State of Illinois
92nd General Assembly
Legislation

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92_SB2421

 
                                               LRB9217043BDpk

 1        AN ACT concerning State employees.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  5.   The  State  Employee Indemnification Act is
 5    amended by changing Section 2 as follows:

 6        (5 ILCS 350/2) (from Ch. 127, par. 1302)
 7        Sec. 2.   Representation  and  indemnification  of  State
 8    employees.
 9        (a)  In  the event that any civil proceeding is commenced
10    against any State employee arising out of any act or omission
11    occurring  within  the  scope   of   the   employee's   State
12    employment,  the  Attorney  General  shall,  upon  timely and
13    appropriate notice to him by such employee, appear on  behalf
14    of  such  employee  and defend the action.  In the event that
15    any civil proceeding is commenced against any  physician  who
16    is  an  employee  of  the  Department  of  Corrections or the
17    Department of Human Services (in a position relating  to  the
18    Department's  mental  health  and  developmental disabilities
19    functions) alleging death or bodily injury or other injury to
20    the person of the complainant resulting from and arising  out
21    of any act or omission occurring on or after December 3, 1977
22    within  the  scope  of  the  employee's  State employment, or
23    against any physician who is an employee of the Department of
24    Veterans' Affairs alleging death or bodily  injury  or  other
25    injury  to  the  person of the complainant resulting from and
26    arising out of any act or omission occurring on or after  the
27    effective  date  of  this  amendatory  Act of 1988 within the
28    scope of the employee's State employment,  or  in  the  event
29    that  any  civil proceeding is commenced against any attorney
30    who is an employee of the State Appellate  Defender  alleging
31    legal  malpractice  or  for  other damages resulting from and
 
                            -2-                LRB9217043BDpk
 1    arising out of any legal act  or  omission  occurring  on  or
 2    after  December  3,  1977, within the scope of the employee's
 3    State employment, or in the event that any  civil  proceeding
 4    is  commenced  against  any  individual  or  organization who
 5    contracts with the Department of Labor to provide services as
 6    a carnival  and  amusement  ride  safety  inspector  alleging
 7    malpractice,  death  or  bodily injury or other injury to the
 8    person arising out of any act or  omission  occurring  on  or
 9    after  May 1, 1985, within the scope of that employee's State
10    employment, the  Attorney  General  shall,  upon  timely  and
11    appropriate  notice to him by such employee, appear on behalf
12    of such employee and defend  the  action.   Any  such  notice
13    shall be in writing, shall be mailed within 15 days after the
14    date  of  receipt  by the employee of service of process, and
15    shall authorize the Attorney General to represent and  defend
16    the employee in the proceeding.  The giving of this notice to
17    the  Attorney  General  shall  constitute an agreement by the
18    State employee to cooperate with the Attorney General in  his
19    defense of the action and a consent that the Attorney General
20    shall  conduct  the  defense as he deems advisable and in the
21    best interests of the employee, including settlement  in  the
22    Attorney  General's  discretion.  In any such proceeding, the
23    State shall pay the court costs and  litigation  expenses  of
24    defending such action, to the extent approved by the Attorney
25    General as reasonable, as they are incurred.
26        (b)  In  the  event  that the Attorney General determines
27    that so  appearing  and  defending  an  employee  either  (1)
28    involves  an actual or potential conflict of interest, or (2)
29    that the act or omission which gave rise to the claim was not
30    within the scope of the employee's State  employment  or  was
31    intentional,   wilful  or  wanton  misconduct,  the  Attorney
32    General shall decline in writing to appear or defend or shall
33    promptly take appropriate action to withdraw as attorney  for
34    such employee.  Upon receipt of such declination or upon such
 
                            -3-                LRB9217043BDpk
 1    withdrawal  by the Attorney General on the basis of an actual
 2    or potential conflict of interest,  the  State  employee  may
 3    employ  his own attorney to appear and defend, in which event
 4    the State shall pay the employee's  court  costs,  litigation
 5    expenses  and  attorneys'  fees to the extent approved by the
 6    Attorney General as reasonable, as they are incurred.  In the
 7    event  that  the  Attorney  General  declines  to  appear  or
 8    withdraws on the grounds that the act  or  omission  was  not
 9    within the scope of employment, or was intentional, wilful or
10    wanton  misconduct, and a court or jury finds that the act or
11    omission of the  State  employee  was  within  the  scope  of
12    employment   and   was  not  intentional,  wilful  or  wanton
13    misconduct, the State shall indemnify the State employee  for
14    any  damages  awarded  and  court  costs  and attorneys' fees
15    assessed as part of any final and  unreversed  judgment.   In
16    such  event  the  State  shall  also pay the employee's court
17    costs, litigation expenses and attorneys' fees to the  extent
18    approved by the Attorney General as reasonable.
19        In  the  event that the defendant in the proceeding is an
20    elected State official,  including  members  of  the  General
21    Assembly,  the  elected  State official may retain his or her
22    attorney, provided that said  attorney  shall  be  reasonably
23    acceptable  to  the Attorney General.  In such case the State
24    shall  pay  the  elected  State   official's   court   costs,
25    litigation  expenses,  and  attorneys'  fees,  to  the extent
26    approved by the Attorney General as reasonable, as  they  are
27    incurred.
28        (b-5)  The  Attorney  General  may file a counterclaim on
29    behalf of a State employee, provided:
30             (1)  the Attorney General determines that the  State
31        employee  is entitled to representation in a civil action
32        under this Section;
33             (2)  the counterclaim  arises  out  of  any  act  or
34        omission  occurring  within  the  scope of the employee's
 
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 1        State employment that is the subject of the civil action;
 2        and
 3             (3)  the employee agrees in writing that if judgment
 4        is entered in favor of the employee, the  amount  of  the
 5        judgment shall be applied to offset any judgment that may
 6        be  entered  in  favor  of  the  plaintiff,  and  then to
 7        reimburse  the  State  treasury  for  court   costs   and
 8        litigation  expenses required to pursue the counterclaim.
 9        The balance of the collected judgment shall  be  paid  to
10        the State employee.
11        (c)  Notwithstanding any other provision of this Section,
12    representation  and indemnification of a judge under this Act
13    shall also be provided in any case where the plaintiff  seeks
14    damages  or any equitable relief as a result of any decision,
15    ruling or order of a judge made in the course of his  or  her
16    judicial  or  administrative  duties,  without  regard to the
17    theory   of   recovery    employed    by    the    plaintiff.
18    Indemnification  shall  be  for  all  damages awarded and all
19    court costs, attorney fees and litigation  expenses  assessed
20    against the judge. When a judge has been convicted of a crime
21    as  a result of his or her intentional judicial misconduct in
22    a trial, that judge shall not be entitled to  indemnification
23    and   representation   under  this  subsection  in  any  case
24    maintained by a party who seeks damages  or  other  equitable
25    relief as a direct result of the judge's intentional judicial
26    misconduct.
27        (d)  In  any  such  proceeding where notice in accordance
28    with this Section has been given  to  the  Attorney  General,
29    unless  the  court or jury finds that the conduct or inaction
30    which  gave  rise  to  the  claim  or  cause  of  action  was
31    intentional, wilful or wanton misconduct and was not intended
32    to serve or benefit interests of the State, the  State  shall
33    indemnify  the  State  employee  for  any damages awarded and
34    court costs and attorneys' fees assessed as part of any final
 
                            -5-                LRB9217043BDpk
 1    and unreversed judgment, or shall pay such judgment.   Unless
 2    the  Attorney General determines that the conduct or inaction
 3    which  gave  rise  to  the  claim  or  cause  of  action  was
 4    intentional, wilful or wanton misconduct and was not intended
 5    to serve or benefit interests of the State, the case  may  be
 6    settled,  in  the  Attorney General's discretion and with the
 7    employee's  consent,  and  the  State  shall  indemnify   the
 8    employee  for  any  damages,  court costs and attorneys' fees
 9    agreed to as part  of  the  settlement,  or  shall  pay  such
10    settlement.   Where  the  employee  is represented by private
11    counsel, any settlement must be so approved by  the  Attorney
12    General  and  the  court  having  jurisdiction,  which  shall
13    obligate the State to indemnify the employee.
14        (e) (i)  Court  costs  and  litigation expenses and other
15    costs of  providing  a  defense  or  counterclaim,  including
16    attorneys'  fees  obligated under this Section, shall be paid
17    from the State Treasury on the warrant of the Comptroller out
18    of  appropriations  made  to  the   Department   of   Central
19    Management  Services specifically designed for the payment of
20    costs, fees and expenses covered by this Section.
21        (ii)  Upon  entry  of  a  final  judgment   against   the
22    employee,  or  upon the settlement of the claim, the employee
23    shall  cause  to  be  served  a  copy  of  such  judgment  or
24    settlement, personally or by  certified  or  registered  mail
25    within  thirty  days of the date of entry or settlement, upon
26    the chief administrative officer of the department, office or
27    agency in which he is employed.  If not inconsistent with the
28    provisions of this Section, such judgment or settlement shall
29    be certified for payment by such chief administrative officer
30    and by the Attorney  General.   The  judgment  or  settlement
31    shall  be  paid from the State Treasury on the warrant of the
32    Comptroller out of appropriations made to the  Department  of
33    Central  Management  Services  specifically  designed for the
34    payment of claims covered by this Section.
 
                            -6-                LRB9217043BDpk
 1        (f)  Nothing contained or implied in this  Section  shall
 2    operate, or be construed or applied, to deprive the State, or
 3    any employee thereof, of any defense heretofore available.
 4        (g)  This  Section  shall apply regardless of whether the
 5    employee is  sued  in  his  or  her  individual  or  official
 6    capacity.
 7        (h)  This  Section  shall  not apply to claims for bodily
 8    injury or damage  to  property  arising  from  motor  vehicle
 9    accidents.
10        (i)  This Section shall apply to all proceedings filed on
11    or after its effective date, and to any proceeding pending on
12    its effective date, if the State employee gives notice to the
13    Attorney  General  as provided in this Section within 30 days
14    of the Act's effective date.
15        (j)  The amendatory changes made to this Section by  this
16    amendatory  Act  of 1986 shall apply to all proceedings filed
17    on or after the effective date of this amendatory Act of 1986
18    and to any proceeding pending on its effective date,  if  the
19    State  employee  gives  notice  to  the  Attorney  General as
20    provided in this Section within 30 days of the effective date
21    of this amendatory Act of 1986.
22        (k)  This Act applies to  all  State  officials  who  are
23    serving  as  trustees,  or their appointing authorities, of a
24    clean  energy  community   trust   or   as   members   of   a
25    not-for-profit foundation or corporation established pursuant
26    to Section 16-111.1 of the Public Utilities Act.
27        (l)  Notwithstanding any other provision of this Section,
28    if  a  State  official  or  employee has been defended by the
29    Attorney General or by  counsel  appointed  by  the  Attorney
30    General  and  it  is  established  by the judgment ultimately
31    rendered on the claim that the act or omission complained  of
32    was  not  within  the State official's or employee's scope of
33    employment or that the act or omission complained of was  the
34    result  of willful or wanton misconduct, the judgment against
 
                            -7-                LRB9217043BDpk
 1    that State official or employee shall provide for payment  to
 2    the  State  of  the State's costs, including, but not limited
 3    to, all attorney's fees and court costs.
 4    (Source: P.A. 90-655, eff. 7-30-98; 91-781, eff. 6-9-00.)

 5        Section 99.  Effective date.  This Act takes effect  upon
 6    becoming law.

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