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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 | ||||||
5 | medical expenses and
temporary total disability benefits | ||||||
6 | paid to any employee after the employee has
received | ||||||
7 | temporary total disability payments for 120 days if the | ||||||
8 | employee's
treating physician has issued a release to | ||||||
9 | return to work with restrictions
and the employee is able | ||||||
10 | to perform modified duty work but the employing
State | ||||||
11 | agency or
university does not return the employee to work | ||||||
12 | at modified duty. Modified
duty shall be duties assigned | ||||||
13 | that may or may not be delineated
as part of the duties | ||||||
14 | regularly performed by the employee. Modified duties
shall | ||||||
15 | be assigned within the prescribed restrictions established | ||||||
16 | by the
treating physician and the physician who performed | ||||||
17 | the independent medical
examination . The amount of all | ||||||
18 | reimbursements
shall be deposited into the Workers' | ||||||
19 | Compensation Revolving Fund which is
hereby created as a | ||||||
20 | revolving fund in the State treasury. In addition to any | ||||||
21 | other purpose authorized by law, moneys in the Fund
shall | ||||||
22 | be used, subject to appropriation, to pay medical these or | ||||||
23 | other temporary
total disability claims of employees of | ||||||
24 | State agencies and 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. For claims filed prior to | ||||||
7 | July 1, 2013, the
Department shall initially evaluate and | ||||||
8 | determine the compensability of
any injury that is
the | ||||||
9 | subject of a workers' compensation claim and provide for | ||||||
10 | the
administration and payment of such a claim for all | ||||||
11 | State agencies. For claims filed on or after July 1, 2013, | ||||||
12 | the Department shall retain responsibility for certain | ||||||
13 | administrative payments including, but not limited to, | ||||||
14 | payments to the private vendor contracted to perform | ||||||
15 | services under subdivision (10b) of this Section, payments | ||||||
16 | related to travel expenses for employees of the Office of | ||||||
17 | the Attorney General, and payments to internal Department | ||||||
18 | staff responsible for the oversight and management of any | ||||||
19 | contract awarded pursuant to subdivision (10b) of this | ||||||
20 | Section. Through December 31, 2012, the
Director may | ||||||
21 | delegate to any agency with the agreement of the agency | ||||||
22 | head
the responsibility for evaluation, administration, | ||||||
23 | and payment of that
agency's claims. Neither the Department | ||||||
24 | nor the private vendor contracted to perform services under | ||||||
25 | subdivision (10b) of this Section shall be responsible for | ||||||
26 | providing workers' compensation services to the Illinois |
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1 | State Toll Highway Authority or to State universities that | ||||||
2 | maintain self-funded workers' compensation liability | ||||||
3 | programs.
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4 | (10a) By April 1 of each year prior to calendar year | ||||||
5 | 2013, the Director must report and provide information to | ||||||
6 | the State Workers' Compensation Program Advisory Board | ||||||
7 | concerning the status of the State workers' compensation | ||||||
8 | program for the next fiscal year. Information that the | ||||||
9 | Director must provide to the State Workers' Compensation | ||||||
10 | Program Advisory Board includes, but is not limited to, | ||||||
11 | documents, reports of negotiations, bid invitations, | ||||||
12 | requests for proposals, specifications, copies of proposed | ||||||
13 | and final contracts or agreements, and any other materials | ||||||
14 | concerning contracts or agreements for the program. By the | ||||||
15 | first of each month prior to calendar year 2013, 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 | (10b) No later than January 1, 2013, the chief | ||||||
21 | procurement officer appointed under paragraph (4) of | ||||||
22 | subsection (a) of Section 10-20 of the Illinois Procurement | ||||||
23 | Code (hereinafter "chief procurement officer"), in | ||||||
24 | consultation with the Department of Central Management | ||||||
25 | Services, shall procure one or more private vendors to | ||||||
26 | administer the program providing payments for workers' |
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1 | compensation liability with respect to the employees of all | ||||||
2 | State agencies. The chief procurement officer may procure a | ||||||
3 | single contract applicable to all State agencies or | ||||||
4 | multiple contracts applicable to one or more State | ||||||
5 | agencies. If the chief procurement officer procures a | ||||||
6 | single contract applicable to all State agencies, then the | ||||||
7 | Department of Central Management Services shall be | ||||||
8 | designated as the agency that enters into the contract and | ||||||
9 | shall be responsible for the contract. If the chief | ||||||
10 | procurement officer procures multiple contracts applicable | ||||||
11 | to one or more State agencies, each agency to which the | ||||||
12 | contract applies shall be designated as the agency that | ||||||
13 | shall enter into the contract and shall be responsible for | ||||||
14 | the contract. If the chief procurement officer procures | ||||||
15 | contracts applicable to an individual State agency, the | ||||||
16 | agency subject to the contract shall be designated as the | ||||||
17 | agency responsible for the contract. | ||||||
18 | (10c) The procurement of private vendors for the | ||||||
19 | administration of the workers' compensation program for | ||||||
20 | State employees is subject to the provisions of the | ||||||
21 | Illinois Procurement Code and administration by the chief | ||||||
22 | procurement officer. | ||||||
23 | (10d) Contracts for the procurement of private vendors | ||||||
24 | for the administration of the workers' compensation | ||||||
25 | program for State employees shall be based upon, but | ||||||
26 | limited to, the following criteria: (i) administrative |
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1 | cost, (ii) service capabilities of the vendor, and (iii) | ||||||
2 | the compensation (including premiums, fees, or other | ||||||
3 | charges). A vendor for the administration of the workers' | ||||||
4 | compensation program for State employees shall provide | ||||||
5 | services, including, but not limited to: | ||||||
6 | (A) providing a web-based case management system | ||||||
7 | and provide access to the Office of the Attorney | ||||||
8 | General; | ||||||
9 | (B) ensuring claims adjusters are available to | ||||||
10 | provide testimony or information as requested by the | ||||||
11 | Office of the Attorney General; | ||||||
12 | (C) establishing a preferred provider program for | ||||||
13 | all State agencies and facilities; and | ||||||
14 | (D) authorizing the payment of medical bills at the | ||||||
15 | preferred provider discount rate. | ||||||
16 | (10e) By September 15, 2012, the Department of Central | ||||||
17 | Management Services shall prepare a plan to effectuate the | ||||||
18 | transfer of responsibility and administration of the | ||||||
19 | workers' compensation program for State employees to the | ||||||
20 | selected private vendors. The Department shall submit a | ||||||
21 | copy of the plan to the General Assembly. | ||||||
22 | (11) Any plan for public liability self-insurance | ||||||
23 | implemented
under this
Section shall provide that (i) the | ||||||
24 | Department
shall attempt to settle and may settle any | ||||||
25 | public liability claim filed
against the State of Illinois | ||||||
26 | or any public liability claim filed
against a State |
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1 | employee on the basis of an occurrence in the course of
the | ||||||
2 | employee's State employment; (ii) any settlement of
such a | ||||||
3 | claim is not subject to fiscal year limitations and must be
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4 | approved by the Director and, in cases of
settlements | ||||||
5 | exceeding $100,000, by the Governor; and (iii) a
settlement | ||||||
6 | of
any public liability claim against the State or a State | ||||||
7 | employee shall
require an unqualified release of any right | ||||||
8 | of action against the State
and the employee for acts | ||||||
9 | within the scope of the employee's employment
giving rise | ||||||
10 | to the claim.
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11 | Whenever and to the extent that a State
employee | ||||||
12 | operates a motor vehicle or engages in other activity | ||||||
13 | covered
by self-insurance under this Section, the State of | ||||||
14 | Illinois shall
defend, indemnify, and hold harmless the | ||||||
15 | employee against any claim in
tort filed against the | ||||||
16 | employee for acts or omissions within the scope
of the | ||||||
17 | employee's employment in any proper judicial forum and not
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18 | settled pursuant
to this subdivision (11), provided that | ||||||
19 | this obligation of
the State of
Illinois shall not exceed a | ||||||
20 | maximum liability of $2,000,000 for any
single occurrence | ||||||
21 | in connection with the operation of a motor vehicle or
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22 | $100,000 per person per occurrence for any other single | ||||||
23 | occurrence,
or $500,000 for any single occurrence in | ||||||
24 | connection with the provision of
medical care by a licensed | ||||||
25 | physician employee.
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26 | Any
claims against the State of Illinois under a |
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1 | self-insurance plan that
are not settled pursuant to this | ||||||
2 | subdivision (11) shall be
heard and
determined by the Court | ||||||
3 | of Claims and may not be filed or adjudicated
in any other | ||||||
4 | forum. The Attorney General of the State of Illinois or
the | ||||||
5 | Attorney General's designee shall be the attorney with | ||||||
6 | respect
to all public liability
self-insurance claims that | ||||||
7 | are not settled pursuant to this
subdivision (11)
and | ||||||
8 | therefore result in litigation. The payment of any award of | ||||||
9 | the
Court of Claims entered against the State relating to | ||||||
10 | any public
liability self-insurance claim shall act as a | ||||||
11 | release against any State
employee involved in the | ||||||
12 | occurrence.
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13 | (12) Administer a plan the purpose of which is to make | ||||||
14 | payments
on final
settlements or final judgments in | ||||||
15 | accordance with the State Employee
Indemnification Act. | ||||||
16 | The plan shall be funded through appropriations from the
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17 | General Revenue Fund specifically designated for that | ||||||
18 | purpose, except that
indemnification expenses for | ||||||
19 | employees of the Department of Transportation,
the | ||||||
20 | Illinois State Police, and the Secretary of State
shall be | ||||||
21 | paid
from the Road
Fund. The term "employee" as used in | ||||||
22 | this subdivision (12) has the same
meaning as under | ||||||
23 | subsection (b) of Section 1 of the State Employee
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24 | Indemnification Act. Subject to sufficient appropriation, | ||||||
25 | the Director shall approve payment of any claim, without | ||||||
26 | regard to fiscal year limitations, presented to
the |
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1 | Director
that is supported by a final settlement or final | ||||||
2 | judgment when the Attorney
General and the chief officer of | ||||||
3 | the public body against whose employee the
claim or cause | ||||||
4 | of action is asserted certify to the Director that
the | ||||||
5 | claim is in
accordance with the State Employee | ||||||
6 | Indemnification Act and that they
approve
of the payment. | ||||||
7 | In no event shall an amount in excess of $150,000 be paid | ||||||
8 | from
this plan to or for the benefit of any claimant.
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9 | (13) Administer a plan the purpose of which is to make | ||||||
10 | payments
on final
settlements or final judgments for | ||||||
11 | employee wage claims in situations where
there was an | ||||||
12 | appropriation relevant to the wage claim, the fiscal year
| ||||||
13 | and lapse period have expired, and sufficient funds were | ||||||
14 | available
to
pay the claim. The plan shall be funded | ||||||
15 | through
appropriations from the General Revenue Fund | ||||||
16 | specifically designated for
that purpose.
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17 | Subject to sufficient appropriation, the Director is | ||||||
18 | authorized to pay any wage claim presented to the
Director
| ||||||
19 | that is supported by a final settlement or final judgment | ||||||
20 | when the chief
officer of the State agency employing the | ||||||
21 | claimant certifies to the
Director that
the claim is a | ||||||
22 | valid wage claim and that the fiscal year and lapse period
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23 | have expired. Payment for claims that are properly | ||||||
24 | submitted and certified
as valid by the Director
shall | ||||||
25 | include interest accrued at the rate of 7% per annum from | ||||||
26 | the
forty-fifth day after the claims are received by the |
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1 | Department or 45 days from the date on which the amount of | ||||||
2 | payment
is agreed upon, whichever is later, until the date | ||||||
3 | the claims are submitted
to the Comptroller for payment. | ||||||
4 | When the Attorney General has filed an
appearance in any | ||||||
5 | proceeding concerning a wage claim settlement or
judgment, | ||||||
6 | the Attorney General shall certify to the Director that the | ||||||
7 | wage claim is valid before any payment is
made. In no event | ||||||
8 | shall an amount in excess of $150,000 be paid from this
| ||||||
9 | plan to or for the benefit of any claimant.
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10 | Nothing in Public Act 84-961 shall be construed to | ||||||
11 | affect in any manner the jurisdiction of the
Court of | ||||||
12 | Claims concerning wage claims made against the State of | ||||||
13 | Illinois.
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14 | (14) Prepare and, in the discretion of the Director, | ||||||
15 | implement a program for
self-insurance for official
| ||||||
16 | fidelity and surety bonds for officers and employees as | ||||||
17 | authorized by the
Official Bond Act.
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18 | (Source: P.A. 96-928, eff. 6-15-10; 97-18, eff. 6-28-11; | ||||||
19 | 97-895, eff. 8-3-12; 97-1143, eff. 12-28-12.)
|