Bill Text: IL HB0115 | 2013-2014 | 98th General Assembly | Introduced

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Bill Title: Amends the Department of Central Management Services Law of the Civil Administrative Code of Illinois. Provides that the Department of Central Management Services shall charge the employing State agency for workers' compensation payments for medical expenses and temporary total disability benefits (now, just for temporary total disability) paid to any employee (now, the Department shall charge the State agency only after the employee has received temporary total disability payments for 120 days if the employee's physician has issued a release to return to work but the employing State agency does not return the employee to work).

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2013-02-19 - Tabled [HB0115 Detail]

Download: Illinois-2013-HB0115-Introduced.html

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98TH GENERAL ASSEMBLY State of Illinois 2013 and 2014 HB0115 Introduced , by Rep. Dwight Kay SYNOPSIS AS INTRODUCED:
20 ILCS 405/405-105 was 20 ILCS 405/64.1
Amends the Department of Central Management Services Law of the Civil Administrative Code of Illinois. Provides that the Department of Central Management Services shall charge the employing State agency for workers' compensation payments for medical expenses and temporary total disability benefits (now, just for temporary total disability) paid to any employee (now, the Department shall charge the State agency only after the employee has received temporary total disability payments for 120 days if the employee's physician has issued a release to return to work but the employing State agency does not return the employee to work).
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning State government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Department of Central Management Services
Law of the Civil Administrative Code of Illinois is amended by
changing Section 405-105 as follows:
(20 ILCS 405/405-105) (was 20 ILCS 405/64.1)
Sec. 405-105. Fidelity, surety, property, and casualty
insurance. The Department shall establish and implement a
program to coordinate the handling of all fidelity, surety,
property, and casualty insurance exposures of the State and the
departments, divisions, agencies, branches, and universities
of the State. In performing this responsibility, the Department
shall have the power and duty to do the following:
(1) Develop and maintain loss and exposure data on all
State property.
(2) Study the feasibility of establishing a
self-insurance plan for State property and prepare
estimates of the costs of reinsurance for risks beyond the
realistic limits of the self-insurance.
(3) Prepare a plan for centralizing the purchase of
property and casualty insurance on State property under a
master policy or policies and purchase the insurance

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contracted for as provided in the Illinois Purchasing Act.
(4) Evaluate existing provisions for fidelity bonds
required of State employees and recommend changes that are
appropriate commensurate with risk experience and the
determinations respecting self-insurance or reinsurance so
as to permit reduction of costs without loss of coverage.
(5) Investigate procedures for inclusion of school
districts, public community college districts, and other
units of local government in programs for the centralized
purchase of insurance.
(6) Implement recommendations of the State Property
Insurance Study Commission that the Department finds
necessary or desirable in the performance of its powers and
duties under this Section to achieve efficient and
comprehensive risk management.
(7) Prepare and, in the discretion of the Director,
implement a plan providing for the purchase of public
liability insurance or for self-insurance for public
liability or for a combination of purchased insurance and
self-insurance for public liability (i) covering the State
and drivers of motor vehicles owned, leased, or controlled
by the State of Illinois pursuant to the provisions and
limitations contained in the Illinois Vehicle Code, (ii)
covering other public liability exposures of the State and
its employees within the scope of their employment, and
(iii) covering drivers of motor vehicles not owned, leased,

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or controlled by the State but used by a State employee on
State business, in excess of liability covered by an
insurance policy obtained by the owner of the motor vehicle
or in excess of the dollar amounts that the Department
shall determine to be reasonable. Any contract of insurance
let under this Law shall be by bid in accordance with the
procedure set forth in the Illinois Purchasing Act. Any
provisions for self-insurance shall conform to subdivision
(11).
The term "employee" as used in this subdivision (7) and
in subdivision (11) means a person while in the employ of
the State who is a member of the staff or personnel of a
State agency, bureau, board, commission, committee,
department, university, or college or who is a State
officer, elected official, commissioner, member of or ex
officio member of a State agency, bureau, board,
commission, committee, department, university, or college,
or a member of the National Guard while on active duty
pursuant to orders of the Governor of the State of
Illinois, or any other person while using a licensed motor
vehicle owned, leased, or controlled by the State of
Illinois with the authorization of the State of Illinois,
provided the actual use of the motor vehicle is within the
scope of that authorization and within the course of State
service.
Subsequent to payment of a claim on behalf of an

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employee pursuant to this Section and after reasonable
advance written notice to the employee, the Director may
exclude the employee from future coverage or limit the
coverage under the plan if (i) the Director determines that
the claim resulted from an incident in which the employee
was grossly negligent or had engaged in willful and wanton
misconduct or (ii) the Director determines that the
employee is no longer an acceptable risk based on a review
of prior accidents in which the employee was at fault and
for which payments were made pursuant to this Section.
The Director is authorized to promulgate
administrative rules that may be necessary to establish and
administer the plan.
Appropriations from the Road Fund shall be used to pay
auto liability claims and related expenses involving
employees of the Department of Transportation, the
Illinois State Police, and the Secretary of State.
(8) Charge, collect, and receive from all other
agencies of the State government fees or monies equivalent
to the cost of purchasing the insurance.
(9) Establish, through the Director, charges for risk
management services rendered to State agencies by the
Department. The State agencies so charged shall reimburse
the Department by vouchers drawn against their respective
appropriations. The reimbursement shall be determined by
the Director as amounts sufficient to reimburse the

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Department for expenditures incurred in rendering the
service.
The Department shall charge the employing State agency
or university for workers' compensation payments for
medical expenses and temporary total disability benefits
paid to any employee after the employee has received
temporary total disability payments for 120 days if the
employee's treating physician has issued a release to
return to work with restrictions and the employee is able
to perform modified duty work but the employing State
agency or university does not return the employee to work
at modified duty. Modified duty shall be duties assigned
that may or may not be delineated as part of the duties
regularly performed by the employee. Modified duties shall
be assigned within the prescribed restrictions established
by the treating physician and the physician who performed
the independent medical examination. The amount of all
reimbursements shall be deposited into the Workers'
Compensation Revolving Fund which is hereby created as a
revolving fund in the State treasury. In addition to any
other purpose authorized by law, moneys in the Fund shall
be used, subject to appropriation, to pay these medical or
other temporary total disability claims of employees of
State agencies and universities.
Beginning with fiscal year 1996, all amounts recovered
by the Department through subrogation in workers'

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compensation and workers' occupational disease cases shall
be deposited into the Workers' Compensation Revolving Fund
created under this subdivision (9).
(10) Through December 31, 2012, establish rules,
procedures, and forms to be used by State agencies in the
administration and payment of workers' compensation
claims. Through December 31, 2012, the Department shall
initially evaluate and determine the compensability of any
injury that is the subject of a workers' compensation claim
and provide for the administration and payment of such a
claim for all State agencies. Through December 31, 2012,
the Director may delegate to any agency with the agreement
of the agency head the responsibility for evaluation,
administration, and payment of that agency's claims.
(10a) By April 1 of each year prior to calendar year
2013, the Director must report and provide information to
the State Workers' Compensation Program Advisory Board
concerning the status of the State workers' compensation
program for the next fiscal year. Information that the
Director must provide to the State Workers' Compensation
Program Advisory Board includes, but is not limited to,
documents, reports of negotiations, bid invitations,
requests for proposals, specifications, copies of proposed
and final contracts or agreements, and any other materials
concerning contracts or agreements for the program. By the
first of each month prior to calendar year 2013, the

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Director must provide updated, and any new, information to
the State Workers' Compensation Program Advisory Board
until the State workers' compensation program for the next
fiscal year is determined.
(10b) No later than January 1, 2013, the chief
procurement officer appointed under paragraph (4) of
subsection (a) of Section 10-20 of the Illinois Procurement
Code (hereinafter "chief procurement officer"), in
consultation with the Department of Central Management
Services, shall procure one or more private vendors to
administer, beginning January 1, 2013, the program
providing payments for workers' compensation liability
with respect to the employees of all State agencies. The
chief procurement officer may procure a single contract
applicable to all State agencies or multiple contracts
applicable to one or more State agencies. If the chief
procurement officer procures a single contract applicable
to all State agencies, then the Department of Central
Management Services shall be designated as the agency that
enters into the contract and shall be responsible for the
contract. If the chief procurement officer procures
multiple contracts applicable to one or more State
agencies, each agency to which the contract applies shall
be designated as the agency that shall enter into the
contract and shall be responsible for the contract. If the
chief procurement officer procures contracts applicable to

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an individual State agency, the agency subject to the
contract shall be designated as the agency responsible for
the contract.
(10c) The procurement of private vendors for the
administration of the workers' compensation program for
State employees is subject to the provisions of the
Illinois Procurement Code and administration by the chief
procurement officer.
(10d) Contracts for the procurement of private vendors
for the administration of the workers' compensation
program for State employees shall be based upon, but
limited to, the following criteria: (i) administrative
cost, (ii) service capabilities of the vendor, and (iii)
the compensation (including premiums, fees, or other
charges). A vendor for the administration of the workers'
compensation program for State employees shall provide
services, including, but not limited to:
(A) providing a web-based case management system
and provide access to the Office of the Attorney
General;
(B) ensuring claims adjusters are available to
provide testimony or information as requested by the
Office of the Attorney General;
(C) establishing a preferred provider program for
all State agencies and facilities; and
(D) authorizing the payment of medical bills at the

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preferred provider discount rate.
(10e) By September 15, 2012, the Department of Central
Management Services shall prepare a plan to effectuate the
transfer of responsibility and administration of the
workers' compensation program for State employees to the
selected private vendors. The Department shall submit a
copy of the plan to the General Assembly.
(11) Any plan for public liability self-insurance
implemented under this Section shall provide that (i) the
Department shall attempt to settle and may settle any
public liability claim filed against the State of Illinois
or any public liability claim filed against a State
employee on the basis of an occurrence in the course of the
employee's State employment; (ii) any settlement of such a
claim is not subject to fiscal year limitations and must be
approved by the Director and, in cases of settlements
exceeding $100,000, by the Governor; and (iii) a settlement
of any public liability claim against the State or a State
employee shall require an unqualified release of any right
of action against the State and the employee for acts
within the scope of the employee's employment giving rise
to the claim.
Whenever and to the extent that a State employee
operates a motor vehicle or engages in other activity
covered by self-insurance under this Section, the State of
Illinois shall defend, indemnify, and hold harmless the

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employee against any claim in tort filed against the
employee for acts or omissions within the scope of the
employee's employment in any proper judicial forum and not
settled pursuant to this subdivision (11), provided that
this obligation of the State of Illinois shall not exceed a
maximum liability of $2,000,000 for any single occurrence
in connection with the operation of a motor vehicle or
$100,000 per person per occurrence for any other single
occurrence, or $500,000 for any single occurrence in
connection with the provision of medical care by a licensed
physician employee.
Any claims against the State of Illinois under a
self-insurance plan that are not settled pursuant to this
subdivision (11) shall be heard and determined by the Court
of Claims and may not be filed or adjudicated in any other
forum. The Attorney General of the State of Illinois or the
Attorney General's designee shall be the attorney with
respect to all public liability self-insurance claims that
are not settled pursuant to this subdivision (11) and
therefore result in litigation. The payment of any award of
the Court of Claims entered against the State relating to
any public liability self-insurance claim shall act as a
release against any State employee involved in the
occurrence.
(12) Administer a plan the purpose of which is to make
payments on final settlements or final judgments in

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accordance with the State Employee Indemnification Act.
The plan shall be funded through appropriations from the
General Revenue Fund specifically designated for that
purpose, except that indemnification expenses for
employees of the Department of Transportation, the
Illinois State Police, and the Secretary of State shall be
paid from the Road Fund. The term "employee" as used in
this subdivision (12) has the same meaning as under
subsection (b) of Section 1 of the State Employee
Indemnification Act. Subject to sufficient appropriation,
the Director shall approve payment of any claim, without
regard to fiscal year limitations, presented to the
Director that is supported by a final settlement or final
judgment when the Attorney General and the chief officer of
the public body against whose employee the claim or cause
of action is asserted certify to the Director that the
claim is in accordance with the State Employee
Indemnification Act and that they approve of the payment.
In no event shall an amount in excess of $150,000 be paid
from this plan to or for the benefit of any claimant.
(13) Administer a plan the purpose of which is to make
payments on final settlements or final judgments for
employee wage claims in situations where there was an
appropriation relevant to the wage claim, the fiscal year
and lapse period have expired, and sufficient funds were
available to pay the claim. The plan shall be funded

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through appropriations from the General Revenue Fund
specifically designated for that purpose.
Subject to sufficient appropriation, the Director is
authorized to pay any wage claim presented to the Director
that is supported by a final settlement or final judgment
when the chief officer of the State agency employing the
claimant certifies to the Director that the claim is a
valid wage claim and that the fiscal year and lapse period
have expired. Payment for claims that are properly
submitted and certified as valid by the Director shall
include interest accrued at the rate of 7% per annum from
the forty-fifth day after the claims are received by the
Department or 45 days from the date on which the amount of
payment is agreed upon, whichever is later, until the date
the claims are submitted to the Comptroller for payment.
When the Attorney General has filed an appearance in any
proceeding concerning a wage claim settlement or judgment,
the Attorney General shall certify to the Director that the
wage claim is valid before any payment is made. In no event
shall an amount in excess of $150,000 be paid from this
plan to or for the benefit of any claimant.
Nothing in Public Act 84-961 shall be construed to
affect in any manner the jurisdiction of the Court of
Claims concerning wage claims made against the State of
Illinois.
(14) Prepare and, in the discretion of the Director,

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implement a program for self-insurance for official
fidelity and surety bonds for officers and employees as
authorized by the Official Bond Act.
(Source: P.A. 96-928, eff. 6-15-10; 97-18, eff. 6-28-11;
97-895, eff. 8-3-12.)