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Public Act 097-1143 | ||||
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AN ACT concerning State government.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Department of Central Management Services | ||||
Law of the
Civil Administrative Code of Illinois is amended by | ||||
changing Section 405-105 as follows:
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(20 ILCS 405/405-105) (was 20 ILCS 405/64.1)
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Sec. 405-105. Fidelity, surety, property, and casualty | ||||
insurance. The Department
shall establish and implement a | ||||
program to coordinate
the handling of all fidelity, surety, | ||||
property, and casualty insurance
exposures of the State and the | ||||
departments, divisions, agencies,
branches,
and universities | ||||
of the State. In performing this responsibility, the
Department | ||||
shall have the power and duty to do the following:
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(1) Develop and maintain loss and exposure data on all | ||||
State
property.
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(2) Study the feasibility of establishing a | ||||
self-insurance plan
for
State property and prepare | ||||
estimates of the costs of reinsurance for
risks beyond the | ||||
realistic limits of the self-insurance.
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(3) Prepare a plan for centralizing the purchase of | ||||
property and
casualty insurance on State property under a | ||||
master policy or policies
and purchase the insurance |
contracted for as provided in the
Illinois Purchasing Act.
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(4) Evaluate existing provisions for fidelity bonds | ||
required of
State employees and recommend changes that are | ||
appropriate
commensurate with risk experience and the | ||
determinations respecting
self-insurance or reinsurance so | ||
as to permit reduction of costs without
loss of coverage.
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(5) Investigate procedures for inclusion of school | ||
districts,
public community
college districts, and other | ||
units of local government in programs for
the centralized | ||
purchase of insurance.
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(6) Implement recommendations of the State Property
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Insurance
Study Commission that the Department finds | ||
necessary or desirable in
the
performance of its powers and | ||
duties under this Section to achieve
efficient and | ||
comprehensive risk management.
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(7) Prepare and, in the discretion of the Director, | ||
implement a plan providing for the purchase of public
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liability insurance or for self-insurance for public | ||
liability or for a
combination of purchased insurance and | ||
self-insurance for public
liability (i) covering the State | ||
and drivers of motor vehicles
owned,
leased, or controlled | ||
by the State of Illinois pursuant to the provisions
and | ||
limitations contained in the Illinois Vehicle Code, (ii)
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covering
other public liability exposures of the State and | ||
its employees within
the scope of their employment, and | ||
(iii) covering drivers of motor
vehicles not owned, leased, |
or controlled by the State but used by a
State employee on | ||
State business, in excess of liability covered by an
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insurance policy obtained by the owner of the motor vehicle | ||
or in
excess of the dollar amounts that the Department | ||
shall
determine to be
reasonable. Any contract of insurance | ||
let under this Law shall be
by
bid in accordance with the | ||
procedure set forth in the Illinois
Purchasing Act. Any | ||
provisions for self-insurance shall conform to
subdivision | ||
(11).
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The term "employee" as used in this subdivision (7) and | ||
in subdivision
(11)
means a person while in the employ of | ||
the State who is a member of the
staff or personnel of a | ||
State agency, bureau, board, commission,
committee, | ||
department, university, or college or who is a State | ||
officer,
elected official, commissioner, member of or ex | ||
officio member of a
State agency, bureau, board, | ||
commission, committee, department,
university, or college, | ||
or a member of the National Guard while on active
duty | ||
pursuant to orders of the Governor of the State of | ||
Illinois, or any
other person while using a licensed motor | ||
vehicle owned, leased, or
controlled by the State of | ||
Illinois with the authorization of the State
of Illinois, | ||
provided the actual use of the motor vehicle is
within the | ||
scope of that
authorization and within the course of State | ||
service.
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Subsequent to payment of a claim on behalf of an |
employee pursuant to this
Section and after reasonable | ||
advance written notice to the employee, the
Director may | ||
exclude the employee from future coverage or limit the
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coverage under the plan if (i) the Director determines that | ||
the
claim
resulted from an incident in which the employee | ||
was grossly negligent or
had engaged in willful and wanton | ||
misconduct or (ii) the
Director
determines that the | ||
employee is no longer an acceptable risk based on a
review | ||
of prior accidents in which the employee was at fault and | ||
for which
payments were made pursuant to this Section.
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The Director is authorized to
promulgate | ||
administrative rules that may be necessary to
establish and
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administer the plan.
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Appropriations from the Road Fund shall be used to pay | ||
auto liability claims
and related expenses involving | ||
employees of the Department of Transportation,
the | ||
Illinois State Police, and the Secretary of State.
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(8) Charge, collect, and receive from all other | ||
agencies of
the State
government fees or monies equivalent | ||
to the cost of purchasing the insurance.
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(9) Establish, through the Director, charges for risk
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management
services
rendered to State agencies by the | ||
Department.
The State agencies so charged shall reimburse | ||
the Department by vouchers drawn
against their respective
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appropriations. The reimbursement shall be determined by | ||
the Director as
amounts sufficient to reimburse the |
Department
for expenditures incurred in rendering the | ||
service.
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The Department shall charge the
employing State agency | ||
or university for workers' compensation payments for
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temporary total disability paid to any employee after the | ||
employee has
received temporary total disability payments | ||
for 120 days if the employee's
treating physician has | ||
issued a release to return to work with restrictions
and | ||
the employee is able to perform modified duty work but the | ||
employing
State agency or
university does not return the | ||
employee to work at modified duty. Modified
duty shall be | ||
duties assigned that may or may not be delineated
as part | ||
of the duties regularly performed by the employee. Modified | ||
duties
shall be assigned within the prescribed | ||
restrictions established by the
treating physician and the | ||
physician who performed the independent medical
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examination. The amount of all reimbursements
shall be | ||
deposited into the Workers' Compensation Revolving Fund | ||
which is
hereby created as a revolving fund in the State | ||
treasury. In addition to any other purpose authorized by | ||
law, moneys in the Fund
shall be used, subject to | ||
appropriation, to pay these or other temporary
total | ||
disability claims of employees of State agencies and | ||
universities.
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Beginning with fiscal year 1996, all amounts recovered | ||
by the
Department through subrogation in workers' |
compensation and workers'
occupational disease cases shall | ||
be
deposited into the Workers' Compensation Revolving Fund | ||
created under
this subdivision (9).
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(10) Establish Through December 31, 2012, establish | ||
rules, procedures, and forms to be used by
State agencies
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in the administration and payment of workers' compensation | ||
claims. For claims filed prior to July 1, 2013 Through | ||
December 31, 2012 , the
Department shall initially evaluate | ||
and determine the compensability of
any injury that is
the | ||
subject of a workers' compensation claim and provide for | ||
the
administration and payment of such a claim for all | ||
State agencies. For claims filed on or after July 1, 2013, | ||
the Department shall retain responsibility for certain | ||
administrative payments including, but not limited to, | ||
payments to the private vendor contracted to perform | ||
services under subdivision (10b) of this Section, payments | ||
related to travel expenses for employees of the Office of | ||
the Attorney General, and payments to internal Department | ||
staff responsible for the oversight and management of any | ||
contract awarded pursuant to subdivision (10b) of this | ||
Section. Through December 31, 2012, the
Director may | ||
delegate to any agency with the agreement of the agency | ||
head
the responsibility for evaluation, administration, | ||
and payment of that
agency's claims. Neither the Department | ||
nor the private vendor contracted to perform services under | ||
subdivision (10b) of this Section shall be responsible for |
providing workers' compensation services to the Illinois | ||
State Toll Highway Authority or to State universities that | ||
maintain self-funded workers' compensation liability | ||
programs.
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(10a) By April 1 of each year prior to calendar year | ||
2013, the Director must report and provide information to | ||
the State Workers' Compensation Program Advisory Board | ||
concerning the status of the State workers' compensation | ||
program for the next fiscal year. Information that the | ||
Director must provide to the State Workers' Compensation | ||
Program Advisory Board includes, but is not limited to, | ||
documents, reports of negotiations, bid invitations, | ||
requests for proposals, specifications, copies of proposed | ||
and final contracts or agreements, and any other materials | ||
concerning contracts or agreements for the program. By the | ||
first of each month prior to calendar year 2013, the | ||
Director must provide updated, and any new, information to | ||
the State Workers' Compensation Program Advisory Board | ||
until the State workers' compensation program for the next | ||
fiscal year is determined. | ||
(10b) No later than January 1, 2013, the chief | ||
procurement officer appointed under paragraph (4) of | ||
subsection (a) of Section 10-20 of the Illinois Procurement | ||
Code (hereinafter "chief procurement officer"), in | ||
consultation with the Department of Central Management | ||
Services, shall procure one or more private vendors to |
administer , beginning January 1, 2013, the program | ||
providing payments for workers' compensation liability | ||
with respect to the employees of all State agencies. The | ||
chief procurement officer may procure a single contract | ||
applicable to all State agencies or multiple contracts | ||
applicable to one or more State agencies. If the chief | ||
procurement officer procures a single contract applicable | ||
to all State agencies, then the Department of Central | ||
Management Services shall be designated as the agency that | ||
enters into the contract and shall be responsible for the | ||
contract. If the chief procurement officer procures | ||
multiple contracts applicable to one or more State | ||
agencies, each agency to which the contract applies shall | ||
be designated as the agency that shall enter into the | ||
contract and shall be responsible for the contract. If the | ||
chief procurement officer procures contracts applicable to | ||
an individual State agency, the agency subject to the | ||
contract shall be designated as the agency responsible for | ||
the contract. | ||
(10c) The procurement of private vendors for the | ||
administration of the workers' compensation program for | ||
State employees is subject to the provisions of the | ||
Illinois Procurement Code and administration by the chief | ||
procurement officer. | ||
(10d) Contracts for the procurement of private vendors | ||
for the administration of the workers' compensation |
program for State employees shall be based upon, but | ||
limited to, the following criteria: (i) administrative | ||
cost, (ii) service capabilities of the vendor, and (iii) | ||
the compensation (including premiums, fees, or other | ||
charges). A vendor for the administration of the workers' | ||
compensation program for State employees shall provide | ||
services, including, but not limited to: | ||
(A) providing a web-based case management system | ||
and provide access to the Office of the Attorney | ||
General; | ||
(B) ensuring claims adjusters are available to | ||
provide testimony or information as requested by the | ||
Office of the Attorney General; | ||
(C) establishing a preferred provider program for | ||
all State agencies and facilities; and | ||
(D) authorizing the payment of medical bills at the | ||
preferred provider discount rate. | ||
(10e) By September 15, 2012, the Department of Central | ||
Management Services shall prepare a plan to effectuate the | ||
transfer of responsibility and administration of the | ||
workers' compensation program for State employees to the | ||
selected private vendors. The Department shall submit a | ||
copy of the plan to the General Assembly. | ||
(11) Any plan for public liability self-insurance | ||
implemented
under this
Section shall provide that (i) the | ||
Department
shall attempt to settle and may settle any |
public liability claim filed
against the State of Illinois | ||
or any public liability claim filed
against a State | ||
employee on the basis of an occurrence in the course of
the | ||
employee's State employment; (ii) any settlement of
such a | ||
claim is not subject to fiscal year limitations and must be
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approved by the Director and, in cases of
settlements | ||
exceeding $100,000, by the Governor; and (iii) a
settlement | ||
of
any public liability claim against the State or a State | ||
employee shall
require an unqualified release of any right | ||
of action against the State
and the employee for acts | ||
within the scope of the employee's employment
giving rise | ||
to the claim.
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Whenever and to the extent that a State
employee | ||
operates a motor vehicle or engages in other activity | ||
covered
by self-insurance under this Section, the State of | ||
Illinois shall
defend, indemnify, and hold harmless the | ||
employee against any claim in
tort filed against the | ||
employee for acts or omissions within the scope
of the | ||
employee's employment in any proper judicial forum and not
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settled pursuant
to this subdivision (11), provided that | ||
this obligation of
the State of
Illinois shall not exceed a | ||
maximum liability of $2,000,000 for any
single occurrence | ||
in connection with the operation of a motor vehicle or
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$100,000 per person per occurrence for any other single | ||
occurrence,
or $500,000 for any single occurrence in | ||
connection with the provision of
medical care by a licensed |
physician employee.
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Any
claims against the State of Illinois under a | ||
self-insurance plan that
are not settled pursuant to this | ||
subdivision (11) shall be
heard and
determined by the Court | ||
of Claims and may not be filed or adjudicated
in any other | ||
forum. The Attorney General of the State of Illinois or
the | ||
Attorney General's designee shall be the attorney with | ||
respect
to all public liability
self-insurance claims that | ||
are not settled pursuant to this
subdivision (11)
and | ||
therefore result in litigation. The payment of any award of | ||
the
Court of Claims entered against the State relating to | ||
any public
liability self-insurance claim shall act as a | ||
release against any State
employee involved in the | ||
occurrence.
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(12) Administer a plan the purpose of which is to make | ||
payments
on final
settlements or final judgments in | ||
accordance with the State Employee
Indemnification Act. | ||
The plan shall be funded through appropriations from the
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General Revenue Fund specifically designated for that | ||
purpose, except that
indemnification expenses for | ||
employees of the Department of Transportation,
the | ||
Illinois State Police, and the Secretary of State
shall be | ||
paid
from the Road
Fund. The term "employee" as used in | ||
this subdivision (12) has the same
meaning as under | ||
subsection (b) of Section 1 of the State Employee
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Indemnification Act. Subject to sufficient appropriation, |
the Director shall approve payment of any claim, without | ||
regard to fiscal year limitations, presented to
the | ||
Director
that is supported by a final settlement or final | ||
judgment when the Attorney
General and the chief officer of | ||
the public body against whose employee the
claim or cause | ||
of action is asserted certify to the Director that
the | ||
claim is in
accordance with the State Employee | ||
Indemnification Act and that they
approve
of the payment. | ||
In no event shall an amount in excess of $150,000 be paid | ||
from
this plan to or for the benefit of any claimant.
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(13) Administer a plan the purpose of which is to make | ||
payments
on final
settlements or final judgments for | ||
employee wage claims in situations where
there was an | ||
appropriation relevant to the wage claim, the fiscal year
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and lapse period have expired, and sufficient funds were | ||
available
to
pay the claim. The plan shall be funded | ||
through
appropriations from the General Revenue Fund | ||
specifically designated for
that purpose.
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Subject to sufficient appropriation, the Director is | ||
authorized to pay any wage claim presented to the
Director
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that is supported by a final settlement or final judgment | ||
when the chief
officer of the State agency employing the | ||
claimant certifies to the
Director that
the claim is a | ||
valid wage claim and that the fiscal year and lapse period
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have expired. Payment for claims that are properly | ||
submitted and certified
as valid by the Director
shall |
include interest accrued at the rate of 7% per annum from | ||
the
forty-fifth day after the claims are received by the | ||
Department or 45 days from the date on which the amount of | ||
payment
is agreed upon, whichever is later, until the date | ||
the claims are submitted
to the Comptroller for payment. | ||
When the Attorney General has filed an
appearance in any | ||
proceeding concerning a wage claim settlement or
judgment, | ||
the Attorney General shall certify to the Director that the | ||
wage claim is valid before any payment is
made. In no event | ||
shall an amount in excess of $150,000 be paid from this
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plan to or for the benefit of any claimant.
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Nothing in Public Act 84-961 shall be construed to | ||
affect in any manner the jurisdiction of the
Court of | ||
Claims concerning wage claims made against the State of | ||
Illinois.
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(14) Prepare and, in the discretion of the Director, | ||
implement a program for
self-insurance for official
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fidelity and surety bonds for officers and employees as | ||
authorized by the
Official Bond Act.
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(Source: P.A. 96-928, eff. 6-15-10; 97-18, eff. 6-28-11; | ||
97-895, eff. 8-3-12.)
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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