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90_SB0423eng 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. LRB9002251EGfg SB423 Engrossed LRB9002251EGfg 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. SB423 Engrossed -2- LRB9002251EGfg 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 SB423 Engrossed -3- LRB9002251EGfg 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 SB423 Engrossed -4- LRB9002251EGfg 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 SB423 Engrossed -5- LRB9002251EGfg 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 SB423 Engrossed -6- LRB9002251EGfg 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 SB423 Engrossed -7- LRB9002251EGfg 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 SB423 Engrossed -8- LRB9002251EGfg 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 SB423 Engrossed -9- LRB9002251EGfg 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 SB423 Engrossed -10- LRB9002251EGfg 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 SB423 Engrossed -11- LRB9002251EGfg 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 SB423 Engrossed -12- LRB9002251EGfg 1 person, firm or corporation experienced in the handling of 2 claims which is fully qualified, financially sound and 3 capable of meeting the service requirements of a contract of 4 administration executed with the Department. 5 (b) "Annuitant" means (1) an employee who retires, or 6 has retired, on or after January 1, 1966 on an immediate 7 annuity under the provisions of Articles 2, 14, 15 (including 8 an employee who has retired and is receiving a retirement 9 annuity under an optional program established under Section 10 15-158.2 and who would also be eligible for a retirement 11 annuity had that person been a participant in the State 12 University Retirement System), paragraphs (b) or (c) of 13 Section 16-106, or Article 18 of the Illinois Pension Code; 14 (2) any person who was receiving group insurance coverage 15 under this Act as of March 31, 1978 by reason of his status 16 as an annuitant, even though the annuity in relation to which 17 such coverage was provided is a proportional annuity based on 18 less than the minimum period of service required for a 19 retirement annuity in the system involved; (3) any person not 20 otherwise covered by this Act who has retired as a 21 participating member under Article 2 of the Illinois Pension 22 Code but is ineligible for the retirement annuity under 23 Section 2-119 of the Illinois Pension Code; (4) the spouse of 24 any person who is receiving a retirement annuity under 25 Article 18 of the Illinois Pension Code and who is covered 26 under a group health insurance program sponsored by a 27 governmental employer other than the State of Illinois and 28 who has irrevocably elected to waive his or her coverage 29 under this Act and to have his or her spouse considered as 30 the "annuitant" under this Act and not as a "dependent"; or 31 (5) an employee who retires, or has retired, from a qualified 32 position, as determined according to rules promulgated by the 33 Director, under a qualified local government or a qualified 34 rehabilitation facility or a qualified domestic violence SB423 Engrossed -13- LRB9002251EGfg 1 shelter or service. (For definition of "retired employee", 2 see (p) post). 3 (c) "Carrier" means (1) an insurance company, a 4 corporation organized under the Limited Health Service 5 Organization Act or the Voluntary Health Services Plan Act, a 6 partnership, or other nongovernmental organization, which is 7 authorized to do group life or group health insurance 8 business in Illinois, or (2) the State of Illinois as a 9 self-insurer. 10 (d) "Compensation" means salary or wages payable on a 11 regular payroll by the State Treasurer on a warrant of the 12 State Comptroller out of any State, trust or federal fund, or 13 by the Governor of the State through a disbursing officer of 14 the State out of a trust or out of federal funds, or by any 15 Department out of State, trust, federal or other funds held 16 by the State Treasurer or the Department, to any person for 17 personal services currently performed, and ordinary or 18 accidental disability benefits under Articles 2, 14, 15 19 (including ordinary or accidental disability benefits under 20 an optional program established under Section 15-158.2), 21 paragraphs (b) or (c) of Section 16-106, or Article 18 of the 22 Illinois Pension Code, for disability incurred after January 23 1, 1966, or benefits payable under the Workers' Compensation 24 or Occupational Diseases Act or benefits payable under a sick 25 pay plan established in accordance with Section 36 of the 26 State Finance Act. "Compensation" also means salary or wages 27 paid to an employee of any qualified local government or 28 qualified rehabilitation facility or a qualified domestic 29 violence shelter or service. 30 (e) "Commission" means the State Employees Group 31 Insurance Advisory Commission authorized by this Act. 32 Commencing July 1, 1984, "Commission" as used in this Act 33 means the Illinois Economic and Fiscal Commission as 34 established by the Legislative Commission Reorganization Act SB423 Engrossed -14- LRB9002251EGfg 1 of 1984. 2 (f) "Contributory", when referred to as contributory 3 coverage, shall mean optional coverages or benefits elected 4 by the member toward the cost of which such member makes 5 contribution, or which are funded in whole or in part through 6 the acceptance of a reduction in earnings or the foregoing of 7 an increase in earnings by an employee, as distinguished from 8 noncontributory coverage or benefits which are paid entirely 9 by the State of Illinois without reduction of the member's 10 salary. 11 (g) "Department" means any department, institution, 12 board, commission, officer, court or any agency of the State 13 government receiving appropriations and having power to 14 certify payrolls to the Comptroller authorizing payments of 15 salary and wages against such appropriations as are made by 16 the General Assembly from any State fund, or against trust 17 funds held by the State Treasurer and includes boards of 18 trustees of the retirement systems created by Articles 2, 14, 19 15, 16 and 18 of the Illinois Pension Code. "Department" 20 also includes the Illinois Comprehensive Health Insurance 21 Board and the Illinois Rural Bond Bank. 22 (h) "Dependent", when the term is used in the context of 23 the health and life plan, means a member's spouse and any 24 unmarried child (1) from birth to age 19 including an adopted 25 child, a child who lives with the member from the time of the 26 filing of a petition for adoption until entry of an order of 27 adoption, a stepchild or recognized child who lives with the 28 member in a parent-child relationship, or a child who lives 29 with the member if such member is a court appointed guardian 30 of the child, or (2) age 19 to 23 enrolled as a full-time 31 student in any accredited school, financially dependent upon 32 the member, and eligible as a dependent for Illinois State 33 income tax purposes, or (3) age 19 or over who is mentally or 34 physically handicapped as defined in the Illinois Insurance SB423 Engrossed -15- LRB9002251EGfg 1 Code. For the health plan only, the term "dependent" also 2 includes any person enrolled prior to the effective date of 3 this Section who is dependent upon the member to the extent 4 that the member may claim such person as a dependent for 5 Illinois State income tax deduction purposes; no other such 6 person may be enrolled. 7 (i) "Director" means the Director of the Illinois 8 Department of Central Management Services. 9 (j) "Eligibility period" means the period of time a 10 member has to elect enrollment in programs or to select 11 benefits without regard to age, sex or health. 12 (k) "Employee" means and includes each officer or 13 employee in the service of a department who (1) receives his 14 compensation for service rendered to the department on a 15 warrant issued pursuant to a payroll certified by a 16 department or on a warrant or check issued and drawn by a 17 department upon a trust, federal or other fund or on a 18 warrant issued pursuant to a payroll certified by an elected 19 or duly appointed officer of the State or who receives 20 payment of the performance of personal services on a warrant 21 issued pursuant to a payroll certified by a Department and 22 drawn by the Comptroller upon the State Treasurer against 23 appropriations made by the General Assembly from any fund or 24 against trust funds held by the State Treasurer, and (2) is 25 employed full-time or part-time in a position normally 26 requiring actual performance of duty during not less than 1/2 27 of a normal work period, as established by the Director in 28 cooperation with each department, except that persons elected 29 by popular vote will be considered employees during the 30 entire term for which they are elected regardless of hours 31 devoted to the service of the State, and (3) except that 32 "employee" does not include any person who is not eligible by 33 reason of such person's employment to participate in one of 34 the State retirement systems under Articles 2, 14, 15 (either SB423 Engrossed -16- LRB9002251EGfg 1 the regular Article 15 system or an optional program 2 established under Section 15-158.2) or 18, or under paragraph 3 (b) or (c) of Section 16-106, of the Illinois Pension Code, 4 but such term does include persons who are employed during 5 the 6 month qualifying period under Article 14 of the 6 Illinois Pension Code. Such term also includes any person 7 who (1) after January 1, 1966, is receiving ordinary or 8 accidental disability benefits under Articles 2, 14, 15 9 (including ordinary or accidental disability benefits under 10 an optional program established under Section 15-158.2), 11 paragraphs (b) or (c) of Section 16-106, or Article 18 of the 12 Illinois Pension Code, for disability incurred after January 13 1, 1966, (2) receives total permanent or total temporary 14 disability under the Workers' Compensation Act or 15 Occupational Disease Act as a result of injuries sustained or 16 illness contracted in the course of employment with the State 17 of Illinois, or (3) is not otherwise covered under this Act 18 and has retired as a participating member under Article 2 of 19 the Illinois Pension Code but is ineligible for the 20 retirement annuity under Section 2-119 of the Illinois 21 Pension Code. However, a person who satisfies the criteria 22 of the foregoing definition of "employee" except that such 23 person is made ineligible to participate in the State 24 Universities Retirement System by clause (4) of the first 25 paragraph of Section 15-107 of the Illinois Pension Code is 26 also an "employee" for the purposes of this Act. "Employee" 27 also includes any person receiving or eligible for benefits 28 under a sick pay plan established in accordance with Section 29 36 of the State Finance Act. "Employee" also includes each 30 officer or employee in the service of a qualified local 31 government, including persons appointed as trustees of 32 sanitary districts regardless of hours devoted to the service 33 of the sanitary district, and each employee in the service of 34 a qualified rehabilitation facility and each full-time SB423 Engrossed -17- LRB9002251EGfg 1 employee in the service of a qualified domestic violence 2 shelter or service, as determined according to rules 3 promulgated by the Director. 4 (l) "Member" means an employee, annuitant, retired 5 employee or survivor. 6 (m) "Optional coverages or benefits" means those 7 coverages or benefits available to the member on his or her 8 voluntary election, and at his or her own expense. 9 (n) "Program" means the group life insurance, health 10 benefits and other employee benefits designed and contracted 11 for by the Director under this Act. 12 (o) "Health plan" means a self-insured health insurance 13 program offered by the State of Illinois for the purposes of 14 benefiting employees by means of providing, among others, 15 wellness programs, utilization reviews, second opinions and 16 medical fee reviews, as well as for paying for hospital and 17 medical care up to the maximum coverage provided by the plan, 18 to its members and their dependents. 19 (p) "Retired employee" means any person who would be an 20 annuitant as that term is defined herein but for the fact 21 that such person retired prior to January 1, 1966. Such term 22 also includes any person formerly employed by the University 23 of Illinois in the Cooperative Extension Service who would be 24 an annuitant but for the fact that such person was made 25 ineligible to participate in the State Universities 26 Retirement System by clause (4) of the first paragraph of 27 Section 15-107 of the Illinois Pension Code. 28 (q) "Survivor" means a person receiving an annuity as a 29 survivor of an employee or of an annuitant. "Survivor" also 30 includes: (1) the surviving dependent of a person who 31 satisfies the definition of "employee" except that such 32 person is made ineligible to participate in the State 33 Universities Retirement System by clause (4) of the first 34 paragraph of Section 15-107 of the Illinois Pension Code; and SB423 Engrossed -18- LRB9002251EGfg 1 (2) the surviving dependent of any person formerly employed 2 by the University of Illinois in the Cooperative Extension 3 Service who would be an annuitant except for the fact that 4 such person was made ineligible to participate in the State 5 Universities Retirement System by clause (4) of the first 6 paragraph of Section 15-107 of the Illinois Pension Code. 7 (r) "Medical services" means the services provided 8 within the scope of their licenses by practitioners in all 9 categories licensed under the Medical Practice Act of 1987. 10 (s) "Unit of local government" means any county, 11 municipality, township, school district, special district or 12 other unit, designated as a unit of local government by law, 13 which exercises limited governmental powers or powers in 14 respect to limited governmental subjects, any not-for-profit 15 association with a membership that primarily includes 16 townships and township officials, that has duties that 17 include provision of research service, dissemination of 18 information, and other acts for the purpose of improving 19 township government, and that is funded wholly or partly in 20 accordance with Section 85-15 of the Township Code; any 21 not-for-profit corporation or association, with a membership 22 consisting primarily of municipalities, that operates its own 23 utility system, and provides research, training, 24 dissemination of information, or other acts to promote 25 cooperation between and among municipalities that provide 26 utility services and for the advancement of the goals and 27 purposes of its membership; and the Illinois Association of 28 Park Districts. "Qualified local government" means a unit of 29 local government approved by the Director and participating 30 in a program created under subsection (i) of Section 10 of 31 this Act. 32 (t) "Qualified rehabilitation facility" means any 33 not-for-profit organization that is accredited by the 34 Commission on Accreditation of Rehabilitation Facilities or SB423 Engrossed -19- LRB9002251EGfg 1 certified by the Department of Human Services (as successor 2 to the Department of Mental Health and Developmental 3 Disabilities) to provide services to persons with 4 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 Department of Human 11 Services (as successor to the Illinois Department of Public 12 Aid), approved by the Director and participating in a program 13 created under subsection (k) of Section 10. 14 (v) "TRS benefit recipient" means a person who: 15 (1) is not a "member" as defined in this Section; 16 and 17 (2) is receiving a monthly benefit or retirement 18 annuity under Article 16 of the Illinois Pension Code; 19 and 20 (3) either (i) has at least 8 years of creditable 21 service under Article 16 of the Illinois Pension Code, or 22 (ii) was enrolled in the health insurance program offered 23 under that Article on January 1, 1996, or (iii) is the 24 survivor of a benefit recipient who had at least 8 years 25 of creditable service under Article 16 of the Illinois 26 Pension Code or was enrolled in the health insurance 27 program offered under that Article on the effective date 28 of this amendatory Act of 1995, or (iv) is a recipient or 29 survivor of a recipient of a disability benefit under 30 Article 16 of the Illinois Pension Code. 31 (w) "TRS dependent beneficiary" means a person who: 32 (1) is not a "member" or "dependent" as defined in 33 this Section; and 34 (2) is a TRS benefit recipient's: (A) spouse, (B) SB423 Engrossed -20- LRB9002251EGfg 1 dependent parent who is receiving at least half of his or 2 her support from the TRS benefit recipient, or (C) 3 unmarried natural or adopted child who is (i) under age 4 19, or (ii) enrolled as a full-time student in an 5 accredited school, financially dependent upon the TRS 6 benefit recipient, eligible as a dependent for Illinois 7 State income tax purposes, and either is under age 24 or 8 was, on January 1, 1996, participating as a dependent 9 beneficiary in the health insurance program offered under 10 Article 16 of the Illinois Pension Code, or (iii) age 19 11 or over who is mentally or physically handicapped as 12 defined in the Illinois Insurance Code. 13 (x) "Military leave with pay and benefits" refers to 14 individuals in basic training for reserves, special/advanced 15 training, annual training, emergency call up, or activation 16 by the President of the United States with approved pay and 17 benefits. 18 (y) "Military leave without pay and benefits" refers to 19 individuals who enlist for active duty in a regular component 20 of the U.S. Armed Forces or other duty not specified or 21 authorized under military leave with pay and benefits. 22 (z) "Community college benefit recipient" means a person 23 who: 24 (1) is not a "member" as defined in this Section; 25 and 26 (2) is receiving a monthly survivor's annuity or 27 retirement annuity under Article 15 of the Illinois 28 Pension Code; and 29 (3) either (i) was a full-time employee of a 30 community college district or an association of community 31 college boards created under the Public Community College 32 Act (other than an employee whose last employer under 33 Article 15 of the Illinois Pension Code was a community 34 college district subject to Article VII of the Public SB423 Engrossed -21- LRB9002251EGfg 1 Community College Act) and was eligible to participate in 2 a group health benefit plan as an employee during the 3 time of employment with a community college district 4 (other than a community college district subject to 5 Article VII of the Public Community College Act) or an 6 association of community college boards, or (ii) is the 7 survivor of a person described in item (i). 8 (aa) "Community college dependent beneficiary" means a 9 person who: 10 (1) is not a "member" or "dependent" as defined in 11 this Section; and 12 (2) is a community college benefit recipient's: (A) 13 spouse, (B) dependent parent who is receiving at least 14 half of his or her support from the community college 15 benefit recipient, or (C) unmarried natural or adopted 16 child who is (i) under age 19, or (ii) enrolled as a 17 full-time student in an accredited school, financially 18 dependent upon the community college benefit recipient, 19 eligible as a dependent for Illinois State income tax 20 purposes and under age 23, or (iii) age 19 or over and 21 mentally or physically handicapped as defined in the 22 Illinois Insurance Code. 23 (Source: P.A. 88-670, eff. 12-2-94; 89-21, eff. 6-21-95; 24 89-25, eff. 6-21-95; 89-76, eff. 7-1-95; 89-324, eff. 25 8-13-95; 89-430, eff. 12-15-95; 89-502, eff. 7-1-96; 89-507, 26 eff. 7-1-97; 89-628, eff. 8-9-96; revised 8-23-96.) 27 (5 ILCS 375/6.9 new) 28 Sec. 6.9. Health benefits for community college benefit 29 recipients and community college dependent beneficiaries. 30 (a) Purpose. It is the purpose of this amendatory Act 31 of 1997 to establish a uniform program of health benefits for 32 community college benefit recipients and their dependent 33 beneficiaries under the administration of the Department of SB423 Engrossed -22- LRB9002251EGfg 1 Central Management Services. 2 (b) Creation of program. Beginning July 1, 1999, the 3 Department of Central Management Services shall be 4 responsible for administering a program of health benefits 5 for community college benefit recipients and community 6 college dependent beneficiaries under this Section. The 7 State Universities Retirement System and the boards of 8 trustees of the various community college districts shall 9 cooperate with the Department in this endeavor. 10 (c) Eligibility. All community college benefit 11 recipients and community college dependent beneficiaries 12 shall be eligible to participate in the program established 13 under this Section, without any interruption or delay in 14 coverage or limitation as to pre-existing medical conditions. 15 Eligibility to participate shall be determined by the State 16 Universities Retirement System. Eligibility information 17 shall be communicated to the Department of Central Management 18 Services in a format acceptable to the Department. 19 (d) Coverage. The health benefits provided under this 20 Section shall be the same as the benefits provided under the 21 other provisions of this Act for annuitants of the State 22 Universities Retirement System and their dependent 23 beneficiaries. However, group life insurance benefits are 24 not included in the benefits to be provided to community 25 college benefit recipients and community college dependent 26 beneficiaries under this Act. 27 (e) Insurance rates and premiums. The Director shall 28 determine the insurance rates and premiums for community 29 college benefit recipients and community college dependent 30 beneficiaries. Rates and premiums may be based in part on 31 age and eligibility for federal Medicare coverage. 32 The cost of health benefits under the program shall be 33 paid as follows: 34 (1) For a community college benefit recipient, up SB423 Engrossed -23- LRB9002251EGfg 1 to 75% of the total insurance rate shall be paid from the 2 Community College Health Insurance Security Fund. 3 (2) The balance of the rate of insurance, including 4 the entire premium for any coverage for community college 5 dependent beneficiaries that has been elected, shall be 6 paid by deductions authorized by the community college 7 benefit recipient to be withheld from his or her monthly 8 annuity or benefit payment from the State Universities 9 Retirement System; except that (i) if the balance of the 10 cost of coverage exceeds the amount of the monthly 11 annuity or benefit payment, the difference shall be paid 12 directly to the State Universities Retirement System by 13 the community college benefit recipient, and (ii) all or 14 part of the balance of the cost of coverage may, at the 15 option of the board of trustees of the community college 16 district, be paid to the State Universities Retirement 17 System by the board of the community college district 18 from which the community college benefit recipient 19 retired. The State Universities Retirement System shall 20 promptly deposit all moneys withheld by or paid to it 21 under this subdivision (e)(2) into the Community College 22 Health Insurance Security Fund. These moneys shall not 23 be considered assets of the State Universities Retirement 24 System. 25 This Act does not prohibit any community college district 26 from paying for all or a portion of the premiums, 27 deductibles, or other costs of the benefits provided under 28 this Section for its retirees or their dependents or 29 survivors. 30 (f) Financing. All revenues arising from the 31 administration of the health benefit program established 32 under this Section shall be deposited into the Community 33 College Health Insurance Security Fund, which is hereby 34 created as a nonappropriated trust fund to be held outside SB423 Engrossed -24- LRB9002251EGfg 1 the State Treasury, with the State Treasurer as custodian. 2 Any interest earned on moneys in the Community College Health 3 Insurance Security Fund shall be deposited into the Fund. 4 Moneys in the Community College Health Insurance Security 5 Fund shall be used only to pay the costs of the health 6 benefit program established under this Section, including 7 associated administrative costs. Beginning January 1, 1999, 8 the Department of Central Management Services may make 9 expenditures from the Community College Health Insurance 10 Security Fund for those costs. 11 (g) Contract for benefits. The Director shall by 12 contract, self-insurance, or otherwise make available the 13 program of health benefits for community college benefit 14 recipients and their community college dependent 15 beneficiaries that is provided for in this Section. The 16 contract or other arrangement for the provision of these 17 health benefits shall be on terms deemed by the Director to 18 be in the best interest of the State of Illinois and the 19 community college benefit recipients based on, but not 20 limited to, such criteria as administrative cost, service 21 capabilities of the carrier or other contractor, and the 22 costs of the benefits. 23 (h) Continuation of program. It is the intention of the 24 General Assembly that the program of health benefits provided 25 under this Section be maintained on an ongoing, affordable 26 basis. The program of health benefits provided under this 27 Section may be amended by the State and is not intended to be 28 a pension or retirement benefit subject to protection under 29 Article XIII, Section 5 of the Illinois Constitution. 30 (i) Other health benefit plans. A health benefit plan 31 provided by a community college district (other than a 32 community college district subject to Article VII of the 33 Public Community College Act) under the terms of a collective 34 bargaining agreement in effect on the effective date of this SB423 Engrossed -25- LRB9002251EGfg 1 amendatory Act of 1997 shall continue in force according to 2 the terms of that agreement, unless otherwise mutually agreed 3 by the parties to that agreement. A community college 4 benefit recipient or community college dependent beneficiary 5 whose coverage under such a plan expires shall be eligible to 6 begin participating in the program established under this 7 Section without any interruption or delay in coverage or 8 limitation as to 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 SB423 Engrossed -26- LRB9002251EGfg 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 SB423 Engrossed -27- LRB9002251EGfg 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. SB423 Engrossed -28- LRB9002251EGfg 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 orTRSbenefit 33 recipient and, if applicable, his or her dependents orTRS34 dependent beneficiaries under the programs or plan, including SB423 Engrossed -29- LRB9002251EGfg 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 SB423 Engrossed -30- LRB9002251EGfg 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 SB423 Engrossed -31- LRB9002251EGfg 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 SB423 Engrossed -32- LRB9002251EGfg 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. SB423 Engrossed -33- LRB9002251EGfg 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 SB423 Engrossed -34- LRB9002251EGfg 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 SB423 Engrossed -35- LRB9002251EGfg 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: SB423 Engrossed -36- LRB9002251EGfg 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.