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90_HB0708eng
5 ILCS 375/2 from Ch. 127, par. 522
5 ILCS 375/3 from Ch. 127, par. 523
5 ILCS 375/6.9 new
5 ILCS 375/6.10 new
5 ILCS 375/15 from Ch. 127, par. 535
40 ILCS 15/1.4 new
110 ILCS 805/2-16.02 from Ch. 122, par. 102-16.02
30 ILCS 805/8.21 new
Amends the State Employees Group Insurance Act of 1971 to
provide a program of group health insurance benefits for
certain retired community college employees and their
survivors and dependents, under the administration of the
Department of Central Management Services. Requires
contributions toward the cost of these benefits from current
community college employees, community college employers, and
the State. Amends the State Pension Funds Continuing
Appropriation Act to provide a continuing appropriation for
this purpose. Amends the Public Community College Act to
discontinue the retirees health insurance grant beginning on
January 1, 1999. Amends the State Mandates Act to require
implementation without reimbursement. Effective immediately.
LRB9003212EGfg
HB0708 Engrossed LRB9003212EGfg
1 AN ACT in relation to health care benefits for certain
2 retired community college employees and their dependents,
3 amending named Acts.
4 Be it enacted by the People of the State of Illinois,
5 represented in the General Assembly:
6 Section 5. The State Employees Group Insurance Act of
7 1971 is amended by changing Sections 2, 3, and 15 and adding
8 Sections 6.9 and 6.10 as follows:
9 (5 ILCS 375/2) (from Ch. 127, par. 522)
10 Sec. 2. Purpose. The purpose of this Act is to provide a
11 program of group life insurance, a program of health benefits
12 and other employee benefits for persons in the service of the
13 State of Illinois, employees of local governments, employees
14 of rehabilitation facilities and employees of domestic
15 violence shelters and services, and certain of their
16 dependents. It is also the purpose of this Act to provide a
17 program of health benefits (i) for certain benefit recipients
18 of the Teachers' Retirement System of the State of Illinois
19 and their dependent beneficiaries and (ii) for certain
20 eligible retired community college employees and their
21 dependent beneficiaries.
22 (Source: P.A. 89-25, eff. 6-21-95.)
23 (5 ILCS 375/3) (from Ch. 127, par. 523)
24 (Text of Section before amendment by P.A. 89-507)
25 Sec. 3. Definitions. Unless the context otherwise
26 requires, the following words and phrases as used in this Act
27 shall have the following meanings. The Department may define
28 these and other words and phrases separately for the purpose
29 of implementing specific programs providing benefits under
30 this Act.
HB0708 Engrossed -2- LRB9003212EGfg
1 (a) "Administrative service organization" means any
2 person, firm or corporation experienced in the handling of
3 claims which is fully qualified, financially sound and
4 capable of meeting the service requirements of a contract of
5 administration executed with the Department.
6 (b) "Annuitant" means (1) an employee who retires, or
7 has retired, on or after January 1, 1966 on an immediate
8 annuity under the provisions of Articles 2, 14, 15 (including
9 an employee who has retired and is receiving a retirement
10 annuity under an optional program established under Section
11 15-158.2 and who would also be eligible for a retirement
12 annuity had that person been a participant in the State
13 University Retirement System), paragraphs (b) or (c) of
14 Section 16-106, or Article 18 of the Illinois Pension Code;
15 (2) any person who was receiving group insurance coverage
16 under this Act as of March 31, 1978 by reason of his status
17 as an annuitant, even though the annuity in relation to which
18 such coverage was provided is a proportional annuity based on
19 less than the minimum period of service required for a
20 retirement annuity in the system involved; (3) any person not
21 otherwise covered by this Act who has retired as a
22 participating member under Article 2 of the Illinois Pension
23 Code but is ineligible for the retirement annuity under
24 Section 2-119 of the Illinois Pension Code; (4) the spouse of
25 any person who is receiving a retirement annuity under
26 Article 18 of the Illinois Pension Code and who is covered
27 under a group health insurance program sponsored by a
28 governmental employer other than the State of Illinois and
29 who has irrevocably elected to waive his or her coverage
30 under this Act and to have his or her spouse considered as
31 the "annuitant" under this Act and not as a "dependent"; or
32 (5) an employee who retires, or has retired, from a qualified
33 position, as determined according to rules promulgated by the
34 Director, under a qualified local government or a qualified
HB0708 Engrossed -3- LRB9003212EGfg
1 rehabilitation facility or a qualified domestic violence
2 shelter or service. (For definition of "retired employee",
3 see (p) post).
4 (c) "Carrier" means (1) an insurance company, a
5 corporation organized under the Limited Health Service
6 Organization Act or the Voluntary Health Services Plan Act, a
7 partnership, or other nongovernmental organization, which is
8 authorized to do group life or group health insurance
9 business in Illinois, or (2) the State of Illinois as a
10 self-insurer.
11 (d) "Compensation" means salary or wages payable on a
12 regular payroll by the State Treasurer on a warrant of the
13 State Comptroller out of any State, trust or federal fund, or
14 by the Governor of the State through a disbursing officer of
15 the State out of a trust or out of federal funds, or by any
16 Department out of State, trust, federal or other funds held
17 by the State Treasurer or the Department, to any person for
18 personal services currently performed, and ordinary or
19 accidental disability benefits under Articles 2, 14, 15
20 (including ordinary or accidental disability benefits under
21 an optional program established under Section 15-158.2),
22 paragraphs (b) or (c) of Section 16-106, or Article 18 of the
23 Illinois Pension Code, for disability incurred after January
24 1, 1966, or benefits payable under the Workers' Compensation
25 or Occupational Diseases Act or benefits payable under a sick
26 pay plan established in accordance with Section 36 of the
27 State Finance Act. "Compensation" also means salary or wages
28 paid to an employee of any qualified local government or
29 qualified rehabilitation facility or a qualified domestic
30 violence shelter or service.
31 (e) "Commission" means the State Employees Group
32 Insurance Advisory Commission authorized by this Act.
33 Commencing July 1, 1984, "Commission" as used in this Act
34 means the Illinois Economic and Fiscal Commission as
HB0708 Engrossed -4- LRB9003212EGfg
1 established by the Legislative Commission Reorganization Act
2 of 1984.
3 (f) "Contributory", when referred to as contributory
4 coverage, shall mean optional coverages or benefits elected
5 by the member toward the cost of which such member makes
6 contribution, or which are funded in whole or in part through
7 the acceptance of a reduction in earnings or the foregoing of
8 an increase in earnings by an employee, as distinguished from
9 noncontributory coverage or benefits which are paid entirely
10 by the State of Illinois without reduction of the member's
11 salary.
12 (g) "Department" means any department, institution,
13 board, commission, officer, court or any agency of the State
14 government receiving appropriations and having power to
15 certify payrolls to the Comptroller authorizing payments of
16 salary and wages against such appropriations as are made by
17 the General Assembly from any State fund, or against trust
18 funds held by the State Treasurer and includes boards of
19 trustees of the retirement systems created by Articles 2, 14,
20 15, 16 and 18 of the Illinois Pension Code. "Department"
21 also includes the Illinois Comprehensive Health Insurance
22 Board and the Illinois Rural Bond Bank.
23 (h) "Dependent", when the term is used in the context of
24 the health and life plan, means a member's spouse and any
25 unmarried child (1) from birth to age 19 including an adopted
26 child, a child who lives with the member from the time of the
27 filing of a petition for adoption until entry of an order of
28 adoption, a stepchild or recognized child who lives with the
29 member in a parent-child relationship, or a child who lives
30 with the member if such member is a court appointed guardian
31 of the child, or (2) age 19 to 23 enrolled as a full-time
32 student in any accredited school, financially dependent upon
33 the member, and eligible as a dependent for Illinois State
34 income tax purposes, or (3) age 19 or over who is mentally or
HB0708 Engrossed -5- LRB9003212EGfg
1 physically handicapped as defined in the Illinois Insurance
2 Code. For the health plan only, the term "dependent" also
3 includes any person enrolled prior to the effective date of
4 this Section who is dependent upon the member to the extent
5 that the member may claim such person as a dependent for
6 Illinois State income tax deduction purposes; no other such
7 person may be enrolled.
8 (i) "Director" means the Director of the Illinois
9 Department of Central Management Services.
10 (j) "Eligibility period" means the period of time a
11 member has to elect enrollment in programs or to select
12 benefits without regard to age, sex or health.
13 (k) "Employee" means and includes each officer or
14 employee in the service of a department who (1) receives his
15 compensation for service rendered to the department on a
16 warrant issued pursuant to a payroll certified by a
17 department or on a warrant or check issued and drawn by a
18 department upon a trust, federal or other fund or on a
19 warrant issued pursuant to a payroll certified by an elected
20 or duly appointed officer of the State or who receives
21 payment of the performance of personal services on a warrant
22 issued pursuant to a payroll certified by a Department and
23 drawn by the Comptroller upon the State Treasurer against
24 appropriations made by the General Assembly from any fund or
25 against trust funds held by the State Treasurer, and (2) is
26 employed full-time or part-time in a position normally
27 requiring actual performance of duty during not less than 1/2
28 of a normal work period, as established by the Director in
29 cooperation with each department, except that persons elected
30 by popular vote will be considered employees during the
31 entire term for which they are elected regardless of hours
32 devoted to the service of the State, and (3) except that
33 "employee" does not include any person who is not eligible by
34 reason of such person's employment to participate in one of
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1 the State retirement systems under Articles 2, 14, 15 (either
2 the regular Article 15 system or an optional program
3 established under Section 15-158.2) or 18, or under paragraph
4 (b) or (c) of Section 16-106, of the Illinois Pension Code,
5 but such term does include persons who are employed during
6 the 6 month qualifying period under Article 14 of the
7 Illinois Pension Code. Such term also includes any person
8 who (1) after January 1, 1966, is receiving ordinary or
9 accidental disability benefits under Articles 2, 14, 15
10 (including ordinary or accidental disability benefits under
11 an optional program established under Section 15-158.2),
12 paragraphs (b) or (c) of Section 16-106, or Article 18 of the
13 Illinois Pension Code, for disability incurred after January
14 1, 1966, (2) receives total permanent or total temporary
15 disability under the Workers' Compensation Act or
16 Occupational Disease Act as a result of injuries sustained or
17 illness contracted in the course of employment with the State
18 of Illinois, or (3) is not otherwise covered under this Act
19 and has retired as a participating member under Article 2 of
20 the Illinois Pension Code but is ineligible for the
21 retirement annuity under Section 2-119 of the Illinois
22 Pension Code. However, a person who satisfies the criteria
23 of the foregoing definition of "employee" except that such
24 person is made ineligible to participate in the State
25 Universities Retirement System by clause (4) of the first
26 paragraph of Section 15-107 of the Illinois Pension Code is
27 also an "employee" for the purposes of this Act. "Employee"
28 also includes any person receiving or eligible for benefits
29 under a sick pay plan established in accordance with Section
30 36 of the State Finance Act. "Employee" also includes each
31 officer or employee in the service of a qualified local
32 government, including persons appointed as trustees of
33 sanitary districts regardless of hours devoted to the service
34 of the sanitary district, and each employee in the service of
HB0708 Engrossed -7- LRB9003212EGfg
1 a qualified rehabilitation facility and each full-time
2 employee in the service of a qualified domestic violence
3 shelter or service, as determined according to rules
4 promulgated by the Director.
5 (l) "Member" means an employee, annuitant, retired
6 employee or survivor.
7 (m) "Optional coverages or benefits" means those
8 coverages or benefits available to the member on his or her
9 voluntary election, and at his or her own expense.
10 (n) "Program" means the group life insurance, health
11 benefits and other employee benefits designed and contracted
12 for by the Director under this Act.
13 (o) "Health plan" means a self-insured health insurance
14 program offered by the State of Illinois for the purposes of
15 benefiting employees by means of providing, among others,
16 wellness programs, utilization reviews, second opinions and
17 medical fee reviews, as well as for paying for hospital and
18 medical care up to the maximum coverage provided by the plan,
19 to its members and their dependents.
20 (p) "Retired employee" means any person who would be an
21 annuitant as that term is defined herein but for the fact
22 that such person retired prior to January 1, 1966. Such term
23 also includes any person formerly employed by the University
24 of Illinois in the Cooperative Extension Service who would be
25 an annuitant but for the fact that such person was made
26 ineligible to participate in the State Universities
27 Retirement System by clause (4) of the first paragraph of
28 Section 15-107 of the Illinois Pension Code.
29 (q) "Survivor" means a person receiving an annuity as a
30 survivor of an employee or of an annuitant. "Survivor" also
31 includes: (1) the surviving dependent of a person who
32 satisfies the definition of "employee" except that such
33 person is made ineligible to participate in the State
34 Universities Retirement System by clause (4) of the first
HB0708 Engrossed -8- LRB9003212EGfg
1 paragraph of Section 15-107 of the Illinois Pension Code; and
2 (2) the surviving dependent of any person formerly employed
3 by the University of Illinois in the Cooperative Extension
4 Service who would be an annuitant except for the fact that
5 such person was made ineligible to participate in the State
6 Universities Retirement System by clause (4) of the first
7 paragraph of Section 15-107 of the Illinois Pension Code.
8 (r) "Medical services" means the services provided
9 within the scope of their licenses by practitioners in all
10 categories licensed under the Medical Practice Act of 1987.
11 (s) "Unit of local government" means any county,
12 municipality, township, school district, special district or
13 other unit, designated as a unit of local government by law,
14 which exercises limited governmental powers or powers in
15 respect to limited governmental subjects, any not-for-profit
16 association with a membership that primarily includes
17 townships and township officials, that has duties that
18 include provision of research service, dissemination of
19 information, and other acts for the purpose of improving
20 township government, and that is funded wholly or partly in
21 accordance with Section 85-15 of the Township Code; any
22 not-for-profit corporation or association, with a membership
23 consisting primarily of municipalities, that operates its own
24 utility system, and provides research, training,
25 dissemination of information, or other acts to promote
26 cooperation between and among municipalities that provide
27 utility services and for the advancement of the goals and
28 purposes of its membership; and the Illinois Association of
29 Park Districts. "Qualified local government" means a unit of
30 local government approved by the Director and participating
31 in a program created under subsection (i) of Section 10 of
32 this Act.
33 (t) "Qualified rehabilitation facility" means any
34 not-for-profit organization that is accredited by the
HB0708 Engrossed -9- LRB9003212EGfg
1 Commission on Accreditation of Rehabilitation Facilities or
2 certified by the Department of Mental Health and
3 Developmental Disabilities to provide services to persons
4 with disabilities and which receives funds from the State of
5 Illinois for providing those services, approved by the
6 Director and participating in a program created under
7 subsection (j) of Section 10 of this Act.
8 (u) "Qualified domestic violence shelter or service"
9 means any Illinois domestic violence shelter or service and
10 its administrative offices funded by the Illinois Department
11 of Public Aid, approved by the Director and participating in
12 a program created under subsection (k) of Section 10.
13 (v) "TRS benefit recipient" means a person who:
14 (1) is not a "member" as defined in this Section;
15 and
16 (2) is receiving a monthly benefit or retirement
17 annuity under Article 16 of the Illinois Pension Code;
18 and
19 (3) either (i) has at least 8 years of creditable
20 service under Article 16 of the Illinois Pension Code, or
21 (ii) was enrolled in the health insurance program offered
22 under that Article on January 1, 1996, or (iii) is the
23 survivor of a benefit recipient who had at least 8 years
24 of creditable service under Article 16 of the Illinois
25 Pension Code or was enrolled in the health insurance
26 program offered under that Article on the effective date
27 of this amendatory Act of 1995, or (iv) is a recipient or
28 survivor of a recipient of a disability benefit under
29 Article 16 of the Illinois Pension Code.
30 (w) "TRS dependent beneficiary" means a person who:
31 (1) is not a "member" or "dependent" as defined in
32 this Section; and
33 (2) is a TRS benefit recipient's: (A) spouse, (B)
34 dependent parent who is receiving at least half of his or
HB0708 Engrossed -10- LRB9003212EGfg
1 her support from the TRS benefit recipient, or (C)
2 unmarried natural or adopted child who is (i) under age
3 19, or (ii) enrolled as a full-time student in an
4 accredited school, financially dependent upon the TRS
5 benefit recipient, eligible as a dependent for Illinois
6 State income tax purposes, and either is under age 24 or
7 was, on January 1, 1996, participating as a dependent
8 beneficiary in the health insurance program offered under
9 Article 16 of the Illinois Pension Code, or (iii) age 19
10 or over who is mentally or physically handicapped as
11 defined in the Illinois Insurance Code.
12 (x) "Military leave with pay and benefits" refers to
13 individuals in basic training for reserves, special/advanced
14 training, annual training, emergency call up, or activation
15 by the President of the United States with approved pay and
16 benefits.
17 (y) "Military leave without pay and benefits" refers to
18 individuals who enlist for active duty in a regular component
19 of the U.S. Armed Forces or other duty not specified or
20 authorized under military leave with pay and benefits.
21 (z) "Community college benefit recipient" means a person
22 who:
23 (1) is not a "member" as defined in this Section;
24 and
25 (2) is receiving a monthly survivor's annuity or
26 retirement annuity under Article 15 of the Illinois
27 Pension Code; and
28 (3) either (i) was a full-time employee of a
29 community college district or an association of community
30 college boards created under the Public Community College
31 Act (other than an employee whose last employer under
32 Article 15 of the Illinois Pension Code was a community
33 college district subject to Article VII of the Public
34 Community College Act) and was eligible to participate in
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1 a group health benefit plan as an employee during the
2 time of employment with a community college district
3 (other than a community college district subject to
4 Article VII of the Public Community College Act) or an
5 association of community college boards, or (ii) is the
6 survivor of a person described in item (i).
7 (aa) "Community college dependent beneficiary" means a
8 person who:
9 (1) is not a "member" or "dependent" as defined in
10 this Section; and
11 (2) is a community college benefit recipient's: (A)
12 spouse, (B) dependent parent who is receiving at least
13 half of his or her support from the community college
14 benefit recipient, or (C) unmarried natural or adopted
15 child who is (i) under age 19, or (ii) enrolled as a
16 full-time student in an accredited school, financially
17 dependent upon the community college benefit recipient,
18 eligible as a dependent for Illinois State income tax
19 purposes and under age 23, or (iii) age 19 or over and
20 mentally or physically handicapped as defined in the
21 Illinois Insurance Code.
22 (Source: P.A. 88-670, eff. 12-2-94; 89-21, eff. 6-21-95;
23 89-25, eff. 6-21-95; 89-76, eff. 7-1-95; 89-324, eff.
24 8-13-95; 89-430, eff. 12-15-95; 89-502, eff. 7-1-96; 89-628,
25 eff. 8-9-96; revised 8-23-96.)
26 (Text of Section after amendment by P.A. 89-507)
27 Sec. 3. Definitions. Unless the context otherwise
28 requires, the following words and phrases as used in this Act
29 shall have the following meanings. The Department may define
30 these and other words and phrases separately for the purpose
31 of implementing specific programs providing benefits under
32 this Act.
33 (a) "Administrative service organization" means any
34 person, firm or corporation experienced in the handling of
HB0708 Engrossed -12- LRB9003212EGfg
1 claims which is fully qualified, financially sound and
2 capable of meeting the service requirements of a contract of
3 administration executed with the Department.
4 (b) "Annuitant" means (1) an employee who retires, or
5 has retired, on or after January 1, 1966 on an immediate
6 annuity under the provisions of Articles 2, 14, 15 (including
7 an employee who has retired and is receiving a retirement
8 annuity under an optional program established under Section
9 15-158.2 and who would also be eligible for a retirement
10 annuity had that person been a participant in the State
11 University Retirement System), paragraphs (b) or (c) of
12 Section 16-106, or Article 18 of the Illinois Pension Code;
13 (2) any person who was receiving group insurance coverage
14 under this Act as of March 31, 1978 by reason of his status
15 as an annuitant, even though the annuity in relation to which
16 such coverage was provided is a proportional annuity based on
17 less than the minimum period of service required for a
18 retirement annuity in the system involved; (3) any person not
19 otherwise covered by this Act who has retired as a
20 participating member under Article 2 of the Illinois Pension
21 Code but is ineligible for the retirement annuity under
22 Section 2-119 of the Illinois Pension Code; (4) the spouse of
23 any person who is receiving a retirement annuity under
24 Article 18 of the Illinois Pension Code and who is covered
25 under a group health insurance program sponsored by a
26 governmental employer other than the State of Illinois and
27 who has irrevocably elected to waive his or her coverage
28 under this Act and to have his or her spouse considered as
29 the "annuitant" under this Act and not as a "dependent"; or
30 (5) an employee who retires, or has retired, from a qualified
31 position, as determined according to rules promulgated by the
32 Director, under a qualified local government or a qualified
33 rehabilitation facility or a qualified domestic violence
34 shelter or service. (For definition of "retired employee",
HB0708 Engrossed -13- LRB9003212EGfg
1 see (p) post).
2 (c) "Carrier" means (1) an insurance company, a
3 corporation organized under the Limited Health Service
4 Organization Act or the Voluntary Health Services Plan Act, a
5 partnership, or other nongovernmental organization, which is
6 authorized to do group life or group health insurance
7 business in Illinois, or (2) the State of Illinois as a
8 self-insurer.
9 (d) "Compensation" means salary or wages payable on a
10 regular payroll by the State Treasurer on a warrant of the
11 State Comptroller out of any State, trust or federal fund, or
12 by the Governor of the State through a disbursing officer of
13 the State out of a trust or out of federal funds, or by any
14 Department out of State, trust, federal or other funds held
15 by the State Treasurer or the Department, to any person for
16 personal services currently performed, and ordinary or
17 accidental disability benefits under Articles 2, 14, 15
18 (including ordinary or accidental disability benefits under
19 an optional program established under Section 15-158.2),
20 paragraphs (b) or (c) of Section 16-106, or Article 18 of the
21 Illinois Pension Code, for disability incurred after January
22 1, 1966, or benefits payable under the Workers' Compensation
23 or Occupational Diseases Act or benefits payable under a sick
24 pay plan established in accordance with Section 36 of the
25 State Finance Act. "Compensation" also means salary or wages
26 paid to an employee of any qualified local government or
27 qualified rehabilitation facility or a qualified domestic
28 violence shelter or service.
29 (e) "Commission" means the State Employees Group
30 Insurance Advisory Commission authorized by this Act.
31 Commencing July 1, 1984, "Commission" as used in this Act
32 means the Illinois Economic and Fiscal Commission as
33 established by the Legislative Commission Reorganization Act
34 of 1984.
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1 (f) "Contributory", when referred to as contributory
2 coverage, shall mean optional coverages or benefits elected
3 by the member toward the cost of which such member makes
4 contribution, or which are funded in whole or in part through
5 the acceptance of a reduction in earnings or the foregoing of
6 an increase in earnings by an employee, as distinguished from
7 noncontributory coverage or benefits which are paid entirely
8 by the State of Illinois without reduction of the member's
9 salary.
10 (g) "Department" means any department, institution,
11 board, commission, officer, court or any agency of the State
12 government receiving appropriations and having power to
13 certify payrolls to the Comptroller authorizing payments of
14 salary and wages against such appropriations as are made by
15 the General Assembly from any State fund, or against trust
16 funds held by the State Treasurer and includes boards of
17 trustees of the retirement systems created by Articles 2, 14,
18 15, 16 and 18 of the Illinois Pension Code. "Department"
19 also includes the Illinois Comprehensive Health Insurance
20 Board and the Illinois Rural Bond Bank.
21 (h) "Dependent", when the term is used in the context of
22 the health and life plan, means a member's spouse and any
23 unmarried child (1) from birth to age 19 including an adopted
24 child, a child who lives with the member from the time of the
25 filing of a petition for adoption until entry of an order of
26 adoption, a stepchild or recognized child who lives with the
27 member in a parent-child relationship, or a child who lives
28 with the member if such member is a court appointed guardian
29 of the child, or (2) age 19 to 23 enrolled as a full-time
30 student in any accredited school, financially dependent upon
31 the member, and eligible as a dependent for Illinois State
32 income tax purposes, or (3) age 19 or over who is mentally or
33 physically handicapped as defined in the Illinois Insurance
34 Code. For the health plan only, the term "dependent" also
HB0708 Engrossed -15- LRB9003212EGfg
1 includes any person enrolled prior to the effective date of
2 this Section who is dependent upon the member to the extent
3 that the member may claim such person as a dependent for
4 Illinois State income tax deduction purposes; no other such
5 person may be enrolled.
6 (i) "Director" means the Director of the Illinois
7 Department of Central Management Services.
8 (j) "Eligibility period" means the period of time a
9 member has to elect enrollment in programs or to select
10 benefits without regard to age, sex or health.
11 (k) "Employee" means and includes each officer or
12 employee in the service of a department who (1) receives his
13 compensation for service rendered to the department on a
14 warrant issued pursuant to a payroll certified by a
15 department or on a warrant or check issued and drawn by a
16 department upon a trust, federal or other fund or on a
17 warrant issued pursuant to a payroll certified by an elected
18 or duly appointed officer of the State or who receives
19 payment of the performance of personal services on a warrant
20 issued pursuant to a payroll certified by a Department and
21 drawn by the Comptroller upon the State Treasurer against
22 appropriations made by the General Assembly from any fund or
23 against trust funds held by the State Treasurer, and (2) is
24 employed full-time or part-time in a position normally
25 requiring actual performance of duty during not less than 1/2
26 of a normal work period, as established by the Director in
27 cooperation with each department, except that persons elected
28 by popular vote will be considered employees during the
29 entire term for which they are elected regardless of hours
30 devoted to the service of the State, and (3) except that
31 "employee" does not include any person who is not eligible by
32 reason of such person's employment to participate in one of
33 the State retirement systems under Articles 2, 14, 15 (either
34 the regular Article 15 system or an optional program
HB0708 Engrossed -16- LRB9003212EGfg
1 established under Section 15-158.2) or 18, or under paragraph
2 (b) or (c) of Section 16-106, of the Illinois Pension Code,
3 but such term does include persons who are employed during
4 the 6 month qualifying period under Article 14 of the
5 Illinois Pension Code. Such term also includes any person
6 who (1) after January 1, 1966, is receiving ordinary or
7 accidental disability benefits under Articles 2, 14, 15
8 (including ordinary or accidental disability benefits under
9 an optional program established under Section 15-158.2),
10 paragraphs (b) or (c) of Section 16-106, or Article 18 of the
11 Illinois Pension Code, for disability incurred after January
12 1, 1966, (2) receives total permanent or total temporary
13 disability under the Workers' Compensation Act or
14 Occupational Disease Act as a result of injuries sustained or
15 illness contracted in the course of employment with the State
16 of Illinois, or (3) is not otherwise covered under this Act
17 and has retired as a participating member under Article 2 of
18 the Illinois Pension Code but is ineligible for the
19 retirement annuity under Section 2-119 of the Illinois
20 Pension Code. However, a person who satisfies the criteria
21 of the foregoing definition of "employee" except that such
22 person is made ineligible to participate in the State
23 Universities Retirement System by clause (4) of the first
24 paragraph of Section 15-107 of the Illinois Pension Code is
25 also an "employee" for the purposes of this Act. "Employee"
26 also includes any person receiving or eligible for benefits
27 under a sick pay plan established in accordance with Section
28 36 of the State Finance Act. "Employee" also includes each
29 officer or employee in the service of a qualified local
30 government, including persons appointed as trustees of
31 sanitary districts regardless of hours devoted to the service
32 of the sanitary district, and each employee in the service of
33 a qualified rehabilitation facility and each full-time
34 employee in the service of a qualified domestic violence
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1 shelter or service, as determined according to rules
2 promulgated by the Director.
3 (l) "Member" means an employee, annuitant, retired
4 employee or survivor.
5 (m) "Optional coverages or benefits" means those
6 coverages or benefits available to the member on his or her
7 voluntary election, and at his or her own expense.
8 (n) "Program" means the group life insurance, health
9 benefits and other employee benefits designed and contracted
10 for by the Director under this Act.
11 (o) "Health plan" means a self-insured health insurance
12 program offered by the State of Illinois for the purposes of
13 benefiting employees by means of providing, among others,
14 wellness programs, utilization reviews, second opinions and
15 medical fee reviews, as well as for paying for hospital and
16 medical care up to the maximum coverage provided by the plan,
17 to its members and their dependents.
18 (p) "Retired employee" means any person who would be an
19 annuitant as that term is defined herein but for the fact
20 that such person retired prior to January 1, 1966. Such term
21 also includes any person formerly employed by the University
22 of Illinois in the Cooperative Extension Service who would be
23 an annuitant but for the fact that such person was made
24 ineligible to participate in the State Universities
25 Retirement System by clause (4) of the first paragraph of
26 Section 15-107 of the Illinois Pension Code.
27 (q) "Survivor" means a person receiving an annuity as a
28 survivor of an employee or of an annuitant. "Survivor" also
29 includes: (1) the surviving dependent of a person who
30 satisfies the definition of "employee" except that such
31 person is made ineligible to participate in the State
32 Universities Retirement System by clause (4) of the first
33 paragraph of Section 15-107 of the Illinois Pension Code; and
34 (2) the surviving dependent of any person formerly employed
HB0708 Engrossed -18- LRB9003212EGfg
1 by the University of Illinois in the Cooperative Extension
2 Service who would be an annuitant except for the fact that
3 such person was made ineligible to participate in the State
4 Universities Retirement System by clause (4) of the first
5 paragraph of Section 15-107 of the Illinois Pension Code.
6 (r) "Medical services" means the services provided
7 within the scope of their licenses by practitioners in all
8 categories licensed under the Medical Practice Act of 1987.
9 (s) "Unit of local government" means any county,
10 municipality, township, school district, special district or
11 other unit, designated as a unit of local government by law,
12 which exercises limited governmental powers or powers in
13 respect to limited governmental subjects, any not-for-profit
14 association with a membership that primarily includes
15 townships and township officials, that has duties that
16 include provision of research service, dissemination of
17 information, and other acts for the purpose of improving
18 township government, and that is funded wholly or partly in
19 accordance with Section 85-15 of the Township Code; any
20 not-for-profit corporation or association, with a membership
21 consisting primarily of municipalities, that operates its own
22 utility system, and provides research, training,
23 dissemination of information, or other acts to promote
24 cooperation between and among municipalities that provide
25 utility services and for the advancement of the goals and
26 purposes of its membership; and the Illinois Association of
27 Park Districts. "Qualified local government" means a unit of
28 local government approved by the Director and participating
29 in a program created under subsection (i) of Section 10 of
30 this Act.
31 (t) "Qualified rehabilitation facility" means any
32 not-for-profit organization that is accredited by the
33 Commission on Accreditation of Rehabilitation Facilities or
34 certified by the Department of Human Services (as successor
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1 to the Department of Mental Health and Developmental
2 Disabilities) to provide services to persons with
3 disabilities and which receives funds from the State of
4 Illinois for providing those services, approved by the
5 Director and participating in a program created under
6 subsection (j) of Section 10 of this Act.
7 (u) "Qualified domestic violence shelter or service"
8 means any Illinois domestic violence shelter or service and
9 its administrative offices funded by the Department of Human
10 Services (as successor to the Illinois Department of Public
11 Aid), approved by the Director and participating in a program
12 created under subsection (k) of Section 10.
13 (v) "TRS benefit recipient" means a person who:
14 (1) is not a "member" as defined in this Section;
15 and
16 (2) is receiving a monthly benefit or retirement
17 annuity under Article 16 of the Illinois Pension Code;
18 and
19 (3) either (i) has at least 8 years of creditable
20 service under Article 16 of the Illinois Pension Code, or
21 (ii) was enrolled in the health insurance program offered
22 under that Article on January 1, 1996, or (iii) is the
23 survivor of a benefit recipient who had at least 8 years
24 of creditable service under Article 16 of the Illinois
25 Pension Code or was enrolled in the health insurance
26 program offered under that Article on the effective date
27 of this amendatory Act of 1995, or (iv) is a recipient or
28 survivor of a recipient of a disability benefit under
29 Article 16 of the Illinois Pension Code.
30 (w) "TRS dependent beneficiary" means a person who:
31 (1) is not a "member" or "dependent" as defined in
32 this Section; and
33 (2) is a TRS benefit recipient's: (A) spouse, (B)
34 dependent parent who is receiving at least half of his or
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1 her support from the TRS benefit recipient, or (C)
2 unmarried natural or adopted child who is (i) under age
3 19, or (ii) enrolled as a full-time student in an
4 accredited school, financially dependent upon the TRS
5 benefit recipient, eligible as a dependent for Illinois
6 State income tax purposes, and either is under age 24 or
7 was, on January 1, 1996, participating as a dependent
8 beneficiary in the health insurance program offered under
9 Article 16 of the Illinois Pension Code, or (iii) age 19
10 or over who is mentally or physically handicapped as
11 defined in the Illinois Insurance Code.
12 (x) "Military leave with pay and benefits" refers to
13 individuals in basic training for reserves, special/advanced
14 training, annual training, emergency call up, or activation
15 by the President of the United States with approved pay and
16 benefits.
17 (y) "Military leave without pay and benefits" refers to
18 individuals who enlist for active duty in a regular component
19 of the U.S. Armed Forces or other duty not specified or
20 authorized under military leave with pay and benefits.
21 (z) "Community college benefit recipient" means a person
22 who:
23 (1) is not a "member" as defined in this Section;
24 and
25 (2) is receiving a monthly survivor's annuity or
26 retirement annuity under Article 15 of the Illinois
27 Pension Code; and
28 (3) either (i) was a full-time employee of a
29 community college district or an association of community
30 college boards created under the Public Community College
31 Act (other than an employee whose last employer under
32 Article 15 of the Illinois Pension Code was a community
33 college district subject to Article VII of the Public
34 Community College Act) and was eligible to participate in
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1 a group health benefit plan as an employee during the
2 time of employment with a community college district
3 (other than a community college district subject to
4 Article VII of the Public Community College Act) or an
5 association of community college boards, or (ii) is the
6 survivor of a person described in item (i).
7 (aa) "Community college dependent beneficiary" means a
8 person who:
9 (1) is not a "member" or "dependent" as defined in
10 this Section; and
11 (2) is a community college benefit recipient's: (A)
12 spouse, (B) dependent parent who is receiving at least
13 half of his or her support from the community college
14 benefit recipient, or (C) unmarried natural or adopted
15 child who is (i) under age 19, or (ii) enrolled as a
16 full-time student in an accredited school, financially
17 dependent upon the community college benefit recipient,
18 eligible as a dependent for Illinois State income tax
19 purposes and under age 23, or (iii) age 19 or over and
20 mentally or physically handicapped as defined in the
21 Illinois Insurance Code.
22 (Source: P.A. 88-670, eff. 12-2-94; 89-21, eff. 6-21-95;
23 89-25, eff. 6-21-95; 89-76, eff. 7-1-95; 89-324, eff.
24 8-13-95; 89-430, eff. 12-15-95; 89-502, eff. 7-1-96; 89-507,
25 eff. 7-1-97; 89-628, eff. 8-9-96; revised 8-23-96.)
26 (5 ILCS 375/6.9 new)
27 Sec. 6.9. Health benefits for community college benefit
28 recipients and community college dependent beneficiaries.
29 (a) Purpose. It is the purpose of this amendatory Act
30 of 1997 to establish a uniform program of health benefits for
31 community college benefit recipients and their dependent
32 beneficiaries under the administration of the Department of
33 Central Management Services.
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1 (b) Creation of program. Beginning July 1, 1999, the
2 Department of Central Management Services shall be
3 responsible for administering a program of health benefits
4 for community college benefit recipients and community
5 college dependent beneficiaries under this Section. The
6 State Universities Retirement System and the boards of
7 trustees of the various community college districts shall
8 cooperate with the Department in this endeavor.
9 (c) Eligibility. All community college benefit
10 recipients and community college dependent beneficiaries
11 shall be eligible to participate in the program established
12 under this Section, without any interruption or delay in
13 coverage or limitation as to pre-existing medical conditions.
14 Eligibility to participate shall be determined by the State
15 Universities Retirement System. Eligibility information
16 shall be communicated to the Department of Central Management
17 Services in a format acceptable to the Department.
18 (d) Coverage. The health benefits provided under this
19 Section shall be the same as the benefits provided under the
20 other provisions of this Act for annuitants of the State
21 Universities Retirement System and their dependent
22 beneficiaries. However, group life insurance benefits are
23 not included in the benefits to be provided to community
24 college benefit recipients and community college dependent
25 beneficiaries under this Act.
26 (e) Insurance rates and premiums. The Director shall
27 determine the insurance rates and premiums for community
28 college benefit recipients and community college dependent
29 beneficiaries. Rates and premiums may be based in part on
30 age and eligibility for federal medicare coverage.
31 The cost of health benefits under the program shall be
32 paid as follows:
33 (1) For a community college benefit recipient, up
34 to 75% of the total insurance rate shall be paid from the
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1 Community College Health Insurance Security Fund.
2 (2) The balance of the rate of insurance, including
3 the entire premium for any coverage for community college
4 dependent beneficiaries that has been elected, shall be
5 paid by deductions authorized by the community college
6 benefit recipient to be withheld from his or her monthly
7 annuity or benefit payment from the State Universities
8 Retirement System; except that (i) if the balance of the
9 cost of coverage exceeds the amount of the monthly
10 annuity or benefit payment, the difference shall be paid
11 directly to the State Universities Retirement System by
12 the community college benefit recipient, and (ii) all or
13 part of the balance of the cost of coverage may, at the
14 option of the board of trustees of the community college
15 district, be paid to the State Universities Retirement
16 System by the board of the community college district
17 from which the community college benefit recipient
18 retired. The State Universities Retirement System shall
19 promptly deposit all moneys withheld by or paid to it
20 under this subdivision (e)(2) into the Community College
21 Health Insurance Security Fund. These moneys shall not
22 be considered assets of the State Universities Retirement
23 System.
24 This Act does not prohibit any community college district
25 from paying for all or a portion of the premiums,
26 deductibles, or other costs of the benefits provided under
27 this Section for its retirees or their dependents or
28 survivors.
29 (f) Financing. All revenues arising from the
30 administration of the health benefit program established
31 under this Section shall be deposited into the Community
32 College Health Insurance Security Fund, which is hereby
33 created as a nonappropriated trust fund to be held outside
34 the State Treasury, with the State Treasurer as custodian.
HB0708 Engrossed -24- LRB9003212EGfg
1 Any interest earned on moneys in the Community College Health
2 Insurance Security Fund shall be deposited into the Fund.
3 Moneys in the Community College Health Insurance Security
4 Fund shall be used only to pay the costs of the health
5 benefit program established under this Section, including
6 associated administrative costs. Beginning January 1, 1999,
7 the Department of Central Management Services may make
8 expenditures from the Community College Health Insurance
9 Security Fund for those costs.
10 (g) Contract for benefits. The Director shall by
11 contract, self-insurance, or otherwise make available the
12 program of health benefits for community college benefit
13 recipients and their community college dependent
14 beneficiaries that is provided for in this Section. The
15 contract or other arrangement for the provision of these
16 health benefits shall be on terms deemed by the Director to
17 be in the best interest of the State of Illinois and the
18 community college benefit recipients based on, but not
19 limited to, such criteria as administrative cost, service
20 capabilities of the carrier or other contractor, and the
21 costs of the benefits.
22 (h) Continuation of program. It is the intention of the
23 General Assembly that the program of health benefits provided
24 under this Section be maintained on an ongoing, affordable
25 basis. The program of health benefits provided under this
26 Section may be amended by the State and is not intended to be
27 a pension or retirement benefit subject to protection under
28 Article XIII, Section 5 of the Illinois Constitution.
29 (i) Other health benefit plans. A health benefit plan
30 provided by a community college district (other than a
31 community college district subject to Article VII of the
32 Public Community College Act) under the terms of a collective
33 bargaining agreement in effect on or before the effective
34 date of this amendatory Act of 1997 shall continue in force
HB0708 Engrossed -25- LRB9003212EGfg
1 according to the terms of that agreement, unless otherwise
2 mutually agreed by the parties to that agreement. A
3 community college benefit recipient or community college
4 dependent beneficiary whose coverage under such a plan
5 expires shall be eligible to begin participating in the
6 program established under this Section without any
7 interruption or delay in coverage or limitation as to
8 pre-existing medical conditions.
9 This Act does not prohibit any community college district
10 from offering additional health benefits for its retirees or
11 their dependents or survivors.
12 (5 ILCS 375/6.10 new)
13 Sec. 6.10. Contributions to the Community College Health
14 Insurance Security Fund.
15 (a) Beginning January 1, 1999, every active contributor
16 of the State Universities Retirement System (established
17 under Article 15 of the Illinois Pension Code) who (1) is a
18 full-time employee of a community college district (other
19 than a community college district subject to Article VII of
20 the Public Community College Act) or an association of
21 community college boards and (2) is not an employee as
22 defined in Section 3 of this Act shall make contributions
23 toward the cost of community college annuitant and survivor
24 health benefits at the rate of 0.35% of salary.
25 These contributions shall be deducted by the employer and
26 paid to the State Universities Retirement System as service
27 agent for the Department of Central Management Services. The
28 System may use the same processes for collecting the
29 contributions required by this subsection that it uses to
30 collect the contributions received from those employees under
31 Section 15-157 of the Illinois Pension Code. An employer may
32 agree to pick up or pay the contributions required under this
33 subsection on behalf of the employee; such contributions
HB0708 Engrossed -26- LRB9003212EGfg
1 shall be deemed to have been paid by the employee.
2 A person required to make contributions under this
3 subsection (a) who purchases optional service credit under
4 Article 15 of the Illinois Pension Code must also pay the
5 contribution required under this subsection (a) with respect
6 to that optional service credit. This contribution must be
7 received by the System before that optional service credit is
8 granted.
9 The State Universities Retirement System shall promptly
10 deposit all moneys collected under this subsection (a) into
11 the Community College Health Insurance Security Fund created
12 in Section 6.9 of this Act. The moneys collected under this
13 Section shall be used only for the purposes authorized in
14 Section 6.9 of this Act and shall not be considered to be
15 assets of the State Universities Retirement System.
16 Contributions made under this Section are not transferable to
17 other pension funds or retirement systems and are not
18 refundable upon termination of service.
19 (b) Beginning January 1, 1999, every community college
20 district (other than a community college district subject to
21 Article VII of the Public Community College Act) or
22 association of community college boards that is an employer
23 under the State Universities Retirement System shall
24 contribute toward the cost of the community college health
25 benefits provided under Section 6.9 of this Act an amount
26 equal to 0.35% of the salary paid to its full-time employees
27 who participate in the State Universities Retirement System
28 and are not members as defined in Section 3 of this Act.
29 These contributions shall be paid by the employer to the
30 State Universities Retirement System as service agent for the
31 Department of Central Management Services. The System may
32 use the same processes for collecting the contributions
33 required by this subsection that it uses to collect the
34 contributions received from those employers under Section
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1 15-155 of the Illinois Pension Code.
2 The State Universities Retirement System shall promptly
3 deposit all moneys collected under this subsection (b) into
4 the Community College Health Insurance Security Fund created
5 in Section 6.9 of this Act. The moneys collected under this
6 Section shall be used only for the purposes authorized in
7 Section 6.9 of this Act and shall not be considered to be
8 assets of the State Universities Retirement System.
9 Contributions made under this Section are not transferable to
10 other pension funds or retirement systems and are not
11 refundable upon termination of service.
12 (c) On or before November 15 of each year, the Board of
13 Trustees of the State Universities Retirement System shall
14 certify to the Governor, the Director of Central Management
15 Services, and the State Comptroller its estimate of the total
16 amount of contributions to be paid under subsection (a) of
17 this Section for the next fiscal year. The certification
18 shall include a detailed explanation of the methods and
19 information that the Board relied upon in preparing its
20 estimate. As soon as possible after the effective date of
21 this Section, the Board shall submit its estimate for fiscal
22 year 1999.
23 (d) Beginning in fiscal year 1999, on the first day of
24 each month, or as soon thereafter as may be practical, the
25 State Treasurer and the State Comptroller shall transfer from
26 the General Revenue Fund to the Community College Health
27 Insurance Security Fund 1/12 of the annual amount
28 appropriated for that fiscal year to the State Comptroller
29 for deposit into the Community College Health Insurance
30 Security Fund under Section 1.4 of the State Pension Funds
31 Continuing Appropriation Act.
32 (e) Except where otherwise specified in this Section,
33 the definitions that apply to Article 15 of the Illinois
34 Pension Code apply to this Section.
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1 (5 ILCS 375/15) (from Ch. 127, par. 535)
2 Sec. 15. Administration; rules; audit; review.
3 (a) The Director shall administer this Act and shall
4 prescribe such rules and regulations as are necessary to give
5 full effect to the purposes of this Act.
6 (b) These rules may fix reasonable standards for the
7 group life and group health programs and other benefit
8 programs offered under this Act, and for the contractors
9 providing them.
10 (c) These rules shall specify that covered and optional
11 medical services of the program are services provided within
12 the scope of their licenses by practitioners in all
13 categories licensed under the Medical Practice Act of 1987
14 and shall provide that all eligible persons be fully informed
15 of this specification.
16 (d) These rules shall establish eligibility requirements
17 for members and dependents as may be necessary to supplement
18 or clarify requirements contained in this Act.
19 (e) Each affected department of the State, the State
20 Universities Retirement System, the Teachers' Retirement
21 System, and each qualified local government, rehabilitation
22 facility, or domestic violence shelter or service, shall keep
23 such records, make such certifications, and furnish the
24 Director such information as may be necessary for the
25 administration of this Act, including information concerning
26 number and total amounts of payroll of employees of the
27 department who are paid from trust funds or federal funds.
28 (f) Each member, each Community College benefit
29 recipient to whom this Act applies, and each TRS benefit
30 recipient to whom this Act applies shall furnish the
31 Director, in such form as may be required, any information
32 that may be necessary to enroll such member or TRS benefit
33 recipient and, if applicable, his or her dependents or TRS
34 dependent beneficiaries under the programs or plan, including
HB0708 Engrossed -29- LRB9003212EGfg
1 such data as may be required to allow the Director to
2 accumulate statistics on data normally considered in
3 actuarial studies of employee groups. Information about
4 community college benefit recipients and community college
5 dependent beneficiaries shall be furnished through the State
6 Universities Retirement System. Information about TRS
7 benefit recipients and TRS dependent beneficiaries shall be
8 furnished through the Teachers' Retirement System.
9 (g) There shall be an annual audit and report on the
10 programs authorized and established by this Act prepared by
11 the Director with the assistance of a qualified, independent
12 accounting firm. The annual report shall provide information
13 on the experience, and administrative effectiveness and
14 adequacy of the program including, when applicable,
15 recommendations on up-grading of benefits and improvement of
16 the program.
17 (h) Any final order, decision or other determination
18 made, issued or executed by the Director under the provisions
19 of this Act whereby any contractor or person is aggrieved
20 shall be subject to review in accordance with the provisions
21 of the Administrative Review Law and all amendments and
22 modifications thereof, and the rules adopted pursuant
23 thereto, shall apply to and govern all proceedings for the
24 judicial review of final administrative decisions of the
25 Director.
26 (Source: P.A. 89-21, eff. 6-21-95; 89-25, eff. 6-21-95.)
27 Section 10. The State Pension Funds Continuing
28 Appropriation Act is amended by adding Section 1.4 as
29 follows:
30 (40 ILCS 15/1.4 new)
31 Sec. 1.4. Appropriations for the Community College Health
32 Insurance Security Fund. Beginning in State fiscal year
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1 1999, there is hereby appropriated, on a continuing annual
2 basis, from the General Revenue Fund to the State Comptroller
3 for deposit into the Community College Health Insurance
4 Security Fund, an amount equal to the amount certified by the
5 Board of Trustees of the State Universities Retirement System
6 under subsection (c) of Section 6.10 of the State Employees
7 Group Insurance Act of 1971 as the estimated total amount of
8 contributions to be paid under subsection (a) of that Section
9 6.10 in that fiscal year. The moneys appropriated under this
10 Section 1.4 shall be deposited into the Community College
11 Health Insurance Security Fund and used only for the purposes
12 authorized in Section 6.9 of the State Employees Group
13 Insurance Act of 1971.
14 Section 15. The Public Community College Act is amended
15 by changing Section 2-16.02 as follows:
16 (110 ILCS 805/2-16.02) (from Ch. 122, par. 102-16.02)
17 Sec. 2-16.02. Grants. Any community college district
18 that maintains a community college recognized by the State
19 Board shall receive, when eligible, grants enumerated in this
20 Section. Except for equalization grants, retirees health
21 insurance grants, grants to districts established pursuant to
22 Section 6-6.1, and grants for special initiatives, all grants
23 specified in this Section shall be based on funded semester
24 credit hours. Funded semester credit hours shall be defined,
25 for purposes of this Section, as the greater of (1) the
26 number of semester credit hours, or equivalent, in all funded
27 instructional categories of students who have been certified
28 as being in attendance at midterm during the respective terms
29 of the base fiscal year or (2) the average of semester credit
30 hours, or equivalent, in all funded instructional categories
31 of students who have been certified as being in attendance at
32 midterm during the respective terms of the base fiscal year
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1 and the 2 prior fiscal years. For purposes of this Section,
2 "base fiscal year" means the fiscal year 2 years prior to the
3 fiscal year for which the grants are appropriated. Such
4 students shall have been residents of Illinois and shall have
5 been enrolled in courses that are part of instructional
6 program categories approved by the State Board and that are
7 applicable toward an associate degree or certificate.
8 Courses are not eligible for reimbursement where the district
9 receives federal or State financing or both, except financing
10 through the State Board, for 50% or more of the program costs
11 with the exception of courses offered by contract with the
12 Department of Corrections in correctional institutions.
13 After distributing a grant of up to one-tenth of 1% of the
14 total available credit hour grant funding to each district
15 with less than 75,000 funded semester credit hours exclusive
16 of Department of Corrections credit hours, the remaining
17 credit hour grants shall be paid based on rates per funded
18 semester credit hour or equivalent calculated by the State
19 Board for funded instructional categories using cost of
20 instruction, enrollment, inflation, and other relevant
21 factors.
22 Grants for equalization shall be distributed to each
23 district that falls below a statewide threshold calculated by
24 the State Board by: (A) adding (1) the Corporate Personal
25 Property Replacement Fund allocations from the base fiscal
26 year or the average of the base fiscal year and prior year,
27 whichever is less, divided by the applicable tax rate to (2)
28 the most recently audited year's equalized assessed valuation
29 or the average of the most recently audited year and prior
30 year, whichever is less, (B) then dividing by the number of
31 audited full-time equivalent resident students for the base
32 fiscal year or the average for the base fiscal year and the
33 2 prior fiscal years, whichever is greater, and (C) then
34 multiplying by the applicable tax rate. The State Board
HB0708 Engrossed -32- LRB9003212EGfg
1 shall use the same methodology to calculate a local revenue
2 factor for each district. The difference between the
3 statewide threshold and the local revenue factor, multiplied
4 by the number of full-time equivalent students, shall
5 determine the amount of equalization funding that each
6 district is eligible to receive.
7 A special populations grant of $20,000 per community
8 college shall be distributed to each community college
9 district, and any remaining appropriated funds for special
10 populations programs with the exception of moneys
11 appropriated as grants for unique special populations
12 initiatives created by the State Board shall be distributed
13 proportionately to each community college district on the
14 basis of each district's share of the State total funded
15 semester credit hours, or equivalent, in
16 remedial/developmental and adult basic education/adult
17 secondary education courses. Each community college
18 district's expenditures of funds from those grants shall be
19 limited to courses and services related to programs for
20 educationally disadvantaged and minority students as
21 specified by the State Board.
22 A workforce preparation grant of $35,000 shall be
23 distributed to each community college district, and any
24 remaining appropriated funds for workforce preparation with
25 the exception of monies appropriated as grants for special
26 workforce preparation initiatives created by the State Board
27 shall be distributed proportionately to each community
28 college district on the basis of each district's share of the
29 State total funded semester credit hours, or equivalent, in
30 business occupational, technical occupational, and health
31 occupational courses. Each community college district's
32 expenditures of funds from those grants shall be limited to
33 workforce preparation activities and services as specified by
34 the State Board.
HB0708 Engrossed -33- LRB9003212EGfg
1 An advanced technology equipment grant shall be
2 distributed proportionately to each community college
3 district based on each district's share of the State total
4 funded semester credit hours, or equivalent, in business
5 occupational, technical occupational, and health occupational
6 courses. Each community college district's expenditures of
7 funds from those grants shall be limited to procurement of
8 equipment for curricula impacted by technological advances as
9 specified by the State Board.
10 Until January 1, 1999, a retirees health insurance grant
11 shall be distributed proportionately to each community
12 college district or entity created pursuant to Section 3-55
13 based on each district's share of the total number of
14 community college retirees in the State on July 1 of the
15 fiscal year prior to the fiscal year for which the grants are
16 appropriated, as determined by the State Board. Each
17 community college district's expenditures of funds from those
18 grants shall be limited to payment of costs associated with
19 the provision of retirees' health insurance. Beginning
20 January 1, 1999, the retirees health insurance grant shall be
21 limited to community college districts subject to Article VII
22 of this Act. The retirees health insurance grants to
23 community college districts not subject to Article VII for
24 fiscal year 1998-1999 shall be calculated so as to reflect
25 the January 1, 1999 termination date.
26 A grant shall be provided to the Illinois Occupational
27 Information Coordinating Committee for the purpose of
28 providing the State Board with labor market information by
29 updating the Occupational Information System and HORIZONS
30 Career Information System and by providing labor market
31 information and technical assistance, that grant to be
32 provided in its entirety during the first quarter of the
33 fiscal year.
34 A grant shall be provided to Community College District
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1 #540, that district having been formed under the provisions
2 of Section 6-6.1, for the purpose of providing funds for the
3 district to meet operating expenses. The State Board shall
4 certify, prepare, and submit to the State Comptroller during
5 August of the fiscal year a voucher setting forth a one-time
6 payment of any Education Assistance Fund appropriation, and
7 during November, February, and May of the fiscal year a
8 voucher setting forth equal payments of General Revenue Fund
9 appropriations. The Comptroller shall cause a warrant to be
10 drawn for the amount due, payable to Community College
11 District #540, within 15 days following the receipt of each
12 such voucher.
13 The State Board shall distribute such other special
14 grants as may be authorized or appropriated by the General
15 Assembly.
16 Each community college district entitled to State grants
17 under this Section must submit a report of its enrollment to
18 the State Board not later than 30 days following the end of
19 each semester, quarter, or term in a format prescribed by the
20 State Board. These semester credit hours, or equivalent,
21 shall be certified by each district on forms provided by the
22 State Board. Each district's certified semester credit
23 hours, or equivalent, are subject to audit pursuant to
24 Section 3-22.1.
25 The State Board shall certify, prepare, and submit to the
26 State Comptroller during August, November, February, and May
27 of each fiscal year vouchers setting forth an amount equal to
28 25% of the districts' total grants approved by the State
29 Board for credit hour grants, special populations grants,
30 workforce preparation grants, equalization grants, advanced
31 technology equipment grants, and retirees health insurance
32 grants. The State Board shall prepare and submit to the State
33 Comptroller vouchers for special initiatives grant payments
34 as set forth in the contracts executed pursuant to
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1 appropriations received for special initiatives. The
2 Comptroller shall cause his warrants to be drawn for the
3 respective amounts due, payable to each community college
4 district, within 15 days following the receipt of such
5 vouchers. If the amount appropriated for grants is different
6 from the amount provided for such grants under this Act, the
7 grants shall be proportionately reduced or increased
8 accordingly.
9 For the purposes of this Section, "resident student"
10 means a student in a community college district who maintains
11 residency in that district or meets other residency
12 definitions established by the State Board, and who was
13 enrolled either in one of the approved instructional program
14 categories in that district, or in another community college
15 district to which the resident's district is paying tuition
16 under Section 6-2 or with which the resident's district has
17 entered into a cooperative agreement in lieu of such tuition.
18 For the purposes of this Section, a "full-time
19 equivalent" student is equal to 30 semester credit hours.
20 The Illinois Community College Board Contracts and Grants
21 Fund is hereby created in the State Treasury. Items of
22 income to this fund shall include any grants, awards,
23 endowments, or like proceeds, and where appropriate, other
24 funds made available through contracts with governmental,
25 public, and private agencies or persons. The General
26 Assembly shall from time to time make appropriations payable
27 from such fund for the support, improvement, and expenses of
28 the State Board and Illinois community college districts.
29 (Source: P.A. 88-103; 88-553; 89-141, eff. 7-14-95; 89-281,
30 eff. 8-10-95; 89-473, eff. 6-18-96; 89-626, eff. 8-9-96.)
31 Section 90. The State Mandates Act is amended by adding
32 Section 8.21 as follows:
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1 (30 ILCS 805/8.21 new)
2 Sec. 8.21. Exempt mandate. Notwithstanding Sections 6
3 and 8 of this Act, no reimbursement by the State is required
4 for the implementation of any mandate created by this
5 amendatory Act of 1997.
6 Section 95. No acceleration or delay. Where this Act
7 makes changes in a statute that is represented in this Act by
8 text that is not yet or no longer in effect (for example, a
9 Section represented by multiple versions), the use of that
10 text does not accelerate or delay the taking effect of (i)
11 the changes made by this Act or (ii) provisions derived from
12 any other Public Act.
13 Section 99. Effective date. This Act takes effect upon
14 becoming law.