care by a licensed physician employee.
32 Any claims against the State of Illinois under a
33 self-insurance plan which are not settled pursuant to this
34 subsection shall be heard and determined by the Court of
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1 Claims, and may not be filed or adjudicated in any other
2 forum. The Attorney General of the State of Illinois or his
3 designee shall be the attorney with respect to all public
4 liability self-insurance claims which are not settled
5 pursuant to this subsection and therefore result in
6 litigation. The payment of any award of the Court of Claims
7 entered against the State relating to any public liability
8 self-insurance claim shall act as a release against any State
9 employee involved in the occurrence.
10 (l) Administer a plan the purpose of which is to make
11 payments on final settlements or final judgments in
12 accordance with the State Employee Indemnification Act. The
13 plan shall be funded through appropriations from the General
14 Revenue Fund specifically designated for that purpose, except
15 that indemnification expenses for employees of the Department
16 of Transportation, Illinois State Police, and Secretary of
17 State shall be paid from the Road Fund. The term "employee"
18 as used in this subsection shall have the same meaning as
19 under subsection (b) of Section 1 of the State Employee
20 Indemnification Act. Subject to sufficient appropriation,
21 the Director of Central Management Services shall approve
22 payment of any claim presented to him that is supported by a
23 final settlement or final judgment when the Attorney General
24 and the chief officer of the public body against whose
25 employee the claim or cause of action is asserted certify to
26 him that the claim is in accordance with the State Employee
27 Indemnification Act, and that they approve of the payment.
28 In no event shall an amount in excess of $150,000 be paid
29 from this plan to or for the benefit of any claimant.
30 (m) Administer a plan the purpose of which is to make
31 payments on final settlements or final judgments for employee
32 wage claims in situations where there was an appropriation
33 relevant to the wage claim, and the fiscal year and lapse
34 period have expired and that sufficient funds were available
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1 to pay such claim. The plan shall be funded through
2 appropriations from the General Revenue Fund specifically
3 designated for that purpose. Subject to sufficient
4 appropriation, the Director of Central Management Services is
5 authorized to pay any wage claim presented to him that is
6 supported by a final settlement or final judgment when the
7 chief officer of the State agency employing the claimant
8 certifies to him that the claim is a valid wage claim and
9 that the fiscal year and lapse period have expired. Payment
10 for claims that are properly submitted and certified as valid
11 by the Director of Central Management Services shall include
12 interest accrued at the rate of 7% per annum from the
13 forty-fifth day after the claims are received by the
14 Department of Central Management Services or 45 days from the
15 date on which the amount of payment is agreed upon, whichever
16 is later, until the date the claims are submitted to the
17 Comptroller for payment. When the Attorney General has filed
18 an appearance in any proceeding concerning a wage claim
19 settlement or judgment, the Attorney General shall certify to
20 the Director of Central Management Services that the wage
21 claim is valid before any payment is made. In no event shall
22 an amount in excess of $150,000 be paid from this plan to or
23 for the benefit of any claimant. Nothing in this Amendatory
24 Act of 1985 shall be construed to affect in any manner the
25 jurisdiction of the Court of Claims concerning wage claims
26 made against the State of Illinois.
27 (n) Prepare and, in the discretion of the Director of
28 Central Management Services, implement a program for
29 self-insurance for official fidelity and surety bonds for
30 officers and employees as authorized by the Official Bond
31 Act.
32 (Source: P.A. 89-21, eff. 7-1-95; 89-262, eff. 8-10-95;
33 89-626, eff. 8-9-96.)