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90_HB0228ccr001
LRB9001214WHmbccr2
1 90TH GENERAL ASSEMBLY
2 CONFERENCE COMMITTEE REPORT
3 ON HOUSE BILL 228
4 -------------------------------------------------------------
5 -------------------------------------------------------------
6 To the President of the Senate and the Speaker of the
7 House of Representatives:
8 We, the conference committee appointed to consider the
9 differences between the houses in relation to Senate
10 Amendment No. 1 to House Bill 228, recommend the following:
11 (1) that the Senate recede from Senate Amendment No. 1;
12 and
13 (2) that House Bill 228 be amended by replacing the
14 title with the following:
15 "AN ACT to amend certain Acts in relation to labor."; and
16 by replacing everything after the enacting clause with the
17 following:
18 "Section 5. The State Finance Act is amended by adding
19 Section 5.449 as follows:
20 (30 ILCS 105/5.449 new)
21 Sec. 5.449. The Industrial Commission Operations Fund.
22 Section 10. The Workers' Compensation Act is amended by
23 changing Section 4 as follows:
24 (820 ILCS 305/4) (from Ch. 48, par. 138.4)
25 Sec. 4. (a) Any employer who shall come within the
26 provisions of Section 3 of this Act, and any other employer
27 who shall elect to provide and pay the compensation provided
28 for in this Act shall:
29 (1) File with the Commission annually an
30 application for approval as a self-insurer which shall
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1 include a current financial statement, and annually,
2 thereafter, an application for renewal of self-insurance,
3 which shall include a current financial statement. Said
4 application and financial statement shall be signed and
5 sworn to by the president or vice president and secretary
6 or assistant secretary of the employer if it be a
7 corporation, or by all of the partners, if it be a
8 copartnership, or by the owner if it be neither a
9 copartnership nor a corporation. All initial applications
10 and all applications for renewal of self-insurance must
11 be submitted at least 60 days prior to the requested
12 effective date of self-insurance.
13 If the sworn application and financial statement of
14 any such employer does not satisfy the Commission of the
15 financial ability of the employer who has filed it, the
16 Commission shall require such employer to,
17 (2) Furnish security, indemnity or a bond
18 guaranteeing the payment by the employer of the
19 compensation provided for in this Act, provided that any
20 such employer whose application and financial statement
21 shall not have satisfied the commission of his or her
22 financial ability and who shall have secured his
23 liability in part by excess liability insurance shall be
24 required to furnish to the Commission security, indemnity
25 or bond guaranteeing his or her payment up to the
26 effective limits of the excess coverage, or
27 (3) Insure his entire liability to pay such
28 compensation in some insurance carrier authorized,
29 licensed, or permitted to do such insurance business in
30 this State. Every policy of an insurance carrier,
31 insuring the payment of compensation under this Act shall
32 cover all the employees and the entire compensation
33 liability of the insured: Provided, however, that any
34 employer may insure his or her compensation liability
35 with 2 or more insurance carriers or may insure a part
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1 and qualify under subsection 1, 2, or 4 for the remainder
2 of his or her liability to pay such compensation, subject
3 to the following two provisions:
4 Firstly, the entire compensation liability of
5 the employer to employees working at or from one
6 location shall be insured in one such insurance
7 carrier or shall be self-insured, and
8 Secondly, the employer shall submit evidence
9 satisfactorily to the Commission that his or her
10 entire liability for the compensation provided for
11 in this Act will be secured. Any provisions in any
12 policy, or in any endorsement attached thereto,
13 attempting to limit or modify in any way, the
14 liability of the insurance carriers issuing the same
15 except as otherwise provided herein shall be wholly
16 void.
17 Nothing herein contained shall apply to policies of
18 excess liability carriage secured by employers who have
19 been approved by the Commission as self-insurers, or
20 (4) Make some other provision, satisfactory to the
21 Commission, for the securing of the payment of
22 compensation provided for in this Act, and
23 (5) Upon becoming subject to this Act and
24 thereafter as often as the Commission may in writing
25 demand, file with the Commission in form prescribed by it
26 evidence of his or her compliance with the provision of
27 this Section.
28 (a-1) Regardless of its state of domicile or its
29 principal place of business, an employer shall make payments
30 to its insurance carrier or group self-insurance fund, where
31 applicable, based upon the premium rates of the situs where
32 the work or project is located in Illinois if:
33 (A) the employer is engaged primarily in the
34 building and construction industry; and
35 (B) subdivision (a)(3) of this Section applies to
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1 the employer or the employer is a member of a group
2 self-insurance plan as defined in subsection (1) of
3 Section 4a.
4 The Industrial Commission shall impose a penalty upon an
5 employer for violation of this subsection (a-1) if:
6 (i) the employer is given an opportunity at a
7 hearing to present evidence of its compliance with this
8 subsection (a-1); and
9 (ii) after the hearing, the Commission finds that
10 the employer failed to make payments upon the premium
11 rates of the situs where the work or project is located
12 in Illinois.
13 The penalty shall not exceed $1,000 for each day of work
14 for which the employer failed to make payments upon the
15 premium rates of the situs where the work or project is
16 located in Illinois, but the total penalty shall not exceed
17 $50,000 for each project or each contract under which the
18 work was performed.
19 Any penalty under this subsection (a-1) must be imposed
20 not later than one year after the expiration of the
21 applicable limitation period specified in subsection (d) of
22 Section 6 of this Act. Penalties imposed under this
23 subsection (a-1) shall be deposited into the Industrial
24 Commission Operations Fund, a special fund that is created
25 in the State treasury. Subject to appropriation, moneys in
26 the Fund shall be used solely for the operations of the
27 Industrial Commission.
28 (b) The sworn application and financial statement, or
29 security, indemnity or bond, or amount of insurance, or other
30 provisions, filed, furnished, carried, or made by the
31 employer, as the case may be, shall be subject to the
32 approval of the Commission.
33 Deposits under escrow agreements shall be cash,
34 negotiable United States government bonds or negotiable
35 general obligation bonds of the State of Illinois. Such cash
-5- LRB9001214WHmbccr2
1 or bonds shall be deposited in escrow with any State or
2 National Bank or Trust Company having trust authority in the
3 State of Illinois.
4 Upon the approval of the sworn application and financial
5 statement, security, indemnity or bond or amount of
6 insurance, filed, furnished or carried, as the case may be,
7 the Commission shall send to the employer written notice of
8 its approval thereof. The certificate of compliance by the
9 employer with the provisions of subparagraphs (2) and (3) of
10 paragraph (a) of this Section shall be delivered by the
11 insurance carrier to the Industrial Commission within five
12 days after the effective date of the policy so certified.
13 The insurance so certified shall cover all compensation
14 liability occurring during the time that the insurance is in
15 effect and no further certificate need be filed in case such
16 insurance is renewed, extended or otherwise continued by such
17 carrier. The insurance so certified shall not be cancelled
18 or in the event that such insurance is not renewed, extended
19 or otherwise continued, such insurance shall not be
20 terminated until at least 10 days after receipt by the
21 Industrial Commission of notice of the cancellation or
22 termination of said insurance; provided, however, that if the
23 employer has secured insurance from another insurance
24 carrier, or has otherwise secured the payment of compensation
25 in accordance with this Section, and such insurance or other
26 security becomes effective prior to the expiration of the 10
27 days, cancellation or termination may, at the option of the
28 insurance carrier indicated in such notice, be effective as
29 of the effective date of such other insurance or security.
30 (c) Whenever the Commission shall find that any
31 corporation, company, association, aggregation of
32 individuals, reciprocal or interinsurers exchange, or other
33 insurer effecting workers' compensation insurance in this
34 State shall be insolvent, financially unsound, or unable to
35 fully meet all payments and liabilities assumed or to be
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1 assumed for compensation insurance in this State, or shall
2 practice a policy of delay or unfairness toward employees in
3 the adjustment, settlement, or payment of benefits due such
4 employees, the Commission may after reasonable notice and
5 hearing order and direct that such corporation, company,
6 association, aggregation of individuals, reciprocal or
7 interinsurers exchange, or insurer, shall from and after a
8 date fixed in such order discontinue the writing of any such
9 workers' compensation insurance in this State. Subject to
10 such modification of the order as the Commission may later
11 make on review of the order, as herein provided, it shall
12 thereupon be unlawful for any such corporation, company,
13 association, aggregation of individuals, reciprocal or
14 interinsurers exchange, or insurer to effect any workers'
15 compensation insurance in this State. A copy of the order
16 shall be served upon the Director of Insurance by registered
17 mail. Whenever the Commission finds that any service or
18 adjustment company used or employed by a self-insured
19 employer or by an insurance carrier to process, adjust,
20 investigate, compromise or otherwise handle claims under this
21 Act, has practiced or is practicing a policy of delay or
22 unfairness toward employees in the adjustment, settlement or
23 payment of benefits due such employees, the Commission may
24 after reasonable notice and hearing order and direct that
25 such service or adjustment company shall from and after a
26 date fixed in such order be prohibited from processing,
27 adjusting, investigating, compromising or otherwise handling
28 claims under this Act.
29 Whenever the Commission finds that any self-insured
30 employer has practiced or is practicing delay or unfairness
31 toward employees in the adjustment, settlement or payment of
32 benefits due such employees, the Commission may, after
33 reasonable notice and hearing, order and direct that after a
34 date fixed in the order such self-insured employer shall be
35 disqualified to operate as a self-insurer and shall be
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1 required to insure his entire liability to pay compensation
2 in some insurance carrier authorized, licensed and permitted
3 to do such insurance business in this State, as provided in
4 subparagraph 3 of paragraph (a) of this Section.
5 All orders made by the Commission under this Section
6 shall be subject to review by the courts, said review to be
7 taken in the same manner and within the same time as provided
8 by Section 19 of this Act for review of awards and decisions
9 of the Commission, upon the party seeking the review filing
10 with the clerk of the court to which said review is taken a
11 bond in an amount to be fixed and approved by the court to
12 which the review is taken, conditioned upon the payment of
13 all compensation awarded against the person taking said
14 review pending a decision thereof and further conditioned
15 upon such other obligations as the court may impose. Upon
16 the review the Circuit Court shall have power to review all
17 questions of fact as well as of law. The penalty hereinafter
18 provided for in this paragraph shall not attach and shall not
19 begin to run until the final determination of the order of
20 the Commission.
21 (d) Upon a finding by the Commission, after reasonable
22 notice and hearing, of the knowing and wilful failure of an
23 employer to comply with any of the provisions of paragraph
24 (a) of this Section or the failure or refusal of an employer,
25 service or adjustment company, or an insurance carrier to
26 comply with any order of the Industrial Commission pursuant
27 to paragraph (c) of this Section disqualifying him or her to
28 operate as a self insurer and requiring him or her to insure
29 his or her liability, the Commission may assess a civil
30 penalty of up to $500 per day for each day of such failure or
31 refusal after the effective date of this amendatory Act of
32 1989. Each day of such failure or refusal shall constitute a
33 separate offense.
34 Upon the failure or refusal of any employer, service or
35 adjustment company or insurance carrier to comply with the
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1 provisions of this Section and with the orders of the
2 Commission under this Section, or the order of the court on
3 review after final adjudication, the Commission may bring a
4 civil action to recover the amount of the penalty in Cook
5 County or in Sangamon County in which litigation the
6 Commission shall be represented by the Attorney General. The
7 Commission shall send notice of its finding of non-compliance
8 and assessment of the civil penalty to the Attorney General.
9 It shall be the duty of the Attorney General within 30 days
10 after receipt of the notice, to institute prosecutions and
11 promptly prosecute all reported violations of this Section.
12 (e) This Act shall not affect or disturb the continuance
13 of any existing insurance, mutual aid, benefit, or relief
14 association or department, whether maintained in whole or in
15 part by the employer or whether maintained by the employees,
16 the payment of benefits of such association or department
17 being guaranteed by the employer or by some person, firm or
18 corporation for him or her: Provided, the employer
19 contributes to such association or department an amount not
20 less than the full compensation herein provided, exclusive of
21 the cost of the maintenance of such association or department
22 and without any expense to the employee. This Act shall not
23 prevent the organization and maintaining under the insurance
24 laws of this State of any benefit or insurance company for
25 the purpose of insuring against the compensation provided for
26 in this Act, the expense of which is maintained by the
27 employer. This Act shall not prevent the organization or
28 maintaining under the insurance laws of this State of any
29 voluntary mutual aid, benefit or relief association among
30 employees for the payment of additional accident or sick
31 benefits.
32 (f) No existing insurance, mutual aid, benefit or relief
33 association or department shall, by reason of anything herein
34 contained, be authorized to discontinue its operation without
35 first discharging its obligations to any and all persons
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1 carrying insurance in the same or entitled to relief or
2 benefits therein.
3 (g) Any contract, oral, written or implied, of
4 employment providing for relief benefit, or insurance or any
5 other device whereby the employee is required to pay any
6 premium or premiums for insurance against the compensation
7 provided for in this Act shall be null and void. Any
8 employer withholding from the wages of any employee any
9 amount for the purpose of paying any such premium shall be
10 guilty of a Class B misdemeanor.
11 In the event the employer does not pay the compensation
12 for which he or she is liable, then an insurance company,
13 association or insurer which may have insured such employer
14 against such liability shall become primarily liable to pay
15 to the employee, his or her personal representative or
16 beneficiary the compensation required by the provisions of
17 this Act to be paid by such employer. The insurance carrier
18 may be made a party to the proceedings in which the employer
19 is a party and an award may be entered jointly against the
20 employer and the insurance carrier.
21 (h) It shall be unlawful for any employer, insurance
22 company or service or adjustment company to interfere with,
23 restrain or coerce an employee in any manner whatsoever in
24 the exercise of the rights or remedies granted to him or her
25 by this Act or to discriminate, attempt to discriminate, or
26 threaten to discriminate against an employee in any way
27 because of his or her exercise of the rights or remedies
28 granted to him or her by this Act.
29 It shall be unlawful for any employer, individually or
30 through any insurance company or service or adjustment
31 company, to discharge or to threaten to discharge, or to
32 refuse to rehire or recall to active service in a suitable
33 capacity an employee because of the exercise of his or her
34 rights or remedies granted to him or her by this Act.
35 (i) If an employer elects to obtain a life insurance
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1 policy on his employees, he may also elect to apply such
2 benefits in satisfaction of all or a portion of the death
3 benefits payable under this Act, in which case, the
4 employer's compensation premium shall be reduced accordingly.
5 (j) Within 45 days of receipt of an initial application
6 or application to renew self-insurance privileges the
7 Self-Insurers Advisory Board shall review and submit for
8 approval by the Chairman of the Commission recommendations of
9 disposition of all initial applications to self-insure and
10 all applications to renew self-insurance privileges filed by
11 private self-insurers pursuant to the provisions of this
12 Section and Section 4a-9 of this Act. Each private
13 self-insurer shall submit with its initial and renewal
14 applications the application fee required by Section 4a-4 of
15 this Act.
16 The Chairman of the Commission shall promptly act upon
17 all initial applications and applications for renewal in full
18 accordance with the recommendations of the Board or, should
19 the Chairman disagree with any recommendation of disposition
20 of the Self-Insurer's Advisory Board, he shall within 30 days
21 of receipt of such recommendation provide to the Board in
22 writing the reasons supporting his decision. The Chairman
23 shall also promptly notify the employer of his decision
24 within 15 days of receipt of the recommendation of the Board.
25 If an employer is denied a renewal of self-insurance
26 privileges pursuant to application it shall retain said
27 privilege for 120 days after receipt of a notice of
28 cancellation of the privilege from the Chairman of the
29 Commission.
30 All orders made by the Chairman under this Section shall
31 be subject to review by the courts, such review to be taken
32 in the same manner and within the same time as provided by
33 subsection (f) of Section 19 of this Act for review of awards
34 and decisions of the Commission, upon the party seeking the
35 review filing with the clerk of the court to which such
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1 review is taken a bond in an amount to be fixed and approved
2 by the court to which the review is taken, conditioned upon
3 the payment of all compensation awarded against the person
4 taking such review pending a decision thereof and further
5 conditioned upon such other obligations as the court may
6 impose. Upon the review the Circuit Court shall have power
7 to review all questions of fact as well as of law.
8 (Source: P.A. 86-998; 86-1405.)
9 Section 15. The Workers' Occupational Diseases Act is
10 amended by changing Section 4 as follows:
11 (820 ILCS 310/4) (from Ch. 48, par. 172.39)
12 Sec. 4. (a) Any employer required by the terms of this
13 Act or by election to pay the compensation provided for in
14 this Act shall:
15 (1) File with the Commission an application for
16 approval as a self-insurer which shall include a current
17 financial statement. The application and financial
18 statement shall be signed and sworn to by the president
19 or vice-president and secretary or assistant secretary of
20 the employer if it be a corporation, or by all of the
21 partners if it be a copartnership, or by the owner if it
22 be neither a copartnership nor a corporation.
23 If the sworn application and financial statement of
24 any such employer does not satisfy the Commission of the
25 financial ability of the employer who has filed it, the
26 Commission shall require such employer to:
27 (2) Furnish security, indemnity or a bond
28 guaranteeing the payment by the employer of the
29 compensation provided for in this Act, provided that any
30 such employer who shall have secured his or her liability
31 in part by excess liability coverage shall be required to
32 furnish to the Commission security, indemnity or bond
33 guaranteeing his or her payment up to the amount of the
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1 effective limits of the excess coverage in accordance
2 with the provisions of this paragraph, or
3 (3) Insure his or her entire liability to pay such
4 compensation in some insurance carrier authorized,
5 licensed or permitted to do such insurance business in
6 this State. All policies of such insurance carriers
7 insuring the payment of compensation under this Act shall
8 cover all the employees and all such employer's
9 compensation liability in all cases in which the last day
10 of the last exposure to the occupational disease involved
11 is within the effective period of the policy, anything to
12 the contrary in the policy notwithstanding. Provided,
13 however, that any employer may insure his or her
14 compensation liability under this Act with 2 or more
15 insurance carriers or may insure a part and qualify under
16 Subsection 1, 2, or 4 for the remainder of his liability
17 to pay such compensation, subject to the following two
18 provisions:
19 Firstly, the entire liability of the employer
20 to employees working at or from one location shall
21 be insured in one such insurance carrier or shall be
22 self-insured.
23 Secondly, the employer shall submit evidence
24 satisfactory to the Commission that his or her
25 entire liability for the compensation provided for
26 in this Act will be secured.
27 Any provision in a policy or in any endorsement
28 attached thereto attempting to limit or modify in any way
29 the liability of the insurance carrier issuing the same,
30 except as otherwise provided herein, shall be wholly
31 void.
32 The insurance or security in force to cover
33 compensation liability under this Act shall be separate
34 and distinct from the insurance or security under the
35 "Workers' Compensation Act" and any insurance contract
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1 covering liability under either Act need not cover any
2 liability under the other. Nothing herein contained
3 shall apply to policies of excess liability carriage
4 secured by employers who have been approved by the
5 Commission as self-insurers, or
6 (4) Make some other provision, satisfactory to the
7 Commission, for the securing of the payment of
8 compensation provided for in this Act, and
9 (5) Upon becoming subject to this Act and
10 thereafter as often as the Commission may in writing
11 demand, file with the Commission in form prescribed by it
12 evidence of his or her compliance with the provision of
13 this section.
14 (a-1) Regardless of its state of domicile or its
15 principal place of business, an employer shall make payments
16 to its insurance carrier or group self-insurance fund, where
17 applicable, based upon the premium rates of the situs where
18 the work or project is located in Illinois if:
19 (A) the employer is engaged primarily in the
20 building and construction industry; and
21 (B) subdivision (a)(3) of this Section applies to
22 the employer or the employer is a member of a group
23 self-insurance plan as defined in subsection (1) of
24 Section 4a.
25 The Industrial Commission shall impose a penalty upon an
26 employer for violation of this subsection (a-1) if:
27 (i) the employer is given an opportunity at a
28 hearing to present evidence of its compliance with this
29 subsection (a-1); and
30 (ii) after the hearing, the Commission finds that
31 the employer failed to make payments upon the premium
32 rates of the situs where the work or project is located
33 in Illinois.
34 The penalty shall not exceed $1,000 for each day of work
35 for which the employer failed to make payments upon the
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1 premium rates of the situs where the work or project is
2 located in Illinois, but the total penalty shall not exceed
3 $50,000 for each project or each contract under which the
4 work was performed.
5 Any penalty under this subsection (a-1) must be imposed
6 not later than one year after the expiration of the
7 applicable limitation period specified in subsection (c) of
8 Section 6 of this Act. Penalties imposed under this
9 subsection (a-1) shall be deposited into the Industrial
10 Commission Operations Fund created under Section 4 of the
11 Workers' Compensation Act.
12 (b) The sworn application and financial statement, or
13 security, indemnity or bond, or amount of insurance, or other
14 provisions, filed, furnished, carried, or made by the
15 employer, as the case may be, shall be subject to the
16 approval of the Commission.
17 Deposits under escrow agreements shall be cash,
18 negotiable United States government bonds or negotiable
19 general obligation bonds of the State of Illinois. Such cash
20 or bonds shall be deposited in escrow with any State or
21 National Bank or Trust Company having trust authority in the
22 State of Illinois.
23 Upon the approval of the sworn application and financial
24 statement, security, indemnity or bond or amount of
25 insurance, filed, furnished, or carried, as the case may be,
26 the Commission shall send to the employer written notice of
27 its approval thereof. Said certificate of compliance by the
28 employer with the provisions of subparagraphs (2) and (3) of
29 paragraph (a) of this section shall be delivered by the
30 insurance carrier to the Industrial Commission within 5 days
31 after the effective date of the policy so certified. The
32 insurance so certified shall cover all compensation liability
33 occurring during the time that the insurance is in effect and
34 no further certificate need be filed in case such insurance
35 is renewed, extended or otherwise continued by such carrier.
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1 The insurance so certified shall not be cancelled or in the
2 event that such insurance is not renewed, extended or
3 otherwise continued, such insurance shall not be terminated
4 until at least 10 days after receipt by the Industrial
5 Commission of notice of the cancellation or termination of
6 said insurance; provided, however, that if the employer has
7 secured insurance from another insurance carrier, or has
8 otherwise secured the payment of compensation in accordance
9 with this Section, and such insurance or other security
10 becomes effective prior to the expiration of said 10 days,
11 cancellation or termination may, at the option of the
12 insurance carrier indicated in such notice, be effective as
13 of the effective date of such other insurance or security.
14 (c) Whenever the Commission shall find that any
15 corporation, company, association, aggregation of
16 individuals, reciprocal or interinsurers exchange, or other
17 insurer effecting workers' occupational disease compensation
18 insurance in this State shall be insolvent, financially
19 unsound, or unable to fully meet all payments and liabilities
20 assumed or to be assumed for compensation insurance in this
21 State, or shall practice a policy of delay or unfairness
22 toward employees in the adjustment, settlement, or payment of
23 benefits due such employees, the Commission may after
24 reasonable notice and hearing order and direct that such
25 corporation, company, association, aggregation of
26 individuals, reciprocal or interinsurers exchange, or
27 insurer, shall from and after a date fixed in such order
28 discontinue the writing of any such workers' occupational
29 disease compensation insurance in this State. It shall
30 thereupon be unlawful for any such corporation, company,
31 association, aggregation of individuals, reciprocal or
32 interinsurers exchange, or insurer to effect any workers'
33 occupational disease compensation insurance in this State. A
34 copy of the order shall be served upon the Director of
35 Insurance by registered mail. Whenever the Commission finds
-16- LRB9001214WHmbccr2
1 that any service or adjustment company used or employed by a
2 self-insured employer or by an insurance carrier to process,
3 adjust, investigate, compromise or otherwise handle claims
4 under this Act, has practiced or is practicing a policy of
5 delay or unfairness toward employees in the adjustment,
6 settlement or payment of benefits due such employees, the
7 Commission may after reasonable notice and hearing order and
8 direct that such service or adjustment company shall from and
9 after a date fixed in such order be prohibited from
10 processing, adjusting, investigating, compromising or
11 otherwise handling claims under this Act.
12 Whenever the Commission finds that any self-insured
13 employer has practiced or is practicing delay or unfairness
14 toward employees in the adjustment, settlement or payment of
15 benefits due such employees, the Commission may after
16 reasonable notice and hearing order and direct that after a
17 date fixed in the order such self-insured employer shall be
18 disqualified to operate as a self-insurer and shall be
19 required to insure his entire liability to pay compensation
20 in some insurance carrier authorized, licensed and permitted
21 to do such insurance business in this State as provided in
22 subparagraph (3) of paragraph (a) of this Section.
23 All orders made by the Commission under this Section
24 shall be subject to review by the courts, the review to be
25 taken in the same manner and within the same time as provided
26 by Section 19 of this Act for review of awards and decisions
27 of the Commission, upon the party seeking the review filing
28 with the clerk of the court to which said review is taken a
29 bond in an amount to be fixed and approved by the court to
30 which said review is taken, conditioned upon the payment of
31 all compensation awarded against the person taking the review
32 pending a decision thereof and further conditioned upon such
33 other obligations as the court may impose. Upon the review
34 the Circuit Court shall have power to review all questions of
35 fact as well as of law. The penalty hereinafter provided for
-17- LRB9001214WHmbccr2
1 in this paragraph shall not attach and shall not begin to run
2 until the final determination of the order of the Commission.
3 (d) Upon a finding by the Commission, after reasonable
4 notice and hearing, of the knowing and wilful failure of an
5 employer to comply with any of the provisions of paragraph
6 (a) of this Section or the failure or refusal of an employer,
7 service or adjustment company, or insurance carrier to comply
8 with any order of the Industrial Commission pursuant to
9 paragraph (c) of this Section the Commission may assess a
10 civil penalty of up to $500 per day for each day of such
11 failure or refusal after the effective date of this
12 amendatory Act of 1989. Each day of such failure or refusal
13 shall constitute a separate offense.
14 Upon the failure or refusal of any employer, service or
15 adjustment company or insurance carrier to comply with the
16 provisions of this Section and orders of the Commission under
17 this Section, or the order of the court on review after final
18 adjudication, the Commission may bring a civil action to
19 recover the amount of the penalty in Cook County or in
20 Sangamon County in which litigation the Commission shall be
21 represented by the Attorney General. The Commission shall
22 send notice of its finding of non-compliance and assessment
23 of the civil penalty to the Attorney General. It shall be
24 the duty of the Attorney General within 30 days after receipt
25 of the notice, to institute prosecutions and promptly
26 prosecute all reported violations of this Section.
27 (e) This Act shall not affect or disturb the continuance
28 of any existing insurance, mutual aid, benefit, or relief
29 association or department, whether maintained in whole or in
30 part by the employer or whether maintained by the employees,
31 the payment of benefits of such association or department
32 being guaranteed by the employer or by some person, firm or
33 corporation for him or her: Provided, the employer
34 contributes to such association or department an amount not
35 less than the full compensation herein provided, exclusive of
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1 the cost of the maintenance of such association or department
2 and without any expense to the employee. This Act shall not
3 prevent the organization and maintaining under the insurance
4 laws of this State of any benefit or insurance company for
5 the purpose of insuring against the compensation provided for
6 in this Act, the expense of which is maintained by the
7 employer. This Act shall not prevent the organization or
8 maintaining under the insurance laws of this State of any
9 voluntary mutual aid, benefit or relief association among
10 employees for the payment of additional accident or sick
11 benefits.
12 (f) No existing insurance, mutual aid, benefit or relief
13 association or department shall, by reason of anything herein
14 contained, be authorized to discontinue its operation without
15 first discharging its obligations to any and all persons
16 carrying insurance in the same or entitled to relief or
17 benefits therein.
18 (g) Any contract, oral, written or implied, of
19 employment providing for relief benefit, or insurance or any
20 other device whereby the employee is required to pay any
21 premium or premiums for insurance against the compensation
22 provided for in this Act shall be null and void. Any
23 employer withholding from the wages of any employee any
24 amount for the purpose of paying any such premium shall be
25 guilty of a Class B misdemeanor.
26 In the event the employer does not pay the compensation
27 for which he or she is liable, then an insurance company,
28 association or insurer which may have insured such employer
29 against such liability shall become primarily liable to pay
30 to the employee, his personal representative or beneficiary
31 the compensation required by the provisions of this Act to be
32 paid by such employer. The insurance carrier may be made a
33 party to the proceedings in which the employer is a party and
34 an award may be entered jointly against the employer and the
35 insurance carrier.
-19- LRB9001214WHmbccr2
1 (h) It shall be unlawful for any employer, insurance
2 company or service or adjustment company to interfere with,
3 restrain or coerce an employee in any manner whatsoever in
4 the exercise of the rights or remedies granted to him or her
5 by this Act or to discriminate, attempt to discriminate, or
6 threaten to discriminate against an employee in any way
7 because of his exercise of the rights or remedies granted to
8 him by this Act.
9 It shall be unlawful for any employer, individually or
10 through any insurance company or service or adjustment
11 company, to discharge or to threaten to discharge, or to
12 refuse to rehire or recall to active service in a suitable
13 capacity an employee because of the exercise of his or her
14 rights or remedies granted to him or her by this Act.
15 (i) If an employer elects to obtain a life insurance
16 policy on his employees, he may also elect to apply such
17 benefits in satisfaction of all or a portion of the death
18 benefits payable under this Act, in which case, the
19 employer's premium for coverage for benefits under this Act
20 shall be reduced accordingly.
21 (Source: P.A. 86-998; 86-1405.)".
22 Submitted on , 1997.
23 ______________________________ _____________________________
24 Senator Lauzen Representative Brunsvold
25 ______________________________ _____________________________
26 Senator Radogno Representative Schoenberg
27 ______________________________ _____________________________
28 Senator Dillard Representative Hannig
29 ______________________________ _____________________________
30 Senator Garcia Representative Churchill
31 ______________________________ _____________________________
32 Senator Farley Representative Parke
33 Committee for the Senate Committee for the House