103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB0994

 

Introduced 1/12/2023, by Rep. La Shawn K. Ford

 

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

    Amends the State Employee Indemnification Act. Deletes provisions that allowed the Attorney General to decline to appear and defend an employee when the act or omission that gave rise to the claim was intentional, wilful, or wanton conduct. Makes conforming changes.


LRB103 04811 DTM 49821 b

 

 

A BILL FOR

 

HB0994LRB103 04811 DTM 49821 b

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    (Text of Section before amendment by P.A. 102-982)
8    Sec. 2. Representation and indemnification of State
9employees.
10    (a) In the event that any civil proceeding is commenced
11against any State employee arising out of any act or omission
12occurring within the scope of the employee's State employment,
13the Attorney General shall, upon timely and appropriate notice
14to him by such employee, appear on behalf of such employee and
15defend the action. In the event that any civil proceeding is
16commenced against any physician who is an employee of the
17Department of Corrections or the Department of Human Services
18(in a position relating to the Department's mental health and
19developmental disabilities functions) alleging death or bodily
20injury or other injury to the person of the complainant
21resulting from and arising out of any act or omission
22occurring on or after December 3, 1977 within the scope of the
23employee's State employment, or against any physician who is

 

 

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

 

 

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

 

 

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1employee was within the scope of employment and was not
2intentional, wilful or wanton misconduct, the State shall
3indemnify the State employee for any damages awarded and court
4costs and attorneys' fees assessed as part of any final and
5unreversed judgment. In such event the State shall also pay
6the employee's court costs, litigation expenses and attorneys'
7fees to the extent approved by the Attorney General as
8reasonable.
9    In the event that the defendant in the proceeding is an
10elected State official, including members of the General
11Assembly, the elected State official may retain his or her
12attorney, provided that said attorney shall be reasonably
13acceptable to the Attorney General. In such case the State
14shall pay the elected State official's court costs, litigation
15expenses, and attorneys' fees, to the extent approved by the
16Attorney General as reasonable, as they are incurred.
17    (b-5) The Attorney General may file a counterclaim on
18behalf of a State employee, provided:
19        (1) the Attorney General determines that the State
20    employee is entitled to representation in a civil action
21    under this Section;
22        (2) the counterclaim arises out of any act or omission
23    occurring within the scope of the employee's State
24    employment that is the subject of the civil action; and
25        (3) the employee agrees in writing that if judgment is
26    entered in favor of the employee, the amount of the

 

 

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

 

 

HB0994- 6 -LRB103 04811 DTM 49821 b

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

 

 

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

 

 

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1amendatory Act of 1986 shall apply to all proceedings filed on
2or after the effective date of this amendatory Act of 1986 and
3to any proceeding pending on its effective date, if the State
4employee gives notice to the Attorney General as provided in
5this Section within 30 days of the effective date of this
6amendatory Act of 1986.
7    (k) This Act applies to all State officials who are
8serving as trustees, or their appointing authorities, of a
9clean energy community trust or as members of a not-for-profit
10foundation or corporation established pursuant to Section
1116-111.1 of the Public Utilities Act.
12    (l) The State shall not provide representation for, nor
13shall it indemnify, any State employee in (i) any criminal
14proceeding in which the employee is a defendant or (ii) any
15criminal investigation in which the employee is the target.
16Nothing in this Act shall be construed to prohibit the State
17from providing representation to a State employee who is a
18witness in a criminal matter arising out of that employee's
19State employment.
20(Source: P.A. 99-461, eff. 1-1-17.)
 
21    (Text of Section after amendment by P.A. 102-982)
22    Sec. 2. Representation and indemnification of State
23employees.
24    (a) In the event that any civil proceeding is commenced
25against any State employee arising out of any act or omission

 

 

HB0994- 9 -LRB103 04811 DTM 49821 b

1occurring within the scope of the employee's State employment,
2the Attorney General shall, upon timely and appropriate notice
3to him by such employee, appear on behalf of such employee and
4defend the action. In the event that any civil proceeding is
5commenced against any physician who is an employee of the
6Department of Corrections or the Department of Human Services
7(in a position relating to the Department's mental health and
8developmental disabilities functions) alleging death or bodily
9injury or other injury to the person of the complainant
10resulting from and arising out of any act or omission
11occurring on or after December 3, 1977 within the scope of the
12employee's State employment, or against any physician who is
13an employee of the Department of Veterans' Affairs alleging
14death or bodily injury or other injury to the person of the
15complainant resulting from and arising out of any act or
16omission occurring on or after the effective date of this
17amendatory Act of 1988 within the scope of the employee's
18State employment, or in the event that any civil proceeding is
19commenced against any attorney who is an employee of the State
20Appellate Defender alleging legal malpractice or for other
21damages resulting from and arising out of any legal act or
22omission occurring on or after December 3, 1977, within the
23scope of the employee's State employment, or in the event that
24any civil proceeding is commenced against any individual or
25organization who contracts with the Department of Labor to
26provide services as a carnival and amusement ride safety

 

 

HB0994- 10 -LRB103 04811 DTM 49821 b

1inspector alleging malpractice, death or bodily injury or
2other injury to the person arising out of any act or omission
3occurring on or after May 1, 1985, within the scope of that
4employee's State employment, the Attorney General shall, upon
5timely and appropriate notice to him by such employee, appear
6on behalf of such employee and defend the action. Any such
7notice shall be in writing, shall be mailed within 15 days
8after the date of receipt by the employee of service of
9process, and shall authorize the Attorney General to represent
10and defend the employee in the proceeding. The giving of this
11notice to the Attorney General shall constitute an agreement
12by the State employee to cooperate with the Attorney General
13in his defense of the action and a consent that the Attorney
14General shall conduct the defense as he deems advisable and in
15the best interests of the employee, including settlement in
16the Attorney General's discretion. In any such proceeding, the
17State shall pay the court costs and litigation expenses of
18defending such action, to the extent approved by the Attorney
19General as reasonable, as they are incurred.
20    (b) In the event that the Attorney General determines that
21so appearing and defending an employee either (1) involves an
22actual or potential conflict of interest, or (2) that the act
23or omission which gave rise to the claim was not within the
24scope of the employee's State employment or was intentional,
25wilful or wanton misconduct, the Attorney General shall
26decline in writing to appear or defend or shall promptly take

 

 

HB0994- 11 -LRB103 04811 DTM 49821 b

1appropriate action to withdraw as attorney for such employee.
2Upon receipt of such declination or upon such withdrawal by
3the Attorney General on the basis of an actual or potential
4conflict of interest, the State employee may employ his own
5attorney to appear and defend, in which event the State shall
6pay the employee's court costs, litigation expenses and
7attorneys' fees to the extent approved by the Attorney General
8as reasonable, as they are incurred. In the event that the
9Attorney General declines to appear or withdraws on the
10grounds that the act or omission was not within the scope of
11employment, or was intentional, wilful or wanton misconduct,
12and a court or jury finds that the act or omission of the State
13employee was within the scope of employment and was not
14intentional, wilful or wanton misconduct, the State shall
15indemnify the State employee for any damages awarded and court
16costs and attorneys' fees assessed as part of any final and
17unreversed judgment. In such event the State shall also pay
18the employee's court costs, litigation expenses and attorneys'
19fees to the extent approved by the Attorney General as
20reasonable.
21    In the event that the defendant in the proceeding is an
22elected State official, including members of the General
23Assembly, the elected State official may retain his or her
24attorney, provided that said attorney shall be reasonably
25acceptable to the Attorney General. In such case the State
26shall pay the elected State official's court costs, litigation

 

 

HB0994- 12 -LRB103 04811 DTM 49821 b

1expenses, and attorneys' fees, to the extent approved by the
2Attorney General as reasonable, as they are incurred.
3    (b-5) The Attorney General may file a counterclaim on
4behalf of a State employee, provided:
5        (1) the Attorney General determines that the State
6    employee is entitled to representation in a civil action
7    under this Section;
8        (2) the counterclaim arises out of any act or omission
9    occurring within the scope of the employee's State
10    employment that is the subject of the civil action; and
11        (3) the employee agrees in writing that if judgment is
12    entered in favor of the employee, the amount of the
13    judgment shall be applied to offset any judgment that may
14    be entered in favor of the plaintiff, and then to
15    reimburse the State treasury for court costs and
16    litigation expenses required to pursue the counterclaim.
17    The balance of the collected judgment shall be paid to the
18    State employee.
19    (c) Notwithstanding any other provision of this Section,
20representation and indemnification of a judge under this Act
21shall also be provided in any case where the plaintiff seeks
22damages or any equitable relief as a result of any decision,
23ruling or order of a judge made in the course of his or her
24judicial or administrative duties, without regard to the
25theory of recovery employed by the plaintiff. Indemnification
26shall be for all damages awarded and all court costs, attorney

 

 

HB0994- 13 -LRB103 04811 DTM 49821 b

1fees and litigation expenses assessed against the judge. When
2a judge has been convicted of a crime as a result of his or her
3intentional judicial misconduct in a trial, that judge shall
4not be entitled to indemnification and representation under
5this subsection in any case maintained by a party who seeks
6damages or other equitable relief as a direct result of the
7judge's intentional judicial misconduct.
8    (d) In any such proceeding where notice in accordance with
9this Section has been given to the Attorney General, unless
10the court or jury finds that the conduct or inaction which gave
11rise to the claim or cause of action was intentional, wilful or
12wanton misconduct and was not intended to serve or benefit
13interests of the State, the State shall indemnify the State
14employee for any damages awarded and court costs and
15attorneys' fees assessed as part of any final and unreversed
16judgment, or shall pay such judgment. Unless the Attorney
17General determines that the conduct or inaction which gave
18rise to the claim or cause of action was intentional, wilful or
19wanton misconduct and was not intended to serve or benefit
20interests of the State, the case may be settled, in the
21Attorney General's discretion and with the employee's consent,
22and the State shall indemnify the employee for any damages,
23court costs and attorneys' fees agreed to as part of the
24settlement, or shall pay such settlement. Where the employee
25is represented by private counsel, any settlement must be so
26approved by the Attorney General and the court having

 

 

HB0994- 14 -LRB103 04811 DTM 49821 b

1jurisdiction, which shall obligate the State to indemnify the
2employee.
3    (e) (i) Court costs and litigation expenses and other
4costs of providing a defense or counterclaim, including
5attorneys' fees obligated under this Section, shall be paid
6from the State Treasury on the warrant of the Comptroller out
7of appropriations made to the Department of Central Management
8Services specifically designed for the payment of costs, fees
9and expenses covered by this Section.
10    (ii) Upon entry of a final judgment against the employee,
11or upon the settlement of the claim, the employee shall cause
12to be served a copy of such judgment or settlement, personally
13or by certified or registered mail within thirty days of the
14date of entry or settlement, upon the chief administrative
15officer of the department, office or agency in which he is
16employed. If not inconsistent with the provisions of this
17Section, such judgment or settlement shall be certified for
18payment by such chief administrative officer and by the
19Attorney General. The judgment or settlement shall be paid
20from the State Treasury on the warrant of the Comptroller out
21of appropriations made to the Department of Central Management
22Services specifically designed for the payment of claims
23covered by this Section.
24    (f) Nothing contained or implied in this Section shall
25operate, or be construed or applied, to deprive the State, or
26any employee thereof, of any defense heretofore available.

 

 

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1    (g) This Section shall apply regardless of whether the
2employee is sued in his or her individual or official
3capacity.
4    (h) This Section shall not apply to claims for bodily
5injury or damage to property arising from motor vehicle
6crashes.
7    (i) This Section shall apply to all proceedings filed on
8or after its effective date, and to any proceeding pending on
9its effective date, if the State employee gives notice to the
10Attorney General as provided in this Section within 30 days of
11the Act's effective date.
12    (j) The amendatory changes made to this Section by this
13amendatory Act of 1986 shall apply to all proceedings filed on
14or after the effective date of this amendatory Act of 1986 and
15to any proceeding pending on its effective date, if the State
16employee gives notice to the Attorney General as provided in
17this Section within 30 days of the effective date of this
18amendatory Act of 1986.
19    (k) This Act applies to all State officials who are
20serving as trustees, or their appointing authorities, of a
21clean energy community trust or as members of a not-for-profit
22foundation or corporation established pursuant to Section
2316-111.1 of the Public Utilities Act.
24    (l) The State shall not provide representation for, nor
25shall it indemnify, any State employee in (i) any criminal
26proceeding in which the employee is a defendant or (ii) any

 

 

HB0994- 16 -LRB103 04811 DTM 49821 b

1criminal investigation in which the employee is the target.
2Nothing in this Act shall be construed to prohibit the State
3from providing representation to a State employee who is a
4witness in a criminal matter arising out of that employee's
5State employment.
6(Source: P.A. 102-982, eff. 7-1-23.)
 
7    Section 95. No acceleration or delay. Where this Act makes
8changes in a statute that is represented in this Act by text
9that is not yet or no longer in effect (for example, a Section
10represented by multiple versions), the use of that text does
11not accelerate or delay the taking effect of (i) the changes
12made by this Act or (ii) provisions derived from any other
13Public Act.