Public Act 099-0726
 
HB6225 EnrolledLRB099 19600 EGJ 43995 b

    AN ACT concerning regulation.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Employee Leasing Company Act is amended by
changing Sections 25 and 30 as follows:
 
    (215 ILCS 113/25)
    Sec. 25. Record keeping and reporting requirement.
    (a) A lessor shall maintain accounting and employment
records relating to all employee leasing arrangements for a
minimum of 4 calendar years. A lessor shall maintain the
address of each office it maintains in this State, at its
principal place of business.
    (b) A lessor shall maintain sufficient information in a
manner consistent with a licensed rating organization's data
submission requirements to permit the rating organization
licensed under Section 459 of the Illinois Insurance Code to
calculate an experience modification factor for the lessee.
    (c) Upon written request of a lessee with an annual payroll
attributed to it in excess of $200,000, the lessor shall
provide the lessee's experience modification factor to the
lessee within 30 days of the request.
    (d) Upon request of a lessee with an annual payroll
attributed to it of less than $200,000, the lessor shall
provide the loss information required to be maintained by this
Section to the lessee within 30 days of the request.
    (e) Nothing in this Section shall preclude a licensed
rating organization from calculating the experience
modification factor for each lessee nor an insurer from
maintaining and furnishing on behalf of the lessor, such
information as required by this Section.
    (f) In the event that a lessee's experience modification
factor exceeds the lessor's experience modification factor by
50% at the inception of the employee leasing arrangement, the
lessee's experience modification factor shall be utilized to
calculate the premium or costs charged to the lessee for
workers' compensation coverage for a period of 2 years.
Thereafter, the premium charged by the insurer for inclusion of
a lessee under a lessor's policy may be calculated on the basis
of the lessor's experience modification factor.
    (g) A lessor that does not provide workers' compensation
insurance coverage for leased employees of a lessee under an
employee leasing arrangement shall not be subject to compliance
with subsections (b) through (f) of this Section.
(Source: P.A. 90-499, eff. 1-1-98; 90-794, eff. 8-14-98.)
 
    (215 ILCS 113/30)
    Sec. 30. Responsibility for policy issuance and
continuance.
    (a) Either a lessor or lessee may provide workers'
compensation insurance coverage for leased employees under an
employee leasing arrangement. When a workers' compensation
policy written to cover leased employees is issued to the
lessor as the named insured, the lessee shall be identified
thereon by the attachment of an appropriate endorsement
indicating that the policy provides coverage for leased
employees. The endorsement shall, at a minimum, provide for the
following:
        (1) Coverage under the endorsement shall be limited to
    the named insured's employees leased to the lessees.
        (2) The experience of the employees leased to the
    particular lessee shall be separately maintained by the
    lessor as provided in Section 25.
    (b) (Blank).
    (c) The lessor shall notify the insurer or a licensed
rating organization 30 days prior to the effective date of
termination or immediately upon notification of cancellation
by the lessor of an employee leasing arrangement with the
lessee in order to allow sufficient time to calculate an
experience modification factor for the lessee.
    (d) The insurer shall provide proof of workers'
compensation insurance to the lessor and to each applicable
lessee within 30 days of the coverage being effected or
changed.
    (e) Calculation of a lessor's or lessee's premium shall be
done in accordance with the insurer's rating manual filed with
the Department.
    (f) When the lessee provides workers' compensation
coverage for leased employees under an employee leasing
arrangement, the lessor shall notify the Department in a manner
specified by the Department to ensure proper and timely
notification of coverage to the Department.
(Source: P.A. 90-499, eff. 1-1-98; 90-794, eff. 8-14-98.)

Effective Date: 1/1/2017