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92_SB0717eng SB717 Engrossed LRB9203394WHcs 1 AN ACT concerning workers' compensation. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Workers' Compensation Act is amended by 5 changing Section 7 as follows: 6 (820 ILCS 305/7) (from Ch. 48, par. 138.7) 7 Sec. 7. The amount of compensation which shall be paid 8 for an accidental injury to the employee resulting in death 9 is: 10 (a) If the employee leaves surviving a widow, widower, 11 child or children, the applicable weekly compensation rate 12 computed in accordance with subparagraph 2 of paragraph (b) 13 of Section 8, shall be payable during the life of the widow 14 or widower and if any surviving child or children shall not 15 be physically or mentally incapacitated then until the death 16 of the widow or widower or until the youngest child shall 17 reach the age of 18, whichever shall come later; provided 18 that if such child or children shall be enrolled as a full 19 time student in any accredited educational institution, the 20 payments shall continue until such child has attained the age 21 of 25. In the event any surviving child or children shall be 22 physically or mentally incapacitated, the payments shall 23 continue for the duration of such incapacity. 24 The term "child" means a child whom the deceased employee 25 left surviving, including a posthumous child, a child legally 26 adopted, a child whom the deceased employee was legally 27 obligated to support or a child to whom the deceased employee 28 stood in loco parentis. The term "children" means the plural 29 of "child". 30 The term "physically or mentally incapacitated child or 31 children" means a child or children incapable of engaging in SB717 Engrossed -2- LRB9203394WHcs 1 regular and substantial gainful employment. 2 In the event of the remarriage of a widow or widower, 3 where the decedent did not leave surviving any child or 4 children who, at the time of such remarriage, are entitled to 5 compensation benefits under this Act, the surviving spouse 6 shall be paid a lump sum equal to 2 years compensation 7 benefits and all further rights of such widow or widower 8 shall be extinguished. 9 If the employee leaves surviving any child or children 10 under 18 years of age who at the time of death shall be 11 entitled to compensation under this paragraph (a) of this 12 Section, the weekly compensation payments herein provided for 13 such child or children shall in any event continue for a 14 period of not less than 6 years. 15 Any beneficiary entitled to compensation under this 16 paragraph (a) of this Section shall receive from the special 17 fund provided in paragraph (f) of this Section, in addition 18 to the compensation herein provided, supplemental benefits in 19 accordance with paragraph (g) of Section 8. 20 (b) If no compensation is payable under paragraph (a) of 21 this Section and the employee leaves surviving a parent or 22 parents who at the time of the accident were totally 23 dependent upon the earnings of the employee then weekly 24 payments equal to the compensation rate payable in the case 25 where the employee leaves surviving a widow or widower, shall 26 be paid to such parent or parents for the duration of their 27 lives, and in the event of the death of either, for the life 28 of the survivor. 29 (c) If no compensation is payable under paragraphs (a) 30 or (b) of this Section and the employee leaves surviving any 31 child or children who are not entitled to compensation under 32 the foregoing paragraph (a) but who at the time of the 33 accident were nevertheless in any manner dependent upon the 34 earnings of the employee, or leaves surviving a parent or SB717 Engrossed -3- LRB9203394WHcs 1 parents who at the time of the accident were partially 2 dependent upon the earnings of the employee, then there shall 3 be paid to such dependent or dependents for a period of 8 4 years weekly compensation payments at such proportion of the 5 applicable rate if the employee had left surviving a widow or 6 widower as such dependency bears to total dependency. In the 7 event of the death of any such beneficiary the share of such 8 beneficiary shall be divided equally among the surviving 9 beneficiaries and in the event of the death of the last such 10 beneficiary all the rights under this paragraph shall be 11 extinguished. 12 (d) If no compensation is payable under paragraphs (a), 13 (b) or (c) of this Section and the employee leaves surviving 14 any grandparent, grandparents, grandchild or grandchildren or 15 collateral heirs dependent upon the employee's earnings to 16 the extent of 50% or more of total dependency, then there 17 shall be paid to such dependent or dependents for a period of 18 5 years weekly compensation payments at such proportion of 19 the applicable rate if the employee had left surviving a 20 widow or widower as such dependency bears to total 21 dependency. In the event of the death of any such 22 beneficiary the share of such beneficiary shall be divided 23 equally among the surviving beneficiaries and in the event of 24 the death of the last such beneficiary all rights hereunder 25 shall be extinguished. 26 (e) The compensation to be paid for accidental injury 27 which results in death, as provided in this Section, shall be 28 paid to the persons who form the basis for determining the 29 amount of compensation to be paid by the employer, the 30 respective shares to be in the proportion of their respective 31 dependency at the time of the accident on the earnings of the 32 deceased. The Commission or an Arbitrator thereof may, in 33 its or his discretion, order or award the payment to the 34 parent or grandparent of a child for the latter's support the SB717 Engrossed -4- LRB9203394WHcs 1 amount of compensation which but for such order or award 2 would have been paid to such child as its share of the 3 compensation payable, which order or award may be modified 4 from time to time by the Commission in its discretion with 5 respect to the person to whom shall be paid the amount of the 6 order or award remaining unpaid at the time of the 7 modification. 8 The payments of compensation by the employer in 9 accordance with the order or award of the Commission 10 discharges such employer from all further obligation as to 11 such compensation. 12 (f) The sum of $4200 for burial expenses shall be paid 13 by the employer to the widow or widower, other dependent, 14 next of kin or to the person or persons incurring the expense 15 of burial. 16 In the event the employer failed to provide necessary 17 first aid, medical, surgical or hospital service, he shall 18 pay the cost thereof to the person or persons entitled to 19 compensation under paragraphs (a), (b), (c) or (d) of this 20 Section, or to the person or persons incurring the obligation 21 therefore, or providing the same. 22 On January 15 and July 15, 1981, and on January 15 and 23 July 15 of each year thereafter the employer shall within 60 24 days pay a sum equal to 1/8 of 1% of all compensation 25 payments made by him after July 1, 1980, either under this 26 Act or the Workers' Occupational Diseases Act, whether by 27 lump sum settlement or weekly compensation payments, but not 28 including hospital, surgical or rehabilitation payments, made 29 during the first 6 months and during the second 6 months 30 respectively of the fiscal year next preceding the date of 31 the payments, into a special fund which shall be designated 32 the "Second Injury Fund", of which the State Treasurer is 33 ex-officio custodian, such special fund to be held and 34 disbursed for the purposes hereinafter stated in paragraphs SB717 Engrossed -5- LRB9203394WHcs 1 (f) and (g) of Section 8, either upon the order of the 2 Commission or of a competent court. Said special fund shall 3 be deposited the same as are State funds and any interest 4 accruing thereon shall be added thereto every 6 months. It 5 is subject to audit the same as State funds and accounts and 6 is protected by the General bond given by the State 7 Treasurer. It is considered always appropriated for the 8 purposes of disbursements as provided in Section 8, paragraph 9 (f), of this Act, and shall be paid out and disbursed as 10 therein provided and shall not at any time be appropriated or 11 diverted to any other use or purpose. 12 To the extent that the employer insures its workers' 13 compensation liability under this Act, insurers shall 14 collect such assessments from their policyholders through a 15 surcharge based on premium. Assessments when collected shall 16 not constitute an element of loss for the purpose of 17 establishing rates for workers' compensation insurance, but, 18 for the purpose of collection, shall be treated as separate 19 costs imposed upon insured employers. The premium surcharge 20 shall be excluded from the definition of premium for all 21 purposes, including computation of agents' commissions or 22 premium taxes, provided, an insurer may cancel a workers' 23 compensation policy for non-payment of the premium surcharge. 24 An employer who has ceased to be a self-insurer shall 25 continue to be liable for any assessments based on 26 compensation payments made by the employer in the preceding 27 fiscal year. 28 Assessments on self-insured employers and insured 29 employers shall be sent on January 15 and July 15 of each 30 year after the effective date of this amendatory Act of the 31 92nd General Assembly. Self-insured employers shall report 32 and remit payment and insurers shall report and remit premium 33 surcharges 60 days after the assessment. 34 On January 15, 1991, the employer shall further pay a sum SB717 Engrossed -6- LRB9203394WHcs 1 equal to one half of 1% of all compensation payments made by 2 him from January 1, 1990 through June 30, 1990 either under 3 this Act or under the Workers' Occupational Diseases Act, 4 whether by lump sum settlement or weekly compensation 5 payments, but not including hospital, surgical or 6 rehabilitation payments, into an additional Special Fund 7 which shall be designated as the "Rate Adjustment Fund". On 8 March 15, 1991, the employer shall pay into the Rate 9 Adjustment Fund a sum equal to one half of 1% of all such 10 compensation payments made from July 1, 1990 through December 11 31, 1990. Within 60 days after July 15, 1991, the employer 12 shall pay into the Rate Adjustment Fund a sum equal to one 13 half of 1% of all such compensation payments made from 14 January 1, 1991 through June 30, 1991. Within 60 days after 15 January 15 of 1992 and each subsequent year through 1996, the 16 employer shall pay into the Rate Adjustment Fund a sum equal 17 to one half of 1% of all such compensation payments made in 18 the last 6 months of the preceding calendar year. Within 60 19 days after July 15 of 1992 and each subsequent year through 20 1995, the employer shall pay into the Rate Adjustment Fund a 21 sum equal to one half of 1% of all such compensation payments 22 made in the first 6 months of the same calendar year. Within 23 60 days after January 15 of 1997 and each subsequent year, 24 the employer shall pay into the Rate Adjustment Fund a sum 25 equal to three-fourths of 1% of all such compensation 26 payments made in the last 6 months of the preceding calendar 27 year. Within 60 days after July 15 of 1996 and each 28 subsequent year, the employer shall pay into the Rate 29 Adjustment Fund a sum equal to three-fourths of 1% of all 30 such compensation payments made in the first 6 months of the 31 same calendar year. 32 To the extent that the employer insures its workers' 33 compensation liability under this Act, insurers shall 34 collect such assessments from their policyholders through SB717 Engrossed -7- LRB9203394WHcs 1 a surcharge based on premium. Assessments when collected 2 shall not constitute an element of loss for the purpose of 3 establishing rates for workers' compensation insurance, but, 4 for the purpose of collection, shall be treated as separate 5 costs imposed upon insured employers. The premium surcharge 6 shall be excluded from the definition of premium for all 7 purposes, including computation of premium taxes, provided, 8 an insurer may cancel a workers' compensation policy for 9 non-payment of the premium surcharge. The administrative 10 costs of collecting assessments from employers for the Rate 11 Adjustment Fund shall be paid from the Rate Adjustment Fund. 12 The cost of an actuarial audit of the Fund shall be paid from 13 the Rate Adjustment Fund and the audit shall be completed no 14 later than July 1, 1997. The State Treasurer is ex officio 15 custodian of such Special Fund and the same shall be held and 16 disbursed for the purposes hereinafter stated in paragraphs 17 (f) and (g) of Section 8 upon the order of the Commission or 18 of a competent court. The Rate Adjustment Fund shall be 19 deposited the same as are State funds and any interest 20 accruing thereon shall be added thereto every 6 months. It 21 shall be subject to audit the same as State funds and 22 accounts and shall be protected by the general bond given by 23 the State Treasurer. It is considered always appropriated 24 for the purposes of disbursements as provided in paragraphs 25 (f) and (g) of Section 8 of this Act and shall be paid out 26 and disbursed as therein provided and shall not at any time 27 be appropriated or diverted to any other use or purpose. 28 Within 5 days after the effective date of this amendatory Act 29 of 1990, the Comptroller and the State Treasurer shall 30 transfer $1,000,000 from the General Revenue Fund to the Rate 31 Adjustment Fund. By February 15, 1991, the Comptroller and 32 the State Treasurer shall transfer $1,000,000 from the Rate 33 Adjustment Fund to the General Revenue Fund. From the 34 effective date of this amendatory Act of 1993 to October 1, SB717 Engrossed -8- LRB9203394WHcs 1 1997, the Comptroller and Treasurer are authorized to make 2 transfers at the request of the Chairman up to a total of 3 $7,000,000 from the Second Injury Fund, the General Revenue 4 Fund, and the Workers' Compensation Benefit Trust Fund to the 5 Rate Adjustment Fund to the extent that there is insufficient 6 money in the Rate Adjustment Fund to pay claims and 7 obligations. Amounts may be transferred from the General 8 Revenue Fund only if the funds in the Second Injury Fund or 9 the Workers' Compensation Benefit Trust Fund are insufficient 10 to pay claims and obligations of the Rate Adjustment Fund. 11 All amounts transferred from the Second Injury Fund, the 12 General Revenue Fund, and the Workers' Compensation Benefit 13 Trust Fund shall be repaid from the Rate Adjustment Fund 14 within 270 days of a transfer, together with interest at the 15 rate earned by moneys on deposit in the Fund or Funds from 16 which the moneys were transferred. 17 Upon a finding by the Commission, after reasonable notice 18 and hearing, that any employer has willfully and knowingly 19 failed to pay the proper amounts into the Second Injury Fund 20 or the Rate Adjustment Fund required by this Section or if 21 such payments are not made within the time periods prescribed 22 by this Section, the employer shall, in addition to such 23 payments, pay a penalty of 20% of the amount required to be 24 paid or $2,500, whichever is greater, for each year or part 25 thereof of such failure to pay. This penalty shall only 26 apply to obligations of an employer to the Second Injury Fund 27 or the Rate Adjustment Fund accruing after the effective date 28 of this amendatory Act of 1989. All or part of such a penalty 29 may be waived by the Commission for good cause shown. 30 Any obligations of an employer to the Second Injury Fund 31 and Rate Adjustment Fund accruing prior to the effective date 32 of this amendatory Act of 1989 shall be paid in full by such 33 employer within 5 years of the effective date of this 34 amendatory Act of 1989, with at least one-fifth of such SB717 Engrossed -9- LRB9203394WHcs 1 obligation to be paid during each year following the 2 effective date of this amendatory Act of 1989. If the 3 Commission finds, following reasonable notice and hearing, 4 that an employer has failed to make timely payment of any 5 obligation accruing under the preceding sentence, the 6 employer shall, in addition to all other payments required by 7 this Section, be liable for a penalty equal to 20% of the 8 overdue obligation or $2,500, whichever is greater, for each 9 year or part thereof that obligation is overdue. All or part 10 of such a penalty may be waived by the Commission for good 11 cause shown. 12 The Chairman of the Industrial Commission shall, 13 annually, furnish to the Director of the Department of 14 Insurance a list of the amounts paid into the Second Injury 15 Fund and the Rate Adjustment Fund by each insurance company 16 on behalf of their insured employers. The Director shall 17 verify to the Chairman that the amounts paid by each 18 insurance company are accurate as best as the Director can 19 determine from the records available to the Director. The 20 Chairman shall verify that the amounts paid by each 21 self-insurer are accurate as best as the Chairman can 22 determine from records available to the Chairman. The 23 Chairman may require each self-insurer to provide information 24 concerning the total compensation payments made upon which 25 contributions to the Second Injury Fund and the Rate 26 Adjustment Fund are predicated and any additional information 27 establishing that such payments have been made into these 28 funds. Any deficiencies in payments noted by the Director or 29 Chairman shall be subject to the penalty provisions of this 30 Act. 31 The State Treasurer, or his duly authorized 32 representative, shall be named as a party to all proceedings 33 in all cases involving claim for the loss of, or the 34 permanent and complete loss of the use of one eye, one foot, SB717 Engrossed -10- LRB9203394WHcs 1 one leg, one arm or one hand. 2 The State Treasurer or his duly authorized agent shall 3 have the same rights as any other party to the proceeding, 4 including the right to petition for review of any award. The 5 reasonable expenses of litigation, such as medical 6 examinations, testimony, and transcript of evidence, incurred 7 by the State Treasurer or his duly authorized representative, 8 shall be borne by the Second Injury Fund. 9 If the award is not paid within 30 days after the date 10 the award has become final, the Commission shall proceed to 11 take judgment thereon in its own name as is provided for 12 other awards by paragraph (g) of Section 19 of this Act and 13 take the necessary steps to collect the award. 14 Any person, corporation or organization who has paid or 15 become liable for the payment of burial expenses of the 16 deceased employee may in his or its own name institute 17 proceedings before the Commission for the collection thereof. 18 For the purpose of administration, receipts and 19 disbursements, the Special Fund provided for in paragraph (f) 20 of this Section shall be administered jointly with the 21 Special Fund provided for in Section 7, paragraph (f) of the 22 Workers' Occupational Diseases Act. 23 (g) All compensation, except for burial expenses 24 provided in this Section to be paid in case accident results 25 in death, shall be paid in installments equal to the 26 percentage of the average earnings as provided for in Section 27 8, paragraph (b) of this Act, at the same intervals at which 28 the wages or earnings of the employees were paid. If this is 29 not feasible, then the installments shall be paid weekly. 30 Such compensation may be paid in a lump sum upon petition as 31 provided in Section 9 of this Act. However, in addition to 32 the benefits provided by Section 9 of this Act where 33 compensation for death is payable to the deceased's widow, 34 widower or to the deceased's widow, widower and one or more SB717 Engrossed -11- LRB9203394WHcs 1 children, and where a partial lump sum is applied for by such 2 beneficiary or beneficiaries within 18 months after the 3 deceased's death, the Commission may, in its discretion, 4 grant a partial lump sum of not to exceed 100 weeks of the 5 compensation capitalized at their present value upon the 6 basis of interest calculated at 3% per annum with annual 7 rests, upon a showing that such partial lump sum is for the 8 best interest of such beneficiary or beneficiaries. 9 (h) In case the injured employee is under 16 years of 10 age at the time of the accident and is illegally employed, 11 the amount of compensation payable under paragraphs (a), (b), 12 (c), (d) and (f) of this Section shall be increased 50%. 13 Nothing herein contained repeals or amends the provisions 14 of the Child Labor Law relating to the employment of minors 15 under the age of 16 years. 16 However, where an employer has on file an employment 17 certificate issued pursuant to the Child Labor Law or work 18 permit issued pursuant to the Federal Fair Labor Standards 19 Act, as amended, or a birth certificate properly and duly 20 issued, such certificate, permit or birth certificate is 21 conclusive evidence as to the age of the injured minor 22 employee for the purposes of this Section only. 23 (i) Whenever the dependents of a deceased employee are 24 aliens not residing in the United States, Mexico or Canada, 25 the amount of compensation payable is limited to the 26 beneficiaries described in paragraphs (a), (b) and (c) of 27 this Section and is 50% of the compensation provided in 28 paragraphs (a), (b) and (c) of this Section, except as 29 otherwise provided by treaty. 30 In a case where any of the persons who would be entitled 31 to compensation is living at any place outside of the United 32 States, then payment shall be made to the personal 33 representative of the deceased employee. The distribution by 34 such personal representative to the persons entitled shall be SB717 Engrossed -12- LRB9203394WHcs 1 made to such persons and in such manner as the Commission 2 orders. 3 (Source: P.A. 88-672, eff. 12-14-94; 89-470, eff. 6-13-96.)