102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB4119

 

Introduced 9/3/2021, by Rep. La Shawn K. Ford

 

SYNOPSIS AS INTRODUCED:
 
5 ILCS 350/2  from Ch. 127, par. 1302

    Amends the State Employee Indemnification Act. Allows the Attorney General to decline in writing to appear or defend and to promptly take appropriate action to withdraw as attorney on behalf of a State employee when an act or omission which gave rise to a claim against the employee was not within the scope of the employee's State employment, not including withdrawal for intentional, wilful, or wanton misconduct. Makes conforming changes.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Employee Indemnification Act is
5amended by changing Section 2 as follows:
 
6    (5 ILCS 350/2)  (from Ch. 127, par. 1302)
7    Sec. 2. Representation and indemnification of State
8employees.
9    (a) In the event that any civil proceeding is commenced
10against any State employee arising out of any act or omission
11occurring within the scope of the employee's State employment,
12the Attorney General shall, upon timely and appropriate notice
13to him by such employee, appear on behalf of such employee and
14defend the action. In the event that any civil proceeding is
15commenced against any physician who is an employee of the
16Department of Corrections or the Department of Human Services
17(in a position relating to the Department's mental health and
18developmental disabilities functions) alleging death or bodily
19injury or other injury to the person of the complainant
20resulting from and arising out of any act or omission
21occurring on or after December 3, 1977 within the scope of the
22employee's State employment, or against any physician who is
23an employee of the Department of Veterans' Affairs alleging

 

 

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1death or bodily injury or other injury to the person of the
2complainant resulting from and arising out of any act or
3omission occurring on or after the effective date of this
4amendatory Act of 1988 within the scope of the employee's
5State employment, or in the event that any civil proceeding is
6commenced against any attorney who is an employee of the State
7Appellate Defender alleging legal malpractice or for other
8damages resulting from and arising out of any legal act or
9omission occurring on or after December 3, 1977, within the
10scope of the employee's State employment, or in the event that
11any civil proceeding is commenced against any individual or
12organization who contracts with the Department of Labor to
13provide services as a carnival and amusement ride safety
14inspector alleging malpractice, death or bodily injury or
15other injury to the person arising out of any act or omission
16occurring on or after May 1, 1985, within the scope of that
17employee's State employment, the Attorney General shall, upon
18timely and appropriate notice to him by such employee, appear
19on behalf of such employee and defend the action. Any such
20notice shall be in writing, shall be mailed within 15 days
21after the date of receipt by the employee of service of
22process, and shall authorize the Attorney General to represent
23and defend the employee in the proceeding. The giving of this
24notice to the Attorney General shall constitute an agreement
25by the State employee to cooperate with the Attorney General
26in his defense of the action and a consent that the Attorney

 

 

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1General shall conduct the defense as he deems advisable and in
2the best interests of the employee, including settlement in
3the Attorney General's discretion. In any such proceeding, the
4State shall pay the court costs and litigation expenses of
5defending such action, to the extent approved by the Attorney
6General as reasonable, as they are incurred.
7    (b) In the event that the Attorney General determines that
8so appearing and defending an employee either (1) involves an
9actual or potential conflict of interest, or (2) that the act
10or omission which gave rise to the claim was not within the
11scope of the employee's State employment or was intentional,
12wilful or wanton misconduct, the Attorney General shall
13decline in writing to appear or defend or shall promptly take
14appropriate action to withdraw as attorney for such employee.
15Upon receipt of such declination or upon such withdrawal by
16the Attorney General on the basis of an actual or potential
17conflict of interest, the State employee may employ his own
18attorney to appear and defend, in which event the State shall
19pay the employee's court costs, litigation expenses and
20attorneys' fees to the extent approved by the Attorney General
21as reasonable, as they are incurred. In the event that the
22Attorney General declines to appear or withdraws on the
23grounds that the act or omission was not within the scope of
24employment, or was intentional, wilful or wanton misconduct,
25and a court or jury finds that the act or omission of the State
26employee was within the scope of employment and was not

 

 

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1intentional, wilful or wanton misconduct, the State shall
2indemnify the State employee for any damages awarded and court
3costs and attorneys' fees assessed as part of any final and
4unreversed judgment. In such event the State shall also pay
5the employee's court costs, litigation expenses and attorneys'
6fees to the extent approved by the Attorney General as
7reasonable.
8    In the event that the defendant in the proceeding is an
9elected State official, including members of the General
10Assembly, the elected State official may retain his or her
11attorney, provided that said attorney shall be reasonably
12acceptable to the Attorney General. In such case the State
13shall pay the elected State official's court costs, litigation
14expenses, and attorneys' fees, to the extent approved by the
15Attorney General as reasonable, as they are incurred.
16    (b-5) The Attorney General may file a counterclaim on
17behalf of a State employee, provided:
18        (1) the Attorney General determines that the State
19    employee is entitled to representation in a civil action
20    under this Section;
21        (2) the counterclaim arises out of any act or omission
22    occurring within the scope of the employee's State
23    employment that is the subject of the civil action; and
24        (3) the employee agrees in writing that if judgment is
25    entered in favor of the employee, the amount of the
26    judgment shall be applied to offset any judgment that may

 

 

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1    be entered in favor of the plaintiff, and then to
2    reimburse the State treasury for court costs and
3    litigation expenses required to pursue the counterclaim.
4    The balance of the collected judgment shall be paid to the
5    State employee.
6    (c) Notwithstanding any other provision of this Section,
7representation and indemnification of a judge under this Act
8shall also be provided in any case where the plaintiff seeks
9damages or any equitable relief as a result of any decision,
10ruling or order of a judge made in the course of his or her
11judicial or administrative duties, without regard to the
12theory of recovery employed by the plaintiff. Indemnification
13shall be for all damages awarded and all court costs, attorney
14fees and litigation expenses assessed against the judge. When
15a judge has been convicted of a crime as a result of his or her
16intentional judicial misconduct in a trial, that judge shall
17not be entitled to indemnification and representation under
18this subsection in any case maintained by a party who seeks
19damages or other equitable relief as a direct result of the
20judge's intentional judicial misconduct.
21    (d) In any such proceeding where notice in accordance with
22this Section has been given to the Attorney General, unless
23the court or jury finds that the conduct or inaction which gave
24rise to the claim or cause of action was intentional, wilful or
25wanton misconduct and was not intended to serve or benefit
26interests of the State, the State shall indemnify the State

 

 

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1employee for any damages awarded and court costs and
2attorneys' fees assessed as part of any final and unreversed
3judgment, or shall pay such judgment. Unless the Attorney
4General determines that the conduct or inaction which gave
5rise to the claim or cause of action was intentional, wilful or
6wanton misconduct and was not intended to serve or benefit
7interests of the State, the case may be settled, in the
8Attorney General's discretion and with the employee's consent,
9and the State shall indemnify the employee for any damages,
10court costs and attorneys' fees agreed to as part of the
11settlement, or shall pay such settlement. Where the employee
12is represented by private counsel, any settlement must be so
13approved by the Attorney General and the court having
14jurisdiction, which shall obligate the State to indemnify the
15employee.
16    (e) (i) Court costs and litigation expenses and other
17costs of providing a defense or counterclaim, including
18attorneys' fees obligated under this Section, shall be paid
19from the State Treasury on the warrant of the Comptroller out
20of appropriations made to the Department of Central Management
21Services specifically designed for the payment of costs, fees
22and expenses covered by this Section.
23    (ii) Upon entry of a final judgment against the employee,
24or upon the settlement of the claim, the employee shall cause
25to be served a copy of such judgment or settlement, personally
26or by certified or registered mail within thirty days of the

 

 

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1date of entry or settlement, upon the chief administrative
2officer of the department, office or agency in which he is
3employed. If not inconsistent with the provisions of this
4Section, such judgment or settlement shall be certified for
5payment by such chief administrative officer and by the
6Attorney General. The judgment or settlement shall be paid
7from the State Treasury on the warrant of the Comptroller out
8of appropriations made to the Department of Central Management
9Services specifically designed for the payment of claims
10covered by this Section.
11    (f) Nothing contained or implied in this Section shall
12operate, or be construed or applied, to deprive the State, or
13any employee thereof, of any defense heretofore available.
14    (g) This Section shall apply regardless of whether the
15employee is sued in his or her individual or official
16capacity.
17    (h) This Section shall not apply to claims for bodily
18injury or damage to property arising from motor vehicle
19accidents.
20    (i) This Section shall apply to all proceedings filed on
21or after its effective date, and to any proceeding pending on
22its effective date, if the State employee gives notice to the
23Attorney General as provided in this Section within 30 days of
24the Act's effective date.
25    (j) The amendatory changes made to this Section by this
26amendatory Act of 1986 shall apply to all proceedings filed on

 

 

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1or after the effective date of this amendatory Act of 1986 and
2to any proceeding pending on its effective date, if the State
3employee gives notice to the Attorney General as provided in
4this Section within 30 days of the effective date of this
5amendatory Act of 1986.
6    (k) This Act applies to all State officials who are
7serving as trustees, or their appointing authorities, of a
8clean energy community trust or as members of a not-for-profit
9foundation or corporation established pursuant to Section
1016-111.1 of the Public Utilities Act.
11    (l) The State shall not provide representation for, nor
12shall it indemnify, any State employee in (i) any criminal
13proceeding in which the employee is a defendant or (ii) any
14criminal investigation in which the employee is the target.
15Nothing in this Act shall be construed to prohibit the State
16from providing representation to a State employee who is a
17witness in a criminal matter arising out of that employee's
18State employment.
19(Source: P.A. 99-461, eff. 1-1-17.)