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1		AN ACT concerning State government.
2		Be it enacted by the People of the State of Illinois,
3		represented in the General Assembly:
4		Section 5. The Department of Central Management Services
5		Law of the Civil Administrative Code of Illinois is amended by
6		changing Section 405-105 as follows:
7		(20 ILCS 405/405-105) (was 20 ILCS 405/64.1)
8		Sec. 405-105. Fidelity, surety, property, and casualty
9		insurance. The Department shall establish and implement a
10		program to coordinate the handling of all fidelity, surety,
11		property, and casualty insurance exposures of the State and the
12		departments, divisions, agencies, branches, and universities
13		of the State. In performing this responsibility, the Department
14		shall have the power and duty to do the following:
15		(1) Develop and maintain loss and exposure data on all
16		State property.
17		(2) Study the feasibility of establishing a self-insurance
18		plan for State property and prepare estimates of the costs of
19		reinsurance for risks beyond the realistic limits of the
20		self-insurance.
21		(3) Prepare a plan for centralizing the purchase of
22		property and casualty insurance on State property under a
23		master policy or policies and purchase the insurance contracted

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

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1		State employee on State business, in excess of liability
2		covered by an insurance policy obtained by the owner of the
3		motor vehicle or in excess of the dollar amounts that the
4		Department shall determine to be reasonable. Any contract of
5		insurance let under this Law shall be by bid in accordance with
6		the procedure set forth in the Illinois Purchasing Act. Any
7		provisions for self-insurance shall conform to subdivision
8		(11).
9		The term "employee" as used in this subdivision (7) and in
10		subdivision (11) means a person while in the employ of the
11		State who is a member of the staff or personnel of a State
12		agency, bureau, board, commission, committee, department,
13		university, or college or who is a State officer, elected
14		official, commissioner, member of or ex officio member of a
15		State agency, bureau, board, commission, committee,
16		department, university, or college, or a member of the National
17		Guard while on active duty pursuant to orders of the Governor
18		of the State of Illinois, or any other person while using a
19		licensed motor vehicle owned, leased, or controlled by the
20		State of Illinois with the authorization of the State of
21		Illinois, provided the actual use of the motor vehicle is
22		within the scope of that authorization and within the course of
23		State service.
24		Subsequent to payment of a claim on behalf of an employee
25		pursuant to this Section and after reasonable advance written
26		notice to the employee, the Director may exclude the employee

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1		from future coverage or limit the coverage under the plan if
2		(i) the Director determines that the claim resulted from an
3		incident in which the employee was grossly negligent or had
4		engaged in willful and wanton misconduct or (ii) the Director
5		determines that the employee is no longer an acceptable risk
6		based on a review of prior accidents in which the employee was
7		at fault and for which payments were made pursuant to this
8		Section.
9		The Director is authorized to promulgate administrative
10		rules that may be necessary to establish and administer the
11		plan.
12		Appropriations from the Road Fund shall be used to pay auto
13		liability claims and related expenses involving employees of
14		the Department of Transportation, the Illinois State Police,
15		and the Secretary of State.
16		(8) Charge, collect, and receive from all other agencies of
17		the State government fees or monies equivalent to the cost of
18		purchasing the insurance.
19		(9) Establish, through the Director, charges for risk
20		management services rendered to State agencies by the
21		Department. The State agencies so charged shall reimburse the
22		Department by vouchers drawn against their respective
23		appropriations. The reimbursement shall be determined by the
24		Director as amounts sufficient to reimburse the Department for
25		expenditures incurred in rendering the service.
26		The Department shall charge the employing State agency or

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1		university for workers' compensation payments for temporary
2		total disability paid to any employee after the employee has
3		received temporary total disability payments for 120 days if
4		the employee's treating physician has issued a release to
5		return to work with restrictions and the employee is able to
6		perform modified duty work but the employing State agency or
7		university does not return the employee to work at modified
8		duty. Modified duty shall be duties assigned that may or may
9		not be delineated as part of the duties regularly performed by
10		the employee. Modified duties shall be assigned within the
11		prescribed restrictions established by the treating physician
12		and the physician who performed the independent medical
13		examination. The amount of all reimbursements shall be
14		deposited into the Workers' Compensation Revolving Fund which
15		is hereby created as a revolving fund in the State treasury. In
16		addition to any other purpose authorized by law, moneys in the
17		Fund shall be used, subject to appropriation, to pay these or
18		other temporary total disability claims of employees of State
19		agencies and universities.
20		Beginning with fiscal year 1996, all amounts recovered by
21		the Department through subrogation in workers' compensation
22		and workers' occupational disease cases shall be deposited into
23		the Workers' Compensation Revolving Fund created under this
24		subdivision (9).
25		(10) Establish rules, procedures, and forms to be used by
26		State agencies in the administration and payment of workers'

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1		compensation claims. The Department shall initially evaluate
2		and determine the compensability of any injury that is the
3		subject of a workers' compensation claim and provide for the
4		administration and payment of such a claim for all State
5		agencies. The Director may delegate to any agency with the
6		agreement of the agency head the responsibility for evaluation,
7		administration, and payment of that agency's claims.
8		(11) Any plan for public liability self-insurance
9		implemented under this Section shall provide that (i) the
10		Department shall attempt to settle and may settle any public
11		liability claim filed against the State of Illinois or any
12		public liability claim filed against a State employee on the
13		basis of an occurrence in the course of the employee's State
14		employment; (ii) any settlement of such a claim is not subject
15		to fiscal year limitations and must be approved by the Director
16		and, in cases of settlements exceeding $100,000, by the
17		Governor; and (iii) a settlement of any public liability claim
18		against the State or a State employee shall require an
19		unqualified release of any right of action against the State
20		and the employee for acts within the scope of the employee's
21		employment giving rise to the claim.
22		Whenever and to the extent that a State employee operates a
23		motor vehicle or engages in other activity covered by
24		self-insurance under this Section, the State of Illinois shall
25		defend, indemnify, and hold harmless the employee against any
26		claim in tort filed against the employee for acts or omissions

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1		within the scope of the employee's employment in any proper
2		judicial forum and not settled pursuant to this subdivision
3		(11), provided that this obligation of the State of Illinois
4		shall not exceed a maximum liability of $2,000,000 for any
5		single occurrence in connection with the operation of a motor
6		vehicle or $100,000 per person per occurrence for any other
7		single occurrence, or $500,000 for any single occurrence in
8		connection with the provision of medical care by a licensed
9		physician employee.
10		Any claims against the State of Illinois under a
11		self-insurance plan that are not settled pursuant to this
12		subdivision (11) shall be heard and determined by the Court of
13		Claims and may not be filed or adjudicated in any other forum.
14		The Attorney General of the State of Illinois or the Attorney
15		General's designee shall be the attorney with respect to all
16		public liability self-insurance claims that are not settled
17		pursuant to this subdivision (11) and therefore result in
18		litigation. The payment of any award of the Court of Claims
19		entered against the State relating to any public liability
20		self-insurance claim shall act as a release against any State
21		employee involved in the occurrence.
22		(12) Administer a plan the purpose of which is to make
23		payments on final settlements or final judgments in accordance
24		with the State Employee Indemnification Act. The plan shall be
25		funded through appropriations from the General Revenue Fund
26		specifically designated for that purpose, except that

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

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1		certifies to the Director that the claim is a valid wage claim
2		and that the fiscal year and lapse period have expired. Payment
3		for claims that are properly submitted and certified as valid
4		by the Director shall include interest accrued at the rate of
5		7% per annum from the forty-fifth day after the claims are
6		received by the Department or 45 days from the date on which
7		the amount of payment is agreed upon, whichever is later, until
8		the date the claims are submitted to the Comptroller for
9		payment. When the Attorney General has filed an appearance in
10		any proceeding concerning a wage claim settlement or judgment,
11		the Attorney General shall certify to the Director that the
12		wage claim is valid before any payment is made. In no event
13		shall an amount in excess of $150,000 be paid from this plan to
14		or for the benefit of any claimant.
15		Nothing in Public Act 84-961 shall be construed to affect
16		in any manner the jurisdiction of the Court of Claims
17		concerning wage claims made against the State of Illinois.
18		(14) Prepare and, in the discretion of the Director,
19		implement a program for self-insurance for official fidelity
20		and surety bonds for officers and employees as authorized by
21		the Official Bond Act.
22		(Source: P.A. 93-839, eff. 7-30-04.)
23		Section 10. The State Finance Act is amended by changing
24		Section 25 as follows:

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1		(30 ILCS 105/25) (from Ch. 127, par. 161)
2		Sec. 25. Fiscal year limitations.
3		(a) All appropriations shall be available for expenditure
4		for the fiscal year or for a lesser period if the Act making
5		that appropriation so specifies. A deficiency or emergency
6		appropriation shall be available for expenditure only through
7		June 30 of the year when the Act making that appropriation is
8		enacted unless that Act otherwise provides.
9		(b) Outstanding liabilities as of June 30, payable from
10		appropriations which have otherwise expired, may be paid out of
11		the expiring appropriations during the 2-month period ending at
12		the close of business on August 31. Any service involving
13		professional or artistic skills or any personal services by an
14		employee whose compensation is subject to income tax
15		withholding must be performed as of June 30 of the fiscal year
16		in order to be considered an "outstanding liability as of June
17		30" that is thereby eligible for payment out of the expiring
18		appropriation.
19		However, payment of tuition reimbursement claims under
20		Section 14-7.03 or 18-3 of the School Code may be made by the
21		State Board of Education from its appropriations for those
22		respective purposes for any fiscal year, even though the claims
23		reimbursed by the payment may be claims attributable to a prior
24		fiscal year, and payments may be made at the direction of the
25		State Superintendent of Education from the fund from which the
26		appropriation is made without regard to any fiscal year

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1		limitations.
2		Medical payments may be made by the Department of Veterans'
3		Affairs from its appropriations for those purposes for any
4		fiscal year, without regard to the fact that the medical
5		services being compensated for by such payment may have been
6		rendered in a prior fiscal year.
7		Medical payments may be made by the Department of
8		Healthcare and Family Services and medical payments and child
9		care payments may be made by the Department of Human Services
10		(as successor to the Department of Public Aid) from
11		appropriations for those purposes for any fiscal year, without
12		regard to the fact that the medical or child care services
13		being compensated for by such payment may have been rendered in
14		a prior fiscal year; and payments may be made at the direction
15		of the Department of Central Management Services from the
16		Health Insurance Reserve Fund and the Local Government Health
17		Insurance Reserve Fund without regard to any fiscal year
18		limitations.
19		Medical payments may be made by the Department of Human
20		Services from its appropriations relating to substance abuse
21		treatment services for any fiscal year, without regard to the
22		fact that the medical services being compensated for by such
23		payment may have been rendered in a prior fiscal year, provided
24		the payments are made on a fee-for-service basis consistent
25		with requirements established for Medicaid reimbursement by
26		the Department of Healthcare and Family Services.

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1		Additionally, payments may be made by the Department of
2		Human Services from its appropriations, or any other State
3		agency from its appropriations with the approval of the
4		Department of Human Services, from the Immigration Reform and
5		Control Fund for purposes authorized pursuant to the
6		Immigration Reform and Control Act of 1986, without regard to
7		any fiscal year limitations.
8		Further, with respect to costs incurred in fiscal years
9		2002 and 2003 only, payments may be made by the State Treasurer
10		from its appropriations from the Capital Litigation Trust Fund
11		without regard to any fiscal year limitations.
12		Lease payments may be made by the Department of Central
13		Management Services under the sale and leaseback provisions of
14		Section 7.4 of the State Property Control Act with respect to
15		the James R. Thompson Center and the Elgin Mental Health Center
16		and surrounding land from appropriations for that purpose
17		without regard to any fiscal year limitations.
18		Lease payments may be made under the sale and leaseback
19		provisions of Section 7.5 of the State Property Control Act
20		with respect to the Illinois State Toll Highway Authority
21		headquarters building and surrounding land without regard to
22		any fiscal year limitations.
23		Payments may be made in accordance with a plan authorized
24		by paragraph (11) or (12) of Section 405-105 of the Department
25		of Central Management Services Law from appropriations for
26		those payments without regard to fiscal year limitations.

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1		(c) Further, payments may be made by the Department of
2		Public Health and the Department of Human Services (acting as
3		successor to the Department of Public Health under the
4		Department of Human Services Act) from their respective
5		appropriations for grants for medical care to or on behalf of
6		persons suffering from chronic renal disease, persons
7		suffering from hemophilia, rape victims, and premature and
8		high-mortality risk infants and their mothers and for grants
9		for supplemental food supplies provided under the United States
10		Department of Agriculture Women, Infants and Children
11		Nutrition Program, for any fiscal year without regard to the
12		fact that the services being compensated for by such payment
13		may have been rendered in a prior fiscal year.
14		(d) The Department of Public Health and the Department of
15		Human Services (acting as successor to the Department of Public
16		Health under the Department of Human Services Act) shall each
17		annually submit to the State Comptroller, Senate President,
18		Senate Minority Leader, Speaker of the House, House Minority
19		Leader, and the respective Chairmen and Minority Spokesmen of
20		the Appropriations Committees of the Senate and the House, on
21		or before December 31, a report of fiscal year funds used to
22		pay for services provided in any prior fiscal year. This report
23		shall document by program or service category those
24		expenditures from the most recently completed fiscal year used
25		to pay for services provided in prior fiscal years.
26		(e) The Department of Healthcare and Family Services, the

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1		Department of Human Services (acting as successor to the
2		Department of Public Aid), and the Department of Human Services
3		making fee-for-service payments relating to substance abuse
4		treatment services provided during a previous fiscal year shall
5		each annually submit to the State Comptroller, Senate
6		President, Senate Minority Leader, Speaker of the House, House
7		Minority Leader, the respective Chairmen and Minority
8		Spokesmen of the Appropriations Committees of the Senate and
9		the House, on or before November 30, a report that shall
10		document by program or service category those expenditures from
11		the most recently completed fiscal year used to pay for (i)
12		services provided in prior fiscal years and (ii) services for
13		which claims were received in prior fiscal years.
14		(f) The Department of Human Services (as successor to the
15		Department of Public Aid) shall annually submit to the State
16		Comptroller, Senate President, Senate Minority Leader, Speaker
17		of the House, House Minority Leader, and the respective
18		Chairmen and Minority Spokesmen of the Appropriations
19		Committees of the Senate and the House, on or before December
20		31, a report of fiscal year funds used to pay for services
21		(other than medical care) provided in any prior fiscal year.
22		This report shall document by program or service category those
23		expenditures from the most recently completed fiscal year used
24		to pay for services provided in prior fiscal years.
25		(g) In addition, each annual report required to be
26		submitted by the Department of Healthcare and Family Services

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1		under subsection (e) shall include the following information
2		with respect to the State's Medicaid program:
3		(1) Explanations of the exact causes of the variance
4		between the previous year's estimated and actual
5		liabilities.
6		(2) Factors affecting the Department of Healthcare and
7		Family Services' liabilities, including but not limited to
8		numbers of aid recipients, levels of medical service
9		utilization by aid recipients, and inflation in the cost of
10		medical services.
11		(3) The results of the Department's efforts to combat
12		fraud and abuse.
13		(h) As provided in Section 4 of the General Assembly
14		Compensation Act, any utility bill for service provided to a
15		General Assembly member's district office for a period
16		including portions of 2 consecutive fiscal years may be paid
17		from funds appropriated for such expenditure in either fiscal
18		year.
19		(i) An agency which administers a fund classified by the
20		Comptroller as an internal service fund may issue rules for:
21		(1) billing user agencies in advance for payments or
22		authorized inter-fund transfers based on estimated charges
23		for goods or services;
24		(2) issuing credits, refunding through inter-fund
25		transfers, or reducing future inter-fund transfers during
26		the subsequent fiscal year for all user agency payments or

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1		authorized inter-fund transfers received during the prior
2		fiscal year which were in excess of the final amounts owed
3		by the user agency for that period; and
4		(3) issuing catch-up billings to user agencies during
5		the subsequent fiscal year for amounts remaining due when
6		payments or authorized inter-fund transfers received from
7		the user agency during the prior fiscal year were less than
8		the total amount owed for that period.
9		User agencies are authorized to reimburse internal service
10		funds for catch-up billings by vouchers drawn against their
11		respective appropriations for the fiscal year in which the
12		catch-up billing was issued or by increasing an authorized
13		inter-fund transfer during the current fiscal year. For the
14		purposes of this Act, "inter-fund transfers" means transfers
15		without the use of the voucher-warrant process, as authorized
16		by Section 9.01 of the State Comptroller Act.
17		(Source: P.A. 95-331, eff. 8-21-07.)
18		Section 99. Effective date. This Act takes effect upon
19		becoming law.