Bill Text: IL SB1538 | 2011-2012 | 97th General Assembly | Amended

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

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Bill Title: Amends the Department of Human Services Act. Requires the Governor to create a Management Improvement Initiative Committee that shall include the Management Improvement Initiative Departmental Leadership Team to implement the recommendations made in the report submitted to the General Assembly on January 1, 2011 as required under Public Act 96-1141. Provides that the Team shall be comprised of a representative from the Department on Aging and the Departments of Children and Family Services, Healthcare and Family Services, Human Services, and Public Health, and that the Team members shall integrate the Committee's objectives into their respective departmental operations and shall submit a progress report to the General Assembly by May 1, 2011 on the progress made in implementing the recommendations made in the report submitted to the General Assembly on January 1, 2011 as required under Public Act 96-1141. Provides that additional duties of the Committee shall include reviewing contracts held with community health and human service providers on the regulations and work processes required by the departments and their divisions; and describing how improved regulations, reporting, monitoring, compliance, auditing, certification, licensing, and work processes are measured at the community vendor, contractor, and departmental levels, and how they have reduced redundant regulations, reporting, monitoring, compliance, auditing, certification, licensing, and work processes. Contains provisions concerning the composition of the Committee. Effective immediately.

Spectrum: Moderate Partisan Bill (Democrat 8-1)

Status: (Passed) 2012-01-13 - Public Act . . . . . . . . . 97-0668 [SB1538 Detail]

Download: Illinois-2011-SB1538-Amended.html

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Rep. Chapin Rose

Filed: 5/28/2011

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AMENDMENT TO SENATE BILL 1538
AMENDMENT NO. ______. Amend Senate Bill 1538 by replacing
everything after the enacting clause with the following:
"Section 1. Short title. This Act may be cited as the State
Healthcare Purchasing Reorganization Act.
Section 10. Revocation of Executive Order 3 (2005). On
January 1, 2012, Executive Order 3 (2005) is superseded by this
Act with the exception of Section I (renaming the Department of
Public Aid as the Department of Healthcare and Family
Services), which remains in effect.
Section 15. Transfer back of State healthcare purchasing
functions transferred by Executive Order 3 (2005).
(a) On January 1, 2012 or as soon thereafter as practical,
all of the powers, duties, rights, and responsibilities related
to State healthcare purchasing that were transferred from the

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Department of Central Management Services, the Department of
Corrections, the Department of Human Services, and the
Department of Veterans' Affairs to the Department of Healthcare
and Family Services by Executive Order 3 (2005) are transferred
back to the Departments from which those powers, duties,
rights, and responsibilities were transferred; however,
powers, duties, rights, and responsibilities related to State
healthcare purchasing that were exercised by the Department of
Corrections before Executive Order 3 (2005) but that pertain to
individuals resident in facilities operated by Department of
Juvenile Justice are transferred to the Department of Juvenile
Justice.
(b) The functions associated with State healthcare
purchasing that are transferred from the Department of
Healthcare and Family Services under this Section include,
without limitation, the following:
(1) Rate development and negotiation with hospitals,
physicians, and managed care providers.
(2) Health care procurement development.
(3) Contract implementation and fiscal monitoring.
(4) Contract amendments.
(5) Payment processing.
(6) Purchasing aspects of health care plans
administered by the State on behalf of the following:
(A) State employees. These healthcare purchasing
functions include the following health care plans:

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quality health care plan; managed health care plan;
vision plan; pharmacy benefits plan; dental plan;
behavioral health plan; employee assistance plan;
utilization management plan; and SHIPs and various
subrogation agreements. These healthcare purchasing
functions also include the purchasing and
administration of flu shots, hepatitis B vaccinations,
and tuberculosis tests.
(B) Persons other than State employees. These
healthcare purchasing functions include the following
health care plans: the retired teachers' health
insurance plan under the State Employees Group
Insurance Act of 1971; the local government health
insurance plan under the State Employees Group
Insurance Act of 1971; the community colleges health
insurance plan under the State Employees Group
Insurance Act of 1971; and the active teacher
prescription program.
(C) Residents of State-operated facilities,
including (i) correctional and youth facilities
operated by the Department of Corrections or the
Department of Juvenile Justice, (ii) mental health
centers and developmental centers operated by the
Department of Human Services, and (iii) veterans homes
operated by the Department of Veterans' Affairs.
(c) The powers, duties, rights, and responsibilities

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vested in or associated with State healthcare purchasing are
not affected by this Act, except that all management and staff
support or other resources necessary to the operation of a
State healthcare purchasing function shall be provided by the
Department to which that function is transferred under this
Act.
Section 20. Representation on boards or other entities.
When any provision of an Executive Order or Act provides for
the membership of the Director of Healthcare and Family
Services on any council, commission, board, or other entity
that exercises any of the State healthcare purchasing functions
transferred by this Act, the Director or Secretary of the
Department to which the State healthcare purchasing function is
transferred under this Act, or his or her designee, shall serve
in the place of the Director of Healthcare and Family Services,
but only with regard to the exercise of the function
transferred under this Act. If more than one such person is
required by law to serve on any council, commission, board, or
other entity, then an equivalent number of the representatives
of the Department to which the applicable function is
transferred under this Act shall so serve. In addition, any
statutory mandate that provides for action on the part of the
Director of Healthcare and Family Services relating to a State
healthcare purchasing function transferred under this Act
shall become the responsibility of the Director or Secretary of

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the Department to which that function is transferred under this
Act.
Section 25. Personnel transferred.
(a) The status and rights of employees of the Department of
Healthcare and Family Services engaged in the performance of
State healthcare purchasing functions transferred back to the
Department of Central Management Services are not affected by
this Act. The status and rights of those employees, and the
rights of the State of Illinois and its agencies, under the
Personnel Code and applicable collective bargaining agreements
or under any pension, retirement, or annuity plan are not
affected by this Act. Personnel and positions within the
Department of Healthcare and Family Services that are engaged
in the performance of State healthcare purchasing functions
transferred back to the Department of Central Management
Services are transferred to and shall continue their service
within the Department of Central Management Services.
(b) Personnel and positions of the Department of
Corrections, the Department of Juvenile Justice, the
Department of Human Services, and the Department of Veterans'
Affairs were not in fact transferred under Executive Order 3
(2005) and are not affected by this Act.
Section 30. Books and records transferred. All books,
records, papers, documents, property (real and personal),

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contracts, and pending business pertaining to the powers,
duties, rights, and responsibilities related to any of the
State healthcare purchasing functions transferred under this
Act from the Department of Healthcare and Family Services to
the Department of Central Management Services, the Department
of Corrections, the Department of Juvenile Justice, the
Department of Human Services, and the Department of Veterans'
Affairs, including, but not limited to, material in electronic
or magnetic format and necessary computer hardware and
software, shall be delivered to the Department to which that
State healthcare purchasing function is transferred under this
Act, provided that the delivery of that information may not
violate any applicable confidentiality constraints. The access
by personnel of the Department of Central Management Services,
the Department of Corrections, the Department of Juvenile
Justice, the Department of Human Services, and the Department
of Veterans' Affairs to databases and electronic health
information that are currently maintained by the Department of
Healthcare and Family Services and that contain data and
information necessary to the performance of the State
healthcare purchasing functions shall continue in the same
manner and level of access as before this Act. Staff of the
Department of Central Management Services, the Department of
Corrections, the Department of Juvenile Justice, the
Department of Human Services, and the Department of Veterans'
Affairs may work with staff of the Department of Healthcare and

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Family Services to add new information relevant to State
healthcare purchasing functions.
Section 35. Unexpended moneys transferred.
(a) With respect to the State healthcare purchasing
functions transferred under this Act, the Department of Central
Management Services is the successor agency to the Department
of Healthcare and Family Services under the Successor Agency
Act and Section 9b of the State Finance Act. All unexpended
appropriations and balances and other moneys available for use
in connection with any of the State healthcare purchasing
functions transferred from the Department of Healthcare and
Family Services to the Department of Central Management
Services are transferred for use by the Department of Central
Management Services for the exercise of those functions
pursuant to the direction of the Governor. Unexpended balances
so transferred shall be expended only for the purpose for which
the appropriations were originally made.
(b) Appropriations of the Department of Corrections, the
Department of Juvenile Justice, the Department of Human
Services, and the Department of Veterans' Affairs that were not
in fact transferred under Executive Order 3 (2005) are not
affected by this Act.
Section 40. Exercise of transferred powers; savings
provisions. The powers, duties, rights, and responsibilities

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related to the State healthcare purchasing functions
transferred under this Act are vested in and shall be exercised
by the Department to which the applicable function is
transferred. Each act done in the exercise of those powers,
duties, rights, and responsibilities shall have the same legal
effect as if done by the Department of Healthcare and Family
Services or its divisions, officers, or employees.
Section 45. Rights, obligations, and duties unaffected by
transfer. The transfer of powers, duties, rights, and
responsibilities from the Department of Healthcare and Family
Services under this Act does not affect any person's rights,
obligations, or duties, including any civil or criminal
penalties applicable thereto, arising out of those transferred
powers, duties, rights, and responsibilities.
Section 50. Agency officers; penalties. Every officer of
the Department of Central Management Services, the Department
of Corrections, the Department of Juvenile Justice, the
Department of Human Services, and the Department of Veterans'
Affairs is, for any offense, subject to the same penalty or
penalties, civil or criminal, as are prescribed by existing law
for the same offense by any officer whose powers or duties are
transferred under this Act.
Section 55. Reports, notices, or papers. Whenever reports

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or notices are required to be made or given or papers or
documents furnished or served by any person to or upon the
Department of Healthcare and Family Services in connection with
any State healthcare purchasing function transferred under
this Act, the same shall be made, given, furnished, or served
in the same manner to or upon the Department to which that
State healthcare purchasing function is transferred.
Section 60. Acts and actions unaffected by transfer. This
Act does not affect any act done, ratified, or canceled, or any
right occurring or established, before January 1, 2012, in
connection with any State healthcare purchasing function
transferred under this Act. This Act does not affect any action
or proceeding had or commenced before January 1, 2012, in an
administrative, civil, or criminal cause regarding a State
healthcare purchasing function transferred from the Department
of Healthcare and Family Services under this Act, but any such
action or proceeding may be defended, prosecuted, or continued
by the Department to which the applicable State healthcare
purchasing function is transferred.
Section 900. The State Employees Group Insurance Act of
1971 is amended by adding Sections 2.5 and 5.5 and changing
Sections 3, 5, 6.5, 6.10, 10, and 13.1 as follows:
(5 ILCS 375/2.5 new)

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Sec. 2.5. State healthcare purchasing. On and after January
1, 2012, as provided in the State Healthcare Purchasing
Reorganization Act, all of the powers, duties, rights, and
responsibilities related to State healthcare purchasing under
this Act that were transferred from the Department of Central
Management Services to the Department of Healthcare and Family
Services by Executive Order 3 (2005) are transferred back to
the Department.
(5 ILCS 375/3) (from Ch. 127, par. 523)
Sec. 3. Definitions. Unless the context otherwise
requires, the following words and phrases as used in this Act
shall have the following meanings. The Department may define
these and other words and phrases separately for the purpose of
implementing specific programs providing benefits under this
Act.
(a) "Administrative service organization" means any
person, firm or corporation experienced in the handling of
claims which is fully qualified, financially sound and capable
of meeting the service requirements of a contract of
administration executed with the Department.
(b) "Annuitant" means (1) an employee who retires, or has
retired, on or after January 1, 1966 on an immediate annuity
under the provisions of Articles 2, 14 (including an employee
who has elected to receive an alternative retirement
cancellation payment under Section 14-108.5 of the Illinois

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Pension Code in lieu of an annuity), 15 (including an employee
who has retired under the optional retirement program
established under Section 15-158.2), paragraphs (2), (3), or
(5) of Section 16-106, or Article 18 of the Illinois Pension
Code; (2) any person who was receiving group insurance coverage
under this Act as of March 31, 1978 by reason of his status as
an annuitant, even though the annuity in relation to which such
coverage was provided is a proportional annuity based on less
than the minimum period of service required for a retirement
annuity in the system involved; (3) any person not otherwise
covered by this Act who has retired as a participating member
under Article 2 of the Illinois Pension Code but is ineligible
for the retirement annuity under Section 2-119 of the Illinois
Pension Code; (4) the spouse of any person who is receiving a
retirement annuity under Article 18 of the Illinois Pension
Code and who is covered under a group health insurance program
sponsored by a governmental employer other than the State of
Illinois and who has irrevocably elected to waive his or her
coverage under this Act and to have his or her spouse
considered as the "annuitant" under this Act and not as a
"dependent"; or (5) an employee who retires, or has retired,
from a qualified position, as determined according to rules
promulgated by the Director, under a qualified local
government, a qualified rehabilitation facility, a qualified
domestic violence shelter or service, or a qualified child
advocacy center. (For definition of "retired employee", see (p)

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post).
(b-5) "New SERS annuitant" means a person who, on or after
January 1, 1998, becomes an annuitant, as defined in subsection
(b), by virtue of beginning to receive a retirement annuity
under Article 14 of the Illinois Pension Code (including an
employee who has elected to receive an alternative retirement
cancellation payment under Section 14-108.5 of that Code in
lieu of an annuity), and is eligible to participate in the
basic program of group health benefits provided for annuitants
under this Act.
(b-6) "New SURS annuitant" means a person who (1) on or
after January 1, 1998, becomes an annuitant, as defined in
subsection (b), by virtue of beginning to receive a retirement
annuity under Article 15 of the Illinois Pension Code, (2) has
not made the election authorized under Section 15-135.1 of the
Illinois Pension Code, and (3) is eligible to participate in
the basic program of group health benefits provided for
annuitants under this Act.
(b-7) "New TRS State annuitant" means a person who, on or
after July 1, 1998, becomes an annuitant, as defined in
subsection (b), by virtue of beginning to receive a retirement
annuity under Article 16 of the Illinois Pension Code based on
service as a teacher as defined in paragraph (2), (3), or (5)
of Section 16-106 of that Code, and is eligible to participate
in the basic program of group health benefits provided for
annuitants under this Act.

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(c) "Carrier" means (1) an insurance company, a corporation
organized under the Limited Health Service Organization Act or
the Voluntary Health Services Plan Act, a partnership, or other
nongovernmental organization, which is authorized to do group
life or group health insurance business in Illinois, or (2) the
State of Illinois as a self-insurer.
(d) "Compensation" means salary or wages payable on a
regular payroll by the State Treasurer on a warrant of the
State Comptroller out of any State, trust or federal fund, or
by the Governor of the State through a disbursing officer of
the State out of a trust or out of federal funds, or by any
Department out of State, trust, federal or other funds held by
the State Treasurer or the Department, to any person for
personal services currently performed, and ordinary or
accidental disability benefits under Articles 2, 14, 15
(including ordinary or accidental disability benefits under
the optional retirement program established under Section
15-158.2), paragraphs (2), (3), or (5) of Section 16-106, or
Article 18 of the Illinois Pension Code, for disability
incurred after January 1, 1966, or benefits payable under the
Workers' Compensation or Occupational Diseases Act or benefits
payable under a sick pay plan established in accordance with
Section 36 of the State Finance Act. "Compensation" also means
salary or wages paid to an employee of any qualified local
government, qualified rehabilitation facility, qualified
domestic violence shelter or service, or qualified child

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advocacy center.
(e) "Commission" means the State Employees Group Insurance
Advisory Commission authorized by this Act. Commencing July 1,
1984, "Commission" as used in this Act means the Commission on
Government Forecasting and Accountability as established by
the Legislative Commission Reorganization Act of 1984.
(f) "Contributory", when referred to as contributory
coverage, shall mean optional coverages or benefits elected by
the member toward the cost of which such member makes
contribution, or which are funded in whole or in part through
the acceptance of a reduction in earnings or the foregoing of
an increase in earnings by an employee, as distinguished from
noncontributory coverage or benefits which are paid entirely by
the State of Illinois without reduction of the member's salary.
(g) "Department" means any department, institution, board,
commission, officer, court or any agency of the State
government receiving appropriations and having power to
certify payrolls to the Comptroller authorizing payments of
salary and wages against such appropriations as are made by the
General Assembly from any State fund, or against trust funds
held by the State Treasurer and includes boards of trustees of
the retirement systems created by Articles 2, 14, 15, 16 and 18
of the Illinois Pension Code. "Department" also includes the
Illinois Comprehensive Health Insurance Board, the Board of
Examiners established under the Illinois Public Accounting
Act, and the Illinois Finance Authority.

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(h) "Dependent", when the term is used in the context of
the health and life plan, means a member's spouse and any child
(1) from birth to age 26 including an adopted child, a child
who lives with the member from the time of the filing of a
petition for adoption until entry of an order of adoption, a
stepchild or adjudicated child, or a child who lives with the
member if such member is a court appointed guardian of the
child or (2) age 19 or over who is mentally or physically
disabled from a cause originating prior to the age of 19 (age
26 if enrolled as an adult child dependent). For the health
plan only, the term "dependent" also includes (1) any person
enrolled prior to the effective date of this Section who is
dependent upon the member to the extent that the member may
claim such person as a dependent for income tax deduction
purposes and (2) any person who has received after June 30,
2000 an organ transplant and who is financially dependent upon
the member and eligible to be claimed as a dependent for income
tax purposes. A member requesting to cover any dependent must
provide documentation as requested by the Department of Central
Management Services and file with the Department any and all
forms required by the Department.
(i) "Director" means the Director of the Illinois
Department of Central Management Services or of any successor
agency designated to administer this Act.
(j) "Eligibility period" means the period of time a member
has to elect enrollment in programs or to select benefits

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without regard to age, sex or health.
(k) "Employee" means and includes each officer or employee
in the service of a department who (1) receives his
compensation for service rendered to the department on a
warrant issued pursuant to a payroll certified by a department
or on a warrant or check issued and drawn by a department upon
a trust, federal or other fund or on a warrant issued pursuant
to a payroll certified by an elected or duly appointed officer
of the State or who receives payment of the performance of
personal services on a warrant issued pursuant to a payroll
certified by a Department and drawn by the Comptroller upon the
State Treasurer against appropriations made by the General
Assembly from any fund or against trust funds held by the State
Treasurer, and (2) is employed full-time or part-time in a
position normally requiring actual performance of duty during
not less than 1/2 of a normal work period, as established by
the Director in cooperation with each department, except that
persons elected by popular vote will be considered employees
during the entire term for which they are elected regardless of
hours devoted to the service of the State, and (3) except that
"employee" does not include any person who is not eligible by
reason of such person's employment to participate in one of the
State retirement systems under Articles 2, 14, 15 (either the
regular Article 15 system or the optional retirement program
established under Section 15-158.2) or 18, or under paragraph
(2), (3), or (5) of Section 16-106, of the Illinois Pension

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Code, but such term does include persons who are employed
during the 6 month qualifying period under Article 14 of the
Illinois Pension Code. Such term also includes any person who
(1) after January 1, 1966, is receiving ordinary or accidental
disability benefits under Articles 2, 14, 15 (including
ordinary or accidental disability benefits under the optional
retirement program established under Section 15-158.2),
paragraphs (2), (3), or (5) of Section 16-106, or Article 18 of
the Illinois Pension Code, for disability incurred after
January 1, 1966, (2) receives total permanent or total
temporary disability under the Workers' Compensation Act or
Occupational Disease Act as a result of injuries sustained or
illness contracted in the course of employment with the State
of Illinois, or (3) is not otherwise covered under this Act and
has retired as a participating member under Article 2 of the
Illinois Pension Code but is ineligible for the retirement
annuity under Section 2-119 of the Illinois Pension Code.
However, a person who satisfies the criteria of the foregoing
definition of "employee" except that such person is made
ineligible to participate in the State Universities Retirement
System by clause (4) of subsection (a) of Section 15-107 of the
Illinois Pension Code is also an "employee" for the purposes of
this Act. "Employee" also includes any person receiving or
eligible for benefits under a sick pay plan established in
accordance with Section 36 of the State Finance Act. "Employee"
also includes (i) each officer or employee in the service of a

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qualified local government, including persons appointed as
trustees of sanitary districts regardless of hours devoted to
the service of the sanitary district, (ii) each employee in the
service of a qualified rehabilitation facility, (iii) each
full-time employee in the service of a qualified domestic
violence shelter or service, and (iv) each full-time employee
in the service of a qualified child advocacy center, as
determined according to rules promulgated by the Director.
(l) "Member" means an employee, annuitant, retired
employee or survivor.
(m) "Optional coverages or benefits" means those coverages
or benefits available to the member on his or her voluntary
election, and at his or her own expense.
(n) "Program" means the group life insurance, health
benefits and other employee benefits designed and contracted
for by the Director under this Act.
(o) "Health plan" means a health benefits program offered
by the State of Illinois for persons eligible for the plan.
(p) "Retired employee" means any person who would be an
annuitant as that term is defined herein but for the fact that
such person retired prior to January 1, 1966. Such term also
includes any person formerly employed by the University of
Illinois in the Cooperative Extension Service who would be an
annuitant but for the fact that such person was made ineligible
to participate in the State Universities Retirement System by
clause (4) of subsection (a) of Section 15-107 of the Illinois

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Pension Code.
(q) "Survivor" means a person receiving an annuity as a
survivor of an employee or of an annuitant. "Survivor" also
includes: (1) the surviving dependent of a person who satisfies
the definition of "employee" except that such person is made
ineligible to participate in the State Universities Retirement
System by clause (4) of subsection (a) of Section 15-107 of the
Illinois Pension Code; (2) the surviving dependent of any
person formerly employed by the University of Illinois in the
Cooperative Extension Service who would be an annuitant except
for the fact that such person was made ineligible to
participate in the State Universities Retirement System by
clause (4) of subsection (a) of Section 15-107 of the Illinois
Pension Code; and (3) the surviving dependent of a person who
was an annuitant under this Act by virtue of receiving an
alternative retirement cancellation payment under Section
14-108.5 of the Illinois Pension Code.
(q-2) "SERS" means the State Employees' Retirement System
of Illinois, created under Article 14 of the Illinois Pension
Code.
(q-3) "SURS" means the State Universities Retirement
System, created under Article 15 of the Illinois Pension Code.
(q-4) "TRS" means the Teachers' Retirement System of the
State of Illinois, created under Article 16 of the Illinois
Pension Code.
(q-5) "New SERS survivor" means a survivor, as defined in

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subsection (q), whose annuity is paid under Article 14 of the
Illinois Pension Code and is based on the death of (i) an
employee whose death occurs on or after January 1, 1998, or
(ii) a new SERS annuitant as defined in subsection (b-5). "New
SERS survivor" includes the surviving dependent of a person who
was an annuitant under this Act by virtue of receiving an
alternative retirement cancellation payment under Section
14-108.5 of the Illinois Pension Code.
(q-6) "New SURS survivor" means a survivor, as defined in
subsection (q), whose annuity is paid under Article 15 of the
Illinois Pension Code and is based on the death of (i) an
employee whose death occurs on or after January 1, 1998, or
(ii) a new SURS annuitant as defined in subsection (b-6).
(q-7) "New TRS State survivor" means a survivor, as defined
in subsection (q), whose annuity is paid under Article 16 of
the Illinois Pension Code and is based on the death of (i) an
employee who is a teacher as defined in paragraph (2), (3), or
(5) of Section 16-106 of that Code and whose death occurs on or
after July 1, 1998, or (ii) a new TRS State annuitant as
defined in subsection (b-7).
(r) "Medical services" means the services provided within
the scope of their licenses by practitioners in all categories
licensed under the Medical Practice Act of 1987.
(s) "Unit of local government" means any county,
municipality, township, school district (including a
combination of school districts under the Intergovernmental

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Cooperation Act), special district or other unit, designated as
a unit of local government by law, which exercises limited
governmental powers or powers in respect to limited
governmental subjects, any not-for-profit association with a
membership that primarily includes townships and township
officials, that has duties that include provision of research
service, dissemination of information, and other acts for the
purpose of improving township government, and that is funded
wholly or partly in accordance with Section 85-15 of the
Township Code; any not-for-profit corporation or association,
with a membership consisting primarily of municipalities, that
operates its own utility system, and provides research,
training, dissemination of information, or other acts to
promote cooperation between and among municipalities that
provide utility services and for the advancement of the goals
and purposes of its membership; the Southern Illinois
Collegiate Common Market, which is a consortium of higher
education institutions in Southern Illinois; the Illinois
Association of Park Districts; and any hospital provider that
is owned by a county that has 100 or fewer hospital beds and
has not already joined the program. "Qualified local
government" means a unit of local government approved by the
Director and participating in a program created under
subsection (i) of Section 10 of this Act.
(t) "Qualified rehabilitation facility" means any
not-for-profit organization that is accredited by the

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Commission on Accreditation of Rehabilitation Facilities or
certified by the Department of Human Services (as successor to
the Department of Mental Health and Developmental
Disabilities) to provide services to persons with disabilities
and which receives funds from the State of Illinois for
providing those services, approved by the Director and
participating in a program created under subsection (j) of
Section 10 of this Act.
(u) "Qualified domestic violence shelter or service" means
any Illinois domestic violence shelter or service and its
administrative offices funded by the Department of Human
Services (as successor to the Illinois Department of Public
Aid), approved by the Director and participating in a program
created under subsection (k) of Section 10.
(v) "TRS benefit recipient" means a person who:
(1) is not a "member" as defined in this Section; and
(2) is receiving a monthly benefit or retirement
annuity under Article 16 of the Illinois Pension Code; and
(3) either (i) has at least 8 years of creditable
service under Article 16 of the Illinois Pension Code, or
(ii) was enrolled in the health insurance program offered
under that Article on January 1, 1996, or (iii) is the
survivor of a benefit recipient who had at least 8 years of
creditable service under Article 16 of the Illinois Pension
Code or was enrolled in the health insurance program
offered under that Article on the effective date of this

09700SB1538ham001 - 23 - LRB097 07771 JDS 56478 a
amendatory Act of 1995, or (iv) is a recipient or survivor
of a recipient of a disability benefit under Article 16 of
the Illinois Pension Code.
(w) "TRS dependent beneficiary" means a person who:
(1) is not a "member" or "dependent" as defined in this
Section; and
(2) is a TRS benefit recipient's: (A) spouse, (B)
dependent parent who is receiving at least half of his or
her support from the TRS benefit recipient, or (C) natural,
step, adjudicated, or adopted child who is (i) under age
26, (ii) was, on January 1, 1996, participating as a
dependent beneficiary in the health insurance program
offered under Article 16 of the Illinois Pension Code, or
(iii) age 19 or over who is mentally or physically disabled
from a cause originating prior to the age of 19 (age 26 if
enrolled as an adult child).
(x) "Military leave" refers to individuals in basic
training for reserves, special/advanced training, annual
training, emergency call up, activation by the President of the
United States, or any other training or duty in service to the
United States Armed Forces.
(y) (Blank).
(z) "Community college benefit recipient" means a person
who:
(1) is not a "member" as defined in this Section; and
(2) is receiving a monthly survivor's annuity or

09700SB1538ham001 - 24 - LRB097 07771 JDS 56478 a
retirement annuity under Article 15 of the Illinois Pension
Code; and
(3) either (i) was a full-time employee of a community
college district or an association of community college
boards created under the Public Community College Act
(other than an employee whose last employer under Article
15 of the Illinois Pension Code was a community college
district subject to Article VII of the Public Community
College Act) and was eligible to participate in a group
health benefit plan as an employee during the time of
employment with a community college district (other than a
community college district subject to Article VII of the
Public Community College Act) or an association of
community college boards, or (ii) is the survivor of a
person described in item (i).
(aa) "Community college dependent beneficiary" means a
person who:
(1) is not a "member" or "dependent" as defined in this
Section; and
(2) is a community college benefit recipient's: (A)
spouse, (B) dependent parent who is receiving at least half
of his or her support from the community college benefit
recipient, or (C) natural, step, adjudicated, or adopted
child who is (i) under age 26, or (ii) age 19 or over and
mentally or physically disabled from a cause originating
prior to the age of 19 (age 26 if enrolled as an adult

09700SB1538ham001 - 25 - LRB097 07771 JDS 56478 a
child).
(bb) "Qualified child advocacy center" means any Illinois
child advocacy center and its administrative offices funded by
the Department of Children and Family Services, as defined by
the Children's Advocacy Center Act (55 ILCS 80/), approved by
the Director and participating in a program created under
subsection (n) of Section 10.
(Source: P.A. 95-331, eff. 8-21-07; 95-632, eff. 9-25-07;
96-756, eff. 1-1-10; 96-1519, eff. 2-4-11.)
(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
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

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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 Section 5.5 and the following requirements:
(i) By January 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 finalized 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
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

09700SB1538ham001 - 27 - LRB097 07771 JDS 56478 a
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) 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.
(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 April 1 of each year the date of the beginning
of the annual benefit choice period, the Director must

09700SB1538ham001 - 28 - LRB097 07771 JDS 56478 a
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,
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

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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
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.
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

09700SB1538ham001 - 30 - LRB097 07771 JDS 56478 a
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.
Except as otherwise provided in this Act, the 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 or for an additional period of time, as authorized under
Section 5.5. 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)
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. 93-839, eff. 7-30-04.)
(5 ILCS 375/5.5 new)
Sec. 5.5. State healthcare purchasing oversight; timely

09700SB1538ham001 - 31 - LRB097 07771 JDS 56478 a
provision of health benefits.
(a) If, after reviewing the information submitted to it
under item (ii) of Section 5 of this Act, the Commission makes
a formal written determination that a proposed contract
inadequately balances the policies identified in Section 5 of
this Act, then the Commission may disapprove the proposed
contract at any time before it is finalized. If the Commission
disapproves a proposed contract, then that proposed contract
may not be finalized unless subsequently approved by a joint
resolution of the General Assembly.
(b) If, within 90 days before the start of a fiscal year,
the Chief Procurement Officer responsible for awarding group
health insurance contracts under this Act has not finalized all
written contracts for the provision of group health insurance
benefits under this Act for the coming fiscal year, then the
Commission may direct the Chief Procurement Officer (i) not to
finalize any proposed group health insurance contracts for that
fiscal year, as well as associated requests for proposals, and
(ii) to seek to extend existing contracts for those benefits
for a term of 2 additional years.
(5 ILCS 375/6.5)
Sec. 6.5. Health benefits for TRS benefit recipients and
TRS dependent beneficiaries.
(a) Purpose. It is the purpose of this amendatory Act of
1995 to transfer the administration of the program of health

09700SB1538ham001 - 32 - LRB097 07771 JDS 56478 a
benefits established for benefit recipients and their
dependent beneficiaries under Article 16 of the Illinois
Pension Code to the Department of Central Management Services.
(b) Transition provisions. The Board of Trustees of the
Teachers' Retirement System shall continue to administer the
health benefit program established under Article 16 of the
Illinois Pension Code through December 31, 1995. Beginning
January 1, 1996, the Department of Central Management Services
shall be responsible for administering a program of health
benefits for TRS benefit recipients and TRS dependent
beneficiaries under this Section. The Department of Central
Management Services and the Teachers' Retirement System shall
cooperate in this endeavor and shall coordinate their
activities so as to ensure a smooth transition and
uninterrupted health benefit coverage.
(c) Eligibility. All persons who were enrolled in the
Article 16 program at the time of the transfer shall be
eligible to participate in the program established under this
Section without any interruption or delay in coverage or
limitation as to pre-existing medical conditions. Eligibility
to participate shall be determined by the Teachers' Retirement
System. Eligibility information shall be communicated to the
Department of Central Management Services in a format
acceptable to the Department.
A TRS dependent beneficiary who is a child age 19 or over
and mentally or physically disabled does not become ineligible

09700SB1538ham001 - 33 - LRB097 07771 JDS 56478 a
to participate by reason of (i) becoming ineligible to be
claimed as a dependent for Illinois or federal income tax
purposes or (ii) receiving earned income, so long as those
earnings are insufficient for the child to be fully
self-sufficient.
(d) Coverage. The level of health benefits provided under
this Section shall be similar to the level of benefits provided
by the program previously established under Article 16 of the
Illinois Pension Code.
Group life insurance benefits are not included in the
benefits to be provided to TRS benefit recipients and TRS
dependent beneficiaries under this Act.
The program of health benefits under this Section may
include any or all of the benefit limitations, including but
not limited to a reduction in benefits based on eligibility for
federal medicare benefits, that are provided under subsection
(a) of Section 6 of this Act for other health benefit programs
under this Act.
(e) Insurance rates and premiums. The Director shall
determine the insurance rates and premiums for TRS benefit
recipients and TRS dependent beneficiaries, and shall present
to the Teachers' Retirement System of the State of Illinois, by
April 15 of each calendar year, the rate-setting methodology
(including but not limited to utilization levels and costs)
used to determine the amount of the health care premiums.
For Fiscal Year 1996, the premium shall be equal to the

09700SB1538ham001 - 34 - LRB097 07771 JDS 56478 a
premium actually charged in Fiscal Year 1995; in subsequent
years, the premium shall never be lower than the premium
charged in Fiscal Year 1995.
For Fiscal Year 2003, the premium shall not exceed 110%
of the premium actually charged in Fiscal Year 2002.
For Fiscal Year 2004, the premium shall not exceed 112%
of the premium actually charged in Fiscal Year 2003.
For Fiscal Year 2005, the premium shall not exceed a
weighted average of 106.6% of the premium actually charged
in Fiscal Year 2004.
For Fiscal Year 2006, the premium shall not exceed a
weighted average of 109.1% of the premium actually charged
in Fiscal Year 2005.
For Fiscal Year 2007, the premium shall not exceed a
weighted average of 103.9% of the premium actually charged
in Fiscal Year 2006.
For Fiscal Year 2008 and thereafter, the premium in
each fiscal year shall not exceed 105% of the premium
actually charged in the previous fiscal year.
Rates and premiums may be based in part on age and
eligibility for federal medicare coverage. However, the cost of
participation for a TRS dependent beneficiary who is an
unmarried child age 19 or over and mentally or physically
disabled shall not exceed the cost for a TRS dependent
beneficiary who is an unmarried child under age 19 and
participates in the same major medical or managed care program.

09700SB1538ham001 - 35 - LRB097 07771 JDS 56478 a
The cost of health benefits under the program shall be paid
as follows:
(1) For a TRS benefit recipient selecting a managed
care program, up to 75% of the total insurance rate shall
be paid from the Teacher Health Insurance Security Fund.
Effective with Fiscal Year 2007 and thereafter, for a TRS
benefit recipient selecting a managed care program, 75% of
the total insurance rate shall be paid from the Teacher
Health Insurance Security Fund.
(2) For a TRS benefit recipient selecting the major
medical coverage program, up to 50% of the total insurance
rate shall be paid from the Teacher Health Insurance
Security Fund if a managed care program is accessible, as
determined by the Teachers' Retirement System. Effective
with Fiscal Year 2007 and thereafter, for a TRS benefit
recipient selecting the major medical coverage program,
50% of the total insurance rate shall be paid from the
Teacher Health Insurance Security Fund if a managed care
program is accessible, as determined by the Department of
Central Management Services.
(3) For a TRS benefit recipient selecting the major
medical coverage program, up to 75% of the total insurance
rate shall be paid from the Teacher Health Insurance
Security Fund if a managed care program is not accessible,
as determined by the Teachers' Retirement System.
Effective with Fiscal Year 2007 and thereafter, for a TRS

09700SB1538ham001 - 36 - LRB097 07771 JDS 56478 a
benefit recipient selecting the major medical coverage
program, 75% of the total insurance rate shall be paid from
the Teacher Health Insurance Security Fund if a managed
care program is not accessible, as determined by the
Department of Central Management Services.
(3.1) For a TRS dependent beneficiary who is Medicare
primary and enrolled in a managed care plan, or the major
medical coverage program if a managed care plan is not
available, 25% of the total insurance rate shall be paid
from the Teacher Health Security Fund as determined by the
Department of Central Management Services. For the purpose
of this item (3.1), the term "TRS dependent beneficiary who
is Medicare primary" means a TRS dependent beneficiary who
is participating in Medicare Parts A and B.
(4) Except as otherwise provided in item (3.1), the
balance of the rate of insurance, including the entire
premium of any coverage for TRS dependent beneficiaries
that has been elected, shall be paid by deductions
authorized by the TRS benefit recipient to be withheld from
his or her monthly annuity or benefit payment from the
Teachers' Retirement System; except that (i) if the balance
of the cost of coverage exceeds the amount of the monthly
annuity or benefit payment, the difference shall be paid
directly to the Teachers' Retirement System by the TRS
benefit recipient, and (ii) all or part of the balance of
the cost of coverage may, at the school board's option, be

09700SB1538ham001 - 37 - LRB097 07771 JDS 56478 a
paid to the Teachers' Retirement System by the school board
of the school district from which the TRS benefit recipient
retired, in accordance with Section 10-22.3b of the School
Code. The Teachers' Retirement System shall promptly
deposit all moneys withheld by or paid to it under this
subdivision (e)(4) into the Teacher Health Insurance
Security Fund. These moneys shall not be considered assets
of the Retirement System.
(f) Financing. Beginning July 1, 1995, all revenues arising
from the administration of the health benefit programs
established under Article 16 of the Illinois Pension Code or
this Section shall be deposited into the Teacher Health
Insurance Security Fund, which is hereby created as a
nonappropriated trust fund to be held outside the State
Treasury, with the State Treasurer as custodian. Any interest
earned on moneys in the Teacher Health Insurance Security Fund
shall be deposited into the Fund.
Moneys in the Teacher Health Insurance Security Fund shall
be used only to pay the costs of the health benefit program
established under this Section, including associated
administrative costs, and the costs associated with the health
benefit program established under Article 16 of the Illinois
Pension Code, as authorized in this Section. Beginning July 1,
1995, the Department of Central Management Services may make
expenditures from the Teacher Health Insurance Security Fund
for those costs.

09700SB1538ham001 - 38 - LRB097 07771 JDS 56478 a
After other funds authorized for the payment of the costs
of the health benefit program established under Article 16 of
the Illinois Pension Code are exhausted and until January 1,
1996 (or such later date as may be agreed upon by the Director
of Central Management Services and the Secretary of the
Teachers' Retirement System), the Secretary of the Teachers'
Retirement System may make expenditures from the Teacher Health
Insurance Security Fund as necessary to pay up to 75% of the
cost of providing health coverage to eligible benefit
recipients (as defined in Sections 16-153.1 and 16-153.3 of the
Illinois Pension Code) who are enrolled in the Article 16
health benefit program and to facilitate the transfer of
administration of the health benefit program to the Department
of Central Management Services.
The Department of Central Management Healthcare and Family
Services, or any successor agency designated to procure
healthcare contracts pursuant to this Act, is authorized to
establish funds, separate accounts provided by any bank or
banks as defined by the Illinois Banking Act, or separate
accounts provided by any savings and loan association or
associations as defined by the Illinois Savings and Loan Act of
1985 to be held by the Director, outside the State treasury,
for the purpose of receiving the transfer of moneys from the
Teacher Health Insurance Security Fund. The Department may
promulgate rules further defining the methodology for the
transfers. Any interest earned by moneys in the funds or

09700SB1538ham001 - 39 - LRB097 07771 JDS 56478 a
accounts shall inure to the Teacher Health Insurance Security
Fund. The transferred moneys, and interest accrued thereon,
shall be used exclusively for transfers to administrative
service organizations or their financial institutions for
payments of claims to claimants and providers under the
self-insurance health plan. The transferred moneys, and
interest accrued thereon, shall not be used for any other
purpose including, but not limited to, reimbursement of
administration fees due the administrative service
organization pursuant to its contract or contracts with the
Department.
(g) Contract for benefits. The Director shall by contract,
self-insurance, or otherwise make available the program of
health benefits for TRS benefit recipients and their TRS
dependent beneficiaries that is provided for in this Section.
The contract or other arrangement for the provision of these
health benefits shall be on terms deemed by the Director to be
in the best interest of the State of Illinois and the TRS
benefit recipients based on, but not limited to, such criteria
as administrative cost, service capabilities of the carrier or
other contractor, and the costs of the benefits.
(g-5) Committee. A Teacher Retirement Insurance Program
Committee shall be established, to consist of 10 persons
appointed by the Governor.
The Committee shall convene at least 4 times each year, and
shall consider and make recommendations on issues affecting the

09700SB1538ham001 - 40 - LRB097 07771 JDS 56478 a
program of health benefits provided under this Section.
Recommendations of the Committee shall be based on a consensus
of the members of the Committee.
If the Teacher Health Insurance Security Fund experiences a
deficit balance based upon the contribution and subsidy rates
established in this Section and Section 6.6 for Fiscal Year
2008 or thereafter, the Committee shall make recommendations
for adjustments to the funding sources established under these
Sections.
(h) Continuation of program. It is the intention of the
General Assembly that the program of health benefits provided
under this Section be maintained on an ongoing, affordable
basis.
The program of health benefits provided under this Section
may be amended by the State and is not intended to be a pension
or retirement benefit subject to protection under Article XIII,
Section 5 of the Illinois Constitution.
(i) Repeal. (Blank).
(Source: P.A. 95-632, eff. 9-25-07; 96-1519, eff. 2-4-11.)
(5 ILCS 375/6.10)
Sec. 6.10. Contributions to the Community College Health
Insurance Security Fund.
(a) Beginning January 1, 1999, every active contributor of
the State Universities Retirement System (established under
Article 15 of the Illinois Pension Code) who (1) is a full-time

09700SB1538ham001 - 41 - LRB097 07771 JDS 56478 a
employee of a community college district (other than a
community college district subject to Article VII of the Public
Community College Act) or an association of community college
boards and (2) is not an employee as defined in Section 3 of
this Act shall make contributions toward the cost of community
college annuitant and survivor health benefits at the rate of
0.50% of salary.
These contributions shall be deducted by the employer and
paid to the State Universities Retirement System as service
agent for the Department of Central Management Services. The
System may use the same processes for collecting the
contributions required by this subsection that it uses to
collect the contributions received from those employees under
Section 15-157 of the Illinois Pension Code. An employer may
agree to pick up or pay the contributions required under this
subsection on behalf of the employee; such contributions shall
be deemed to have been paid by the employee.
The State Universities Retirement System shall promptly
deposit all moneys collected under this subsection (a) into the
Community College Health Insurance Security Fund created in
Section 6.9 of this Act. The moneys collected under this
Section shall be used only for the purposes authorized in
Section 6.9 of this Act and shall not be considered to be
assets of the State Universities Retirement System.
Contributions made under this Section are not transferable to
other pension funds or retirement systems and are not

09700SB1538ham001 - 42 - LRB097 07771 JDS 56478 a
refundable upon termination of service.
(b) Beginning January 1, 1999, every community college
district (other than a community college district subject to
Article VII of the Public Community College Act) or association
of community college boards that is an employer under the State
Universities Retirement System shall contribute toward the
cost of the community college health benefits provided under
Section 6.9 of this Act an amount equal to 0.50% of the salary
paid to its full-time employees who participate in the State
Universities Retirement System and are not members as defined
in Section 3 of this Act.
These contributions shall be paid by the employer to the
State Universities Retirement System as service agent for the
Department of Central Management Services. The System may use
the same processes for collecting the contributions required by
this subsection that it uses to collect the contributions
received from those employers under Section 15-155 of the
Illinois Pension Code.
The State Universities Retirement System shall promptly
deposit all moneys collected under this subsection (b) into the
Community College Health Insurance Security Fund created in
Section 6.9 of this Act. The moneys collected under this
Section shall be used only for the purposes authorized in
Section 6.9 of this Act and shall not be considered to be
assets of the State Universities Retirement System.
Contributions made under this Section are not transferable to

09700SB1538ham001 - 43 - LRB097 07771 JDS 56478 a
other pension funds or retirement systems and are not
refundable upon termination of service.
The Department of Central Management Healthcare and Family
Services, or any successor agency designated to procure
healthcare contracts pursuant to this Act, is authorized to
establish funds, separate accounts provided by any bank or
banks as defined by the Illinois Banking Act, or separate
accounts provided by any savings and loan association or
associations as defined by the Illinois Savings and Loan Act of
1985 to be held by the Director, outside the State treasury,
for the purpose of receiving the transfer of moneys from the
Community College Health Insurance Security Fund. The
Department may promulgate rules further defining the
methodology for the transfers. Any interest earned by moneys in
the funds or accounts shall inure to the Community College
Health Insurance Security Fund. The transferred moneys, and
interest accrued thereon, shall be used exclusively for
transfers to administrative service organizations or their
financial institutions for payments of claims to claimants and
providers under the self-insurance health plan. The
transferred moneys, and interest accrued thereon, shall not be
used for any other purpose including, but not limited to,
reimbursement of administration fees due the administrative
service organization pursuant to its contract or contracts with
the Department.
(c) On or before November 15 of each year, the Board of

09700SB1538ham001 - 44 - LRB097 07771 JDS 56478 a
Trustees of the State Universities Retirement System shall
certify to the Governor, the Director of Central Management
Services, and the State Comptroller its estimate of the total
amount of contributions to be paid under subsection (a) of this
Section for the next fiscal year. Beginning in fiscal year
2008, the amount certified shall be decreased or increased each
year by the amount that the actual active employee
contributions either fell short of or exceeded the estimate
used by the Board in making the certification for the previous
fiscal year. The State Universities Retirement System shall
calculate the amount of actual active employee contributions in
fiscal years 1999 through 2005. Based upon this calculation,
the fiscal year 2008 certification shall include an amount
equal to the cumulative amount that the actual active employee
contributions either fell short of or exceeded the estimate
used by the Board in making the certification for those fiscal
years. The certification shall include a detailed explanation
of the methods and information that the Board relied upon in
preparing its estimate. As soon as possible after the effective
date of this Section, the Board shall submit its estimate for
fiscal year 1999.
(d) Beginning in fiscal year 1999, on the first day of each
month, or as soon thereafter as may be practical, the State
Treasurer and the State Comptroller shall transfer from the
General Revenue Fund to the Community College Health Insurance
Security Fund 1/12 of the annual amount appropriated for that

09700SB1538ham001 - 45 - LRB097 07771 JDS 56478 a
fiscal year to the State Comptroller for deposit into the
Community College Health Insurance Security Fund under Section
1.4 of the State Pension Funds Continuing Appropriation Act.
(e) Except where otherwise specified in this Section, the
definitions that apply to Article 15 of the Illinois Pension
Code apply to this Section.
(Source: P.A. 94-839, eff. 6-6-06; 95-632, eff. 9-25-07.)
(5 ILCS 375/10) (from Ch. 127, par. 530)
Sec. 10. Payments by State; premiums.
(a) The State shall pay the cost of basic non-contributory
group life insurance and, subject to member paid contributions
set by the Department or required by this Section, the basic
program of group health benefits on each eligible member,
except a member, not otherwise covered by this Act, who has
retired as a participating member under Article 2 of the
Illinois Pension Code but is ineligible for the retirement
annuity under Section 2-119 of the Illinois Pension Code, and
part of each eligible member's and retired member's premiums
for health insurance coverage for enrolled dependents as
provided by Section 9. The State shall pay the cost of the
basic program of group health benefits only after benefits are
reduced by the amount of benefits covered by Medicare for all
members and dependents who are eligible for benefits under
Social Security or the Railroad Retirement system or who had
sufficient Medicare-covered government employment, except that

09700SB1538ham001 - 46 - LRB097 07771 JDS 56478 a
such reduction in benefits shall apply only to those members
and dependents who (1) first become eligible for such Medicare
coverage on or after July 1, 1992; or (2) are Medicare-eligible
members or dependents of a local government unit which began
participation in the program on or after July 1, 1992; or (3)
remain eligible for, but no longer receive Medicare coverage
which they had been receiving on or after July 1, 1992. The
Department may determine the aggregate level of the State's
contribution on the basis of actual cost of medical services
adjusted for age, sex or geographic or other demographic
characteristics which affect the costs of such programs.
The cost of participation in the basic program of group
health benefits for the dependent or survivor of a living or
deceased retired employee who was formerly employed by the
University of Illinois in the Cooperative Extension Service and
would be an annuitant but for the fact that he or she was made
ineligible to participate in the State Universities Retirement
System by clause (4) of subsection (a) of Section 15-107 of the
Illinois Pension Code shall not be greater than the cost of
participation that would otherwise apply to that dependent or
survivor if he or she were the dependent or survivor of an
annuitant under the State Universities Retirement System.
(a-1) Beginning January 1, 1998, for each person who
becomes a new SERS annuitant and participates in the basic
program of group health benefits, the State shall contribute
toward the cost of the annuitant's coverage under the basic

09700SB1538ham001 - 47 - LRB097 07771 JDS 56478 a
program of group health benefits an amount equal to 5% of that
cost for each full year of creditable service upon which the
annuitant's retirement annuity is based, up to a maximum of
100% for an annuitant with 20 or more years of creditable
service. The remainder of the cost of a new SERS annuitant's
coverage under the basic program of group health benefits shall
be the responsibility of the annuitant. In the case of a new
SERS annuitant who has elected to receive an alternative
retirement cancellation payment under Section 14-108.5 of the
Illinois Pension Code in lieu of an annuity, for the purposes
of this subsection the annuitant shall be deemed to be
receiving a retirement annuity based on the number of years of
creditable service that the annuitant had established at the
time of his or her termination of service under SERS.
(a-2) Beginning January 1, 1998, for each person who
becomes a new SERS survivor and participates in the basic
program of group health benefits, the State shall contribute
toward the cost of the survivor's coverage under the basic
program of group health benefits an amount equal to 5% of that
cost for each full year of the deceased employee's or deceased
annuitant's creditable service in the State Employees'
Retirement System of Illinois on the date of death, up to a
maximum of 100% for a survivor of an employee or annuitant with
20 or more years of creditable service. The remainder of the
cost of the new SERS survivor's coverage under the basic
program of group health benefits shall be the responsibility of

09700SB1538ham001 - 48 - LRB097 07771 JDS 56478 a
the survivor. In the case of a new SERS survivor who was the
dependent of an annuitant who elected to receive an alternative
retirement cancellation payment under Section 14-108.5 of the
Illinois Pension Code in lieu of an annuity, for the purposes
of this subsection the deceased annuitant's creditable service
shall be determined as of the date of termination of service
rather than the date of death.
(a-3) Beginning January 1, 1998, for each person who
becomes a new SURS annuitant and participates in the basic
program of group health benefits, the State shall contribute
toward the cost of the annuitant's coverage under the basic
program of group health benefits an amount equal to 5% of that
cost for each full year of creditable service upon which the
annuitant's retirement annuity is based, up to a maximum of
100% for an annuitant with 20 or more years of creditable
service. The remainder of the cost of a new SURS annuitant's
coverage under the basic program of group health benefits shall
be the responsibility of the annuitant.
(a-4) (Blank).
(a-5) Beginning January 1, 1998, for each person who
becomes a new SURS survivor and participates in the basic
program of group health benefits, the State shall contribute
toward the cost of the survivor's coverage under the basic
program of group health benefits an amount equal to 5% of that
cost for each full year of the deceased employee's or deceased
annuitant's creditable service in the State Universities

09700SB1538ham001 - 49 - LRB097 07771 JDS 56478 a
Retirement System on the date of death, up to a maximum of 100%
for a survivor of an employee or annuitant with 20 or more
years of creditable service. The remainder of the cost of the
new SURS survivor's coverage under the basic program of group
health benefits shall be the responsibility of the survivor.
(a-6) Beginning July 1, 1998, for each person who becomes a
new TRS State annuitant and participates in the basic program
of group health benefits, the State shall contribute toward the
cost of the annuitant's coverage under the basic program of
group health benefits an amount equal to 5% of that cost for
each full year of creditable service as a teacher as defined in
paragraph (2), (3), or (5) of Section 16-106 of the Illinois
Pension Code upon which the annuitant's retirement annuity is
based, up to a maximum of 100%; except that the State
contribution shall be 12.5% per year (rather than 5%) for each
full year of creditable service as a regional superintendent or
assistant regional superintendent of schools. The remainder of
the cost of a new TRS State annuitant's coverage under the
basic program of group health benefits shall be the
responsibility of the annuitant.
(a-7) Beginning July 1, 1998, for each person who becomes a
new TRS State survivor and participates in the basic program of
group health benefits, the State shall contribute toward the
cost of the survivor's coverage under the basic program of
group health benefits an amount equal to 5% of that cost for
each full year of the deceased employee's or deceased

09700SB1538ham001 - 50 - LRB097 07771 JDS 56478 a
annuitant's creditable service as a teacher as defined in
paragraph (2), (3), or (5) of Section 16-106 of the Illinois
Pension Code on the date of death, up to a maximum of 100%;
except that the State contribution shall be 12.5% per year
(rather than 5%) for each full year of the deceased employee's
or deceased annuitant's creditable service as a regional
superintendent or assistant regional superintendent of
schools. The remainder of the cost of the new TRS State
survivor's coverage under the basic program of group health
benefits shall be the responsibility of the survivor.
(a-8) A new SERS annuitant, new SERS survivor, new SURS
annuitant, new SURS survivor, new TRS State annuitant, or new
TRS State survivor may waive or terminate coverage in the
program of group health benefits. Any such annuitant or
survivor who has waived or terminated coverage may enroll or
re-enroll in the program of group health benefits only during
the annual benefit choice period, as determined by the
Director; except that in the event of termination of coverage
due to nonpayment of premiums, the annuitant or survivor may
not re-enroll in the program.
(a-9) No later than May 1 of each calendar year, the
Director of Central Management Services shall certify in
writing to the Executive Secretary of the State Employees'
Retirement System of Illinois the amounts of the Medicare
supplement health care premiums and the amounts of the health
care premiums for all other retirees who are not Medicare

09700SB1538ham001 - 51 - LRB097 07771 JDS 56478 a
eligible.
A separate calculation of the premiums based upon the
actual cost of each health care plan shall be so certified.
The Director of Central Management Services shall provide
to the Executive Secretary of the State Employees' Retirement
System of Illinois such information, statistics, and other data
as he or she may require to review the premium amounts
certified by the Director of Central Management Services.
The Department of Central Management Healthcare and Family
Services, or any successor agency designated to procure
healthcare contracts pursuant to this Act, is authorized to
establish funds, separate accounts provided by any bank or
banks as defined by the Illinois Banking Act, or separate
accounts provided by any savings and loan association or
associations as defined by the Illinois Savings and Loan Act of
1985 to be held by the Director, outside the State treasury,
for the purpose of receiving the transfer of moneys from the
Local Government Health Insurance Reserve Fund. The Department
may promulgate rules further defining the methodology for the
transfers. Any interest earned by moneys in the funds or
accounts shall inure to the Local Government Health Insurance
Reserve Fund. The transferred moneys, and interest accrued
thereon, shall be used exclusively for transfers to
administrative service organizations or their financial
institutions for payments of claims to claimants and providers
under the self-insurance health plan. The transferred moneys,

09700SB1538ham001 - 52 - LRB097 07771 JDS 56478 a
and interest accrued thereon, shall not be used for any other
purpose including, but not limited to, reimbursement of
administration fees due the administrative service
organization pursuant to its contract or contracts with the
Department.
(b) State employees who become eligible for this program on
or after January 1, 1980 in positions normally requiring actual
performance of duty not less than 1/2 of a normal work period
but not equal to that of a normal work period, shall be given
the option of participating in the available program. If the
employee elects coverage, the State shall contribute on behalf
of such employee to the cost of the employee's benefit and any
applicable dependent supplement, that sum which bears the same
percentage as that percentage of time the employee regularly
works when compared to normal work period.
(c) The basic non-contributory coverage from the basic
program of group health benefits shall be continued for each
employee not in pay status or on active service by reason of
(1) leave of absence due to illness or injury, (2) authorized
educational leave of absence or sabbatical leave, or (3)
military leave. This coverage shall continue until expiration
of authorized leave and return to active service, but not to
exceed 24 months for leaves under item (1) or (2). This
24-month limitation and the requirement of returning to active
service shall not apply to persons receiving ordinary or
accidental disability benefits or retirement benefits through

09700SB1538ham001 - 53 - LRB097 07771 JDS 56478 a
the appropriate State retirement system or benefits under the
Workers' Compensation or Occupational Disease Act.
(d) The basic group life insurance coverage shall continue,
with full State contribution, where such person is (1) absent
from active service by reason of disability arising from any
cause other than self-inflicted, (2) on authorized educational
leave of absence or sabbatical leave, or (3) on military leave.
(e) Where the person is in non-pay status for a period in
excess of 30 days or on leave of absence, other than by reason
of disability, educational or sabbatical leave, or military
leave, such person may continue coverage only by making
personal payment equal to the amount normally contributed by
the State on such person's behalf. Such payments and coverage
may be continued: (1) until such time as the person returns to
a status eligible for coverage at State expense, but not to
exceed 24 months or (2) until such person's employment or
annuitant status with the State is terminated (exclusive of any
additional service imposed pursuant to law).
(f) The Department shall establish by rule the extent to
which other employee benefits will continue for persons in
non-pay status or who are not in active service.
(g) The State shall not pay the cost of the basic
non-contributory group life insurance, program of health
benefits and other employee benefits for members who are
survivors as defined by paragraphs (1) and (2) of subsection
(q) of Section 3 of this Act. The costs of benefits for these

09700SB1538ham001 - 54 - LRB097 07771 JDS 56478 a
survivors shall be paid by the survivors or by the University
of Illinois Cooperative Extension Service, or any combination
thereof. However, the State shall pay the amount of the
reduction in the cost of participation, if any, resulting from
the amendment to subsection (a) made by this amendatory Act of
the 91st General Assembly.
(h) Those persons occupying positions with any department
as a result of emergency appointments pursuant to Section 8b.8
of the Personnel Code who are not considered employees under
this Act shall be given the option of participating in the
programs of group life insurance, health benefits and other
employee benefits. Such persons electing coverage may
participate only by making payment equal to the amount normally
contributed by the State for similarly situated employees. Such
amounts shall be determined by the Director. Such payments and
coverage may be continued until such time as the person becomes
an employee pursuant to this Act or such person's appointment
is terminated.
(i) Any unit of local government within the State of
Illinois may apply to the Director to have its employees,
annuitants, and their dependents provided group health
coverage under this Act on a non-insured basis. To participate,
a unit of local government must agree to enroll all of its
employees, who may select coverage under either the State group
health benefits plan or a health maintenance organization that
has contracted with the State to be available as a health care

09700SB1538ham001 - 55 - LRB097 07771 JDS 56478 a
provider for employees as defined in this Act. A unit of local
government must remit the entire cost of providing coverage
under the State group health benefits plan or, for coverage
under a health maintenance organization, an amount determined
by the Director based on an analysis of the sex, age,
geographic location, or other relevant demographic variables
for its employees, except that the unit of local government
shall not be required to enroll those of its employees who are
covered spouses or dependents under this plan or another group
policy or plan providing health benefits as long as (1) an
appropriate official from the unit of local government attests
that each employee not enrolled is a covered spouse or
dependent under this plan or another group policy or plan, and
(2) at least 50% of the employees are enrolled and the unit of
local government remits the entire cost of providing coverage
to those employees, except that a participating school district
must have enrolled at least 50% of its full-time employees who
have not waived coverage under the district's group health plan
by participating in a component of the district's cafeteria
plan. A participating school district is not required to enroll
a full-time employee who has waived coverage under the
district's health plan, provided that an appropriate official
from the participating school district attests that the
full-time employee has waived coverage by participating in a
component of the district's cafeteria plan. For the purposes of
this subsection, "participating school district" includes a

09700SB1538ham001 - 56 - LRB097 07771 JDS 56478 a
unit of local government whose primary purpose is education as
defined by the Department's rules.
Employees of a participating unit of local government who
are not enrolled due to coverage under another group health
policy or plan may enroll in the event of a qualifying change
in status, special enrollment, special circumstance as defined
by the Director, or during the annual Benefit Choice Period. A
participating unit of local government may also elect to cover
its annuitants. Dependent coverage shall be offered on an
optional basis, with the costs paid by the unit of local
government, its employees, or some combination of the two as
determined by the unit of local government. The unit of local
government shall be responsible for timely collection and
transmission of dependent premiums.
The Director shall annually determine monthly rates of
payment, subject to the following constraints:
(1) In the first year of coverage, the rates shall be
equal to the amount normally charged to State employees for
elected optional coverages or for enrolled dependents
coverages or other contributory coverages, or contributed
by the State for basic insurance coverages on behalf of its
employees, adjusted for differences between State
employees and employees of the local government in age,
sex, geographic location or other relevant demographic
variables, plus an amount sufficient to pay for the
additional administrative costs of providing coverage to

09700SB1538ham001 - 57 - LRB097 07771 JDS 56478 a
employees of the unit of local government and their
dependents.
(2) In subsequent years, a further adjustment shall be
made to reflect the actual prior years' claims experience
of the employees of the unit of local government.
In the case of coverage of local government employees under
a health maintenance organization, the Director shall annually
determine for each participating unit of local government the
maximum monthly amount the unit may contribute toward that
coverage, based on an analysis of (i) the age, sex, geographic
location, and other relevant demographic variables of the
unit's employees and (ii) the cost to cover those employees
under the State group health benefits plan. The Director may
similarly determine the maximum monthly amount each unit of
local government may contribute toward coverage of its
employees' dependents under a health maintenance organization.
Monthly payments by the unit of local government or its
employees for group health benefits plan or health maintenance
organization coverage shall be deposited in the Local
Government Health Insurance Reserve Fund.
The Local Government Health Insurance Reserve Fund is
hereby created as a nonappropriated trust fund to be held
outside the State Treasury, with the State Treasurer as
custodian. The Local Government Health Insurance Reserve Fund
shall be a continuing fund not subject to fiscal year
limitations. The Local Government Health Insurance Reserve

09700SB1538ham001 - 58 - LRB097 07771 JDS 56478 a
Fund is not subject to administrative charges or charge-backs,
including but not limited to those authorized under Section 8h
of the State Finance Act. All revenues arising from the
administration of the health benefits program established
under this Section shall be deposited into the Local Government
Health Insurance Reserve Fund. Any interest earned on moneys in
the Local Government Health Insurance Reserve Fund shall be
deposited into the Fund. All expenditures from this Fund shall
be used for payments for health care benefits for local
government and rehabilitation facility employees, annuitants,
and dependents, and to reimburse the Department or its
administrative service organization for all expenses incurred
in the administration of benefits. No other State funds may be
used for these purposes.
A local government employer's participation or desire to
participate in a program created under this subsection shall
not limit that employer's duty to bargain with the
representative of any collective bargaining unit of its
employees.
(j) Any rehabilitation facility within the State of
Illinois may apply to the Director to have its employees,
annuitants, and their eligible dependents provided group
health coverage under this Act on a non-insured basis. To
participate, a rehabilitation facility must agree to enroll all
of its employees and remit the entire cost of providing such
coverage for its employees, except that the rehabilitation

09700SB1538ham001 - 59 - LRB097 07771 JDS 56478 a
facility shall not be required to enroll those of its employees
who are covered spouses or dependents under this plan or
another group policy or plan providing health benefits as long
as (1) an appropriate official from the rehabilitation facility
attests that each employee not enrolled is a covered spouse or
dependent under this plan or another group policy or plan, and
(2) at least 50% of the employees are enrolled and the
rehabilitation facility remits the entire cost of providing
coverage to those employees. Employees of a participating
rehabilitation facility who are not enrolled due to coverage
under another group health policy or plan may enroll in the
event of a qualifying change in status, special enrollment,
special circumstance as defined by the Director, or during the
annual Benefit Choice Period. A participating rehabilitation
facility may also elect to cover its annuitants. Dependent
coverage shall be offered on an optional basis, with the costs
paid by the rehabilitation facility, its employees, or some
combination of the 2 as determined by the rehabilitation
facility. The rehabilitation facility shall be responsible for
timely collection and transmission of dependent premiums.
The Director shall annually determine quarterly rates of
payment, subject to the following constraints:
(1) In the first year of coverage, the rates shall be
equal to the amount normally charged to State employees for
elected optional coverages or for enrolled dependents
coverages or other contributory coverages on behalf of its

09700SB1538ham001 - 60 - LRB097 07771 JDS 56478 a
employees, adjusted for differences between State
employees and employees of the rehabilitation facility in
age, sex, geographic location or other relevant
demographic variables, plus an amount sufficient to pay for
the additional administrative costs of providing coverage
to employees of the rehabilitation facility and their
dependents.
(2) In subsequent years, a further adjustment shall be
made to reflect the actual prior years' claims experience
of the employees of the rehabilitation facility.
Monthly payments by the rehabilitation facility or its
employees for group health benefits shall be deposited in the
Local Government Health Insurance Reserve Fund.
(k) Any domestic violence shelter or service within the
State of Illinois may apply to the Director to have its
employees, annuitants, and their dependents provided group
health coverage under this Act on a non-insured basis. To
participate, a domestic violence shelter or service must agree
to enroll all of its employees and pay the entire cost of
providing such coverage for its employees. The domestic
violence shelter shall not be required to enroll those of its
employees who are covered spouses or dependents under this plan
or another group policy or plan providing health benefits as
long as (1) an appropriate official from the domestic violence
shelter attests that each employee not enrolled is a covered
spouse or dependent under this plan or another group policy or

09700SB1538ham001 - 61 - LRB097 07771 JDS 56478 a
plan and (2) at least 50% of the employees are enrolled and the
domestic violence shelter remits the entire cost of providing
coverage to those employees. Employees of a participating
domestic violence shelter who are not enrolled due to coverage
under another group health policy or plan may enroll in the
event of a qualifying change in status, special enrollment, or
special circumstance as defined by the Director or during the
annual Benefit Choice Period. A participating domestic
violence shelter may also elect to cover its annuitants.
Dependent coverage shall be offered on an optional basis, with
employees, or some combination of the 2 as determined by the
domestic violence shelter or service. The domestic violence
shelter or service shall be responsible for timely collection
and transmission of dependent premiums.
The Director shall annually determine rates of payment,
subject to the following constraints:
(1) In the first year of coverage, the rates shall be
equal to the amount normally charged to State employees for
elected optional coverages or for enrolled dependents
coverages or other contributory coverages on behalf of its
employees, adjusted for differences between State
employees and employees of the domestic violence shelter or
service in age, sex, geographic location or other relevant
demographic variables, plus an amount sufficient to pay for
the additional administrative costs of providing coverage
to employees of the domestic violence shelter or service

09700SB1538ham001 - 62 - LRB097 07771 JDS 56478 a
and their dependents.
(2) In subsequent years, a further adjustment shall be
made to reflect the actual prior years' claims experience
of the employees of the domestic violence shelter or
service.
Monthly payments by the domestic violence shelter or
service or its employees for group health insurance shall be
deposited in the Local Government Health Insurance Reserve
Fund.
(l) A public community college or entity organized pursuant
to the Public Community College Act may apply to the Director
initially to have only annuitants not covered prior to July 1,
1992 by the district's health plan provided health coverage
under this Act on a non-insured basis. The community college
must execute a 2-year contract to participate in the Local
Government Health Plan. Any annuitant may enroll in the event
of a qualifying change in status, special enrollment, special
circumstance as defined by the Director, or during the annual
Benefit Choice Period.
The Director shall annually determine monthly rates of
payment subject to the following constraints: for those
community colleges with annuitants only enrolled, first year
rates shall be equal to the average cost to cover claims for a
State member adjusted for demographics, Medicare
participation, and other factors; and in the second year, a
further adjustment of rates shall be made to reflect the actual

09700SB1538ham001 - 63 - LRB097 07771 JDS 56478 a
first year's claims experience of the covered annuitants.
(l-5) The provisions of subsection (l) become inoperative
on July 1, 1999.
(m) The Director shall adopt any rules deemed necessary for
implementation of this amendatory Act of 1989 (Public Act
86-978).
(n) Any child advocacy center within the State of Illinois
may apply to the Director to have its employees, annuitants,
and their dependents provided group health coverage under this
Act on a non-insured basis. To participate, a child advocacy
center must agree to enroll all of its employees and pay the
entire cost of providing coverage for its employees. The child
advocacy center shall not be required to enroll those of its
employees who are covered spouses or dependents under this plan
or another group policy or plan providing health benefits as
long as (1) an appropriate official from the child advocacy
center attests that each employee not enrolled is a covered
spouse or dependent under this plan or another group policy or
plan and (2) at least 50% of the employees are enrolled and the
child advocacy center remits the entire cost of providing
coverage to those employees. Employees of a participating child
advocacy center who are not enrolled due to coverage under
another group health policy or plan may enroll in the event of
a qualifying change in status, special enrollment, or special
circumstance as defined by the Director or during the annual
Benefit Choice Period. A participating child advocacy center

09700SB1538ham001 - 64 - LRB097 07771 JDS 56478 a
may also elect to cover its annuitants. Dependent coverage
shall be offered on an optional basis, with the costs paid by
the child advocacy center, its employees, or some combination
of the 2 as determined by the child advocacy center. The child
advocacy center shall be responsible for timely collection and
transmission of dependent premiums.
The Director shall annually determine rates of payment,
subject to the following constraints:
(1) In the first year of coverage, the rates shall be
equal to the amount normally charged to State employees for
elected optional coverages or for enrolled dependents
coverages or other contributory coverages on behalf of its
employees, adjusted for differences between State
employees and employees of the child advocacy center in
age, sex, geographic location, or other relevant
demographic variables, plus an amount sufficient to pay for
the additional administrative costs of providing coverage
to employees of the child advocacy center and their
dependents.
(2) In subsequent years, a further adjustment shall be
made to reflect the actual prior years' claims experience
of the employees of the child advocacy center.
Monthly payments by the child advocacy center or its
employees for group health insurance shall be deposited into
the Local Government Health Insurance Reserve Fund.
(Source: P.A. 95-331, eff. 8-21-07; 95-632, eff. 9-25-07;

09700SB1538ham001 - 65 - LRB097 07771 JDS 56478 a
95-707, eff. 1-11-08; 96-756, eff. 1-1-10; 96-1232, eff.
7-23-10; 96-1519, eff. 2-4-11.)
(5 ILCS 375/13.1) (from Ch. 127, par. 533.1)
Sec. 13.1. (a) All contributions, appropriations,
interest, and dividend payments to fund the program of health
benefits and other employee benefits, and all other revenues
arising from the administration of any employee health benefits
program, shall be deposited in a trust fund outside the State
Treasury, with the State Treasurer as ex-officio custodian, to
be known as the Health Insurance Reserve Fund.
(b) Upon the adoption of a self-insurance health plan, any
monies attributable to the group health insurance program shall
be deposited in or transferred to the Health Insurance Reserve
Fund for use by the Department. As of the effective date of
this amendatory Act of 1986, the Department shall certify to
the Comptroller the amount of money in the Group Insurance
Premium Fund attributable to the State group health insurance
program and the Comptroller shall transfer such money from the
Group Insurance Premium Fund to the Health Insurance Reserve
Fund. Contributions by the State to the Health Insurance
Reserve Fund to meet the requirements of this Act, as
established by the Director, from the General Revenue Fund and
the Road Fund to the Health Insurance Reserve Fund shall be by
annual appropriations, and all other contributions to meet the
requirements of the programs of health benefits or other

09700SB1538ham001 - 66 - LRB097 07771 JDS 56478 a
employee benefits shall be deposited in the Health Insurance
Reserve Fund. The Department shall draw the appropriation from
the General Revenue Fund and the Road Fund from time to time as
necessary to make expenditures authorized under this Act.
The Director may employ such assistance and services and
may purchase such goods as may be necessary for the proper
development and administration of any of the benefit programs
authorized by this Act. The Director may promulgate rules and
regulations in regard to the administration of these programs.
All monies received by the Department for deposit in or
transfer to the Health Insurance Reserve Fund, through
appropriation or otherwise, shall be used to provide for the
making of payments to claimants and providers and to reimburse
the Department for all expenses directly incurred relating to
Department development and administration of the program of
health benefits and other employee benefits.
Any administrative service organization administering any
self-insurance health plan and paying claims and benefits under
authority of this Act may receive, pursuant to written
authorization and direction of the Director, an initial
transfer and periodic transfers of funds from the Health
Insurance Reserve Fund in amounts determined by the Director
who may consider the amount recommended by the administrative
service organization. Notwithstanding any other statute, such
transferred funds shall be retained by the administrative
service organization in a separate account provided by any bank

09700SB1538ham001 - 67 - LRB097 07771 JDS 56478 a
as defined by the Illinois Banking Act. The Department may
promulgate regulations further defining the banks authorized
to accept such funds and all methodology for transfer of such
funds. Any interest earned by monies in such account shall
inure to the Health Insurance Reserve Fund, shall remain in
such account and shall be used exclusively to pay claims and
benefits under this Act. Such transferred funds shall be used
exclusively for administrative service organization payment of
claims to claimants and providers under the self-insurance
health plan by the drawing of checks against such account. The
administrative service organization may not use such
transferred funds, or interest accrued thereon, for any other
purpose including, but not limited to, reimbursement of
administrative expenses or payments of administration fees due
the organization pursuant to its contract or contracts with the
Department of Central Management Services.
The account of the administrative service organization
established under this Section, any transfers from the Health
Insurance Reserve Fund to such account and the use of such
account and funds shall be subject to (1) audit by the
Department or private contractor authorized by the Department
to conduct audits, and (2) post audit pursuant to the Illinois
State Auditing Act.
The Department of Central Management Healthcare and Family
Services, or any successor agency designated to procure
healthcare contracts pursuant to this Act, is authorized to

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establish funds, separate accounts provided by any bank or
banks as defined by the Illinois Banking Act, or separate
accounts provided by any savings and loan association or
associations as defined by the Illinois Savings and Loan Act of
1985 to be held by the Director, outside the State treasury,
for the purpose of receiving the transfer of moneys from the
Health Insurance Reserve Fund. The Department may promulgate
rules further defining the methodology for the transfers. Any
interest earned by monies in the funds or accounts shall inure
to the Health Insurance Reserve Fund. The transferred moneys,
and interest accrued thereon, shall be used exclusively for
transfers to administrative service organizations or their
financial institutions for payments of claims to claimants and
providers under the self-insurance health plan. The
transferred moneys, and interest accrued thereon, shall not be
used for any other purpose including, but not limited to,
reimbursement of administration fees due the administrative
service organization pursuant to its contract or contracts with
the Department.
(c) The Director, with the advice and consent of the
Commission, shall establish premiums for optional coverage for
dependents of eligible members for the health plans. The
eligible members shall be responsible for their portion of such
optional premium. The State shall contribute an amount per
month for each eligible member who has enrolled one or more
dependents under the health plans. Such contribution shall be

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made directly to the Health Insurance Reserve Fund. Those
employees described in subsection (b) of Section 9 of this Act
shall be allowed to continue in the health plan by making
personal payments with the premiums to be deposited in the
Health Insurance Reserve Fund.
(d) The Health Insurance Reserve Fund shall be a continuing
fund not subject to fiscal year limitations. All expenditures
from that fund shall be at the direction of the Director and
shall be only for the purpose of:
(1) the payment of administrative expenses incurred by
the Department for the program of health benefits or other
employee benefit programs, including but not limited to the
costs of audits or actuarial consultations, professional
and contractual services, electronic data processing
systems and services, and expenses in connection with the
development and administration of such programs;
(2) the payment of administrative expenses incurred by
the Administrative Service Organization;
(3) the payment of health benefits;
(3.5) the payment of medical expenses incurred by the
Department for the treatment of employees who suffer
accidental injury or death within the scope of their
employment;
(4) refunds to employees for erroneous payments of
their selected dependent coverage;
(5) payment of premium for stop-loss or re-insurance;

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(6) payment of premium to health maintenance
organizations pursuant to Section 6.1 of this Act;
(7) payment of adoption program benefits; and
(8) payment of other benefits offered to members and
dependents under this Act.
(Source: P.A. 94-839, eff. 6-6-06; 95-632, eff. 9-25-07;
95-744, eff. 7-18-08.)
Section 905. The Department of Central Management Services
Law of the Civil Administrative Code of Illinois is amended by
adding Section 405-520 as follows:
(20 ILCS 405/405-520 new)
Sec. 405-520. State healthcare purchasing. On and after
January 1, 2012, as provided in the State Healthcare Purchasing
Reorganization Act, all of the powers, duties, rights, and
responsibilities related to State healthcare purchasing under
this Code that were transferred from the Department to the
Department of Healthcare and Family Services by Executive Order
3 (2005) are transferred back to the Department.
Section 910. The Department of Human Services Act is
amended by changing Section 1-20 as follows:
(20 ILCS 1305/1-20)
Sec. 1-20. General powers and duties.

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(a) The Department shall exercise the rights, powers,
duties, and functions provided by law, including (but not
limited to) the rights, powers, duties, and functions
transferred to the Department under Article 80 and Article 90
of this Act.
(b) The Department may employ personnel (in accordance with
the Personnel Code), provide facilities, contract for goods and
services, and adopt rules as necessary to carry out its
functions and purposes, all in accordance with applicable State
and federal law.
(c) On and after January 1, 2012, as provided in the State
Healthcare Purchasing Reorganization Act, all of the powers,
duties, rights, and responsibilities related to State
healthcare purchasing under this Act that were transferred from
the Department to the Department of Healthcare and Family
Services by Executive Order 3 (2005) are transferred back to
the Department.
(Source: P.A. 89-507, eff. 7-3-96.)
Section 915. The Department of Healthcare and Family
Services Law of the Civil Administrative Code of Illinois is
amended by adding Section 2205-20 as follows:
(20 ILCS 2205/2205-20 new)
Sec. 2205-20. State healthcare purchasing. On and after
January 1, 2012, as provided in the State Healthcare Purchasing

09700SB1538ham001 - 72 - LRB097 07771 JDS 56478 a
Reorganization Act, all of the powers, duties, rights, and
responsibilities related to State healthcare purchasing under
this Code that were transferred to the Department of Healthcare
and Family Services by Executive Order 3 (2005) are transferred
back to the Departments from which those powers, duties,
rights, and responsibilities were transferred; however,
powers, duties, rights, and responsibilities related to State
healthcare purchasing under this Code that were exercised by
the Department of Corrections before Executive Order 3 (2005)
but that pertain to individuals resident in facilities operated
by Department of Juvenile Justice shall be transferred to the
Department of Juvenile Justice.
Section 920. The Department of Veterans Affairs Act is
amended by adding Section 2.08 as follows:
(20 ILCS 2805/2.08 new)
Sec. 2.08. State healthcare purchasing. On and after
January 1, 2012, as provided in the State Healthcare Purchasing
Reorganization Act, all of the powers, duties, rights, and
responsibilities related to State healthcare purchasing under
this Act that were transferred from the Department to the
Department of Healthcare and Family Services by Executive Order
3 (2005) are transferred back to the Department.
Section 925. The Commission on Government Forecasting and

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Accountability Act is amended by changing Section 3 as follows:
(25 ILCS 155/3) (from Ch. 63, par. 343)
Sec. 3. The Commission shall:
(1) Study from time to time and report to the General
Assembly on economic development and trends in the State.
(2) Make such special economic and fiscal studies as it
deems appropriate or desirable or as the General Assembly
may request.
(3) Based on its studies, recommend such State fiscal
and economic policies as it deems appropriate or desirable
to improve the functioning of State government and the
economy of the various regions within the State.
(4) Prepare annually a State economic report.
(5) Provide information for all appropriate
legislative organizations and personnel on economic trends
in relation to long range planning and budgeting.
(6) Study and make such recommendations as it deems
appropriate to the General Assembly on local and regional
economic and fiscal policy and on federal fiscal policy as
it may affect Illinois.
(7) Review capital expenditures, appropriations and
authorizations for both the State's general obligation and
revenue bonding authorities. At the direction of the
Commission, specific reviews may include economic
feasibility reviews of existing or proposed revenue bond

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projects to determine the accuracy of the original estimate
of useful life of the projects, maintenance requirements
and ability to meet debt service requirements through their
operating expenses.
(8) Receive and review all executive agency and revenue
bonding authority annual and 3 year plans. The Commission
shall prepare a consolidated review of these plans, an
updated assessment of current State agency capital plans, a
report on the outstanding and unissued bond
authorizations, an evaluation of the State's ability to
market further bond issues and shall submit them as the
"Legislative Capital Plan Analysis" to the House and Senate
Appropriations Committees at least once a year. The
Commission shall annually submit to the General Assembly on
the first Wednesday of April a report on the State's
long-term capital needs, with particular emphasis upon and
detail of the 5-year period in the immediate future.
(9) Study and make recommendations it deems
appropriate to the General Assembly on State bond
financing, bondability guidelines, and debt management. At
the direction of the Commission, specific studies and
reviews may take into consideration short and long-run
implications of State bonding and debt management policy.
(10) Comply with the provisions of the "State Debt
Impact Note Act" as now or hereafter amended.
(11) Comply with the provisions of the Pension Impact

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Note Act, as now or hereafter amended.
(12) By August 1st of each year, the Commission must
prepare and cause to be published a summary report of State
appropriations for the State fiscal year beginning the
previous July 1st. The summary report must discuss major
categories of appropriations, the issues the General
Assembly faced in allocating appropriations, comparisons
with appropriations for previous State fiscal years, and
other matters helpful in providing the citizens of Illinois
with an overall understanding of appropriations for that
fiscal year. The summary report must be written in plain
language and designed for readability. Publication must be
in newspapers of general circulation in the various areas
of the State to ensure distribution statewide. The summary
report must also be published on the General Assembly's web
site.
(13) Comply with the provisions of the State Facilities
Closure Act.
(14) For fiscal year 2012 and thereafter, develop a
3-year budget forecast for the State, including
opportunities and threats concerning anticipated revenues
and expenditures, with an appropriate level of detail.
(15) Exercise the powers and duties granted to it under
Section 5.5 of the State Employees Group Insurance Act.
The requirement for reporting to the General Assembly shall
be satisfied by filing copies of the report with the Speaker,

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the Minority Leader and the Clerk of the House of
Representatives and the President, the Minority Leader and the
Secretary of the Senate and the Legislative Research Unit, as
required by Section 3.1 of the General Assembly Organization
Act, and filing such additional copies with the State
Government Report Distribution Center for the General Assembly
as is required under paragraph (t) of Section 7 of the State
Library Act.
(Source: P.A. 96-958, eff. 7-1-10.)
Section 927. The Illinois Procurement Code is amended by
changing Section 20-60 as follows:
(30 ILCS 500/20-60)
Sec. 20-60. Duration of contracts.
(a) Maximum duration. A contract, other than a contract
entered into pursuant to the State University Certificates of
Participation Act, may be entered into for any period of time
deemed to be in the best interests of the State but not
exceeding 10 years inclusive, beginning January 1, 2010, of
proposed contract renewals. The length of a lease for real
property or capital improvements shall be in accordance with
the provisions of Section 40-25. A contract for bond or
mortgage insurance awarded by the Illinois Housing Development
Authority, however, may be entered into for any period of time
less than or equal to the maximum period of time that the

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subject bond or mortgage may remain outstanding.
(b) Subject to appropriation. All contracts made or entered
into shall recite that they are subject to termination and
cancellation in any year for which the General Assembly fails
to make an appropriation to make payments under the terms of
the contract.
(c) The chief procurement officer shall file a proposed
extension or renewal of a contract with the Procurement Policy
Board prior to entering into any extension or renewal if the
cost associated with the extension or renewal exceeds $249,999.
The Procurement Policy Board may object to the proposed
extension or renewal within 30 calendar days and require a
hearing before the Board prior to entering into the extension
or renewal. If the Procurement Policy Board does not object
within 30 calendar days or takes affirmative action to
recommend the extension or renewal, the chief procurement
officer may enter into the extension or renewal of a contract.
This subsection does not apply to any emergency procurement,
any procurement under Article 40, or any procurement exempted
by Section 1-10(b) of this Code. If any State agency contract
is paid for in whole or in part with federal-aid funds, grants,
or loans and the provisions of this subsection would result in
the loss of those federal-aid funds, grants, or loans, then the
contract is exempt from the provisions of this subsection in
order to remain eligible for those federal-aid funds, grants,
or loans, and the State agency shall file notice of this

09700SB1538ham001 - 78 - LRB097 07771 JDS 56478 a
exemption with the Procurement Policy Board prior to entering
into the proposed extension or renewal. Nothing in this
subsection permits a chief procurement officer to enter into an
extension or renewal in violation of subsection (a). By August
1 each year, the Procurement Policy Board shall file a report
with the General Assembly identifying for the previous fiscal
year (i) the proposed extensions or renewals that were filed
with the Board and whether the Board objected and (ii) the
contracts exempt from this subsection.
(d) If there is a conflict between the provisions of this
Section and Section 5.5 of the State Employees Group Insurance
Act of 1971, the provisions of Section 5.5 of the State
Employees Group Insurance Act of 1971 control.
(Source: P.A. 95-344, eff. 8-21-07; 96-15, eff. 6-22-09;
96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793 for the
effective date of changes made by P.A. 96-795); 96-920, eff.
7-1-10; 96-1478, eff. 8-23-10.)
Section 930. The School Employee Benefit Act is amended by
adding Section 7 as follows:
(105 ILCS 55/7 new)
Sec. 7. State healthcare purchasing. On and after January
1, 2012, as provided in the State Healthcare Purchasing
Reorganization Act, all of the powers, duties, rights, and
responsibilities related to State healthcare purchasing under

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this Act that were transferred from the Department to the
Department of Healthcare and Family Services by Executive Order
3 (2005) are transferred back to the Department.
Section 935. The Unified Code of Corrections is amended by
changing Sections 3-2-2 and 3-2.5-20 as follows:
(730 ILCS 5/3-2-2) (from Ch. 38, par. 1003-2-2)
Sec. 3-2-2. Powers and Duties of the Department.
(1) In addition to the powers, duties and responsibilities
which are otherwise provided by law, the Department shall have
the following powers:
(a) To accept persons committed to it by the courts of
this State for care, custody, treatment and
rehabilitation, and to accept federal prisoners and aliens
over whom the Office of the Federal Detention Trustee is
authorized to exercise the federal detention function for
limited purposes and periods of time.
(b) To develop and maintain reception and evaluation
units for purposes of analyzing the custody and
rehabilitation needs of persons committed to it and to
assign such persons to institutions and programs under its
control or transfer them to other appropriate agencies. In
consultation with the Department of Alcoholism and
Substance Abuse (now the Department of Human Services), the
Department of Corrections shall develop a master plan for

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the screening and evaluation of persons committed to its
custody who have alcohol or drug abuse problems, and for
making appropriate treatment available to such persons;
the Department shall report to the General Assembly on such
plan not later than April 1, 1987. The maintenance and
implementation of such plan shall be contingent upon the
availability of funds.
(b-1) To create and implement, on January 1, 2002, a
pilot program to establish the effectiveness of
pupillometer technology (the measurement of the pupil's
reaction to light) as an alternative to a urine test for
purposes of screening and evaluating persons committed to
its custody who have alcohol or drug problems. The pilot
program shall require the pupillometer technology to be
used in at least one Department of Corrections facility.
The Director may expand the pilot program to include an
additional facility or facilities as he or she deems
appropriate. A minimum of 4,000 tests shall be included in
the pilot program. The Department must report to the
General Assembly on the effectiveness of the program by
January 1, 2003.
(b-5) To develop, in consultation with the Department
of State Police, a program for tracking and evaluating each
inmate from commitment through release for recording his or
her gang affiliations, activities, or ranks.
(c) To maintain and administer all State correctional

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institutions and facilities under its control and to
establish new ones as needed. Pursuant to its power to
establish new institutions and facilities, the Department
may, with the written approval of the Governor, authorize
the Department of Central Management Services to enter into
an agreement of the type described in subsection (d) of
Section 405-300 of the Department of Central Management
Services Law (20 ILCS 405/405-300). The Department shall
designate those institutions which shall constitute the
State Penitentiary System.
Pursuant to its power to establish new institutions and
facilities, the Department may authorize the Department of
Central Management Services to accept bids from counties
and municipalities for the construction, remodeling or
conversion of a structure to be leased to the Department of
Corrections for the purposes of its serving as a
correctional institution or facility. Such construction,
remodeling or conversion may be financed with revenue bonds
issued pursuant to the Industrial Building Revenue Bond Act
by the municipality or county. The lease specified in a bid
shall be for a term of not less than the time needed to
retire any revenue bonds used to finance the project, but
not to exceed 40 years. The lease may grant to the State
the option to purchase the structure outright.
Upon receipt of the bids, the Department may certify
one or more of the bids and shall submit any such bids to

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the General Assembly for approval. Upon approval of a bid
by a constitutional majority of both houses of the General
Assembly, pursuant to joint resolution, the Department of
Central Management Services may enter into an agreement
with the county or municipality pursuant to such bid.
(c-5) To build and maintain regional juvenile
detention centers and to charge a per diem to the counties
as established by the Department to defray the costs of
housing each minor in a center. In this subsection (c-5),
"juvenile detention center" means a facility to house
minors during pendency of trial who have been transferred
from proceedings under the Juvenile Court Act of 1987 to
prosecutions under the criminal laws of this State in
accordance with Section 5-805 of the Juvenile Court Act of
1987, whether the transfer was by operation of law or
permissive under that Section. The Department shall
designate the counties to be served by each regional
juvenile detention center.
(d) To develop and maintain programs of control,
rehabilitation and employment of committed persons within
its institutions.
(d-5) To provide a pre-release job preparation program
for inmates at Illinois adult correctional centers.
(e) To establish a system of supervision and guidance
of committed persons in the community.
(f) To establish in cooperation with the Department of

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Transportation to supply a sufficient number of prisoners
for use by the Department of Transportation to clean up the
trash and garbage along State, county, township, or
municipal highways as designated by the Department of
Transportation. The Department of Corrections, at the
request of the Department of Transportation, shall furnish
such prisoners at least annually for a period to be agreed
upon between the Director of Corrections and the Director
of Transportation. The prisoners used on this program shall
be selected by the Director of Corrections on whatever
basis he deems proper in consideration of their term,
behavior and earned eligibility to participate in such
program - where they will be outside of the prison facility
but still in the custody of the Department of Corrections.
Prisoners convicted of first degree murder, or a Class X
felony, or armed violence, or aggravated kidnapping, or
criminal sexual assault, aggravated criminal sexual abuse
or a subsequent conviction for criminal sexual abuse, or
forcible detention, or arson, or a prisoner adjudged a
Habitual Criminal shall not be eligible for selection to
participate in such program. The prisoners shall remain as
prisoners in the custody of the Department of Corrections
and such Department shall furnish whatever security is
necessary. The Department of Transportation shall furnish
trucks and equipment for the highway cleanup program and
personnel to supervise and direct the program. Neither the

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Department of Corrections nor the Department of
Transportation shall replace any regular employee with a
prisoner.
(g) To maintain records of persons committed to it and
to establish programs of research, statistics and
planning.
(h) To investigate the grievances of any person
committed to the Department, to inquire into any alleged
misconduct by employees or committed persons, and to
investigate the assets of committed persons to implement
Section 3-7-6 of this Code; and for these purposes it may
issue subpoenas and compel the attendance of witnesses and
the production of writings and papers, and may examine
under oath any witnesses who may appear before it; to also
investigate alleged violations of a parolee's or
releasee's conditions of parole or release; and for this
purpose it may issue subpoenas and compel the attendance of
witnesses and the production of documents only if there is
reason to believe that such procedures would provide
evidence that such violations have occurred.
If any person fails to obey a subpoena issued under
this subsection, the Director may apply to any circuit
court to secure compliance with the subpoena. The failure
to comply with the order of the court issued in response
thereto shall be punishable as contempt of court.
(i) To appoint and remove the chief administrative

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officers, and administer programs of training and
development of personnel of the Department. Personnel
assigned by the Department to be responsible for the
custody and control of committed persons or to investigate
the alleged misconduct of committed persons or employees or
alleged violations of a parolee's or releasee's conditions
of parole shall be conservators of the peace for those
purposes, and shall have the full power of peace officers
outside of the facilities of the Department in the
protection, arrest, retaking and reconfining of committed
persons or where the exercise of such power is necessary to
the investigation of such misconduct or violations.
(j) To cooperate with other departments and agencies
and with local communities for the development of standards
and programs for better correctional services in this
State.
(k) To administer all moneys and properties of the
Department.
(l) To report annually to the Governor on the committed
persons, institutions and programs of the Department.
(l-5) In a confidential annual report to the Governor,
the Department shall identify all inmate gangs by
specifying each current gang's name, population and allied
gangs. The Department shall further specify the number of
top leaders identified by the Department for each gang
during the past year, and the measures taken by the

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Department to segregate each leader from his or her gang
and allied gangs. The Department shall further report the
current status of leaders identified and segregated in
previous years. All leaders described in the report shall
be identified by inmate number or other designation to
enable tracking, auditing, and verification without
revealing the names of the leaders. Because this report
contains law enforcement intelligence information
collected by the Department, the report is confidential and
not subject to public disclosure.
(m) To make all rules and regulations and exercise all
powers and duties vested by law in the Department.
(n) To establish rules and regulations for
administering a system of good conduct credits,
established in accordance with Section 3-6-3, subject to
review by the Prisoner Review Board.
(o) To administer the distribution of funds from the
State Treasury to reimburse counties where State penal
institutions are located for the payment of assistant
state's attorneys' salaries under Section 4-2001 of the
Counties Code.
(p) To exchange information with the Department of
Human Services and the Department of Healthcare and Family
Services for the purpose of verifying living arrangements
and for other purposes directly connected with the
administration of this Code and the Illinois Public Aid

09700SB1538ham001 - 87 - LRB097 07771 JDS 56478 a
Code.
(q) To establish a diversion program.
The program shall provide a structured environment for
selected technical parole or mandatory supervised release
violators and committed persons who have violated the rules
governing their conduct while in work release. This program
shall not apply to those persons who have committed a new
offense while serving on parole or mandatory supervised
release or while committed to work release.
Elements of the program shall include, but shall not be
limited to, the following:
(1) The staff of a diversion facility shall provide
supervision in accordance with required objectives set
by the facility.
(2) Participants shall be required to maintain
employment.
(3) Each participant shall pay for room and board
at the facility on a sliding-scale basis according to
the participant's income.
(4) Each participant shall:
(A) provide restitution to victims in
accordance with any court order;
(B) provide financial support to his
dependents; and
(C) make appropriate payments toward any other
court-ordered obligations.

09700SB1538ham001 - 88 - LRB097 07771 JDS 56478 a
(5) Each participant shall complete community
service in addition to employment.
(6) Participants shall take part in such
counseling, educational and other programs as the
Department may deem appropriate.
(7) Participants shall submit to drug and alcohol
screening.
(8) The Department shall promulgate rules
governing the administration of the program.
(r) To enter into intergovernmental cooperation
agreements under which persons in the custody of the
Department may participate in a county impact
incarceration program established under Section 3-6038 or
3-15003.5 of the Counties Code.
(r-5) (Blank).
(r-10) To systematically and routinely identify with
respect to each streetgang active within the correctional
system: (1) each active gang; (2) every existing inter-gang
affiliation or alliance; and (3) the current leaders in
each gang. The Department shall promptly segregate leaders
from inmates who belong to their gangs and allied gangs.
"Segregate" means no physical contact and, to the extent
possible under the conditions and space available at the
correctional facility, prohibition of visual and sound
communication. For the purposes of this paragraph (r-10),
"leaders" means persons who:

09700SB1538ham001 - 89 - LRB097 07771 JDS 56478 a
(i) are members of a criminal streetgang;
(ii) with respect to other individuals within the
streetgang, occupy a position of organizer,
supervisor, or other position of management or
leadership; and
(iii) are actively and personally engaged in
directing, ordering, authorizing, or requesting
commission of criminal acts by others, which are
punishable as a felony, in furtherance of streetgang
related activity both within and outside of the
Department of Corrections.
"Streetgang", "gang", and "streetgang related" have the
meanings ascribed to them in Section 10 of the Illinois
Streetgang Terrorism Omnibus Prevention Act.
(s) To operate a super-maximum security institution,
in order to manage and supervise inmates who are disruptive
or dangerous and provide for the safety and security of the
staff and the other inmates.
(t) To monitor any unprivileged conversation or any
unprivileged communication, whether in person or by mail,
telephone, or other means, between an inmate who, before
commitment to the Department, was a member of an organized
gang and any other person without the need to show cause or
satisfy any other requirement of law before beginning the
monitoring, except as constitutionally required. The
monitoring may be by video, voice, or other method of

09700SB1538ham001 - 90 - LRB097 07771 JDS 56478 a
recording or by any other means. As used in this
subdivision (1)(t), "organized gang" has the meaning
ascribed to it in Section 10 of the Illinois Streetgang
Terrorism Omnibus Prevention Act.
As used in this subdivision (1)(t), "unprivileged
conversation" or "unprivileged communication" means a
conversation or communication that is not protected by any
privilege recognized by law or by decision, rule, or order
of the Illinois Supreme Court.
(u) To establish a Women's and Children's Pre-release
Community Supervision Program for the purpose of providing
housing and services to eligible female inmates, as
determined by the Department, and their newborn and young
children.
(u-5) To issue an order, whenever a person committed to
the Department absconds or absents himself or herself,
without authority to do so, from any facility or program to
which he or she is assigned. The order shall be certified
by the Director, the Supervisor of the Apprehension Unit,
or any person duly designated by the Director, with the
seal of the Department affixed. The order shall be directed
to all sheriffs, coroners, and police officers, or to any
particular person named in the order. Any order issued
pursuant to this subdivision (1) (u-5) shall be sufficient
warrant for the officer or person named in the order to
arrest and deliver the committed person to the proper

09700SB1538ham001 - 91 - LRB097 07771 JDS 56478 a
correctional officials and shall be executed the same as
criminal process.
(v) To do all other acts necessary to carry out the
provisions of this Chapter.
(2) The Department of Corrections shall by January 1, 1998,
consider building and operating a correctional facility within
100 miles of a county of over 2,000,000 inhabitants, especially
a facility designed to house juvenile participants in the
impact incarceration program.
(3) When the Department lets bids for contracts for medical
services to be provided to persons committed to Department
facilities by a health maintenance organization, medical
service corporation, or other health care provider, the bid may
only be let to a health care provider that has obtained an
irrevocable letter of credit or performance bond issued by a
company whose bonds are rated AAA by a bond rating
organization.
(4) When the Department lets bids for contracts for food or
commissary services to be provided to Department facilities,
the bid may only be let to a food or commissary services
provider that has obtained an irrevocable letter of credit or
performance bond issued by a company whose bonds are rated AAA
by a bond rating organization.
(5) On and after January 1, 2012, as provided in the State
Healthcare Purchasing Reorganization Act, all of the powers,
duties, rights, and responsibilities related to State

09700SB1538ham001 - 92 - LRB097 07771 JDS 56478 a
healthcare purchasing under this Code that were transferred
from the Department of Corrections to the Department of
Healthcare and Family Services by Executive Order 3 (2005) are
transferred back to the Department of Corrections; however,
powers, duties, rights, and responsibilities related to State
healthcare purchasing under this Code that were exercised by
the Department of Corrections before Executive Order 3 (2005)
but that pertain to individuals resident in facilities operated
by Department of Juvenile Justice are transferred to the
Department of Juvenile Justice.
(Source: P.A. 96-1265, eff. 7-26-10.)
(730 ILCS 5/3-2.5-20)
Sec. 3-2.5-20. General powers and duties.
(a) In addition to the powers, duties, and responsibilities
which are otherwise provided by law or transferred to the
Department as a result of this Article, the Department, as
determined by the Director, shall have, but are not limited to,
the following rights, powers, functions and duties:
(1) To accept juveniles committed to it by the courts
of this State for care, custody, treatment, and
rehabilitation.
(2) To maintain and administer all State juvenile
correctional institutions previously under the control of
the Juvenile and Women's & Children Divisions of the
Department of Corrections, and to establish and maintain

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institutions as needed to meet the needs of the youth
committed to its care.
(3) To identify the need for and recommend the funding
and implementation of an appropriate mix of programs and
services within the juvenile justice continuum, including
but not limited to prevention, nonresidential and
residential commitment programs, day treatment, and
conditional release programs and services, with the
support of educational, vocational, alcohol, drug abuse,
and mental health services where appropriate.
(4) To establish and provide transitional and
post-release treatment programs for juveniles committed to
the Department. Services shall include but are not limited
to:
(i) family and individual counseling and treatment
placement;
(ii) referral services to any other State or local
agencies;
(iii) mental health services;
(iv) educational services;
(v) family counseling services; and
(vi) substance abuse services.
(5) To access vital records of juveniles for the
purposes of providing necessary documentation for
transitional services such as obtaining identification,
educational enrollment, employment, and housing.

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(6) To develop staffing and workload standards and
coordinate staff development and training appropriate for
juvenile populations.
(7) To develop, with the approval of the Office of the
Governor and the Governor's Office of Management and
Budget, annual budget requests.
(8) To administer the Interstate Compact for
Juveniles, with respect to all juveniles under its
jurisdiction, and to cooperate with the Department of Human
Services with regard to all non-offender juveniles subject
to the Interstate Compact for Juveniles.
(b) The Department may employ personnel in accordance with
the Personnel Code and Section 3-2.5-15 of this Code, provide
facilities, contract for goods and services, and adopt rules as
necessary to carry out its functions and purposes, all in
accordance with applicable State and federal law.
(c) On and after January 1, 2012, as provided in the State
Healthcare Purchasing Reorganization Act, all of the powers,
duties, rights, and responsibilities related to State
healthcare purchasing under this Code that were transferred
from the Department of Corrections to the Department of
Healthcare and Family Services by Executive Order 3 (2005) are
transferred back to the Department of Corrections; however,
powers, duties, rights, and responsibilities related to State
healthcare purchasing under this Code that were exercised by
the Department of Corrections before Executive Order 3 (2005)

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but that pertain to individuals resident in facilities operated
by Department of Juvenile Justice are transferred to the
Department of Juvenile Justice.
(Source: P.A. 94-696, eff. 6-1-06; 95-937, eff. 8-26-08.)
Section 997. Severability. The provisions of this Act are
severable under Section 1.31 of the Statute on Statutes.
Section 999. Effective date. This Act takes effect upon
becoming law.".