Public Act 097-1143
 
SB3430 EnrolledLRB097 19176 HLH 64418 b


  
    AN ACT concerning State government.
  
 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:
  

  
 
    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:
 



    (20 ILCS 405/405-105)  (was 20 ILCS 405/64.1)



    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:

        (1) Develop and maintain loss and exposure data on all 
    State
property.

        (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.

        (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 
    contracted for as provided in the
Illinois Purchasing Act.

        (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.

        (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.

        (6) Implement recommendations of the State Property

    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.

        (7) Prepare and, in the discretion of the Director, 
    implement a  plan providing for the purchase of public

    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)

    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, 
    or controlled by the State but used by a
State employee on 
    State business, in excess of liability covered by an

    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).

        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.

        Subsequent to payment of a claim on behalf of an 
    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

    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.

        The Director is authorized to
promulgate 
    administrative rules that may be necessary to
establish and

    administer the plan.

        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.

        (8) Charge, collect, and receive from all other 
    agencies of
the State
government fees or monies equivalent 
    to the cost of purchasing the insurance.

        (9) Establish, through the Director, charges for risk

    management
services
rendered to State agencies by the 
    Department.
The State agencies so charged shall reimburse 
    the Department by vouchers drawn
against their respective

    appropriations.  The reimbursement shall be determined by 
    the Director as
amounts sufficient to reimburse the 
    Department
for expenditures incurred in rendering the 
    service.

        The Department shall charge the
employing State agency 
    or university for workers' compensation payments for

    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

    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.

        Beginning with fiscal year 1996, all amounts recovered 
    by the
Department through subrogation in workers' 
    compensation and workers'
occupational disease cases shall 
    be
deposited into the Workers' Compensation Revolving Fund 
    created under
this subdivision (9).

        (10) Establish Through December 31, 2012, establish 
    rules, procedures, and forms to be used by
State agencies

    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 
    providing workers' compensation services to the Illinois 
    State Toll Highway Authority or to State universities that 
    maintain self-funded workers' compensation liability 
    programs. 

        (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 
    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 
    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 
    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

    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.

        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

    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

    $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 
    physician employee.

        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.

        (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

    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

    Indemnification Act.  Subject to sufficient appropriation, 
    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.

        (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

    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.

        Subject to sufficient appropriation, the Director is 
    authorized to pay any wage claim presented to the
Director

    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

    have expired.  Payment for claims that are properly 
    submitted and certified
as valid by the Director
shall 
    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

    plan to or for the benefit of any claimant.

        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.

        (14) Prepare and, in the discretion of the Director, 
    implement a program for
self-insurance for official

    fidelity and surety bonds for officers and employees as 
    authorized by the
Official Bond Act.

(Source: P.A. 96-928, eff. 6-15-10; 97-18, eff. 6-28-11; 
97-895, eff. 8-3-12.)


 
    Section 99. Effective date. This Act takes effect upon 
becoming law.