Bill Text: IL HB2494 | 2013-2014 | 98th General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Amends the Public Utilities Act in relation to on-bill financing programs. Provides for the inclusion of energy efficiency and demand-response plans under those programs.

Spectrum: Partisan Bill (Democrat 13-0)

Status: (Passed) 2014-08-26 - Public Act . . . . . . . . . 98-1055 [HB2494 Detail]

Download: Illinois-2013-HB2494-Amended.html

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Sen. John M. Sullivan

Filed: 11/5/2013

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AMENDMENT TO HOUSE BILL 2494
AMENDMENT NO. ______. Amend House Bill 2494 by replacing
everything after the enacting clause with the following:
"Section 5. The State Employees Group Insurance Act of 1971
is amended by changing Section 5 as follows:
(5 ILCS 375/5) (from Ch. 127, par. 525)
Sec. 5. Employee benefits; declaration of State policy. The
General Assembly declares that it is the policy of the State
and in the best interest of the State to assure quality
benefits to members and their dependents under this Act. The
implementation of this policy depends upon, among other things,
stability and continuity of coverage, care, and services under
benefit programs for members and their dependents.
Specifically, but without limitation, members should have
continued access, on substantially similar terms and
conditions, to trusted family health care providers with whom

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they have developed long-term relationships through a benefit
program under this Act. Therefore, the Director must administer
this Act consistent with that State policy, but may consider
affordability, cost of coverage and care, and competition among
health insurers and providers. All contracts for provision of
employee benefits, including those portions of any proposed
collective bargaining agreement that would require
implementation through contracts entered into under this Act,
are subject to the following requirements:
(i) By April 1 of each year, the Director must report
and provide information to the Commission concerning the
status of the employee benefits program to be offered for
the next fiscal year. Information 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 employee benefits program. By the first of each month
thereafter, the Director must provide updated, and any new,
information to the Commission until the employee benefits
program for the next fiscal year is determined. In addition
to these monthly reporting requirements, at any time the
Commission makes a written request, the Director must
promptly, but in no event later than 5 business days after
receipt of the request, provide to the Commission any
additional requested information in the possession of the

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Director concerning employee benefits programs. The
Commission may waive any of the reporting requirements of
this item (i) upon the written request by the Director. Any
waiver granted under this item (i) must be in writing.
Nothing in this item is intended to abrogate any
attorney-client privilege.
(ii) Within 30 days after notice of the awarding or
letting of a contract has appeared in the Illinois
Procurement Bulletin in accordance with subsection (b) of
Section 15-25 of the Illinois Procurement Code, the
Commission may request in writing from the Director and the
Director shall promptly, but in no event later than 5
business days after receipt of the request, provide to the
Commission information in the possession of the Director
concerning the proposed contract. Nothing in this item is
intended to waive or abrogate any privilege or right of
confidentiality authorized by law.
(iii) Except as otherwise provided in this item (iii),
no contract subject to this Section may be entered into
until the 30-day period described in item (ii) has expired,
unless the Director requests in writing that the Commission
waive the period and the Commission grants the waiver in
writing. This item (iii) does not apply to any contract
entered into after the effective date of this amendatory
Act of the 98th General Assembly and through January 1,
2014 to provide a program of group health benefits for

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Medicare-primary members and their Medicare-primary
dependents that is comparable in stability and continuity
of coverage, care, and services to the program of health
benefits offered to other members and their dependents
under this Act.
(iv) If the Director seeks to make any substantive
modification to any provision of a proposed contract after
it is submitted to the Commission in accordance with item
(ii), the modified contract shall be subject to the
requirements of items (ii) and (iii) unless the Commission
agrees, in writing, to a waiver of those requirements with
respect to the modified contract.
(v) By the date of the beginning of the annual benefit
choice period, the Director must transmit to the Commission
a copy of each final contract or agreement for the employee
benefits program to be offered for the next fiscal year.
The annual benefit choice period for an employee benefits
program must begin on May 1 of the fiscal year preceding
the year for which the program is to be offered. If,
however, in any such preceding fiscal year collective
bargaining over employee benefit programs for the next
fiscal year remains pending on April 15, the beginning date
of the annual benefit choice period shall be not later than
15 days after ratification of the collective bargaining
agreement.
(vi) The Director must provide the reports,

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information, and contracts required under items (i), (ii),
(iv), and (v) by electronic or other means satisfactory to
the Commission. Reports, information, and contracts in the
possession of the Commission pursuant to items (i), (ii),
(iv), and (v) are exempt from disclosure by the Commission
and its members and employees under the Freedom of
Information Act. Reports, information, and contracts
received by the Commission pursuant to items (i), (ii),
(iv), and (v) must be kept confidential by and may not be
disclosed or used by the Commission or its members or
employees if such disclosure or use could compromise the
fairness or integrity of the procurement, bidding, or
contract process. Commission meetings, or portions of
Commission meetings, in which reports, information, and
contracts received by the Commission pursuant to items (i),
(ii), (iv), and (v) are discussed must be closed if
disclosure or use of the report or information could
compromise the fairness or integrity of the procurement,
bidding, or contract process.
All contracts entered into under this Section are subject
to appropriation and shall comply with Section 20-60(b) of the
Illinois Procurement Code (30 ILCS 500/20-60(b)).
The Director shall contract or otherwise make available
group life insurance, health benefits and other employee
benefits to eligible members and, where elected, their eligible
dependents. Any contract or, if applicable, contracts or other

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arrangement for provision of benefits shall be on terms
consistent with State policy and based on, but not limited to,
such criteria as administrative cost, service capabilities of
the carrier or other contractor and premiums, fees or charges
as related to benefits.
Notwithstanding any other provisions of this Act, by
January 1, 2014, the Department of Central Management Services,
in consultation with and subject to the approval of the Chief
Procurement Officer, shall contract or make otherwise
available a program of group health benefits for
Medicare-primary members and their Medicare-primary
dependents. The Director may procure a single contract or
multiple contracts that provide a program of group health
benefits that is comparable in stability and continuity of
coverage, care, and services to the program of health benefits
offered to other members and their dependents under this Act.
The initial procurement of a contract or contracts under this
paragraph is not subject to the provisions of the Illinois
Procurement Code, except for Sections 20-60, 20-65, 20-70, and
20-160 and Article 50 of that Code, provided that the Chief
Procurement Officer may, in writing with justification, waive
any certification required under Article 50.
At least 2 group health benefits providers must be
available to Medicare-primary members and their
Medicare-primary dependents in each county in the State, with
at least one of those providers being a managed care option.

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The Department must conduct a supplemental procurement to
ensure that such options are available. The deadline for
enrolling in a program of group health benefits for
Medicare-primary members and their Medicare-primary dependents
shall be extended to such a date as to ensure that at least 2
options are available as required by this Section.
The Director may prepare and issue specifications for group
life insurance, health benefits, other employee benefits and
administrative services for the purpose of receiving proposals
from interested parties.
The Director is authorized to execute a contract, or
contracts, for the programs of group life insurance, health
benefits, other employee benefits and administrative services
authorized by this Act (including, without limitation,
prescription drug benefits). All of the benefits provided under
this Act may be included in one or more contracts, or the
benefits may be classified into different types with each type
included under one or more similar contracts with the same or
different companies.
The term of any contract may not extend beyond 5 fiscal
years. Upon recommendation of the Commission, the Director may
exercise renewal options of the same contract for up to a
period of 5 years. Any increases in premiums, fees or charges
requested by a contractor whose contract may be renewed
pursuant to a renewal option contained therein, must be
justified on the basis of (1) audited experience data, (2)

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increases in the costs of health care services provided under
the contract, (3) contractor performance, (4) increases in
contractor responsibilities, or (5) any combination thereof.
Any contractor shall agree to abide by all requirements of
this Act and Rules and Regulations promulgated and adopted
thereto; to submit such information and data as may from time
to time be deemed necessary by the Director for effective
administration of the provisions of this Act and the programs
established hereunder, and to fully cooperate in any audit.
(Source: P.A. 98-19, eff. 6-10-13.)
Section 99. Effective date. This Act takes effect upon
becoming law.".