Public Act 098-0019
 
SB1515 EnrolledLRB098 07867 HEP 37951 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 State Employees Group Insurance Act of 1971
is amended by changing Sections 5 and 8 as follows:
 
    (5 ILCS 375/5)  (from Ch. 127, par. 525)
    Sec. 5. Employee benefits; declaration of State policy. The
General Assembly declares that it is the policy of the State
and in the best interest of the State to assure quality
benefits to members and their dependents under this Act. The
implementation of this policy depends upon, among other things,
stability and continuity of coverage, care, and services under
benefit programs for members and their dependents.
Specifically, but without limitation, members should have
continued access, on substantially similar terms and
conditions, to trusted family health care providers with whom
they have developed long-term relationships through a benefit
program under this Act. Therefore, the Director must administer
this Act consistent with that State policy, but may consider
affordability, cost of coverage and care, and competition among
health insurers and providers. All contracts for provision of
employee benefits, including those portions of any proposed
collective bargaining agreement that would require
implementation through contracts entered into under this Act,
are subject to the following requirements:
        (i) By April 1 of each year, the Director must report
    and provide information to the Commission concerning the
    status of the employee benefits program to be offered for
    the next fiscal year. Information 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 employee benefits program. By the first of each month
    thereafter, the Director must provide updated, and any new,
    information to the Commission until the employee benefits
    program for the next fiscal year is determined. In addition
    to these monthly reporting requirements, at any time the
    Commission makes a written request, the Director must
    promptly, but in no event later than 5 business days after
    receipt of the request, provide to the Commission any
    additional requested information in the possession of the
    Director concerning employee benefits programs. The
    Commission may waive any of the reporting requirements of
    this item (i) upon the written request by the Director. Any
    waiver granted under this item (i) must be in writing.
    Nothing in this item is intended to abrogate any
    attorney-client privilege.
        (ii) Within 30 days after notice of the awarding or
    letting of a contract has appeared in the Illinois
    Procurement Bulletin in accordance with subsection (b) of
    Section 15-25 of the Illinois Procurement Code, the
    Commission may request in writing from the Director and the
    Director shall promptly, but in no event later than 5
    business days after receipt of the request, provide to the
    Commission information in the possession of the Director
    concerning the proposed contract. Nothing in this item is
    intended to waive or abrogate any privilege or right of
    confidentiality authorized by law.
        (iii) Except as otherwise provided in this item (iii),
    no No contract subject to this Section may be entered into
    until the 30-day period described in item (ii) has expired,
    unless the Director requests in writing that the Commission
    waive the period and the Commission grants the waiver in
    writing. This item (iii) does not apply to any contract
    entered into after the effective date of this amendatory
    Act of the 98th General Assembly and through January 1,
    2014 to provide a program of group health benefits for
    Medicare-primary members and their Medicare-primary
    dependents that is comparable in stability and continuity
    of coverage, care, and services to the program of health
    benefits offered to other members and their dependents
    under this Act.
        (iv) If the Director seeks to make any substantive
    modification to any provision of a proposed contract after
    it is submitted to the Commission in accordance with item
    (ii), the modified contract shall be subject to the
    requirements of items (ii) and (iii) unless the Commission
    agrees, in writing, to a waiver of those requirements with
    respect to the modified contract.
        (v) By the date of the beginning of the annual benefit
    choice period, the Director must transmit to the Commission
    a copy of each final contract or agreement for the employee
    benefits program to be offered for the next fiscal year.
    The annual benefit choice period for an employee benefits
    program must begin on May 1 of the fiscal year preceding
    the year for which the program is to be offered. If,
    however, in any such preceding fiscal year collective
    bargaining over employee benefit programs for the next
    fiscal year remains pending on April 15, the beginning date
    of the annual benefit choice period shall be not later than
    15 days after ratification of the collective bargaining
    agreement.
        (vi) The Director must provide the reports,
    information, and contracts required under items (i), (ii),
    (iv), and (v) by electronic or other means satisfactory to
    the Commission. Reports, information, and contracts in the
    possession of the Commission pursuant to items (i), (ii),
    (iv), and (v) are exempt from disclosure by the Commission
    and its members and employees under the Freedom of
    Information Act. Reports, information, and contracts
    received by the Commission pursuant to items (i), (ii),
    (iv), and (v) must be kept confidential by and may not be
    disclosed or used by the Commission or its members or
    employees if such disclosure or use could compromise the
    fairness or integrity of the procurement, bidding, or
    contract process. Commission meetings, or portions of
    Commission meetings, in which reports, information, and
    contracts received by the Commission pursuant to items (i),
    (ii), (iv), and (v) are discussed must be closed if
    disclosure or use of the report or information could
    compromise the fairness or integrity of the procurement,
    bidding, or contract process.
    All contracts entered into under this Section are subject
to appropriation and shall comply with Section 20-60(b) of the
Illinois Procurement Code (30 ILCS 500/20-60(b)).
    The Director shall contract or otherwise make available
group life insurance, health benefits and other employee
benefits to eligible members and, where elected, their eligible
dependents. Any contract or, if applicable, contracts or other
arrangement for provision of benefits shall be on terms
consistent with State policy and based on, but not limited to,
such criteria as administrative cost, service capabilities of
the carrier or other contractor and premiums, fees or charges
as related to benefits.
    Notwithstanding any other provisions of this Act, by
January 1, 2014, the Department of Central Management Services,
in consultation with and subject to the approval of the Chief
Procurement Officer, shall contract or make otherwise
available a program of group health benefits for
Medicare-primary members and their Medicare-primary
dependents. The Director may procure a single contract or
multiple contracts that provide a program of group health
benefits that is comparable in stability and continuity of
coverage, care, and services to the program of health benefits
offered to other members and their dependents under this Act.
The initial procurement of a contract or contracts under this
paragraph is not subject to the provisions of the Illinois
Procurement Code, except for Sections 20-60, 20-65, 20-70, and
20-160 and Article 50 of that Code, provided that the Chief
Procurement Officer may, in writing with justification, waive
any certification required under Article 50.
    The Director may prepare and issue specifications for group
life insurance, health benefits, other employee benefits and
administrative services for the purpose of receiving proposals
from interested parties.
    The Director is authorized to execute a contract, or
contracts, for the programs of group life insurance, health
benefits, other employee benefits and administrative services
authorized by this Act (including, without limitation,
prescription drug benefits). All of the benefits provided under
this Act may be included in one or more contracts, or the
benefits may be classified into different types with each type
included under one or more similar contracts with the same or
different companies.
    The term of any contract may not extend beyond 5 fiscal
years. Upon recommendation of the Commission, the Director may
exercise renewal options of the same contract for up to a
period of 5 years. Any increases in premiums, fees or charges
requested by a contractor whose contract may be renewed
pursuant to a renewal option contained therein, must be
justified on the basis of (1) audited experience data, (2)
increases in the costs of health care services provided under
the contract, (3) contractor performance, (4) increases in
contractor responsibilities, or (5) any combination thereof.
    Any contractor shall agree to abide by all requirements of
this Act and Rules and Regulations promulgated and adopted
thereto; to submit such information and data as may from time
to time be deemed necessary by the Director for effective
administration of the provisions of this Act and the programs
established hereunder, and to fully cooperate in any audit.
(Source: P.A. 93-839, eff. 7-30-04.)
 
    (5 ILCS 375/8)  (from Ch. 127, par. 528)
    Sec. 8. Eligibility.
    (a) Each employee eligible under the provisions of this Act
and any rules and regulations promulgated and adopted hereunder
by the Director shall become immediately eligible and covered
for all benefits available under the programs. Employees
electing coverage for eligible dependents shall have the
coverage effective immediately, provided that the election is
properly filed in accordance with required filing dates and
procedures specified by the Director, including the completion
and submission of all documentation and forms required by the
Director.
        (1) Every member originally eligible to elect
    dependent coverage, but not electing it during the original
    eligibility period, may subsequently obtain dependent
    coverage only in the event of a qualifying change in
    status, special enrollment, special circumstance as
    defined by the Director, or during the annual Benefit
    Choice Period.
        (2) Members described above being transferred from
    previous coverage towards which the State has been
    contributing shall be transferred regardless of
    preexisting conditions, waiting periods, or other
    requirements that might jeopardize claim payments to which
    they would otherwise have been entitled.
        (3) Eligible and covered members that are eligible for
    coverage as dependents except for the fact of being members
    shall be transferred to, and covered under, dependent
    status regardless of preexisting conditions, waiting
    periods, or other requirements that might jeopardize claim
    payments to which they would otherwise have been entitled
    upon cessation of member status and the election of
    dependent coverage by a member eligible to elect that
    coverage.
    (b) New employees shall be immediately insured for the
basic group life insurance and covered by the program of health
benefits on the first day of active State service. Optional
life insurance coverage one to 4 times the basic amount, if
elected during the relevant eligibility period, will become
effective on the date of employment. Optional life insurance
coverage exceeding 4 times the basic amount and all life
insurance amounts applied for after the eligibility period will
be effective, subject to satisfactory evidence of insurability
when applicable, or other necessary qualifications, pursuant
to the requirements of the applicable benefit program, unless
there is a change in status that would confer new eligibility
for change of enrollment under rules established supplementing
this Act, in which event application must be made within the
new eligibility period.
    (c) As to the group health benefits program contracted to
begin or continue after June 30, 1973, each annuitant,
survivor, and retired employee shall become immediately
eligible for all benefits available under that program. Each
annuitant, survivor, and retired employee shall have coverage
effective immediately, provided that the election is properly
filed in accordance with the required filing dates and
procedures specified by the Director, including the completion
and submission of all documentation and forms required by the
Director. Annuitants, survivors, and retired employees may
elect coverage for eligible dependents and shall have the
coverage effective immediately, provided that the election is
properly filed in accordance with required filing dates and
procedures specified by the Director, except that, for a
survivor, the dependent sought to be added on or after the
effective date of this amendatory Act of the 97th General
Assembly must have been eligible for coverage as a dependent
under the deceased member upon whom the survivor's annuity is
based in order to be eligible for coverage under the survivor.
    Except as otherwise provided in this Act, where husband and
wife are both eligible members, each shall be enrolled as a
member and coverage on their eligible dependent children, if
any, may be under the enrollment and election of either.
    Regardless of other provisions herein regarding late
enrollment or other qualifications, as appropriate, the
Director may periodically authorize open enrollment periods
for each of the benefit programs at which time each member may
elect enrollment or change of enrollment without regard to age,
sex, health, or other qualification under the conditions as may
be prescribed in rules and regulations supplementing this Act.
Special open enrollment periods may be declared by the Director
for certain members only when special circumstances occur that
affect only those members.
    (d) Beginning with fiscal year 2003 and for all subsequent
years, eligible members may elect not to participate in the
program of health benefits as defined in this Act. The election
must be made during the annual benefit choice period, subject
to the conditions in this subsection.
        (1) Members must furnish proof of health benefit
    coverage, either comprehensive major medical coverage or
    comprehensive managed care plan, from a source other than
    the Department of Central Management Services in order to
    elect not to participate in the program.
        (2) Members may re-enroll in the Department of Central
    Management Services program of health benefits upon
    showing a qualifying change in status, as defined in the
    U.S. Internal Revenue Code, without evidence of
    insurability and with no limitations on coverage for
    pre-existing conditions, provided that there was not a
    break in coverage of more than 63 days.
        (3) Members may also re-enroll in the program of health
    benefits during any annual benefit choice period, without
    evidence of insurability.
        (4) Members who elect not to participate in the program
    of health benefits shall be furnished a written explanation
    of the requirements and limitations for the election not to
    participate in the program and for re-enrolling in the
    program. The explanation shall also be included in the
    annual benefit choice options booklets furnished to
    members.
    (d-5) Beginning July 1, 2005, the Director may establish a
program of financial incentives to encourage annuitants
receiving a retirement annuity from the State Employees
Retirement System, but who are not eligible for benefits under
the federal Medicare health insurance program (Title XVIII of
the Social Security Act, as added by Public Law 89-97) to elect
not to participate in the program of health benefits provided
under this Act. The election by an annuitant not to participate
under this program must be made in accordance with the
requirements set forth under subsection (d). The financial
incentives provided to these annuitants under the program may
not exceed $150 per month for each annuitant electing not to
participate in the program of health benefits provided under
this Act.
    (d-6) Beginning July 1, 2013, the Director may establish a
program of financial incentives to encourage annuitants with 20
or more years of creditable service but who are not eligible
for benefits under the federal Medicare health insurance
program (Title XVIII of the Social Security Act, as added by
Public Law 89-97) to elect not to participate in the program of
health benefits provided under this Act. The election by an
annuitant not to participate under this program must be made in
accordance with the requirements set forth under subsection
(d). The program established under this subsection (d-6) may
include a prorated incentive for annuitants with fewer than 20
years of creditable service, as determined by the Director. The
financial incentives provided to these annuitants under this
program may not exceed $500 per month for each annuitant
electing not to participate in the program of health benefits
provided under this Act.
    (e) Notwithstanding any other provision of this Act or the
rules adopted under this Act, if a person participating in the
program of health benefits as the dependent spouse of an
eligible member becomes an annuitant, the person may elect, at
the time of becoming an annuitant or during any subsequent
annual benefit choice period, to continue participation as a
dependent rather than as an eligible member for as long as the
person continues to be an eligible dependent. In order to be
eligible to make such an election, the person must have been
enrolled as a dependent under the program of health benefits
for no less than one year prior to becoming an annuitant.
    An eligible member who has elected to participate as a
dependent may re-enroll in the program of health benefits as an
eligible member (i) during any subsequent annual benefit choice
period or (ii) upon showing a qualifying change in status, as
defined in the U.S. Internal Revenue Code, without evidence of
insurability and with no limitations on coverage for
pre-existing conditions.
    A person who elects to participate in the program of health
benefits as a dependent rather than as an eligible member shall
be furnished a written explanation of the consequences of
electing to participate as a dependent and the conditions and
procedures for re-enrolling as an eligible member. The
explanation shall also be included in the annual benefit choice
options booklet furnished to members.
(Source: P.A. 97-668, eff. 1-13-12.)
 
    Section 10. The State Treasurer Act is amended by changing
Section 18 as follows:
 
    (15 ILCS 505/18)
    Sec. 18. Banking and automatic teller machine services.
    (a) The Treasurer may enter into written agreements with
financial institutions for the provision of banking services at
the State Capitol and for the provision of automatic teller
machine services at State office buildings, State parks, State
tourism centers, and State fairs at Springfield and DuQuoin.
The Treasurer shall establish competitive procedures for the
selection of financial institutions to provide the services
authorized under this Section. No State agency may procure
services authorized by this Section without the approval of the
Treasurer.
    (b) The Treasurer shall enter into written agreements with
the authorities having jurisdiction of the property where the
services are intended to be provided. These agreements shall
include, but need not be limited to, the quantity of machines
to be located at the property and the exact location of the
service or machine and shall establish responsibility for
payment of expenses incurred in locating the machine or
service.
    (c) The Treasurer's agreement with a financial institution
may authorize the financial institution to provide any or all
of the banking services that the financial institution is
otherwise authorized by law to provide to the public.
    The Treasurer's agreement with a financial institution
shall establish the amount of compensation to be paid by the
financial institution. The financial institution shall pay the
compensation to the Treasurer in accordance with the terms of
the agreement. The Treasurer shall deposit moneys received
under this Section into the Treasurer's Rental Fee Fund, a
special fund hereby created in the State treasury. The
Treasurer shall use the moneys in the Fund for the operation of
the program established under this Section. If the Treasurer
determines that any moneys in the Treasurer's Rental Fee Fund
are in excess of the amount necessary to sustain the operation
of the program established under this Section, the Treasurer
may transfer any unobligated and unexpended moneys from the
Treasurer's Rental Fee Fund into the State Pensions Fund.
    (d) This Section does not apply to a State office building
in which a currency exchange or a credit union providing
financial services located in the building on July 1, 1995 (the
effective date of Public Act 88-640) is operating.
(Source: P.A. 94-513, eff. 1-1-06.)
 
    Section 15. The Illinois Procurement Code is amended by
adding Section 25-205 as follows:
 
    (30 ILCS 500/25-205 new)
    Sec. 25-205. Procurement of health benefits for
Medicare-primary members and their dependents. The Department
of Central Management Services, in consultation with and
subject to the approval of the Chief Procurement Officer, shall
contract or make otherwise available a program of group health
benefits for Medicare-primary members and their
Medicare-primary dependents. The Director may procure a single
contract or multiple contracts that provide a program of group
health benefits that is comparable in stability and continuity
of coverage, care, and services to the program of health
benefits offered to other members and their dependents under
the State Employees Group Insurance Act of 1971. The Department
of Central Management Services shall provide administrative
support and provide consultation to assist with the
procurement. The initial procurement is not subject to the
provisions of this Code, except for Sections 20-60, 20-65,
20-70, and 20-160, and Article 50, provided that the Chief
Procurement Officer may, in writing with justification, waive
any certification required under Article 50.
 
    Section 20. The Uniform Disposition of Unclaimed Property
Act is amended by changing Section 18 as follows:
 
    (765 ILCS 1025/18)  (from Ch. 141, par. 118)
    Sec. 18. Deposit of funds received under the Act.
    (a) The State Treasurer shall retain all funds received
under this Act, including the proceeds from the sale of
abandoned property under Section 17, in a trust fund. The State
Treasurer may deposit any amount in the Trust Fund into the
State Pensions Fund during the fiscal year at his or her
discretion; however, he or she shall, on April 15 and October
15 of each year, deposit any amount in the trust fund exceeding
$2,500,000 into the State Pensions Fund. If on either April 15
or October 15, the State Treasurer determines that a balance of
$2,500,000 is insufficient for the prompt payment of unclaimed
property claims authorized under this Act, the Treasurer may
retain more than $2,500,000 in the Unclaimed Property Trust
Fund in order to ensure the prompt payment of claims. Beginning
in State fiscal year 2014, all amounts in excess of $2,500,000
that are deposited into the State Pensions Fund from the
unclaimed Property Trust Fund shall be apportioned to the
designated retirement systems as provided in subsection (c-6)
of Section 8.12 of the State Finance Act to reduce their
actuarial reserve deficiencies. He or she shall make prompt
payment of claims he or she duly allows as provided for in this
Act for the trust fund. Before making the deposit the State
Treasurer shall record the name and last known address of each
person appearing from the holders' reports to be entitled to
the abandoned property. The record shall be available for
public inspection during reasonable business hours.
    (b) Before making any deposit to the credit of the State
Pensions Fund, the State Treasurer may deduct: (1) any costs in
connection with sale of abandoned property, (2) any costs of
mailing and publication in connection with any abandoned
property, and (3) any costs in connection with the maintenance
of records or disposition of claims made pursuant to this Act.
The State Treasurer shall semiannually file an itemized report
of all such expenses with the Legislative Audit Commission.
(Source: P.A. 96-1000, eff. 7-2-10; 97-732, eff. 6-30-12.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.