Bill Text: IL SB1967 | 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 Public Community College Act. Provides that the provisions of a Section requiring the award of a contract to the lowest responsible bidder do not prevent a community college from complying with the terms and conditions of a grant, gift, or bequest that calls for the procurement of a particular good or service or the use of a particular contractor, provided that the grant, gift, or bequest provides the majority funding for the contract. Effective immediately.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Failed) 2013-01-08 - Session Sine Die [SB1967 Detail]

Download: Illinois-2011-SB1967-Amended.html

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Rep. Barbara Flynn Currie

Filed: 5/31/2011

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AMENDMENT TO SENATE BILL 1967
AMENDMENT NO. ______. Amend Senate Bill 1967 by replacing
everything after the enacting clause with the following:
"Section 5. The State Employees Group Insurance Act of 1971
is amended by changing Sections 3, 6.9, and 6.10 and adding
Section 6.10A as follows:
(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

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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
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

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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)
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

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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.
(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

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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
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

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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.
(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

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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
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

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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
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

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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
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

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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
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

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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
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

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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
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

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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
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

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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
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

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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
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, until July 1, 2012, 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, until July 1, 2012, 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).
"Community college benefit recipient" does not include:
(1) an individual who was a full-time employee of a
community college district subject to Article VII of the

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Public Community College Act and who, prior to the
effective date of this amendatory Act of the 97th General
Assembly, (i) opted not to participate in the health
benefits program provided by the community college
district subject to Article VII of the Public Community
College Act and (ii) is ineligible for benefits under the
federal Medicare health insurance program (Title XVIII of
the Social Security Act as added by P.L. 89-97, 89th
Congress); or
(2) an individual receiving a monthly survivor's
annuity under Article 15 of the Illinois Pension Code if
the individual upon whom the annuity is based was (i) last
employed by a community college subject to Article VII of
the Public Community College Act and (ii) was not enrolled
in the program established under Section 6.9 of this Act.
(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

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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.
(cc) "Community College Fiscal Board" means the board of
trustees created under Section 6.10A of this Act.
(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 375/6.9)
Sec. 6.9. Health benefits for community college benefit
recipients and community college dependent beneficiaries.
(a) Purpose. It is the purpose of this amendatory Act of
1997 and this amendatory Act of the 97th General Assembly to
establish a uniform program of health benefits for community
college benefit recipients and their dependent beneficiaries
under the administration of the Department of Central
Management Services.
(b) Creation of program. Beginning July 1, 1999, the
Department of Central Management Services shall be responsible
for administering a program of health benefits for community
college benefit recipients and community college dependent
beneficiaries under this Section. The State Universities

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Retirement System and the boards of trustees of the various
community college districts shall cooperate with the
Department in this endeavor. Beginning July 1, 2012, this
program shall include health benefits for community college
benefit recipients and community college dependent
beneficiaries subject to Article VII of the Public Community
College Act.
(c) Eligibility. All community college benefit recipients
and community college dependent beneficiaries 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 State Universities
Retirement System. Eligibility information shall be
communicated to the Department of Central Management Services
in a format acceptable to the Department.
(d) Coverage. The health benefit coverage provided under
this Section shall be a program of health, dental, and vision
benefits.
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 at the

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direction of the Community College Fiscal Board shall determine
the insurance rates and premiums for community college benefit
recipients and community college dependent beneficiaries.
Rates and premiums may be based in part on age and eligibility
for federal Medicare coverage. These The Director shall also
determine premiums shall that will allow for the establishment
of an actuarially sound reserve for this program.
Subject to the provisions of Section 6.10A, the The cost of
health benefits under the program shall be paid as follows:
(1) For a community college benefit recipient, up to
75% of the total insurance rate shall be paid from the
Community College Health Insurance Security Fund.
(2) The balance of the rate of insurance, including the
entire premium for any coverage for community college
dependent beneficiaries that has been elected, shall be
paid by deductions authorized by the community college
benefit recipient to be withheld from his or her monthly
annuity or benefit payment from the State Universities
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 State Universities Retirement System by the
community college benefit recipient, and (ii) all or part
of the balance of the cost of coverage may, at the option
of the board of trustees of the community college district,
be paid to the State Universities Retirement System by the

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board of the community college district from which the
community college benefit recipient retired. The State
Universities Retirement System shall promptly deposit all
moneys withheld by or paid to it under this subdivision
(e)(2) into the Community College Health Insurance
Security Fund. These moneys shall not be considered assets
of the State Universities Retirement System.
(f) Financing. All revenues arising from the
administration of the health benefit program established under
this Section shall be deposited into the Community College
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. The Community
College Health Insurance Security 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. Any interest earned on moneys in the Community
College Health Insurance Security Fund shall be deposited into
the Fund.
Moneys in the Community College 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 establishment of a program
reserve. Beginning January 1, 1999, the Department of Central
Management Services may make expenditures from the Community
College Health Insurance Security Fund for those costs.

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(g) Contract for benefits. The Director shall by contract,
self-insurance, or otherwise make available the program of
health benefits for community college benefit recipients and
their community college 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 community college 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. If made after the effective of this
amendatory Act of the 97th General Assembly, these contracts or
other arrangements for the provision of health benefits shall
also provide that health benefits are not to be paid from
moneys in the Fund if the Commission on Government Forecasting
and Accountability determines that plan changes that it has
approved under Section 6.10A have not been implemented.
(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) Other health benefit plans. A health benefit plan
provided by a community college district (other than, until

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July 1, 2012, a community college district subject to Article
VII of the Public Community College Act) under the terms of a
collective bargaining agreement in effect on or prior to the
effective date of this amendatory Act of 1997 shall continue in
force according to the terms of that agreement, unless
otherwise mutually agreed by the parties to that agreement and
the affected retiree. A community college benefit recipient or
community college dependent beneficiary whose coverage under
such a plan expires shall be eligible to begin participating in
the program established under this Section without any
interruption or delay in coverage or limitation as to
pre-existing medical conditions.
(j) This Act does not prohibit any community college
district from offering additional health benefits for its
retirees or their dependents or survivors.
(Source: P.A. 90-497, eff. 8-18-97; 90-655, eff. 7-30-98.)
(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
employee of a community college district (other than, until
January 1, 2012, a community college district subject to
Article VII of the Public Community College Act) or an

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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.
Beginning on the effective date of this amendatory Act of the
97th General Assembly and until revised under Section 6.10A of
this Act, these contributions shall be at the rate of 0.97% of
salary. If revised under Section 6.10A, these contributions
shall be at the rate set by the Community College Fiscal Board
and approved by the Commission on Government Forecasting and
Accountability as specified in Section 6.10A of this Act.
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

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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
refundable upon termination of service.
(b) Beginning January 1, 1999, every community college
district (other than, until January 1, 2012, 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.
Beginning on the effective date of this amendatory Act of the
97th General Assembly and until revised under Section 6.10A of
this Act, these contributions shall be at the rate of 0.97% of
salary. If revised under Section 6.10A, these contributions
shall be at the rate set by the Community College Fiscal Board
and approved by the Commission on Government Forecasting and
Accountability as specified in Section 6.10A 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

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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
other pension funds or retirement systems and are not
refundable upon termination of service.
The Department of 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

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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.
(b-5) On or before March 30, 2012, a community college
district subject to Article VII of the Public Community College
Act shall contribute an amount equal to $7,800,000 toward the
cost of the community college health benefits provided under
Section 6.9 of this Act. The contribution shall be in addition
to any percentage of salary contribution paid pursuant to
subsection (b) of Section 6.10 of this Act.
(b-10) On or before September 1, 2012, a community college
district subject to Article VII of the Public Community College
Act shall contribute an amount equal to 3 times the product
resulting from multiplying (i) the difference between the
fiscal year 2013 per annuitant cost of the community college
health benefits provided under Section 6.9 of this Act and the
fiscal year 2013 per annuitant premium paid by the annuitant by
(ii) the number of annuitants enrolled in the community college
health benefits program under Section 6.9 of this Act who
became annuitants on or before the effective date of this

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amendatory date of the 97th General Assembly and who, prior to
that date, opted not to participate in the health benefits
program provided by the community college district subject to
Article VII of the Public Community College Act. The
calculation of the contribution created under this subsection
(b-10) shall be subject to review and approval by the
Commission on Governmental Forecasting and Accountability.
(c) On or before November 15 of each year, the Board of
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

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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 and through June 30,
2011, 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 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.
(d-1) In fiscal year 2012, the State Treasurer and the
State Comptroller shall transfer from the General Revenue Fund
to the Community College Health Insurance Security Fund an
amount equal to the annual amount that was transferred from the
General Revenue Fund to the Community College Health Insurance
Security Fund under subsection (d) of this Section in fiscal
year 2011.
(d-2) In fiscal year 2013, the State Treasurer and the
State Comptroller shall transfer from the General Revenue Fund
to the Community College Health Insurance Security Fund: (i)
$600,000 and (ii) an amount equal to two-thirds of the annual
amount transferred from the General Revenue Fund to the
Community College Health Insurance Security Fund under
subsection (d-1) of this Section.

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(d-3) In fiscal year 2014, the State Treasurer and the
State Comptroller shall transfer from the General Revenue Fund
to the Community College Health Insurance Security Fund: (i)
$600,000 and (ii) an amount equal to one-third of the annual
amount transferred from the General Revenue Fund to the
Community College Health Insurance Security Fund under
subsection (d-1) of this Section.
(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 375/6.10A new)
Sec. 6.10A. Community College Fiscal Board.
(a) The Community College Fiscal Board is hereby created
and shall consist of the following 8 members appointed as
follows:
(1) 3 trustees shall be appointed by the organization
that represents the largest number of community college
trustees;
(2) one trustee shall be appointed by the organization
that represents the largest number of community college
employees;
(3) one trustee shall be appointed by the organization
that represents the second largest number of community
college employees;

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(4) one trustee shall be appointed by an organization
that represents community college benefit recipients;
(5) one trustee who is a professional fiduciary with
experience in the area of collectively bargained retiree
health plans shall be appointed by the Illinois Community
College Board; and
(6) one trustee shall be appointed by a community
college district subject to Article VII of the Public
Community College Act.
Trustees shall serve until a successor has been appointed
and qualified or until resignation, death, incapacity, or
disqualification.
Any person appointed as a trustee of the Community College
Fiscal Board shall qualify by taking an oath of office that he
or she will diligently and honestly administer the affairs of
the Community College Health Insurance Security Fund and will
not knowingly violate or willfully permit the violation of any
of the provisions of law applicable to the Fund. Each trustee
shall cast individual votes, and a majority vote shall be final
and binding upon all interested parties.
(b) The Community College Fiscal Board shall make an annual
assessment of the funding levels of the Community College
Health Insurance Security Fund and shall submit a report to the
Commission on Government Forecasting and Accountability at
least 90 days before the end of fiscal year 2011, or as soon
thereafter as is possible, and, again, at least 90 days before

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the end of each fiscal year thereafter. The report shall
provide the following:
(1) the actuarial present value of projected benefits
expected to be paid to current and future community college
benefit recipients and community college dependent
beneficiaries;
(2) the actuarial present value of projected
contributions and other income; and
(3) an assessment of whether the actuarial present
value of projected benefits expected to be paid to those
benefit recipients and their dependents exceeds or is less
than the actuarial present value of projected
contributions and other income.
If the actuarial present value of projected benefits
expected to be paid to these current and future community
college benefit recipients and community college dependent
beneficiaries exceeds the actuarial present value of projected
contributions and other income, then the report shall provide a
plan that will (i) be implemented over a period of not more
than 5 years from each valuation date and (ii) make the
actuarial present value of projected contributions and other
income equal to or exceed the actuarial present value of
projected benefits expected to be paid to current and future
community college benefit recipients and community college
dependent beneficiaries. The plan may consist of increases in
contribution levels, decreases in benefit levels, or other plan

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changes or any combination thereof. If the actuarial present
value of projected benefits expected to be paid to current and
future community college benefit recipients and community
college dependent beneficiaries is less than the actuarial
present value of projected contributions and other income, then
the report may provide a plan of decreases, to the extent of
the surplus, in contribution levels, increases in benefit
levels, other plan changes, or any combination thereof.
(c) The Commission on Government Forecasting and
Accountability shall review the report and plan provided in
subsection (b) and issue a determination within 90 days after
receiving the report and plan, with a copy of the determination
provided to the General Assembly and to the Community College
Fiscal Board, as follows:
(1) In the event of a projected shortfall, if the
Commission on Government Forecasting and Accountability
determines that the assumptions stated in the report are
not unreasonable in the aggregate and that the plan of
increases in contribution levels, decreases in benefit
levels, other plan changes, or any combination thereof to
be implemented over a period of not more than 5 years from
each valuation date is reasonably projected to make the
actuarial present value of projected contributions and
other income plus assets equal to or in excess of the
actuarial present value of projected benefits expected to
be paid to current and future community college benefit

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recipients and community college dependent beneficiaries,
then the Community College Fiscal Board shall implement the
plan. If the Commission on Government Forecasting and
Accountability determines that the assumptions stated in
the report are unreasonable in the aggregate, or that the
plan of increases in contribution levels, decreases in
benefit levels, or other plan changes to be implemented
over a period of not more than 5 years from each valuation
date are not reasonably projected to make the actuarial
present value of projected contributions and other income
plus assets equal to or in excess of the actuarial present
value of projected benefits expected to be paid to current
and future community college benefit recipients and
community college dependent beneficiaries, then the
Community College Fiscal Board shall not implement the
plan, the Commission on Government Forecasting and
Accountability shall explain the basis for that
determination to the Community College Fiscal Board, and
the Commission on Government Forecasting and
Accountability may make recommendations as to an
alternative report and plan.
(2) In the event of a projected surplus, if the
Commission on Government Forecasting and Accountability
determines that the assumptions stated in the report are
not unreasonable in the aggregate and that the plan of
decreases in contribution levels, increases in benefit

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levels, or both are not unreasonable in the aggregate, then
the Community College Fiscal Board shall implement the
plan. If the Commission on Government Forecasting and
Accountability determines that the assumptions stated in
the report are unreasonable in the aggregate, or that the
plan of decreases in contribution levels, increases in
benefit levels, or both are unreasonable in the aggregate,
then the Community College Fiscal Board shall not implement
the plan, the Commission on Government Forecasting and
Accountability shall explain the basis for such
determination to the Community College Fiscal Board, and
the Commission on Government Forecasting and
Accountability may make recommendations as to an
alternative report and plan.
(3) The Community College Fiscal Board shall submit an
alternative report and plan within 45 days after receiving
a rejection determination by the Commission on Government
Forecasting and Accountability. A determination by the
Commission on Government Forecasting and Accountability on
any alternative report and plan submitted by the Community
College Fiscal Board shall be made within 90 days after
receiving the alternative report and plan and shall be
accepted or rejected according to the requirements of this
subsection. The Community College Fiscal Board shall
continue to submit alternative reports and plans to the
Commission on Government Forecasting and Accountability,

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as necessary, until a favorable determination is made by
the Commission on Government Forecasting and
Accountability.
Section 90. The State Mandates Act is amended by adding
Section 8.35 as follows:
(30 ILCS 805/8.35 new)
Sec. 8.35. Exempt mandate. Notwithstanding Sections 6 and 8
of this Act, no reimbursement by the State is required for the
implementation of any mandate created by this amendatory Act of
the 97th General Assembly.
Section 93. The Public Community College Act is amended by
changing Sections 2-16.02, 3-27.1, and 6-4 as follows:
(110 ILCS 805/2-16.02) (from Ch. 122, par. 102-16.02)
Sec. 2-16.02. Grants. Any community college district that
maintains a community college recognized by the State Board
shall receive, when eligible, grants enumerated in this
Section. Funded semester credit hours or other measures or both
as specified by the State Board shall be used to distribute
grants to community colleges. Funded semester credit hours
shall be defined, for purposes of this Section, as the greater
of (1) the number of semester credit hours, or equivalent, in
all funded instructional categories of students who have been

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certified as being in attendance at midterm during the
respective terms of the base fiscal year or (2) the average of
semester credit hours, or equivalent, in all funded
instructional categories of students who have been certified as
being in attendance at midterm during the respective terms of
the base fiscal year and the 2 prior fiscal years. For purposes
of this Section, "base fiscal year" means the fiscal year 2
years prior to the fiscal year for which the grants are
appropriated. Such students shall have been residents of
Illinois and shall have been enrolled in courses that are part
of instructional program categories approved by the State Board
and that are applicable toward an associate degree or
certificate. Courses that are eligible for reimbursement are
those courses for which the district pays 50% or more of the
program costs from unrestricted revenue sources, with the
exception of courses offered by contract with the Department of
Corrections in correctional institutions. For the purposes of
this Section, "unrestricted revenue sources" means those
revenues in which the provider of the revenue imposes no
financial limitations upon the district as it relates to the
expenditure of the funds. Base operating grants shall be paid
based on rates per funded semester credit hour or equivalent
calculated by the State Board for funded instructional
categories using cost of instruction, enrollment, inflation,
and other relevant factors. A portion of the base operating
grant shall be allocated on the basis of non-residential gross

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square footage of space maintained by the district.
Equalization grants shall be calculated by the State Board
by determining a local revenue factor for each district by: (A)
adding (1) each district's Corporate Personal Property
Replacement Fund allocations from the base fiscal year or the
average of the base fiscal year and prior year, whichever is
less, divided by the applicable statewide average tax rate to
(2) the district's most recently audited year's equalized
assessed valuation or the average of the most recently audited
year and prior year, whichever is less, (B) then dividing by
the district's audited full-time equivalent resident students
for the base fiscal year or the average for the base fiscal
year and the 2 prior fiscal years, whichever is greater, and
(C) then multiplying by the applicable statewide average tax
rate. The State Board shall calculate a statewide weighted
average threshold by applying the same methodology to the
totals of all districts' Corporate Personal Property Tax
Replacement Fund allocations, equalized assessed valuations,
and audited full-time equivalent district resident students
and multiplying by the applicable statewide average tax rate.
The difference between the statewide weighted average
threshold and the local revenue factor, multiplied by the
number of full-time equivalent resident students, shall
determine the amount of equalization funding that each district
is eligible to receive. A percentage factor, as determined by
the State Board, may be applied to the statewide threshold as a

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method for allocating equalization funding. A minimum
equalization grant of an amount per district as determined by
the State Board shall be established for any community college
district which qualifies for an equalization grant based upon
the preceding criteria, but becomes ineligible for
equalization funding, or would have received a grant of less
than the minimum equalization grant, due to threshold
prorations applied to reduce equalization funding. As of July
1, 2012 2004, a community college district must maintain a
minimum required combined in-district tuition and universal
fee rate per semester credit hour equal to 70% 85% of the
State-average combined rate, as determined by the State Board,
or the total revenue received by the community college district
from combined in-district tuition and universal fees must be at
least 30% of the total revenue received by the community
college district, as determined by the State Board, for
equalization funding. As of July 1, 2004, a community college
district must maintain a minimum required operating tax rate
equal to at least 95% of its maximum authorized tax rate to
qualify for equalization funding. This 95% minimum tax rate
requirement shall be based upon the maximum operating tax rate
as limited by the Property Tax Extension Limitation Law.
The State Board shall distribute such other grants as may
be authorized or appropriated by the General Assembly.
Each community college district entitled to State grants
under this Section must submit a report of its enrollment to

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the State Board not later than 30 days following the end of
each semester, quarter, or term in a format prescribed by the
State Board. These semester credit hours, or equivalent, shall
be certified by each district on forms provided by the State
Board. Each district's certified semester credit hours, or
equivalent, are subject to audit pursuant to Section 3-22.1.
The State Board shall certify, prepare, and submit monthly
vouchers to the State Comptroller setting forth an amount equal
to one-twelfth of the grants approved by the State Board for
base operating grants and equalization grants. The State Board
shall prepare and submit to the State Comptroller vouchers for
payments of other grants as appropriated by the General
Assembly. If the amount appropriated for grants is different
from the amount provided for such grants under this Act, the
grants shall be proportionately reduced or increased
accordingly.
For the purposes of this Section, "resident student" means
a student in a community college district who maintains
residency in that district or meets other residency definitions
established by the State Board, and who was enrolled either in
one of the approved instructional program categories in that
district, or in another community college district to which the
resident's district is paying tuition under Section 6-2 or with
which the resident's district has entered into a cooperative
agreement in lieu of such tuition.
For the purposes of this Section, a "full-time equivalent"

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student is equal to 30 semester credit hours.
The Illinois Community College Board Contracts and Grants
Fund is hereby created in the State Treasury. Items of income
to this fund shall include any grants, awards, endowments, or
like proceeds, and where appropriate, other funds made
available through contracts with governmental, public, and
private agencies or persons. The General Assembly shall from
time to time make appropriations payable from such fund for the
support, improvement, and expenses of the State Board and
Illinois community college districts.
(Source: P.A. 96-911, eff. 7-1-10.)
(110 ILCS 805/3-27.1) (from Ch. 122, par. 103-27.1)
Sec. 3-27.1. Contracts. To award all contracts for purchase
of supplies, materials or work involving an expenditure in
excess of $25,000 or a lower amount as required by board policy
to the lowest responsible bidder considering conformity with
specifications, terms of delivery, quality, and
serviceability; after due advertisement, except the following:
(a) contracts for the services of individuals possessing a high
degree of professional skill where the ability or fitness of
the individual plays an important part; (b) contracts for the
printing of finance committee reports and departmental
reports; (c) contracts for the printing or engraving of bonds,
tax warrants and other evidences of indebtedness; (d) contracts
for materials and work which have been awarded to the lowest

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responsible bidder after due advertisement, but due to
unforeseen revisions, not the fault of the contractor for
materials and work, must be revised causing expenditures not in
excess of 10% of the contract price; (e) contracts for the
maintenance or servicing of, or provision of repair parts for,
equipment which are made with the manufacturer or authorized
service agent of that equipment where the provision of parts,
maintenance, or servicing can best be performed by the
manufacturer or authorized service agent; (f) purchases and
contracts for the use, purchase, delivery, movement, or
installation of data processing equipment, software, or
services and telecommunications and inter-connect equipment,
software, and services; (g) contracts for duplicating machines
and supplies; (h) contracts for the purchase of natural gas
when the cost is less than that offered by a public utility;
(i) purchases of equipment previously owned by some entity
other than the district itself; (j) contracts for repair,
maintenance, remodeling, renovation, or construction, or a
single project involving an expenditure not to exceed $50,000
and not involving a change or increase in the size, type, or
extent of an existing facility; (k) contracts for goods or
services procured from another governmental agency; (l)
contracts for goods or services which are economically
procurable from only one source, such as for the purchase of
magazines, books, periodicals, pamphlets and reports, and for
utility services such as water, light, heat, telephone or

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telegraph; and (m) where funds are expended in an emergency and
such emergency expenditure is approved by 3/4 of the members of
the board.
All competitive bids for contracts involving an
expenditure in excess of $25,000 or a lower amount as required
by board policy must be sealed by the bidder and must be opened
by a member or employee of the board at a public bid opening at
which the contents of the bids must be announced. Each bidder
must receive at least 3 days' notice of the time and place of
such bid opening. For purposes of this Section due
advertisement includes, but is not limited to, at least one
public notice at least 10 days before the bid date in a
newspaper published in the district, or if no newspaper is
published in the district, in a newspaper of general
circulation in the area of the district. Electronic bid
submissions shall be considered a sealed document for
competitive bid requests if they are received at the designated
office by the time and date set for receipt for bids. However,
bids for construction purposes are prohibited from being
submitted electronically. Electronic bid submissions must be
authorized by specific language in the bid documents in order
to be considered and must be opened in accordance with
electronic security measures in effect at the community college
at the time of opening. Unless the electronic submission
procedures provide for a secure receipt, the vendor assumes the
risk of premature disclosure due to submission in an unsealed

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form.
The provisions of this Section do not apply to guaranteed
energy savings contracts entered into under Article V-A. The
provisions of this Section do not prevent a community college
from complying with the terms and conditions of a grant, gift,
or bequest that calls for the procurement of a particular good
or service or the use of a particular contractor, provided that
the grant, gift, or bequest provides the majority funding for
the contract.
(Source: P.A. 95-990, eff. 10-3-08; 96-380, eff. 8-13-09.)
(110 ILCS 805/6-4) (from Ch. 122, par. 106-4)
Sec. 6-4. Variable rates and fees. Any community college
district, by resolution of the board, may establish variable
tuition rates and fees for students attending its college in an
amount not to exceed, until the effective date of this
amendatory Act of the 97th General Assembly and beginning again
3 years after the effective date of this amendatory Act of the
97th General Assembly, 1/3 of the per capita cost as defined in
Section 6-2, provided that voluntary contributions, as defined
in Section 65 of the Higher Education Student Assistance Act,
shall not be included in any calculation of community college
tuition and fee rates for the purpose of this Section.
(Source: P.A. 90-14, eff. 7-1-97.)
Section 99. Effective date. This Act takes effect upon

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becoming law.".