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| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 HB5534 Introduced 2/15/2012, by Rep. Dwight Kay SYNOPSIS AS INTRODUCED: |
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20 ILCS 405/405-105 | was 20 ILCS 405/64.1 |
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Amends the Department of Central Management Services Law of the Civil Administrative Code of Illinois. Provides that the appeal of a decision by the Workers' Compensation Commission on compensability of a State employee's claim for workers' compensation benefits may be made to the circuit court.
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| | A BILL FOR |
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1 | | AN ACT concerning State government.
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2 | | Be it enacted by the People of the State of Illinois,
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3 | | represented in the General Assembly:
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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:
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7 | | (20 ILCS 405/405-105) (was 20 ILCS 405/64.1)
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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:
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15 | | (1) Develop and maintain loss and exposure data on all |
16 | | State
property.
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17 | | (2) Study the feasibility of establishing a |
18 | | self-insurance plan
for
State property and prepare |
19 | | estimates of the costs of reinsurance for
risks beyond the |
20 | | realistic limits of the self-insurance.
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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 |
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1 | | contracted for as provided in the
Illinois Purchasing Act.
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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 |
6 | | as to permit reduction of costs without
loss of coverage.
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7 | | (5) Investigate procedures for inclusion of school |
8 | | districts,
public community
college districts, and other |
9 | | units of local government in programs for
the centralized |
10 | | purchase of insurance.
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11 | | (6) Implement recommendations of the State Property
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12 | | Insurance
Study Commission that the Department finds |
13 | | necessary or desirable in
the
performance of its powers and |
14 | | duties under this Section to achieve
efficient and |
15 | | comprehensive risk management.
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16 | | (7) Prepare and, in the discretion of the Director, |
17 | | implement a plan providing for the purchase of public
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18 | | liability insurance or for self-insurance for public |
19 | | liability or for a
combination of purchased insurance and |
20 | | self-insurance for public
liability (i) covering the State |
21 | | and drivers of motor vehicles
owned,
leased, or controlled |
22 | | by the State of Illinois pursuant to the provisions
and |
23 | | limitations contained in the Illinois Vehicle Code, (ii)
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24 | | covering
other public liability exposures of the State and |
25 | | its employees within
the scope of their employment, and |
26 | | (iii) covering drivers of motor
vehicles not owned, leased, |
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1 | | or controlled by the State but used by a
State employee on |
2 | | State business, in excess of liability covered by an
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3 | | insurance policy obtained by the owner of the motor vehicle |
4 | | or in
excess of the dollar amounts that the Department |
5 | | shall
determine to be
reasonable. Any contract of insurance |
6 | | let under this Law shall be
by
bid in accordance with the |
7 | | procedure set forth in the Illinois
Purchasing Act. Any |
8 | | provisions for self-insurance shall conform to
subdivision |
9 | | (11).
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10 | | The term "employee" as used in this subdivision (7) and |
11 | | in subdivision
(11)
means a person while in the employ of |
12 | | the State who is a member of the
staff or personnel of a |
13 | | State agency, bureau, board, commission,
committee, |
14 | | department, university, or college or who is a State |
15 | | officer,
elected official, commissioner, member of or ex |
16 | | officio member of a
State agency, bureau, board, |
17 | | commission, committee, department,
university, or college, |
18 | | or a member of the National Guard while on active
duty |
19 | | pursuant to orders of the Governor of the State of |
20 | | Illinois, or any
other person while using a licensed motor |
21 | | vehicle owned, leased, or
controlled by the State of |
22 | | Illinois with the authorization of the State
of Illinois, |
23 | | provided the actual use of the motor vehicle is
within the |
24 | | scope of that
authorization and within the course of State |
25 | | service.
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26 | | Subsequent to payment of a claim on behalf of an |
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1 | | employee pursuant to this
Section and after reasonable |
2 | | advance written notice to the employee, the
Director may |
3 | | exclude the employee from future coverage or limit the
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4 | | coverage under the plan if (i) the Director determines that |
5 | | the
claim
resulted from an incident in which the employee |
6 | | was grossly negligent or
had engaged in willful and wanton |
7 | | misconduct or (ii) the
Director
determines that the |
8 | | employee is no longer an acceptable risk based on a
review |
9 | | of prior accidents in which the employee was at fault and |
10 | | for which
payments were made pursuant to this Section.
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11 | | The Director is authorized to
promulgate |
12 | | administrative rules that may be necessary to
establish and
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13 | | administer the plan.
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14 | | Appropriations from the Road Fund shall be used to pay |
15 | | auto liability claims
and related expenses involving |
16 | | employees of the Department of Transportation,
the |
17 | | Illinois State Police, and the Secretary of State.
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18 | | (8) Charge, collect, and receive from all other |
19 | | agencies of
the State
government fees or monies equivalent |
20 | | to the cost of purchasing the insurance.
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21 | | (9) Establish, through the Director, charges for risk
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22 | | management
services
rendered to State agencies by the |
23 | | Department.
The State agencies so charged shall reimburse |
24 | | the Department by vouchers drawn
against their respective
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25 | | appropriations. The reimbursement shall be determined by |
26 | | the Director as
amounts sufficient to reimburse the |
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1 | | Department
for expenditures incurred in rendering the |
2 | | service.
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3 | | The Department shall charge the
employing State agency |
4 | | or university for workers' compensation payments for
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5 | | temporary total disability paid to any employee after the |
6 | | employee has
received temporary total disability payments |
7 | | for 120 days if the employee's
treating physician has |
8 | | issued a release to return to work with restrictions
and |
9 | | the employee is able to perform modified duty work but the |
10 | | employing
State agency or
university does not return the |
11 | | employee to work at modified duty. Modified
duty shall be |
12 | | duties assigned that may or may not be delineated
as part |
13 | | of the duties regularly performed by the employee. Modified |
14 | | duties
shall be assigned within the prescribed |
15 | | restrictions established by the
treating physician and the |
16 | | physician who performed the independent medical
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17 | | examination. The amount of all reimbursements
shall be |
18 | | deposited into the Workers' Compensation Revolving Fund |
19 | | which is
hereby created as a revolving fund in the State |
20 | | treasury. In addition to any other purpose authorized by |
21 | | law, moneys in the Fund
shall be used, subject to |
22 | | appropriation, to pay these or other temporary
total |
23 | | disability claims of employees of State agencies and |
24 | | universities.
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25 | | Beginning with fiscal year 1996, all amounts recovered |
26 | | by the
Department through subrogation in workers' |
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1 | | compensation and workers'
occupational disease cases shall |
2 | | be
deposited into the Workers' Compensation Revolving Fund |
3 | | created under
this subdivision (9).
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4 | | (10) Establish rules, procedures, and forms to be used |
5 | | by
State agencies
in the administration and payment of |
6 | | workers' compensation claims.
The Department shall |
7 | | initially evaluate and determine the compensability of
any |
8 | | injury that is
the subject of a workers' compensation claim |
9 | | and provide for the
administration and payment of such a |
10 | | claim for all State agencies. The appeal of a decision of |
11 | | the Workers' Compensation Commission on compensability of |
12 | | a State employee's claim for workers' compensation |
13 | | benefits may be made to the circuit court. The
Director may |
14 | | delegate to any agency with the agreement of the agency |
15 | | head
the responsibility for evaluation, administration, |
16 | | and payment of that
agency's claims.
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17 | | (10a) If the Director determines it would be in the |
18 | | best interests of the State and its employees, prepare and |
19 | | implement a plan providing for: (i) the purchase of |
20 | | workers' compensation insurance for workers' compensation |
21 | | liability; (ii) third-party administration of |
22 | | self-insurance, in whole or in part, for workers' |
23 | | compensation liability; or (iii) a combination of |
24 | | purchased insurance and self-insurance for workers' |
25 | | compensation liability, including reinsurance or stop-loss |
26 | | insurance. Any contract for insurance or third-party |
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1 | | administration shall be on terms consistent with State |
2 | | policy; awarded in compliance with the Illinois |
3 | | Procurement Code; and based on, but not limited to, the |
4 | | following criteria: administrative cost, service |
5 | | capabilities of the carrier or other contractor and |
6 | | premiums, fees, or charges. By April 1 of each year, the |
7 | | Director must report and provide information to the State |
8 | | Workers' Compensation Program Advisory Board concerning |
9 | | the status of the State workers' compensation program for |
10 | | the next fiscal year. Information includes, but is not |
11 | | limited to, documents, reports of negotiations, bid |
12 | | invitations, requests for proposals, specifications, |
13 | | copies of proposed and final contracts or agreements, and |
14 | | any other materials concerning contracts or agreements for |
15 | | the program. By the first of each month thereafter, the |
16 | | Director must provide updated, and any new, information to |
17 | | the State Workers' Compensation Program Advisory Board |
18 | | until the State workers' compensation program for the next |
19 | | fiscal year is determined. |
20 | | (11) Any plan for public liability self-insurance |
21 | | implemented
under this
Section shall provide that (i) the |
22 | | Department
shall attempt to settle and may settle any |
23 | | public liability claim filed
against the State of Illinois |
24 | | or any public liability claim filed
against a State |
25 | | employee on the basis of an occurrence in the course of
the |
26 | | employee's State employment; (ii) any settlement of
such a |
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1 | | claim is not subject to fiscal year limitations and must be
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2 | | approved by the Director and, in cases of
settlements |
3 | | exceeding $100,000, by the Governor; and (iii) a
settlement |
4 | | of
any public liability claim against the State or a State |
5 | | employee shall
require an unqualified release of any right |
6 | | of action against the State
and the employee for acts |
7 | | within the scope of the employee's employment
giving rise |
8 | | to the claim.
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9 | | Whenever and to the extent that a State
employee |
10 | | operates a motor vehicle or engages in other activity |
11 | | covered
by self-insurance under this Section, the State of |
12 | | Illinois shall
defend, indemnify, and hold harmless the |
13 | | employee against any claim in
tort filed against the |
14 | | employee for acts or omissions within the scope
of the |
15 | | employee's employment in any proper judicial forum and not
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16 | | settled pursuant
to this subdivision (11), provided that |
17 | | this obligation of
the State of
Illinois shall not exceed a |
18 | | maximum liability of $2,000,000 for any
single occurrence |
19 | | in connection with the operation of a motor vehicle or
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20 | | $100,000 per person per occurrence for any other single |
21 | | occurrence,
or $500,000 for any single occurrence in |
22 | | connection with the provision of
medical care by a licensed |
23 | | physician employee.
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24 | | Any
claims against the State of Illinois under a |
25 | | self-insurance plan that
are not settled pursuant to this |
26 | | subdivision (11) shall be
heard and
determined by the Court |
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1 | | of Claims and may not be filed or adjudicated
in any other |
2 | | forum. The Attorney General of the State of Illinois or
the |
3 | | Attorney General's designee shall be the attorney with |
4 | | respect
to all public liability
self-insurance claims that |
5 | | are not settled pursuant to this
subdivision (11)
and |
6 | | therefore result in litigation. The payment of any award of |
7 | | the
Court of Claims entered against the State relating to |
8 | | any public
liability self-insurance claim shall act as a |
9 | | release against any State
employee involved in the |
10 | | occurrence.
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11 | | (12) Administer a plan the purpose of which is to make |
12 | | payments
on final
settlements or final judgments in |
13 | | accordance with the State Employee
Indemnification Act. |
14 | | The plan shall be funded through appropriations from the
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15 | | General Revenue Fund specifically designated for that |
16 | | purpose, except that
indemnification expenses for |
17 | | employees of the Department of Transportation,
the |
18 | | Illinois State Police, and the Secretary of State
shall be |
19 | | paid
from the Road
Fund. The term "employee" as used in |
20 | | this subdivision (12) has the same
meaning as under |
21 | | subsection (b) of Section 1 of the State Employee
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22 | | Indemnification Act. Subject to sufficient appropriation, |
23 | | the Director shall approve payment of any claim, without |
24 | | regard to fiscal year limitations, presented to
the |
25 | | Director
that is supported by a final settlement or final |
26 | | judgment when the Attorney
General and the chief officer of |
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1 | | the public body against whose employee the
claim or cause |
2 | | of action is asserted certify to the Director that
the |
3 | | claim is in
accordance with the State Employee |
4 | | Indemnification Act and that they
approve
of the payment. |
5 | | In no event shall an amount in excess of $150,000 be paid |
6 | | from
this plan to or for the benefit of any claimant.
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7 | | (13) Administer a plan the purpose of which is to make |
8 | | payments
on final
settlements or final judgments for |
9 | | employee wage claims in situations where
there was an |
10 | | appropriation relevant to the wage claim, the fiscal year
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11 | | and lapse period have expired, and sufficient funds were |
12 | | available
to
pay the claim. The plan shall be funded |
13 | | through
appropriations from the General Revenue Fund |
14 | | specifically designated for
that purpose.
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15 | | Subject to sufficient appropriation, the Director is |
16 | | authorized to pay any wage claim presented to the
Director
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17 | | that is supported by a final settlement or final judgment |
18 | | when the chief
officer of the State agency employing the |
19 | | claimant certifies to the
Director that
the claim is a |
20 | | valid wage claim and that the fiscal year and lapse period
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21 | | have expired. Payment for claims that are properly |
22 | | submitted and certified
as valid by the Director
shall |
23 | | include interest accrued at the rate of 7% per annum from |
24 | | the
forty-fifth day after the claims are received by the |
25 | | Department or 45 days from the date on which the amount of |
26 | | payment
is agreed upon, whichever is later, until the date |
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1 | | the claims are submitted
to the Comptroller for payment. |
2 | | When the Attorney General has filed an
appearance in any |
3 | | proceeding concerning a wage claim settlement or
judgment, |
4 | | the Attorney General shall certify to the Director that the |
5 | | wage claim is valid before any payment is
made. In no event |
6 | | shall an amount in excess of $150,000 be paid from this
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7 | | plan to or for the benefit of any claimant.
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8 | | Nothing in Public Act 84-961 shall be construed to |
9 | | affect in any manner the jurisdiction of the
Court of |
10 | | Claims concerning wage claims made against the State of |
11 | | Illinois.
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12 | | (14) Prepare and, in the discretion of the Director, |
13 | | implement a program for
self-insurance for official
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14 | | fidelity and surety bonds for officers and employees as |
15 | | authorized by the
Official Bond Act.
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16 | | (Source: P.A. 96-928, eff. 6-15-10; 97-18, eff. 6-28-11.)
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