Public Act 90-0497 of the 90th General Assembly

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Public Act 90-0497

SB423 Enrolled                                 LRB9002251EGfg

    AN ACT in relation to health care  benefits  for  certain
retired  community  college  employees  and their dependents,
amending named Acts.

    Be it enacted by the People of  the  State  of  Illinois,
represented in the General Assembly:

    Section  5.   The  State Employees Group Insurance Act of
1971 is amended by changing Sections 2, 3, and 15 and  adding
Sections 6.9 and 6.10 as follows:

    (5 ILCS 375/2) (from Ch. 127, par. 522)
    Sec. 2. Purpose.  The purpose of this Act is to provide a
program of group life insurance, a program of health benefits
and other employee benefits for persons in the service of the
State  of Illinois, employees of local governments, employees
of  rehabilitation  facilities  and  employees  of   domestic
violence   shelters   and  services,  and  certain  of  their
dependents.  It is also the purpose of this Act to provide  a
program of health benefits (i) for certain benefit recipients
of  the  Teachers' Retirement System of the State of Illinois
and  their  dependent  beneficiaries  and  (ii)  for  certain
eligible  retired  community  college  employees  and   their
dependent beneficiaries.
(Source: P.A. 89-25, eff. 6-21-95.)

    (5 ILCS 375/3) (from Ch. 127, par. 523)
    (Text of Section before amendment by P.A. 89-507)
    Sec.   3.  Definitions.   Unless  the  context  otherwise
requires, the following words and phrases as used in this Act
shall have the following meanings.  The Department may define
these and other words and phrases separately for the  purpose
of  implementing  specific  programs providing benefits under
this Act.
    (a)  "Administrative  service  organization"  means   any
person,  firm  or  corporation experienced in the handling of
claims  which  is  fully  qualified,  financially  sound  and
capable of meeting the service requirements of a contract  of
administration executed with the Department.
    (b)  "Annuitant"  means  (1)  an employee who retires, or
has retired, on or after January  1,  1966  on  an  immediate
annuity under the provisions of Articles 2, 14, 15 (including
an  employee  who  has  retired and is receiving a retirement
annuity under an optional program established  under  Section
15-158.2  and  who  would  also  be eligible for a retirement
annuity had that person  been  a  participant  in  the  State
University  Retirement  System),  paragraphs  (b)  or  (c) of
Section 16-106, or Article 18 of the Illinois  Pension  Code;
(2)  any  person  who  was receiving group insurance coverage
under this Act as of March 31, 1978 by reason of  his  status
as an annuitant, even though the annuity in relation to which
such coverage was provided is a proportional annuity based on
less  than  the  minimum  period  of  service  required for a
retirement annuity in the system involved; (3) any person not
otherwise  covered  by  this  Act  who  has  retired   as   a
participating  member under Article 2 of the Illinois Pension
Code but is  ineligible  for  the  retirement  annuity  under
Section 2-119 of the Illinois Pension Code; (4) the spouse of
any  person  who  is  receiving  a  retirement  annuity under
Article 18 of the Illinois Pension Code and  who  is  covered
under  a  group  health  insurance  program  sponsored  by  a
governmental  employer  other  than the State of Illinois and
who has irrevocably elected to  waive  his  or  her  coverage
under  this  Act  and to have his or her spouse considered as
the "annuitant" under this Act and not as a  "dependent";  or
(5) an employee who retires, or has retired, from a qualified
position, as determined according to rules promulgated by the
Director,  under  a qualified local government or a qualified
rehabilitation facility  or  a  qualified  domestic  violence
shelter  or  service.  (For definition of "retired employee",
see (p) post).
    (c)  "Carrier"  means  (1)  an   insurance   company,   a
corporation   organized  under  the  Limited  Health  Service
Organization Act or the Voluntary Health Services Plan Act, a
partnership, or other nongovernmental organization, which  is
authorized  to  do  group  life  or  group  health  insurance
business  in  Illinois,  or  (2)  the  State of Illinois as a
self-insurer.
    (d)  "Compensation" means salary or wages  payable  on  a
regular  payroll  by  the State Treasurer on a warrant of the
State Comptroller out of any State, trust or federal fund, or
by the Governor of the State through a disbursing officer  of
the  State  out of a trust or out of federal funds, or by any
Department out of State, trust, federal or other  funds  held
by  the  State Treasurer or the Department, to any person for
personal  services  currently  performed,  and  ordinary   or
accidental  disability  benefits  under  Articles  2,  14, 15
(including ordinary or accidental disability  benefits  under
an  optional  program  established  under  Section 15-158.2),
paragraphs (b) or (c) of Section 16-106, or Article 18 of the
Illinois Pension Code, for disability incurred after  January
1,  1966, or benefits payable under the Workers' Compensation
or Occupational Diseases Act or benefits payable under a sick
pay plan established in accordance with  Section  36  of  the
State  Finance Act. "Compensation" also means salary or wages
paid to an employee of  any  qualified  local  government  or
qualified  rehabilitation  facility  or  a qualified domestic
violence shelter or service.
    (e)  "Commission"  means  the   State   Employees   Group
Insurance   Advisory   Commission  authorized  by  this  Act.
Commencing July 1, 1984, "Commission" as  used  in  this  Act
means   the   Illinois  Economic  and  Fiscal  Commission  as
established by the Legislative Commission Reorganization  Act
of 1984.
    (f)  "Contributory",  when  referred  to  as contributory
coverage, shall mean optional coverages or  benefits  elected
by  the  member  toward  the  cost of which such member makes
contribution, or which are funded in whole or in part through
the acceptance of a reduction in earnings or the foregoing of
an increase in earnings by an employee, as distinguished from
noncontributory coverage or benefits which are paid  entirely
by  the  State  of Illinois without reduction of the member's
salary.
    (g)  "Department"  means  any  department,   institution,
board,  commission, officer, court or any agency of the State
government  receiving  appropriations  and  having  power  to
certify payrolls to the Comptroller authorizing  payments  of
salary  and  wages against such appropriations as are made by
the General Assembly from any State fund,  or  against  trust
funds  held  by  the  State  Treasurer and includes boards of
trustees of the retirement systems created by Articles 2, 14,
15, 16 and 18 of the  Illinois  Pension  Code.   "Department"
also  includes  the  Illinois  Comprehensive Health Insurance
Board and the Illinois Rural Bond Bank.
    (h)  "Dependent", when the term is used in the context of
the health and life plan, means a  member's  spouse  and  any
unmarried child (1) from birth to age 19 including an adopted
child, a child who lives with the member from the time of the
filing  of a petition for adoption until entry of an order of
adoption, a stepchild or recognized child who lives with  the
member  in  a parent-child relationship, or a child who lives
with the member if such member is a court appointed  guardian
of  the  child,  or  (2) age 19 to 23 enrolled as a full-time
student in any accredited school, financially dependent  upon
the  member,  and  eligible as a dependent for Illinois State
income tax purposes, or (3) age 19 or over who is mentally or
physically handicapped as defined in the  Illinois  Insurance
Code.  For  the  health  plan only, the term "dependent" also
includes any person enrolled prior to the effective  date  of
this  Section  who is dependent upon the member to the extent
that the member may claim such  person  as  a  dependent  for
Illinois  State  income tax deduction purposes; no other such
person may be enrolled.
    (i)  "Director"  means  the  Director  of  the   Illinois
Department of Central Management Services.
    (j)  "Eligibility  period"  means  the  period  of time a
member has to elect  enrollment  in  programs  or  to  select
benefits without regard to age, sex or health.
    (k)  "Employee"   means  and  includes  each  officer  or
employee in the service of a department who (1) receives  his
compensation  for  service  rendered  to  the department on a
warrant  issued  pursuant  to  a  payroll  certified   by   a
department  or  on  a  warrant or check issued and drawn by a
department upon a trust,  federal  or  other  fund  or  on  a
warrant  issued pursuant to a payroll certified by an elected
or duly appointed  officer  of  the  State  or  who  receives
payment  of the performance of personal services on a warrant
issued pursuant to a payroll certified by  a  Department  and
drawn  by  the  Comptroller  upon the State Treasurer against
appropriations made by the General Assembly from any fund  or
against  trust  funds held by the State Treasurer, and (2) is
employed  full-time  or  part-time  in  a  position  normally
requiring actual performance of duty during not less than 1/2
of a normal work period, as established by  the  Director  in
cooperation with each department, except that persons elected
by  popular  vote  will  be  considered  employees during the
entire term for which they are elected  regardless  of  hours
devoted  to  the  service  of  the State, and (3) except that
"employee" does not include any person who is not eligible by
reason of such person's employment to participate in  one  of
the State retirement systems under Articles 2, 14, 15 (either
the   regular  Article  15  system  or  an  optional  program
established under Section 15-158.2) or 18, or under paragraph
(b) or (c) of Section 16-106, of the Illinois  Pension  Code,
but  such  term  does include persons who are employed during
the 6  month  qualifying  period  under  Article  14  of  the
Illinois  Pension  Code.   Such term also includes any person
who (1) after January  1,  1966,  is  receiving  ordinary  or
accidental  disability  benefits  under  Articles  2,  14, 15
(including ordinary or accidental disability  benefits  under
an  optional  program  established  under  Section 15-158.2),
paragraphs (b) or (c) of Section 16-106, or Article 18 of the
Illinois Pension Code, for disability incurred after  January
1,  1966,  (2)  receives  total  permanent or total temporary
disability   under   the   Workers'   Compensation   Act   or
Occupational Disease Act as a result of injuries sustained or
illness contracted in the course of employment with the State
of Illinois, or (3) is not otherwise covered under  this  Act
and  has retired as a participating member under Article 2 of
the  Illinois  Pension  Code  but  is  ineligible   for   the
retirement  annuity  under  Section  2-119  of  the  Illinois
Pension  Code.   However, a person who satisfies the criteria
of the foregoing definition of "employee"  except  that  such
person  is  made  ineligible  to  participate  in  the  State
Universities  Retirement  System  by  clause (4) of the first
paragraph of Section 15-107 of the Illinois Pension  Code  is
also  an "employee" for the purposes of this Act.  "Employee"
also includes any person receiving or eligible  for  benefits
under  a sick pay plan established in accordance with Section
36 of the State Finance Act. "Employee"  also  includes  each
officer  or  employee  in  the  service  of a qualified local
government,  including  persons  appointed  as  trustees   of
sanitary districts regardless of hours devoted to the service
of the sanitary district, and each employee in the service of
a   qualified  rehabilitation  facility  and  each  full-time
employee in the service  of  a  qualified  domestic  violence
shelter   or   service,  as  determined  according  to  rules
promulgated by the Director.
    (l)  "Member"  means  an  employee,  annuitant,   retired
employee or survivor.
    (m)  "Optional   coverages   or   benefits"  means  those
coverages or benefits available to the member on his  or  her
voluntary election, and at his or her own expense.
    (n)  "Program"  means  the  group  life insurance, health
benefits and other employee benefits designed and  contracted
for by the Director under this Act.
    (o)  "Health  plan" means a self-insured health insurance
program offered by the State of Illinois for the purposes  of
benefiting  employees  by  means  of providing, among others,
wellness programs, utilization reviews, second  opinions  and
medical  fee  reviews, as well as for paying for hospital and
medical care up to the maximum coverage provided by the plan,
to its members and their dependents.
    (p)  "Retired employee" means any person who would be  an
annuitant  as  that  term  is defined herein but for the fact
that such person retired prior to January 1, 1966.  Such term
also includes any person formerly employed by the  University
of Illinois in the Cooperative Extension Service who would be
an  annuitant  but  for  the  fact  that such person was made
ineligible  to  participate   in   the   State   Universities
Retirement  System  by  clause  (4) of the first paragraph of
Section 15-107 of the Illinois Pension Code.
    (q)  "Survivor" means a person receiving an annuity as  a
survivor  of  an employee or of an annuitant. "Survivor" also
includes:  (1)  the  surviving  dependent  of  a  person  who
satisfies the  definition  of  "employee"  except  that  such
person  is  made  ineligible  to  participate  in  the  State
Universities  Retirement  System  by  clause (4) of the first
paragraph of Section 15-107 of the Illinois Pension Code; and
(2) the surviving dependent of any person  formerly  employed
by  the  University  of Illinois in the Cooperative Extension
Service who would be an annuitant except for  the  fact  that
such  person  was made ineligible to participate in the State
Universities Retirement System by clause  (4)  of  the  first
paragraph of Section 15-107 of the Illinois Pension Code.
    (r)  "Medical   services"  means  the  services  provided
within the scope of their licenses by  practitioners  in  all
categories licensed under the Medical Practice Act of 1987.
    (s)  "Unit   of   local  government"  means  any  county,
municipality, township, school district, special district  or
other  unit, designated as a unit of local government by law,
which exercises limited  governmental  powers  or  powers  in
respect  to limited governmental subjects, any not-for-profit
association  with  a  membership  that   primarily   includes
townships  and  township  officials,  that  has  duties  that
include  provision  of  research  service,  dissemination  of
information,  and  other  acts  for  the purpose of improving
township government, and that is funded wholly or  partly  in
accordance  with  Section  85-15  of  the  Township Code; any
not-for-profit corporation or association, with a  membership
consisting primarily of municipalities, that operates its own
utility    system,    and    provides   research,   training,
dissemination  of  information,  or  other  acts  to  promote
cooperation between and  among  municipalities  that  provide
utility  services  and  for  the advancement of the goals and
purposes of its membership; and the Illinois  Association  of
Park Districts.  "Qualified local government" means a unit of
local  government  approved by the Director and participating
in a program created under subsection (i) of  Section  10  of
this Act.
    (t)  "Qualified   rehabilitation   facility"   means  any
not-for-profit  organization  that  is  accredited   by   the
Commission  on  Accreditation of Rehabilitation Facilities or
certified  by  the  Department     of   Mental   Health   and
Developmental  Disabilities  to  provide  services to persons
with disabilities and which receives funds from the State  of
Illinois  for  providing  those  services,  approved  by  the
Director   and  participating  in  a  program  created  under
subsection (j) of Section 10 of this Act.
    (u)  "Qualified domestic  violence  shelter  or  service"
means  any  Illinois domestic violence shelter or service and
its administrative offices funded by the Illinois  Department
of  Public Aid, approved by the Director and participating in
a program created under subsection (k) of Section 10.
    (v)  "TRS benefit recipient" means a person who:
         (1)  is not a "member" as defined in  this  Section;
    and
         (2)  is  receiving  a  monthly benefit or retirement
    annuity under Article 16 of the  Illinois  Pension  Code;
    and
         (3)  either  (i)  has at least 8 years of creditable
    service under Article 16 of the Illinois Pension Code, or
    (ii) was enrolled in the health insurance program offered
    under that Article on January 1, 1996, or  (iii)  is  the
    survivor  of a benefit recipient who had at least 8 years
    of creditable service under Article 16  of  the  Illinois
    Pension  Code  or  was  enrolled  in the health insurance
    program offered under that Article on the effective  date
    of this amendatory Act of 1995, or (iv) is a recipient or
    survivor  of  a  recipient  of a disability benefit under
    Article 16 of the Illinois Pension Code.
    (w)  "TRS dependent beneficiary" means a person who:
         (1)  is not a "member" or "dependent" as defined  in
    this Section; and
         (2)  is  a  TRS benefit recipient's: (A) spouse, (B)
    dependent parent who is receiving at least half of his or
    her support  from  the  TRS  benefit  recipient,  or  (C)
    unmarried  natural  or adopted child who is (i) under age
    19, or  (ii)  enrolled  as  a  full-time  student  in  an
    accredited  school,  financially  dependent  upon the TRS
    benefit recipient, eligible as a dependent  for  Illinois
    State  income tax purposes, and either is under age 24 or
    was, on January 1, 1996,  participating  as  a  dependent
    beneficiary in the health insurance program offered under
    Article  16 of the Illinois Pension Code, or (iii) age 19
    or over who is  mentally  or  physically  handicapped  as
    defined in the Illinois Insurance Code.
    (x)  "Military  leave  with  pay  and benefits" refers to
individuals in basic training for reserves,  special/advanced
training,  annual  training, emergency call up, or activation
by the President of the United States with approved  pay  and
benefits.
    (y)  "Military  leave without pay and benefits" refers to
individuals who enlist for active duty in a regular component
of the U.S. Armed Forces  or  other  duty  not  specified  or
authorized under military leave with pay and benefits.
    (z)  "Community college benefit recipient" means a person
who:
         (1)  is  not  a "member" as defined in this Section;
    and
         (2)  is receiving a monthly  survivor's  annuity  or
    retirement  annuity  under  Article  15  of  the Illinois
    Pension Code; and
         (3)  either  (i)  was  a  full-time  employee  of  a
    community college district or an association of community
    college boards created under the Public Community College
    Act (other than an employee  whose  last  employer  under
    Article  15  of the Illinois Pension Code was a community
    college district subject to Article  VII  of  the  Public
    Community College Act) and was eligible to participate in
    a  group  health  benefit  plan as an employee during the
    time of employment  with  a  community  college  district
    (other  than  a  community  college  district  subject to
    Article VII of the Public Community College  Act)  or  an
    association  of  community college boards, or (ii) is the
    survivor of a person described in item (i).

    (aa)  "Community college dependent beneficiary"  means  a
person who:
         (1)  is  not a "member" or "dependent" as defined in
    this Section; and
         (2)  is a community college benefit recipient's: (A)
    spouse, (B) dependent parent who is  receiving  at  least
    half  of  his  or  her support from the community college
    benefit recipient, or (C) unmarried  natural  or  adopted
    child  who  is  (i)  under  age 19, or (ii) enrolled as a
    full-time student in an  accredited  school,  financially
    dependent  upon  the community college benefit recipient,
    eligible as a dependent for  Illinois  State  income  tax
    purposes  and  under  age 23, or (iii) age 19 or over and
    mentally or physically  handicapped  as  defined  in  the
    Illinois Insurance Code.
(Source:  P.A.  88-670,  eff.  12-2-94;  89-21, eff. 6-21-95;
89-25,  eff.  6-21-95;  89-76,  eff.  7-1-95;  89-324,   eff.
8-13-95;  89-430, eff. 12-15-95; 89-502, eff. 7-1-96; 89-628,
eff. 8-9-96; revised 8-23-96.)

    (Text of Section after amendment by P.A. 89-507)
    Sec.  3.  Definitions.   Unless  the  context   otherwise
requires, the following words and phrases as used in this Act
shall have the following meanings.  The Department may define
these  and other words and phrases separately for the purpose
of implementing specific programs  providing  benefits  under
this Act.
    (a)  "Administrative   service  organization"  means  any
person, firm or corporation experienced in  the  handling  of
claims  which  is  fully  qualified,  financially  sound  and
capable  of meeting the service requirements of a contract of
administration executed with the Department.
    (b)  "Annuitant" means (1) an employee  who  retires,  or
has  retired,  on  or  after  January 1, 1966 on an immediate
annuity under the provisions of Articles 2, 14, 15 (including
an employee who has retired and  is  receiving  a  retirement
annuity  under  an optional program established under Section
15-158.2 and who would also  be  eligible  for  a  retirement
annuity  had  that  person  been  a  participant in the State
University Retirement  System),  paragraphs  (b)  or  (c)  of
Section  16-106,  or Article 18 of the Illinois Pension Code;
(2) any person who was  receiving  group  insurance  coverage
under  this  Act as of March 31, 1978 by reason of his status
as an annuitant, even though the annuity in relation to which
such coverage was provided is a proportional annuity based on
less than the  minimum  period  of  service  required  for  a
retirement annuity in the system involved; (3) any person not
otherwise   covered   by  this  Act  who  has  retired  as  a
participating member under Article 2 of the Illinois  Pension
Code  but  is  ineligible  for  the  retirement annuity under
Section 2-119 of the Illinois Pension Code; (4) the spouse of
any person  who  is  receiving  a  retirement  annuity  under
Article  18  of  the Illinois Pension Code and who is covered
under  a  group  health  insurance  program  sponsored  by  a
governmental employer other than the State  of  Illinois  and
who  has  irrevocably  elected  to  waive his or her coverage
under this Act and to have his or her  spouse  considered  as
the  "annuitant"  under this Act and not as a "dependent"; or
(5) an employee who retires, or has retired, from a qualified
position, as determined according to rules promulgated by the
Director, under a qualified local government or  a  qualified
rehabilitation  facility  or  a  qualified  domestic violence
shelter or service. (For definition  of  "retired  employee",
see (p) post).
    (c)  "Carrier"   means   (1)   an  insurance  company,  a
corporation  organized  under  the  Limited  Health   Service
Organization Act or the Voluntary Health Services Plan Act, a
partnership,  or other nongovernmental organization, which is
authorized  to  do  group  life  or  group  health  insurance
business in Illinois, or (2)  the  State  of  Illinois  as  a
self-insurer.
    (d)  "Compensation"  means  salary  or wages payable on a
regular payroll by the State Treasurer on a  warrant  of  the
State Comptroller out of any State, trust or federal fund, or
by  the Governor of the State through a disbursing officer of
the State out of a trust or out of federal funds, or  by  any
Department  out  of State, trust, federal or other funds held
by the State Treasurer or the Department, to any  person  for
personal   services  currently  performed,  and  ordinary  or
accidental disability  benefits  under  Articles  2,  14,  15
(including  ordinary  or accidental disability benefits under
an optional  program  established  under  Section  15-158.2),
paragraphs (b) or (c) of Section 16-106, or Article 18 of the
Illinois  Pension Code, for disability incurred after January
1, 1966, or benefits payable under the Workers'  Compensation
or Occupational Diseases Act or benefits payable under a sick
pay  plan  established  in  accordance with Section 36 of the
State Finance Act. "Compensation" also means salary or  wages
paid  to  an  employee  of  any qualified local government or
qualified rehabilitation facility  or  a  qualified  domestic
violence shelter or service.
    (e)  "Commission"   means   the   State  Employees  Group
Insurance  Advisory  Commission  authorized  by   this   Act.
Commencing  July  1,  1984,  "Commission" as used in this Act
means  the  Illinois  Economic  and  Fiscal   Commission   as
established  by the Legislative Commission Reorganization Act
of 1984.
    (f)  "Contributory", when  referred  to  as  contributory
coverage,  shall  mean optional coverages or benefits elected
by the member toward the cost  of  which  such  member  makes
contribution, or which are funded in whole or in part through
the acceptance of a reduction in earnings or the foregoing of
an increase in earnings by an employee, as distinguished from
noncontributory  coverage or benefits which are paid entirely
by the State of Illinois without reduction  of  the  member's
salary.
    (g)  "Department"   means  any  department,  institution,
board, commission, officer, court or any agency of the  State
government  receiving  appropriations  and  having  power  to
certify  payrolls  to the Comptroller authorizing payments of
salary and wages against such appropriations as are  made  by
the  General  Assembly  from any State fund, or against trust
funds held by the State  Treasurer  and  includes  boards  of
trustees of the retirement systems created by Articles 2, 14,
15,  16  and  18  of the Illinois Pension Code.  "Department"
also includes the  Illinois  Comprehensive  Health  Insurance
Board and the Illinois Rural Bond Bank.
    (h)  "Dependent", when the term is used in the context of
the  health  and  life  plan, means a member's spouse and any
unmarried child (1) from birth to age 19 including an adopted
child, a child who lives with the member from the time of the
filing of a petition for adoption until entry of an order  of
adoption,  a stepchild or recognized child who lives with the
member in a parent-child relationship, or a child  who  lives
with  the member if such member is a court appointed guardian
of the child, or (2) age 19 to 23  enrolled  as  a  full-time
student  in any accredited school, financially dependent upon
the member, and eligible as a dependent  for  Illinois  State
income tax purposes, or (3) age 19 or over who is mentally or
physically  handicapped  as defined in the Illinois Insurance
Code. For the health plan only,  the  term  "dependent"  also
includes  any  person enrolled prior to the effective date of
this Section who is dependent upon the member to  the  extent
that  the  member  may  claim  such person as a dependent for
Illinois State income tax deduction purposes; no  other  such
person may be enrolled.
    (i)  "Director"   means  the  Director  of  the  Illinois
Department of Central Management Services.
    (j)  "Eligibility period" means  the  period  of  time  a
member  has  to  elect  enrollment  in  programs or to select
benefits without regard to age, sex or health.
    (k)  "Employee"  means  and  includes  each  officer   or
employee  in the service of a department who (1) receives his
compensation for service rendered  to  the  department  on  a
warrant   issued   pursuant  to  a  payroll  certified  by  a
department or on a warrant or check issued  and  drawn  by  a
department  upon  a  trust,  federal  or  other  fund or on a
warrant issued pursuant to a payroll certified by an  elected
or  duly  appointed  officer  of  the  State  or who receives
payment of the performance of personal services on a  warrant
issued  pursuant  to  a payroll certified by a Department and
drawn by the Comptroller upon  the  State  Treasurer  against
appropriations  made by the General Assembly from any fund or
against trust funds held by the State Treasurer, and  (2)  is
employed  full-time  or  part-time  in  a  position  normally
requiring actual performance of duty during not less than 1/2
of  a  normal  work period, as established by the Director in
cooperation with each department, except that persons elected
by popular vote  will  be  considered  employees  during  the
entire  term  for  which they are elected regardless of hours
devoted to the service of the  State,  and  (3)  except  that
"employee" does not include any person who is not eligible by
reason  of  such person's employment to participate in one of
the State retirement systems under Articles 2, 14, 15 (either
the  regular  Article  15  system  or  an  optional   program
established under Section 15-158.2) or 18, or under paragraph
(b)  or  (c) of Section 16-106, of the Illinois Pension Code,
but such term does include persons who  are  employed  during
the  6  month  qualifying  period  under  Article  14  of the
Illinois Pension Code.  Such term also  includes  any  person
who  (1)  after  January  1,  1966,  is receiving ordinary or
accidental disability  benefits  under  Articles  2,  14,  15
(including  ordinary  or accidental disability benefits under
an optional  program  established  under  Section  15-158.2),
paragraphs (b) or (c) of Section 16-106, or Article 18 of the
Illinois  Pension Code, for disability incurred after January
1, 1966, (2) receives  total  permanent  or  total  temporary
disability   under   the   Workers'   Compensation   Act   or
Occupational Disease Act as a result of injuries sustained or
illness contracted in the course of employment with the State
of  Illinois,  or (3) is not otherwise covered under this Act
and has retired as a participating member under Article 2  of
the   Illinois   Pension  Code  but  is  ineligible  for  the
retirement  annuity  under  Section  2-119  of  the  Illinois
Pension Code.  However, a person who satisfies  the  criteria
of  the  foregoing  definition of "employee" except that such
person  is  made  ineligible  to  participate  in  the  State
Universities Retirement System by clause  (4)  of  the  first
paragraph  of  Section 15-107 of the Illinois Pension Code is
also an "employee" for the purposes of this Act.   "Employee"
also  includes  any person receiving or eligible for benefits
under a sick pay plan established in accordance with  Section
36  of  the  State Finance Act. "Employee" also includes each
officer or employee in  the  service  of  a  qualified  local
government,   including  persons  appointed  as  trustees  of
sanitary districts regardless of hours devoted to the service
of the sanitary district, and each employee in the service of
a  qualified  rehabilitation  facility  and  each   full-time
employee  in  the  service  of  a qualified domestic violence
shelter  or  service,  as  determined  according   to   rules
promulgated by the Director.
    (l)  "Member"   means  an  employee,  annuitant,  retired
employee or survivor.
    (m)  "Optional  coverages  or   benefits"   means   those
coverages  or  benefits available to the member on his or her
voluntary election, and at his or her own expense.
    (n)  "Program" means the  group  life  insurance,  health
benefits  and other employee benefits designed and contracted
for by the Director under this Act.
    (o)  "Health plan" means a self-insured health  insurance
program  offered by the State of Illinois for the purposes of
benefiting employees by means  of  providing,  among  others,
wellness  programs,  utilization reviews, second opinions and
medical fee reviews, as well as for paying for  hospital  and
medical care up to the maximum coverage provided by the plan,
to its members and their dependents.
    (p)  "Retired  employee" means any person who would be an
annuitant as that term is defined herein  but  for  the  fact
that such person retired prior to January 1, 1966.  Such term
also  includes any person formerly employed by the University
of Illinois in the Cooperative Extension Service who would be
an annuitant but for the  fact  that  such  person  was  made
ineligible   to   participate   in   the  State  Universities
Retirement System by clause (4) of  the  first  paragraph  of
Section 15-107 of the Illinois Pension Code.
    (q)  "Survivor"  means a person receiving an annuity as a
survivor of an employee or of an annuitant.  "Survivor"  also
includes:  (1)  the  surviving  dependent  of  a  person  who
satisfies  the  definition  of  "employee"  except  that such
person  is  made  ineligible  to  participate  in  the  State
Universities Retirement System by clause  (4)  of  the  first
paragraph of Section 15-107 of the Illinois Pension Code; and
(2)  the  surviving dependent of any person formerly employed
by the University of Illinois in  the  Cooperative  Extension
Service  who  would  be an annuitant except for the fact that
such person was made ineligible to participate in  the  State
Universities  Retirement  System  by  clause (4) of the first
paragraph of Section 15-107 of the Illinois Pension Code.
    (r)  "Medical  services"  means  the  services   provided
within  the  scope  of their licenses by practitioners in all
categories licensed under the Medical Practice Act of 1987.
    (s)  "Unit  of  local  government"  means   any   county,
municipality,  township, school district, special district or
other unit, designated as a unit of local government by  law,
which  exercises  limited  governmental  powers  or powers in
respect to limited governmental subjects, any  not-for-profit
association   with   a  membership  that  primarily  includes
townships  and  township  officials,  that  has  duties  that
include  provision  of  research  service,  dissemination  of
information, and other acts  for  the  purpose  of  improving
township  government,  and that is funded wholly or partly in
accordance with Section  85-15  of  the  Township  Code;  any
not-for-profit  corporation or association, with a membership
consisting primarily of municipalities, that operates its own
utility   system,   and    provides    research,    training,
dissemination  of  information,  or  other  acts  to  promote
cooperation  between  and  among  municipalities that provide
utility services and for the advancement  of  the  goals  and
purposes  of  its membership; and the Illinois Association of
Park Districts.  "Qualified local government" means a unit of
local government approved by the Director  and  participating
in  a  program  created under subsection (i) of Section 10 of
this Act.
    (t)  "Qualified  rehabilitation   facility"   means   any
not-for-profit   organization   that  is  accredited  by  the
Commission on Accreditation of Rehabilitation  Facilities  or
certified  by  the Department of Human Services (as successor
to  the  Department  of  Mental  Health   and   Developmental
Disabilities)   to   provide   services   to   persons   with
disabilities  and  which  receives  funds  from  the State of
Illinois  for  providing  those  services,  approved  by  the
Director  and  participating  in  a  program  created   under
subsection (j) of Section 10 of this Act.
    (u)  "Qualified  domestic  violence  shelter  or service"
means any Illinois domestic violence shelter or  service  and
its  administrative offices funded by the Department of Human
Services (as successor to the Illinois Department  of  Public
Aid), approved by the Director and participating in a program
created under subsection (k) of Section 10.
    (v)  "TRS benefit recipient" means a person who:
         (1)  is  not  a "member" as defined in this Section;
    and
         (2)  is receiving a monthly  benefit  or  retirement
    annuity  under  Article  16 of the Illinois Pension Code;
    and
         (3)  either (i) has at least 8 years  of  creditable
    service under Article 16 of the Illinois Pension Code, or
    (ii) was enrolled in the health insurance program offered
    under  that  Article  on January 1, 1996, or (iii) is the
    survivor of a benefit recipient who had at least 8  years
    of  creditable  service  under Article 16 of the Illinois
    Pension Code or was  enrolled  in  the  health  insurance
    program  offered under that Article on the effective date
    of this amendatory Act of 1995, or (iv) is a recipient or
    survivor of a recipient of  a  disability  benefit  under
    Article 16 of the Illinois Pension Code.
    (w)  "TRS dependent beneficiary" means a person who:
         (1)  is  not a "member" or "dependent" as defined in
    this Section; and
         (2)  is a TRS benefit recipient's: (A)  spouse,  (B)
    dependent parent who is receiving at least half of his or
    her  support  from  the  TRS  benefit  recipient,  or (C)
    unmarried natural or adopted child who is (i)  under  age
    19,  or  (ii)  enrolled  as  a  full-time  student  in an
    accredited school, financially  dependent  upon  the  TRS
    benefit  recipient,  eligible as a dependent for Illinois
    State income tax purposes, and either is under age 24  or
    was,  on  January  1,  1996, participating as a dependent
    beneficiary in the health insurance program offered under
    Article 16 of the Illinois Pension Code, or (iii) age  19
    or  over  who  is  mentally  or physically handicapped as
    defined in the Illinois Insurance Code.
    (x)  "Military leave with pay  and  benefits"  refers  to
individuals  in basic training for reserves, special/advanced
training, annual training, emergency call up,  or  activation
by  the  President of the United States with approved pay and
benefits.
    (y)  "Military leave without pay and benefits" refers  to
individuals who enlist for active duty in a regular component
of  the  U.S.  Armed  Forces  or  other duty not specified or
authorized under military leave with pay and benefits.
    (z)  "Community college benefit recipient" means a person
who:
         (1)  is not a "member" as defined in  this  Section;
    and
         (2)  is  receiving  a  monthly survivor's annuity or
    retirement annuity  under  Article  15  of  the  Illinois
    Pension Code; and
         (3)  either  (i)  was  a  full-time  employee  of  a
    community college district or an association of community
    college boards created under the Public Community College
    Act  (other  than  an  employee whose last employer under
    Article 15 of the Illinois Pension Code was  a  community
    college  district  subject  to  Article VII of the Public
    Community College Act) and was eligible to participate in
    a group health benefit plan as  an  employee  during  the
    time  of  employment  with  a  community college district
    (other than  a  community  college  district  subject  to
    Article  VII  of  the Public Community College Act) or an
    association of community college boards, or (ii)  is  the
    survivor of a person described in item (i).

    (aa)  "Community  college  dependent beneficiary" means a
person who:
         (1)  is not a "member" or "dependent" as defined  in
    this Section; and
         (2)  is a community college benefit recipient's: (A)
    spouse,  (B)  dependent  parent who is receiving at least
    half of his or her support  from  the  community  college
    benefit  recipient,  or  (C) unmarried natural or adopted
    child who is (i) under age 19,  or  (ii)  enrolled  as  a
    full-time  student  in  an accredited school, financially
    dependent upon the community college  benefit  recipient,
    eligible  as  a  dependent  for Illinois State income tax
    purposes and under age 23, or (iii) age 19  or  over  and
    mentally  or  physically  handicapped  as  defined in the
    Illinois Insurance Code.
(Source: P.A. 88-670,  eff.  12-2-94;  89-21,  eff.  6-21-95;
89-25,   eff.  6-21-95;  89-76,  eff.  7-1-95;  89-324,  eff.
8-13-95; 89-430, eff. 12-15-95; 89-502, eff. 7-1-96;  89-507,
eff. 7-1-97; 89-628, eff. 8-9-96; revised 8-23-96.)

    (5 ILCS 375/6.9 new)
    Sec.  6.9.  Health benefits for community college benefit
recipients and community college dependent beneficiaries.
    (a)  Purpose.  It is the purpose of this  amendatory  Act
of 1997 to establish a uniform program of health benefits for
community  college  benefit  recipients  and  their dependent
beneficiaries under the administration of the  Department  of
Central Management Services.
    (b)  Creation  of  program.   Beginning July 1, 1999, the
Department  of   Central   Management   Services   shall   be
responsible  for  administering  a program of health benefits
for  community  college  benefit  recipients  and   community
college  dependent  beneficiaries  under  this  Section.  The
State  Universities  Retirement  System  and  the  boards  of
trustees of the various  community  college  districts  shall
cooperate with the Department in this endeavor.
    (c)  Eligibility.     All   community   college   benefit
recipients  and  community  college  dependent  beneficiaries
shall be eligible to participate in the  program  established
under  this  Section,  without  any  interruption or delay in
coverage or limitation as to pre-existing medical conditions.
Eligibility to participate shall be determined by  the  State
Universities  Retirement  System.    Eligibility  information
shall be communicated to the Department of Central Management
Services in a format acceptable to the Department.
    (d)    Coverage.   The  health  benefit coverage provided
under this Section shall be a program of health, dental,  and
vision benefits.
    The  program  of  health  benefits under this Section may
include any or all of the benefit limitations, including  but
not  limited  to a reduction in benefits based on eligibility
for  federal  medicare  benefits,  that  are  provided  under
subsection (a) of Section 6 of  this  Act  for  other  health
benefit programs under this Act.
    (e)  Insurance  rates  and  premiums.  The Director shall
determine the insurance  rates  and  premiums  for  community
college  benefit  recipients  and community college dependent
beneficiaries.  Rates and premiums may be based  in  part  on
age  and  eligibility  for  federal  Medicare  coverage.  The
Director  shall  also  determine premiums that will allow for
the establishment of an actuarially sound  reserve  for  this
program.
    The  cost  of  health benefits under the program shall be
paid as follows:
         (1)  For a community college benefit  recipient,  up
    to 75% of the total insurance rate shall be paid from the
    Community College Health Insurance Security Fund.
         (2)  The balance of the rate of insurance, including
    the entire premium for any coverage for community college
    dependent  beneficiaries  that has been elected, shall be
    paid by deductions authorized by  the  community  college
    benefit  recipient to be withheld from his or her monthly
    annuity or benefit payment from  the  State  Universities
    Retirement  System; except that (i) if the balance of the
    cost of  coverage  exceeds  the  amount  of  the  monthly
    annuity  or benefit payment, the difference shall be paid
    directly to the State Universities Retirement  System  by
    the  community college benefit recipient, and (ii) all or
    part of the balance of the cost of coverage may,  at  the
    option  of the board of trustees of the community college
    district, be paid to the  State  Universities  Retirement
    System  by  the  board  of the community college district
    from  which  the  community  college  benefit   recipient
    retired.   The State Universities Retirement System shall
    promptly deposit all moneys withheld by  or  paid  to  it
    under  this subdivision (e)(2) into the Community College
    Health Insurance Security Fund.  These moneys  shall  not
    be considered assets of the State Universities Retirement
    System.
    (f)  Financing.     All   revenues   arising   from   the
administration of  the  health  benefit  program  established
under  this  Section  shall  be  deposited into the Community
College Health  Insurance  Security  Fund,  which  is  hereby
created  as  a  nonappropriated trust fund to be held outside
the State Treasury, with the State  Treasurer  as  custodian.
Any interest earned on moneys in the Community College Health
Insurance Security Fund shall be deposited into the Fund.
    Moneys in the Community College Health Insurance Security
Fund  shall  be  used  only  to  pay  the costs of the health
benefit program established  under  this  Section,  including
associated  administrative  costs  and the establishment of a
program reserve.  Beginning January 1, 1999,  the  Department
of Central Management Services may make expenditures from the
Community  College  Health  Insurance Security Fund for those
costs.
    (g)  Contract  for  benefits.   The  Director  shall   by
contract,  self-insurance,  or  otherwise  make available the
program of health  benefits  for  community  college  benefit
recipients    and    their    community   college   dependent
beneficiaries that is provided  for  in  this  Section.   The
contract  or  other  arrangement  for  the provision of these
health benefits shall be on terms deemed by the  Director  to
be  in  the  best  interest  of the State of Illinois and the
community  college  benefit  recipients  based  on,  but  not
limited to, such criteria  as  administrative  cost,  service
capabilities  of  the  carrier  or  other contractor, and the
costs of the benefits.
    (h)  Continuation of program.  It is the intention of the
General Assembly that the program of health benefits provided
under this Section be maintained on  an  ongoing,  affordable
basis.   The  program  of health benefits provided under this
Section may be amended by the State and is not intended to be
a pension or retirement benefit subject to  protection  under
Article XIII, Section 5 of the Illinois Constitution.
    (i)  Other  health  benefit plans.  A health benefit plan
provided by  a  community  college  district  (other  than  a
community  college  district  subject  to  Article VII of the
Public Community College Act) under the terms of a collective
bargaining agreement in effect on or prior to  the  effective
date  of  this amendatory Act of 1997 shall continue in force
according to the terms of that  agreement,  unless  otherwise
mutually  agreed  by  the  parties  to that agreement and the
affected retiree.  A community college benefit  recipient  or
community  college dependent beneficiary whose coverage under
such a plan expires shall be eligible to begin  participating
in  the  program  established  under this Section without any
interruption  or  delay  in  coverage  or  limitation  as  to
pre-existing medical conditions.
    This Act does not prohibit any community college district
from offering additional health benefits for its retirees  or
their dependents or survivors.

    (5 ILCS 375/6.10 new)
    Sec.  6.10. Contributions to the Community College Health
Insurance Security Fund.
    (a)  Beginning January 1, 1999, every active  contributor
of  the  State  Universities  Retirement  System (established
under Article 15 of the Illinois Pension Code) who (1)  is  a
full-time  employee  of  a  community college district (other
than a community college district subject to Article  VII  of
the  Public  Community  College  Act)  or  an  association of
community college boards  and  (2)  is  not  an  employee  as
defined  in  Section  3  of this Act shall make contributions
toward the cost of community college annuitant  and  survivor
health benefits at the rate of 0.50% of salary.
    These contributions shall be deducted by the employer and
paid  to  the State Universities Retirement System as service
agent for the Department of Central Management Services.  The
System  may  use  the  same  processes  for  collecting   the
contributions  required  by  this  subsection that it uses to
collect the contributions received from those employees under
Section 15-157 of the Illinois Pension Code.  An employer may
agree to pick up or pay the contributions required under this
subsection on behalf  of  the  employee;  such  contributions
shall be deemed to have been paid by the employee.
    A  person  required  to  make  contributions  under  this
subsection  (a)  who  purchases optional service credit under
Article 15 of the Illinois Pension Code  must  also  pay  the
contribution  required under this subsection (a) with respect
to that optional service credit.  This contribution  must  be
received by the System before that optional service credit is
granted.
    The  State  Universities Retirement System shall promptly
deposit all moneys collected under this subsection  (a)  into
the  Community College Health Insurance Security Fund created
in Section 6.9 of this Act.  The moneys collected under  this
Section  shall  be  used  only for the purposes authorized in
Section 6.9 of this Act and shall not  be  considered  to  be
assets   of   the   State   Universities  Retirement  System.
Contributions made under this Section are not transferable to
other  pension  funds  or  retirement  systems  and  are  not
refundable upon termination of service.
    (b)  Beginning January 1, 1999, every  community  college
district  (other than a community college district subject to
Article  VII  of  the  Public  Community  College   Act)   or
association  of  community college boards that is an employer
under  the  State  Universities   Retirement   System   shall
contribute  toward  the  cost of the community college health
benefits provided under Section 6.9 of  this  Act  an  amount
equal  to 0.50% of the salary paid to its full-time employees
who participate in the State Universities  Retirement  System
and are not members as defined in Section 3 of this Act.
    These  contributions shall be paid by the employer to the
State Universities Retirement System as service agent for the
Department of Central Management Services.   The  System  may
use  the  same  processes  for  collecting  the contributions
required by this subsection  that  it  uses  to  collect  the
contributions  received  from  those  employers under Section
15-155 of the Illinois Pension Code.
    The State Universities Retirement System  shall  promptly
deposit  all  moneys collected under this subsection (b) into
the Community College Health Insurance Security Fund  created
in  Section 6.9 of this Act.  The moneys collected under this
Section shall be used only for  the  purposes  authorized  in
Section  6.9  of  this  Act and shall not be considered to be
assets  of  the   State   Universities   Retirement   System.
Contributions made under this Section are not transferable to
other  pension  funds  or  retirement  systems  and  are  not
refundable upon termination of service.
    (c)  On  or before November 15 of each year, the Board of
Trustees of the State Universities  Retirement  System  shall
certify  to  the Governor, the Director of Central Management
Services, and the State Comptroller its estimate of the total
amount of contributions to be paid under  subsection  (a)  of
this  Section  for  the  next fiscal year.  The certification
shall include a  detailed  explanation  of  the  methods  and
information  that  the  Board  relied  upon  in preparing its
estimate.  As soon as possible after the  effective  date  of
this  Section, the Board shall submit its estimate for fiscal
year 1999.
    (d)  Beginning in fiscal year 1999, on the first  day  of
each  month,  or  as soon thereafter as may be practical, the
State Treasurer and the State Comptroller shall transfer from
the General Revenue Fund  to  the  Community  College  Health
Insurance   Security   Fund   1/12   of   the  annual  amount
appropriated for that fiscal year to  the  State  Comptroller
for  deposit  into  the  Community  College  Health Insurance
Security Fund under Section 1.4 of the  State  Pension  Funds
Continuing Appropriation Act.
    (e)  Except  where  otherwise  specified in this Section,
the definitions that apply to  Article  15  of  the  Illinois
Pension Code apply to this Section.

    (5 ILCS 375/15) (from Ch. 127, par. 535)
    Sec. 15. Administration; rules; audit; review.
    (a)  The  Director  shall  administer  this Act and shall
prescribe such rules and regulations as are necessary to give
full effect to the purposes of this Act.
    (b)  These rules may fix  reasonable  standards  for  the
group  life  and  group  health  programs  and  other benefit
programs offered under this  Act,  and  for  the  contractors
providing them.
    (c)  These  rules shall specify that covered and optional
medical services of the program are services provided  within
the   scope   of  their  licenses  by  practitioners  in  all
categories licensed under the Medical Practice  Act  of  1987
and shall provide that all eligible persons be fully informed
of this specification.
    (d)  These rules shall establish eligibility requirements
for  members and dependents as may be necessary to supplement
or clarify requirements contained in this Act.
    (e)  Each affected department of  the  State,  the  State
Universities  Retirement  System,  the  Teachers'  Retirement
System,  and  each qualified local government, rehabilitation
facility, or domestic violence shelter or service, shall keep
such records,  make  such  certifications,  and  furnish  the
Director  such  information  as  may  be  necessary  for  the
administration  of this Act, including information concerning
number and total amounts  of  payroll  of  employees  of  the
department who are paid from trust funds or federal funds.
    (f)  Each   member,   each   community   college  benefit
recipient to whom this Act  applies,  and  each  TRS  benefit
recipient   to  whom  this  Act  applies  shall  furnish  the
Director, in such form as may be  required,  any  information
that  may  be  necessary to enroll such member or TRS benefit
recipient and, if applicable, his or her  dependents  or  TRS
dependent beneficiaries under the programs or plan, including
such  data  as  may  be  required  to  allow  the Director to
accumulate  statistics  on  data   normally   considered   in
actuarial  studies  of  employee  groups.   Information about
community college benefit recipients  and  community  college
dependent  beneficiaries shall be furnished through the State
Universities  Retirement  System.   Information   about   TRS
benefit  recipients  and TRS dependent beneficiaries shall be
furnished through the Teachers' Retirement System.
    (g)  There shall be an annual audit  and  report  on  the
programs  authorized  and established by this Act prepared by
the Director with the assistance of a qualified,  independent
accounting firm.  The annual report shall provide information
on  the  experience,  and  administrative  effectiveness  and
adequacy   of   the   program   including,  when  applicable,
recommendations on up-grading of benefits and improvement  of
the program.
    (h)  Any  final  order,  decision  or other determination
made, issued or executed by the Director under the provisions
of this Act whereby any contractor  or  person  is  aggrieved
shall  be subject to review in accordance with the provisions
of the Administrative  Review  Law  and  all  amendments  and
modifications   thereof,   and  the  rules  adopted  pursuant
thereto, shall apply to and govern all  proceedings  for  the
judicial  review  of  final  administrative  decisions of the
Director.
(Source: P.A. 89-21, eff. 6-21-95; 89-25, eff. 6-21-95.)

    Section  10.   The   State   Pension   Funds   Continuing
Appropriation  Act  is  amended  by  adding  Section  1.4  as
follows:

    (40 ILCS 15/1.4 new)
    Sec. 1.4. Appropriations for the Community College Health
Insurance  Security  Fund.   Beginning  in  State fiscal year
1999, there is hereby appropriated, on  a  continuing  annual
basis, from the General Revenue Fund to the State Comptroller
for  deposit  into  the  Community  College  Health Insurance
Security Fund, an amount equal to the amount certified by the
Board of Trustees of the State Universities Retirement System
under subsection (c) of Section 6.10 of the  State  Employees
Group  Insurance Act of 1971 as the estimated total amount of
contributions to be paid under subsection (a) of that Section
6.10 in that fiscal year.  The moneys appropriated under this
Section 1.4 shall be deposited  into  the  Community  College
Health Insurance Security Fund and used only for the purposes
authorized  in  Section  6.9  of  the  State  Employees Group
Insurance Act of 1971.

    Section 15.  The Public Community College Act is  amended
by changing Section 2-16.02 as follows:

    (110 ILCS 805/2-16.02) (from Ch. 122, par. 102-16.02)
    Sec.  2-16.02.  Grants.   Any  community college district
that maintains a community college recognized  by  the  State
Board shall receive, when eligible, grants enumerated in this
Section.   Except  for  equalization  grants, retirees health
insurance grants, grants to districts established pursuant to
Section 6-6.1, and grants for special initiatives, all grants
specified in this Section shall be based on  funded  semester
credit hours.  Funded semester credit hours shall be defined,
for  purposes  of  this  Section,  as  the greater of (1) the
number of semester credit hours, or equivalent, in all funded
instructional categories of  students who have been certified
as being in attendance at midterm during the respective terms
of the base fiscal year or (2) the average of semester credit
hours, or equivalent, in all funded instructional  categories
of students who have been certified as being in attendance at
midterm  during  the respective terms of the base fiscal year
and the 2 prior fiscal years.  For purposes of this  Section,
"base fiscal year" means the fiscal year 2 years prior to the
fiscal  year  for  which  the  grants are appropriated.  Such
students shall have been residents of Illinois and shall have
been enrolled in  courses  that  are  part  of  instructional
program  categories  approved by the State Board and that are
applicable  toward  an  associate  degree   or   certificate.
Courses are not eligible for reimbursement where the district
receives federal or State financing or both, except financing
through the State Board, for 50% or more of the program costs
with  the  exception  of courses offered by contract with the
Department  of  Corrections  in  correctional   institutions.
After  distributing  a  grant of up to one-tenth of 1% of the
total available credit hour grant funding  to  each  district
with  less than 75,000 funded semester credit hours exclusive
of Department of  Corrections  credit  hours,  the  remaining
credit  hour  grants  shall be paid based on rates per funded
semester credit hour or equivalent calculated  by  the  State
Board  for  funded  instructional  categories  using  cost of
instruction,  enrollment,  inflation,  and   other   relevant
factors.
    Grants  for  equalization  shall  be  distributed to each
district that falls below a statewide threshold calculated by
the State Board by: (A) adding  (1)  the  Corporate  Personal
Property  Replacement  Fund  allocations from the base fiscal
year or the average of the base fiscal year and  prior  year,
whichever  is less, divided by the applicable tax rate to (2)
the most recently audited year's equalized assessed valuation
or the average of the most recently audited  year  and  prior
year,  whichever  is less, (B) then dividing by the number of
audited full-time equivalent resident students for  the  base
fiscal  year or the average for the base  fiscal year and the
2 prior fiscal years, whichever  is  greater,  and  (C)  then
multiplying  by  the  applicable  tax  rate.  The State Board
shall use the same methodology to calculate a  local  revenue
factor   for   each  district.  The  difference  between  the
statewide threshold and the local revenue factor,  multiplied
by   the  number  of  full-time  equivalent  students,  shall
determine  the  amount  of  equalization  funding  that  each
district is eligible to receive.
    A special populations  grant  of  $20,000  per  community
college  shall  be  distributed  to  each  community  college
district,  and  any  remaining appropriated funds for special
populations   programs   with   the   exception   of   moneys
appropriated  as  grants  for  unique   special   populations
initiatives  created  by the State Board shall be distributed
proportionately to each community  college  district  on  the
basis  of  each  district's  share  of the State total funded
semester     credit     hours,     or     equivalent,      in
remedial/developmental   and   adult   basic  education/adult
secondary  education   courses.    Each   community   college
district's  expenditures  of funds from those grants shall be
limited to courses  and  services  related  to  programs  for
educationally   disadvantaged   and   minority   students  as
specified by the State Board.
    A  workforce  preparation  grant  of  $35,000  shall   be
distributed  to  each  community  college  district,  and any
remaining appropriated funds for workforce  preparation  with
the  exception  of  monies appropriated as grants for special
workforce preparation initiatives created by the State  Board
shall   be  distributed  proportionately  to  each  community
college district on the basis of each district's share of the
State total funded semester credit hours, or  equivalent,  in
business  occupational,  technical  occupational,  and health
occupational  courses.   Each  community  college  district's
expenditures of funds from those grants shall be  limited  to
workforce preparation activities and services as specified by
the State Board.
    An   advanced   technology   equipment   grant  shall  be
distributed  proportionately  to   each   community   college
district  based  on  each district's share of the State total
funded semester credit  hours,  or  equivalent,  in  business
occupational, technical occupational, and health occupational
courses.   Each  community college district's expenditures of
funds from those grants shall be limited  to  procurement  of
equipment for curricula impacted by technological advances as
specified by the State Board.
    Until  January 1, 1999, a retirees health insurance grant
shall  be  distributed  proportionately  to  each   community
college  district  or entity created pursuant to Section 3-55
based on  each  district's  share  of  the  total  number  of
community  college  retirees  in  the  State on July 1 of the
fiscal year prior to the fiscal year for which the grants are
appropriated,  as  determined  by  the  State  Board.    Each
community college district's expenditures of funds from those
grants  shall  be limited to payment of costs associated with
the  provision  of  retirees'  health  insurance.   Beginning
January 1, 1999, the retirees health insurance grant shall be
limited to community college districts subject to Article VII
of  this  Act.   The  retirees  health  insurance  grants  to
community college districts not subject to  Article  VII  for
fiscal  year  1998-1999  shall be calculated so as to reflect
the January 1, 1999 termination date.
    A grant shall be provided to  the  Illinois  Occupational
Information   Coordinating   Committee  for  the  purpose  of
providing the State Board with labor  market  information  by
updating  the  Occupational  Information  System and HORIZONS
Career Information  System  and  by  providing  labor  market
information  and  technical  assistance,  that  grant  to  be
provided  in  its  entirety  during  the first quarter of the
fiscal year.
    A grant shall be provided to Community  College  District
#540,  that  district having been formed under the provisions
of Section 6-6.1, for the purpose of providing funds for  the
district  to  meet operating expenses.  The State Board shall
certify, prepare, and submit to the State Comptroller  during
August  of the fiscal year a voucher setting forth a one-time
payment of any Education Assistance Fund  appropriation,  and
during  November,  February,  and  May  of  the fiscal year a
voucher setting forth equal payments of General Revenue  Fund
appropriations.   The Comptroller shall cause a warrant to be
drawn for  the  amount  due,  payable  to  Community  College
District  #540,  within 15 days following the receipt of each
such voucher.
    The State  Board  shall  distribute  such  other  special
grants  as  may  be authorized or appropriated by the General
Assembly.
    Each community college district entitled to State  grants
under  this Section must submit a report of its enrollment to
the State Board not later than 30 days following the  end  of
each semester, quarter, or term in a format prescribed by the
State  Board.   These  semester  credit hours, or equivalent,
shall be certified by each district on forms provided by  the
State  Board.   Each  district's  certified  semester  credit
hours,  or  equivalent,  are  subject  to  audit  pursuant to
Section 3-22.1.
    The State Board shall certify, prepare, and submit to the
State Comptroller during August, November, February, and  May
of each fiscal year vouchers setting forth an amount equal to
25%  of  the  districts'  total  grants approved by the State
Board for credit hour  grants,  special  populations  grants,
workforce  preparation  grants, equalization grants, advanced
technology equipment grants, and  retirees  health  insurance
grants. The State Board shall prepare and submit to the State
Comptroller  vouchers  for special initiatives grant payments
as  set  forth  in  the  contracts   executed   pursuant   to
appropriations   received   for   special   initiatives.  The
Comptroller shall cause his warrants  to  be  drawn  for  the
respective  amounts  due,  payable  to each community college
district, within  15  days  following  the  receipt  of  such
vouchers.  If the amount appropriated for grants is different
from  the amount provided for such grants under this Act, the
grants  shall  be  proportionately   reduced   or   increased
accordingly.
    For  the  purposes  of  this  Section, "resident student"
means a student in a community college district who maintains
residency  in  that  district  or   meets   other   residency
definitions  established  by  the  State  Board,  and who was
enrolled either in one of the approved instructional  program
categories  in that district, or in another community college
district to which the resident's district is  paying  tuition
under  Section  6-2 or with which the resident's district has
entered into a cooperative agreement in lieu of such tuition.
    For  the  purposes  of   this   Section,   a   "full-time
equivalent" student is equal to 30 semester credit hours.
    The Illinois Community College Board Contracts and Grants
Fund  is  hereby  created  in  the  State Treasury.  Items of
income  to  this  fund  shall  include  any  grants,  awards,
endowments, or like proceeds, and  where  appropriate,  other
funds  made  available  through  contracts with governmental,
public,  and  private  agencies  or  persons.   The   General
Assembly  shall from time to time make appropriations payable
from such fund for the support, improvement, and expenses  of
the State Board and Illinois community college districts.
(Source:  P.A.  88-103; 88-553; 89-141, eff. 7-14-95; 89-281,
eff. 8-10-95; 89-473, eff. 6-18-96; 89-626, eff. 8-9-96.)

    Section 90.  The State Mandates Act is amended by  adding
Section 8.21 as follows:

    (30 ILCS 805/8.21 new)
    Sec.  8.21.  Exempt  mandate.  Notwithstanding Sections 6
and 8 of this Act, no reimbursement by the State is  required
for  the  implementation  of  any  mandate  created  by  this
amendatory Act of 1997.

    Section  95.   No  acceleration or delay.  Where this Act
makes changes in a statute that is represented in this Act by
text that is not yet or no longer in effect (for  example,  a
Section  represented  by  multiple versions), the use of that
text does not accelerate or delay the taking  effect  of  (i)
the  changes made by this Act or (ii) provisions derived from
any other Public Act.

    Section 99. Effective date.  This Act takes  effect  upon
becoming law.

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