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| Public Act 097-1143
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| SB3430 Enrolled | LRB097 19176 HLH 64418 b |
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AN ACT concerning State government.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Department of Central Management Services |
Law of the
Civil Administrative Code of Illinois is amended by |
changing Section 405-105 as follows:
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(20 ILCS 405/405-105) (was 20 ILCS 405/64.1)
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Sec. 405-105. Fidelity, surety, property, and casualty |
insurance. The Department
shall establish and implement a |
program to coordinate
the handling of all fidelity, surety, |
property, and casualty insurance
exposures of the State and the |
departments, divisions, agencies,
branches,
and universities |
of the State. In performing this responsibility, the
Department |
shall have the power and duty to do the following:
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(1) Develop and maintain loss and exposure data on all |
State
property.
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(2) Study the feasibility of establishing a |
self-insurance plan
for
State property and prepare |
estimates of the costs of reinsurance for
risks beyond the |
realistic limits of the self-insurance.
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(3) Prepare a plan for centralizing the purchase of |
property and
casualty insurance on State property under a |
master policy or policies
and purchase the insurance |
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contracted for as provided in the
Illinois Purchasing Act.
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(4) Evaluate existing provisions for fidelity bonds |
required of
State employees and recommend changes that are |
appropriate
commensurate with risk experience and the |
determinations respecting
self-insurance or reinsurance so |
as to permit reduction of costs without
loss of coverage.
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(5) Investigate procedures for inclusion of school |
districts,
public community
college districts, and other |
units of local government in programs for
the centralized |
purchase of insurance.
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(6) Implement recommendations of the State Property
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Insurance
Study Commission that the Department finds |
necessary or desirable in
the
performance of its powers and |
duties under this Section to achieve
efficient and |
comprehensive risk management.
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(7) Prepare and, in the discretion of the Director, |
implement a plan providing for the purchase of public
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liability insurance or for self-insurance for public |
liability or for a
combination of purchased insurance and |
self-insurance for public
liability (i) covering the State |
and drivers of motor vehicles
owned,
leased, or controlled |
by the State of Illinois pursuant to the provisions
and |
limitations contained in the Illinois Vehicle Code, (ii)
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covering
other public liability exposures of the State and |
its employees within
the scope of their employment, and |
(iii) covering drivers of motor
vehicles not owned, leased, |
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or controlled by the State but used by a
State employee on |
State business, in excess of liability covered by an
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insurance policy obtained by the owner of the motor vehicle |
or in
excess of the dollar amounts that the Department |
shall
determine to be
reasonable. Any contract of insurance |
let under this Law shall be
by
bid in accordance with the |
procedure set forth in the Illinois
Purchasing Act. Any |
provisions for self-insurance shall conform to
subdivision |
(11).
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The term "employee" as used in this subdivision (7) and |
in subdivision
(11)
means a person while in the employ of |
the State who is a member of the
staff or personnel of a |
State agency, bureau, board, commission,
committee, |
department, university, or college or who is a State |
officer,
elected official, commissioner, member of or ex |
officio member of a
State agency, bureau, board, |
commission, committee, department,
university, or college, |
or a member of the National Guard while on active
duty |
pursuant to orders of the Governor of the State of |
Illinois, or any
other person while using a licensed motor |
vehicle owned, leased, or
controlled by the State of |
Illinois with the authorization of the State
of Illinois, |
provided the actual use of the motor vehicle is
within the |
scope of that
authorization and within the course of State |
service.
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Subsequent to payment of a claim on behalf of an |
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employee pursuant to this
Section and after reasonable |
advance written notice to the employee, the
Director may |
exclude the employee from future coverage or limit the
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coverage under the plan if (i) the Director determines that |
the
claim
resulted from an incident in which the employee |
was grossly negligent or
had engaged in willful and wanton |
misconduct or (ii) the
Director
determines that the |
employee is no longer an acceptable risk based on a
review |
of prior accidents in which the employee was at fault and |
for which
payments were made pursuant to this Section.
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The Director is authorized to
promulgate |
administrative rules that may be necessary to
establish and
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administer the plan.
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Appropriations from the Road Fund shall be used to pay |
auto liability claims
and related expenses involving |
employees of the Department of Transportation,
the |
Illinois State Police, and the Secretary of State.
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(8) Charge, collect, and receive from all other |
agencies of
the State
government fees or monies equivalent |
to the cost of purchasing the insurance.
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(9) Establish, through the Director, charges for risk
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management
services
rendered to State agencies by the |
Department.
The State agencies so charged shall reimburse |
the Department by vouchers drawn
against their respective
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appropriations. The reimbursement shall be determined by |
the Director as
amounts sufficient to reimburse the |
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Department
for expenditures incurred in rendering the |
service.
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The Department shall charge the
employing State agency |
or university for workers' compensation payments for
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temporary total disability paid to any employee after the |
employee has
received temporary total disability payments |
for 120 days if the employee's
treating physician has |
issued a release to return to work with restrictions
and |
the employee is able to perform modified duty work but the |
employing
State agency or
university does not return the |
employee to work at modified duty. Modified
duty shall be |
duties assigned that may or may not be delineated
as part |
of the duties regularly performed by the employee. Modified |
duties
shall be assigned within the prescribed |
restrictions established by the
treating physician and the |
physician who performed the independent medical
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examination. The amount of all reimbursements
shall be |
deposited into the Workers' Compensation Revolving Fund |
which is
hereby created as a revolving fund in the State |
treasury. In addition to any other purpose authorized by |
law, moneys in the Fund
shall be used, subject to |
appropriation, to pay these or other temporary
total |
disability claims of employees of State agencies and |
universities.
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Beginning with fiscal year 1996, all amounts recovered |
by the
Department through subrogation in workers' |
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compensation and workers'
occupational disease cases shall |
be
deposited into the Workers' Compensation Revolving Fund |
created under
this subdivision (9).
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(10) Establish Through December 31, 2012, establish |
rules, procedures, and forms to be used by
State agencies
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in the administration and payment of workers' compensation |
claims. For claims filed prior to July 1, 2013 Through |
December 31, 2012, the
Department shall initially evaluate |
and determine the compensability of
any injury that is
the |
subject of a workers' compensation claim and provide for |
the
administration and payment of such a claim for all |
State agencies. For claims filed on or after July 1, 2013, |
the Department shall retain responsibility for certain |
administrative payments including, but not limited to, |
payments to the private vendor contracted to perform |
services under subdivision (10b) of this Section, payments |
related to travel expenses for employees of the Office of |
the Attorney General, and payments to internal Department |
staff responsible for the oversight and management of any |
contract awarded pursuant to subdivision (10b) of this |
Section. Through December 31, 2012, the
Director may |
delegate to any agency with the agreement of the agency |
head
the responsibility for evaluation, administration, |
and payment of that
agency's claims. Neither the Department |
nor the private vendor contracted to perform services under |
subdivision (10b) of this Section shall be responsible for |
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providing workers' compensation services to the Illinois |
State Toll Highway Authority or to State universities that |
maintain self-funded workers' compensation liability |
programs.
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(10a) By April 1 of each year prior to calendar year |
2013, the Director must report and provide information to |
the State Workers' Compensation Program Advisory Board |
concerning the status of the State workers' compensation |
program for the next fiscal year. Information that the |
Director must provide to the State Workers' Compensation |
Program Advisory Board includes, but is not limited to, |
documents, reports of negotiations, bid invitations, |
requests for proposals, specifications, copies of proposed |
and final contracts or agreements, and any other materials |
concerning contracts or agreements for the program. By the |
first of each month prior to calendar year 2013, the |
Director must provide updated, and any new, information to |
the State Workers' Compensation Program Advisory Board |
until the State workers' compensation program for the next |
fiscal year is determined. |
(10b) No later than January 1, 2013, the chief |
procurement officer appointed under paragraph (4) of |
subsection (a) of Section 10-20 of the Illinois Procurement |
Code (hereinafter "chief procurement officer"), in |
consultation with the Department of Central Management |
Services, shall procure one or more private vendors to |
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administer, beginning January 1, 2013, the program |
providing payments for workers' compensation liability |
with respect to the employees of all State agencies. The |
chief procurement officer may procure a single contract |
applicable to all State agencies or multiple contracts |
applicable to one or more State agencies. If the chief |
procurement officer procures a single contract applicable |
to all State agencies, then the Department of Central |
Management Services shall be designated as the agency that |
enters into the contract and shall be responsible for the |
contract. If the chief procurement officer procures |
multiple contracts applicable to one or more State |
agencies, each agency to which the contract applies shall |
be designated as the agency that shall enter into the |
contract and shall be responsible for the contract. If the |
chief procurement officer procures contracts applicable to |
an individual State agency, the agency subject to the |
contract shall be designated as the agency responsible for |
the contract. |
(10c) The procurement of private vendors for the |
administration of the workers' compensation program for |
State employees is subject to the provisions of the |
Illinois Procurement Code and administration by the chief |
procurement officer. |
(10d) Contracts for the procurement of private vendors |
for the administration of the workers' compensation |
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program for State employees shall be based upon, but |
limited to, the following criteria: (i) administrative |
cost, (ii) service capabilities of the vendor, and (iii) |
the compensation (including premiums, fees, or other |
charges). A vendor for the administration of the workers' |
compensation program for State employees shall provide |
services, including, but not limited to: |
(A) providing a web-based case management system |
and provide access to the Office of the Attorney |
General; |
(B) ensuring claims adjusters are available to |
provide testimony or information as requested by the |
Office of the Attorney General; |
(C) establishing a preferred provider program for |
all State agencies and facilities; and |
(D) authorizing the payment of medical bills at the |
preferred provider discount rate. |
(10e) By September 15, 2012, the Department of Central |
Management Services shall prepare a plan to effectuate the |
transfer of responsibility and administration of the |
workers' compensation program for State employees to the |
selected private vendors. The Department shall submit a |
copy of the plan to the General Assembly. |
(11) Any plan for public liability self-insurance |
implemented
under this
Section shall provide that (i) the |
Department
shall attempt to settle and may settle any |
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public liability claim filed
against the State of Illinois |
or any public liability claim filed
against a State |
employee on the basis of an occurrence in the course of
the |
employee's State employment; (ii) any settlement of
such a |
claim is not subject to fiscal year limitations and must be
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approved by the Director and, in cases of
settlements |
exceeding $100,000, by the Governor; and (iii) a
settlement |
of
any public liability claim against the State or a State |
employee shall
require an unqualified release of any right |
of action against the State
and the employee for acts |
within the scope of the employee's employment
giving rise |
to the claim.
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Whenever and to the extent that a State
employee |
operates a motor vehicle or engages in other activity |
covered
by self-insurance under this Section, the State of |
Illinois shall
defend, indemnify, and hold harmless the |
employee against any claim in
tort filed against the |
employee for acts or omissions within the scope
of the |
employee's employment in any proper judicial forum and not
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settled pursuant
to this subdivision (11), provided that |
this obligation of
the State of
Illinois shall not exceed a |
maximum liability of $2,000,000 for any
single occurrence |
in connection with the operation of a motor vehicle or
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$100,000 per person per occurrence for any other single |
occurrence,
or $500,000 for any single occurrence in |
connection with the provision of
medical care by a licensed |
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physician employee.
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Any
claims against the State of Illinois under a |
self-insurance plan that
are not settled pursuant to this |
subdivision (11) shall be
heard and
determined by the Court |
of Claims and may not be filed or adjudicated
in any other |
forum. The Attorney General of the State of Illinois or
the |
Attorney General's designee shall be the attorney with |
respect
to all public liability
self-insurance claims that |
are not settled pursuant to this
subdivision (11)
and |
therefore result in litigation. The payment of any award of |
the
Court of Claims entered against the State relating to |
any public
liability self-insurance claim shall act as a |
release against any State
employee involved in the |
occurrence.
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(12) Administer a plan the purpose of which is to make |
payments
on final
settlements or final judgments in |
accordance with the State Employee
Indemnification Act. |
The plan shall be funded through appropriations from the
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General Revenue Fund specifically designated for that |
purpose, except that
indemnification expenses for |
employees of the Department of Transportation,
the |
Illinois State Police, and the Secretary of State
shall be |
paid
from the Road
Fund. The term "employee" as used in |
this subdivision (12) has the same
meaning as under |
subsection (b) of Section 1 of the State Employee
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Indemnification Act. Subject to sufficient appropriation, |
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the Director shall approve payment of any claim, without |
regard to fiscal year limitations, presented to
the |
Director
that is supported by a final settlement or final |
judgment when the Attorney
General and the chief officer of |
the public body against whose employee the
claim or cause |
of action is asserted certify to the Director that
the |
claim is in
accordance with the State Employee |
Indemnification Act and that they
approve
of the payment. |
In no event shall an amount in excess of $150,000 be paid |
from
this plan to or for the benefit of any claimant.
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(13) Administer a plan the purpose of which is to make |
payments
on final
settlements or final judgments for |
employee wage claims in situations where
there was an |
appropriation relevant to the wage claim, the fiscal year
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and lapse period have expired, and sufficient funds were |
available
to
pay the claim. The plan shall be funded |
through
appropriations from the General Revenue Fund |
specifically designated for
that purpose.
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Subject to sufficient appropriation, the Director is |
authorized to pay any wage claim presented to the
Director
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that is supported by a final settlement or final judgment |
when the chief
officer of the State agency employing the |
claimant certifies to the
Director that
the claim is a |
valid wage claim and that the fiscal year and lapse period
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have expired. Payment for claims that are properly |
submitted and certified
as valid by the Director
shall |
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include interest accrued at the rate of 7% per annum from |
the
forty-fifth day after the claims are received by the |
Department or 45 days from the date on which the amount of |
payment
is agreed upon, whichever is later, until the date |
the claims are submitted
to the Comptroller for payment. |
When the Attorney General has filed an
appearance in any |
proceeding concerning a wage claim settlement or
judgment, |
the Attorney General shall certify to the Director that the |
wage claim is valid before any payment is
made. In no event |
shall an amount in excess of $150,000 be paid from this
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plan to or for the benefit of any claimant.
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Nothing in Public Act 84-961 shall be construed to |
affect in any manner the jurisdiction of the
Court of |
Claims concerning wage claims made against the State of |
Illinois.
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(14) Prepare and, in the discretion of the Director, |
implement a program for
self-insurance for official
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fidelity and surety bonds for officers and employees as |
authorized by the
Official Bond Act.
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(Source: P.A. 96-928, eff. 6-15-10; 97-18, eff. 6-28-11; |
97-895, eff. 8-3-12.)
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Section 99. Effective date. This Act takes effect upon |
becoming law.
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