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92nd General Assembly

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Public Act 92-0714

HB4451 Enrolled                                LRB9211335WHpr

    AN ACT concerning workers' compensation.

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

    Section  5.   The Workers' Compensation Act is amended by
changing Section 7 as follows:

    (820 ILCS 305/7) (from Ch. 48, par. 138.7)
    Sec. 7. The amount of compensation which  shall  be  paid
for  an  accidental injury to the employee resulting in death
is:
    (a)  If the employee leaves surviving a  widow,  widower,
child  or  children,  the applicable weekly compensation rate
computed in accordance with subparagraph 2 of paragraph   (b)
of  Section  8, shall be payable during the life of the widow
or widower and if any surviving child or children  shall  not
be  physically or mentally incapacitated then until the death
of the widow or widower or until  the  youngest  child  shall
reach  the  age  of  18, whichever shall come later; provided
that if such child or children shall be enrolled  as  a  full
time  student  in any accredited educational institution, the
payments shall continue until such child has attained the age
of 25.  In the event any surviving child or children shall be
physically or  mentally  incapacitated,  the  payments  shall
continue for the duration of such incapacity.
    The term "child" means a child whom the deceased employee
left surviving, including a posthumous child, a child legally
adopted,  a  child  whom  the  deceased  employee was legally
obligated to support or a child to whom the deceased employee
stood in loco parentis.  The term "children" means the plural
of "child".
    The term "physically or mentally incapacitated  child  or
children"  means a child or children incapable of engaging in
regular and substantial gainful employment.
    In the event of the remarriage of  a  widow  or  widower,
where  the  decedent  did  not  leave  surviving any child or
children who, at the time of such remarriage, are entitled to
compensation benefits under this Act,  the  surviving  spouse
shall  be  paid  a  lump  sum  equal  to 2 years compensation
benefits and all further rights  of  such  widow  or  widower
shall be extinguished.
    If  the  employee  leaves surviving any child or children
under 18 years of age who at  the  time  of  death  shall  be
entitled  to  compensation  under  this paragraph (a) of this
Section, the weekly compensation payments herein provided for
such child or children shall in  any  event  continue  for  a
period of not less than 6 years.
    Any  beneficiary  entitled  to  compensation  under  this
paragraph  (a) of this Section shall receive from the special
fund provided in paragraph (f) of this Section,  in  addition
to the compensation herein provided, supplemental benefits in
accordance with paragraph (g) of Section 8.
    (b)  If no compensation is payable under paragraph (a) of
this  Section  and  the employee leaves surviving a parent or
parents  who  at  the  time  of  the  accident  were  totally
dependent upon the  earnings  of  the  employee  then  weekly
payments  equal  to the compensation rate payable in the case
where the employee leaves surviving a widow or widower, shall
be paid to such parent or parents for the duration  of  their
lives,  and in the event of the death of either, for the life
of the survivor.
    (c)  If no compensation is payable under  paragraphs  (a)
or  (b) of this Section and the employee leaves surviving any
child or children who are not entitled to compensation  under
the  foregoing  paragraph  (a)  but  who  at  the time of the
accident were nevertheless in any manner dependent  upon  the
earnings  of  the  employee,  or leaves surviving a parent or
parents who at  the  time  of  the  accident  were  partially
dependent upon the earnings of the employee, then there shall
be  paid  to  such  dependent or dependents for a period of 8
years weekly compensation payments at such proportion of  the
applicable rate if the employee had left surviving a widow or
widower as such dependency bears to total dependency.  In the
event  of the death of any such beneficiary the share of such
beneficiary shall be  divided  equally  among  the  surviving
beneficiaries  and in the event of the death of the last such
beneficiary  all  the  rights  under  this paragraph shall be
extinguished.
    (d)  If no compensation is payable under paragraphs  (a),
(b)  or (c) of this Section and the employee leaves surviving
any grandparent, grandparents, grandchild or grandchildren or
collateral heirs dependent upon the  employee's  earnings  to
the  extent  of  50%  or more of total dependency, then there
shall be paid to such dependent or dependents for a period of
5 years weekly compensation payments at  such  proportion  of
the  applicable  rate  if  the  employee had left surviving a
widow  or  widower  as  such  dependency   bears   to   total
dependency.    In   the  event  of  the  death  of  any  such
beneficiary the share of such beneficiary  shall  be  divided
equally among the surviving beneficiaries and in the event of
the  death  of the last such beneficiary all rights hereunder
shall be extinguished.
    (e)  The compensation to be paid  for  accidental  injury
which results in death, as provided in this Section, shall be
paid  to  the  persons who form the basis for determining the
amount of compensation  to  be  paid  by  the  employer,  the
respective shares to be in the proportion of their respective
dependency at the time of the accident on the earnings of the
deceased.   The  Commission  or an Arbitrator thereof may, in
its or his discretion, order or  award  the  payment  to  the
parent or grandparent of a child for the latter's support the
amount  of  compensation  which  but  for such order or award
would have been paid to  such  child  as  its  share  of  the
compensation  payable,  which  order or award may be modified
from time to time by the Commission in  its  discretion  with
respect to the person to whom shall be paid the amount of the
order   or   award  remaining  unpaid  at  the  time  of  the
modification.
    The  payments  of  compensation  by   the   employer   in
accordance   with  the  order  or  award  of  the  Commission
discharges such employer from all further  obligation  as  to
such compensation.
    (f)  The  sum  of $4200 for burial expenses shall be paid
by the employer to the widow  or  widower,  other  dependent,
next of kin or to the person or persons incurring the expense
of burial.
    In  the  event  the  employer failed to provide necessary
first aid, medical, surgical or hospital  service,  he  shall
pay  the  cost  thereof  to the person or persons entitled to
compensation under paragraphs (a), (b), (c) or  (d)  of  this
Section, or to the person or persons incurring the obligation
therefore, or providing the same.
    On  January  15  and July 15, 1981, and on January 15 and
July 15 of each year thereafter the employer shall within  60
days  pay  a  sum  equal  to  1/8  of  1% of all compensation
payments made by him after July 1, 1980,  either  under  this
Act  or  the  Workers'  Occupational Diseases Act, whether by
lump sum settlement or weekly compensation payments, but  not
including hospital, surgical or rehabilitation payments, made
during  the  first  6  months  and during the second 6 months
respectively of the fiscal year next preceding  the  date  of
the  payments,  into a special fund which shall be designated
the "Second Injury Fund", of which  the  State  Treasurer  is
ex-officio  custodian,  such  special  fund  to  be  held and
disbursed for the purposes hereinafter stated  in  paragraphs
(f)  and  (g)  of  Section  8,  either  upon the order of the
Commission or of a competent court.  Said special fund  shall
be  deposited  the  same  as are State funds and any interest
accruing thereon shall be added thereto every 6  months.   It
is  subject to audit the same as State funds and accounts and
is  protected  by  the  General  bond  given  by  the   State
Treasurer.   It  is  considered  always  appropriated for the
purposes of disbursements as provided in Section 8, paragraph
(f), of this Act, and shall be  paid  out  and  disbursed  as
therein provided and shall not at any time be appropriated or
diverted to any other use or purpose.
    On January 15, 1991, the employer shall further pay a sum
equal  to one half of 1% of all compensation payments made by
him from January 1, 1990 through June 30, 1990  either  under
this  Act  or  under  the Workers' Occupational Diseases Act,
whether  by  lump  sum  settlement  or  weekly   compensation
payments,   but   not   including   hospital,   surgical   or
rehabilitation  payments,  into  an  additional  Special Fund
which shall be designated as the "Rate Adjustment  Fund".  On
March  15,  1991,  the  employer  shall  pay  into  the  Rate
Adjustment  Fund  a  sum  equal to one half of 1% of all such
compensation payments made from July 1, 1990 through December
31, 1990.  Within 60 days after July 15, 1991,  the  employer
shall  pay  into  the Rate Adjustment Fund a sum equal to one
half of 1%  of  all  such  compensation  payments  made  from
January  1, 1991 through June 30, 1991.  Within 60 days after
January 15 of 1992 and each subsequent year through 1996, the
employer shall pay into the Rate Adjustment Fund a sum  equal
to  one  half of 1% of all such compensation payments made in
the last 6 months of the preceding calendar year.  Within  60
days  after  July 15 of 1992 and each subsequent year through
1995, the employer shall pay into the Rate Adjustment Fund  a
sum equal to one half of 1% of all such compensation payments
made  in the first 6 months of the same calendar year. Within
60 days after January 15 of 1997 and  each  subsequent  year,
the  employer  shall  pay into the Rate Adjustment Fund a sum
equal  to  three-fourths  of  1%  of  all  such  compensation
payments made in the last 6 months of the preceding  calendar
year.    Within  60  days  after  July  15  of  1996 and each
subsequent  year,  the  employer  shall  pay  into  the  Rate
Adjustment Fund a sum equal to three-fourths  of  1%  of  all
such  compensation payments made in the first 6 months of the
same calendar year.  The administrative costs  of  collecting
assessments from employers for the Rate Adjustment Fund shall
be  paid  from  the  Rate  Adjustment  Fund.   The cost of an
actuarial audit of the Fund  shall  be  paid  from  the  Rate
Adjustment  Fund  and  the  audit shall be completed no later
than  July  1,  1997.  The  State  Treasurer  is  ex  officio
custodian of such Special Fund and the same shall be held and
disbursed for the purposes hereinafter stated  in  paragraphs
(f)  and (g) of Section 8 upon the order of the Commission or
of a competent court.  The  Rate  Adjustment  Fund  shall  be
deposited  the  same  as  are  State  funds  and any interest
accruing thereon shall be added thereto every 6  months.   It
shall  be  subject  to  audit  the  same  as  State funds and
accounts and shall be protected by the general bond given  by
the  State  Treasurer.   It is considered always appropriated
for the purposes of disbursements as provided  in  paragraphs
(f)  and  (g)  of Section 8 of this Act and shall be paid out
and disbursed as therein provided and shall not at  any  time
be  appropriated  or  diverted  to  any other use or purpose.
Within 5 days after the effective date of this amendatory Act
of 1990,  the  Comptroller  and  the  State  Treasurer  shall
transfer $1,000,000 from the General Revenue Fund to the Rate
Adjustment  Fund.   By February 15, 1991, the Comptroller and
the State Treasurer shall transfer $1,000,000 from  the  Rate
Adjustment  Fund  to  the  General  Revenue  Fund.  From  the
effective  date  of this amendatory Act of 1993 to October 1,
1997, The Comptroller and Treasurer are  authorized  to  make
transfers  at  the  request  of the Chairman up to a total of
$15,000,000 $7,000,000  from  the  Second  Injury  Fund,  the
General  Revenue  Fund, and the Workers' Compensation Benefit
Trust Fund to the Rate Adjustment Fund  to  the  extent  that
there  is  insufficient  money in the Rate Adjustment Fund to
pay claims and obligations.  Amounts may be transferred  from
the  General  Revenue  Fund  only  if the funds in the Second
Injury Fund or the Workers' Compensation Benefit  Trust  Fund
are  insufficient  to  pay claims and obligations of the Rate
Adjustment Fund. All  amounts  transferred  from  the  Second
Injury  Fund,  the  General  Revenue  Fund,  and the Workers'
Compensation Benefit Trust Fund shall be repaid from the Rate
Adjustment Fund within 270 days of a transfer, together  with
interest  at the rate earned by moneys on deposit in the Fund
or Funds from which the moneys were transferred.
    Upon a finding by the Commission, after reasonable notice
and hearing, that any employer has  willfully  and  knowingly
failed  to pay the proper amounts into the Second Injury Fund
or the Rate Adjustment Fund required by this  Section  or  if
such payments are not made within the time periods prescribed
by  this  Section,  the  employer  shall, in addition to such
payments, pay a penalty of 20% of the amount required  to  be
paid  or  $2,500, whichever is greater, for each year or part
thereof of such failure to pay.    This  penalty  shall  only
apply to obligations of an employer to the Second Injury Fund
or the Rate Adjustment Fund accruing after the effective date
of this amendatory Act of 1989. All or part of such a penalty
may be waived by the Commission for good cause shown.
    Any  obligations of an employer to the Second Injury Fund
and Rate Adjustment Fund accruing prior to the effective date
of this amendatory Act of 1989 shall be paid in full by  such
employer  within  5  years  of  the  effective  date  of this
amendatory Act of 1989,  with  at  least  one-fifth  of  such
obligation   to  be  paid  during  each  year  following  the
effective date of  this  amendatory  Act  of  1989.   If  the
Commission  finds,  following  reasonable notice and hearing,
that an employer has failed to make  timely  payment  of  any
obligation   accruing   under  the  preceding  sentence,  the
employer shall, in addition to all other payments required by
this Section, be liable for a penalty equal  to  20%  of  the
overdue  obligation or $2,500, whichever is greater, for each
year or part thereof that obligation is overdue. All or  part
of  such  a  penalty may be waived by the Commission for good
cause shown.
    The  Chairman  of  the   Industrial   Commission   shall,
annually,  furnish  to  the  Director  of  the  Department of
Insurance a list of the amounts paid into the  Second  Injury
Fund  and  the Rate Adjustment Fund by each insurance company
on behalf of their  insured  employers.  The  Director  shall
verify  to  the  Chairman  that  the  amounts  paid  by  each
insurance  company  are  accurate as best as the Director can
determine from the records available  to  the  Director.  The
Chairman   shall   verify  that  the  amounts  paid  by  each
self-insurer  are  accurate  as  best  as  the  Chairman  can
determine  from  records  available  to  the  Chairman.   The
Chairman may require each self-insurer to provide information
concerning the total compensation payments  made  upon  which
contributions   to  the  Second  Injury  Fund  and  the  Rate
Adjustment Fund are predicated and any additional information
establishing that such payments have  been  made  into  these
funds.  Any deficiencies in payments noted by the Director or
Chairman shall be subject to the penalty provisions  of  this
Act.
    The    State    Treasurer,   or   his   duly   authorized
representative, shall be named as a party to all  proceedings
in  all  cases  involving  claim  for  the  loss  of,  or the
permanent and complete loss of the use of one eye, one  foot,
one leg, one arm or one hand.
    The  State  Treasurer  or his duly authorized agent shall
have the same rights as any other party  to  the  proceeding,
including the right to petition for review of any award.  The
reasonable   expenses   of   litigation,   such   as  medical
examinations, testimony, and transcript of evidence, incurred
by the State Treasurer or his duly authorized representative,
shall be borne by the Second Injury Fund.
    If the award is not paid within 30 days  after  the  date
the  award  has become final, the Commission shall proceed to
take judgment thereon in its own  name  as  is  provided  for
other  awards  by paragraph (g) of Section 19 of this Act and
take the necessary steps to collect the award.
    Any person, corporation or organization who has  paid  or
become  liable  for  the  payment  of  burial expenses of the
deceased employee may  in  his  or  its  own  name  institute
proceedings before the Commission for the collection thereof.
    For   the   purpose   of   administration,  receipts  and
disbursements, the Special Fund provided for in paragraph (f)
of this  Section  shall  be  administered  jointly  with  the
Special  Fund provided for in Section 7, paragraph (f) of the
Workers' Occupational Diseases Act.
    (g)  All  compensation,  except   for   burial   expenses
provided  in this Section to be paid in case accident results
in  death,  shall  be  paid  in  installments  equal  to  the
percentage of the average earnings as provided for in Section
8, paragraph (b) of this Act, at the same intervals at  which
the wages or earnings of the employees were paid.  If this is
not  feasible,  then  the  installments shall be paid weekly.
Such compensation may be paid in a lump sum upon petition  as
provided  in  Section 9 of this Act.  However, in addition to
the  benefits  provided  by  Section  9  of  this  Act  where
compensation for death is payable to  the  deceased's  widow,
widower  or  to the deceased's widow, widower and one or more
children, and where a partial lump sum is applied for by such
beneficiary or  beneficiaries  within  18  months  after  the
deceased's  death,  the  Commission  may,  in its discretion,
grant a partial lump sum of not to exceed 100  weeks  of  the
compensation  capitalized  at  their  present  value upon the
basis of interest calculated at  3%  per  annum  with  annual
rests,  upon  a showing that such partial lump sum is for the
best interest of such beneficiary or beneficiaries.
    (h)  In case the injured employee is under  16  years  of
age  at  the  time of the accident and is illegally employed,
the amount of compensation payable under paragraphs (a), (b),
(c), (d) and (f) of this Section shall be increased 50%.
    Nothing herein contained repeals or amends the provisions
of the Child Labor Law relating to the employment  of  minors
under the age of 16 years.
    However,  where  an  employer  has  on file an employment
certificate issued pursuant to the Child Labor  Law  or  work
permit  issued  pursuant  to the Federal Fair Labor Standards
Act, as amended, or a birth  certificate  properly  and  duly
issued,  such  certificate,  permit  or  birth certificate is
conclusive evidence as  to  the  age  of  the  injured  minor
employee for the purposes of this Section only.
    (i)  Whenever  the  dependents of a deceased employee are
aliens not residing in the United States, Mexico  or  Canada,
the   amount  of  compensation  payable  is  limited  to  the
beneficiaries described in paragraphs (a),  (b)  and  (c)  of
this  Section  and  is  50%  of  the compensation provided in
paragraphs (a), (b)  and  (c)  of  this  Section,  except  as
otherwise provided by treaty.
    In  a case where any of the persons who would be entitled
to compensation is living at any place outside of the  United
States,   then   payment   shall  be  made  to  the  personal
representative of the deceased employee.  The distribution by
such personal representative to the persons entitled shall be
made to such persons and in such  manner  as  the  Commission
orders.
(Source: P.A. 88-672, eff. 12-14-94; 89-470, eff. 6-13-96.)
    Passed in the General Assembly May 07, 2002.
    Approved July 23, 2002.
    Effective January 01, 2003.

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