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.