Rep. Jay Hoffman

Filed: 5/16/2024

 

 


 

 


 
10300SB1996ham007LRB103 28652 SPS 73612 a

1
AMENDMENT TO SENATE BILL 1996

2    AMENDMENT NO. ______. Amend Senate Bill 1996, AS AMENDED,
3by replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The Illinois Insurance Code is amended by
6changing Section 416 as follows:
 
7    (215 ILCS 5/416)
8    Sec. 416. Illinois Workers' Compensation Commission
9Operations Fund Surcharge.
10    (a) As of July 30, 2004 (the effective date of Public Act
1193-840), every company licensed or authorized by the Illinois
12Department of Insurance and insuring employers' liabilities
13arising under the Workers' Compensation Act or the Workers'
14Occupational Diseases Act shall remit to the Director a
15surcharge based upon the annual direct written premium, as
16reported under Section 136 of this Act, of the company in the

 

 

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1manner provided in this Section. Such proceeds shall be
2deposited into the Illinois Workers' Compensation Commission
3Operations Fund as established in the Workers' Compensation
4Act. If a company survives or was formed by a merger,
5consolidation, reorganization, or reincorporation, the direct
6written premiums of all companies party to the merger,
7consolidation, reorganization, or reincorporation shall, for
8purposes of determining the amount of the fee imposed by this
9Section, be regarded as those of the surviving or new company.
10    (b) Beginning (1) Except as provided in subsection (b)(2)
11of this Section, beginning on July 30, 2004 (the effective
12date of Public Act 93-840) and on July 1 of each year
13thereafter through 2023, the Director shall charge an annual
14Illinois Workers' Compensation Commission Operations Fund
15Surcharge from every company subject to subsection (a) of this
16Section equal to 1.01% of its direct written premium for
17insuring employers' liabilities arising under the Workers'
18Compensation Act or Workers' Occupational Diseases Act as
19reported in each company's annual statement filed for the
20previous year as required by Section 136. Within 15 days after
21the effective date of this amendatory Act of the 103rd General
22Assembly and on July 1, 2025, the Director shall charge an
23annual Illinois Workers' Compensation Commission Operations
24Fund Surcharge from every company subject to subsection (a) of
25this Section equal to 1.092% of its direct written premium for
26insuring employers' liabilities arising under the Workers'

 

 

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1Compensation Act or Workers' Occupational Diseases Act as
2reported in each company's annual statement filed for the
3previous year as required by Section 136. On July 1, 2026, the
4Director shall charge an annual Illinois Workers' Compensation
5Commission Operations Fund Surcharge from every company
6subject to subsection (a) of this Section equal to 1.133% of
7its direct written premium for insuring employers' liabilities
8arising under the Workers' Compensation Act or Workers'
9Occupational Diseases Act as reported in each company's annual
10statement filed for the previous year as required by Section
11136. On July 1, 2027, the Director shall charge an annual
12Illinois Workers' Compensation Commission Operations Fund
13Surcharge from every company subject to subsection (a) of this
14Section equal to 1.174% of its direct written premium for
15insuring employers' liabilities arising under the Workers'
16Compensation Act or Workers' Occupational Diseases Act as
17reported in each company's annual statement filed for the
18previous year as required by Section 136. On July 1, 2028 and
19on July 1 of each year thereafter, the Director shall charge an
20annual Illinois Workers' Compensation Commission Operations
21Fund Surcharge from every company subject to subsection (a) of
22this Section equal to 1.215% of its direct written premium for
23insuring employers' liabilities arising under the Workers'
24Compensation Act or Workers' Occupational Diseases Act as
25reported in each company's annual statement filed for the
26previous year as required by Section 136. The Illinois

 

 

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1Workers' Compensation Commission Operations Fund Surcharge
2shall be collected by companies subject to subsection (a) of
3this Section as a separately stated surcharge on insured
4employers at the rate of 1.092% 1.01% of direct written
5premium for the surcharge due in 2024 and 2025, 1.133% of
6direct written premium for the surcharge due in 2026, 1.174%
7of direct written premium for the surcharge due in 2027, and
81.215% of direct written premium for the surcharge due in 2028
9and each year thereafter. The Illinois Workers' Compensation
10Commission Operations Fund Surcharge shall not be collected by
11companies subject to subsection (a) of this Section from any
12employer that self-insures its liabilities arising under the
13Workers' Compensation Act or Workers' Occupational Diseases
14Act, provided that the employer has paid the Illinois Workers'
15Compensation Commission Operations Fund Fee pursuant to
16Section 4d of the Workers' Compensation Act. All sums
17collected by the Department of Insurance under the provisions
18of this Section shall be paid promptly after the receipt of the
19same, accompanied by a detailed statement thereof, into the
20Illinois Workers' Compensation Commission Operations Fund in
21the State treasury.
22    (b)(2) (Blank). The surcharge due pursuant to Public Act
2393-840 shall be collected instead of the surcharge due on July
241, 2004 under Public Act 93-32. Payment of the surcharge due
25under Public Act 93-840 shall discharge the employer's
26obligations due on July 1, 2004.

 

 

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1    (c) In addition to the authority specifically granted
2under Article XXV of this Code, the Director shall have such
3authority to adopt rules or establish forms as may be
4reasonably necessary for purposes of enforcing this Section.
5The Director shall also have authority to defer, waive, or
6abate the surcharge or any penalties imposed by this Section
7if in the Director's opinion the company's solvency and
8ability to meet its insured obligations would be immediately
9threatened by payment of the surcharge due.
10    (d) When a company fails to pay the full amount of any
11annual Illinois Workers' Compensation Commission Operations
12Fund Surcharge of $100 or more due under this Section, there
13shall be added to the amount due as a penalty an amount equal
14to 10% of the deficiency for each month or part of a month that
15the deficiency remains unpaid.
16    (e) The Department of Insurance may enforce the collection
17of any delinquent payment, penalty, or portion thereof by
18legal action or in any other manner by which the collection of
19debts due the State of Illinois may be enforced under the laws
20of this State.
21    (f) Whenever it appears to the satisfaction of the
22Director that a company has paid pursuant to this Act an
23Illinois Workers' Compensation Commission Operations Fund
24Surcharge in an amount in excess of the amount legally
25collectable from the company, the Director shall issue a
26credit memorandum for an amount equal to the amount of such

 

 

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1overpayment. A credit memorandum may be applied for the 2-year
2period from the date of issuance, against the payment of any
3amount due during that period under the surcharge imposed by
4this Section or, subject to reasonable rule of the Department
5of Insurance including requirement of notification, may be
6assigned to any other company subject to regulation under this
7Act. Any application of credit memoranda after the period
8provided for in this Section is void.
9    (g) Annually, the Governor may direct a transfer of up to
102% of all moneys collected under this Section to the Insurance
11Financial Regulation Fund.
12(Source: P.A. 102-775, eff. 5-13-22.)
 
13    Section 10. The Workers' Compensation Act is amended by
14changing Sections 4, 4a-5, 4d, 7, 19, and 25.5 as follows:
 
15    (820 ILCS 305/4)  (from Ch. 48, par. 138.4)
16    (Text of Section from P.A. 101-40 and 102-37)
17    Sec. 4. (a) Any employer, including but not limited to
18general contractors and their subcontractors, who shall come
19within the provisions of Section 3 of this Act, and any other
20employer who shall elect to provide and pay the compensation
21provided for in this Act shall:
22        (1) File with the Commission annually an application
23    for approval as a self-insurer which shall include a
24    current financial statement, and annually, thereafter, an

 

 

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1    application for renewal of self-insurance, which shall
2    include a current financial statement. Said application
3    and financial statement shall be signed and sworn to by
4    the president or vice president and secretary or assistant
5    secretary of the employer if it be a corporation, or by all
6    of the partners, if it be a copartnership, or by the owner
7    if it be neither a copartnership nor a corporation. All
8    initial applications and all applications for renewal of
9    self-insurance must be submitted at least 60 days prior to
10    the requested effective date of self-insurance. An
11    employer may elect to provide and pay compensation as
12    provided for in this Act as a member of a group workers'
13    compensation pool under Article V 3/4 of the Illinois
14    Insurance Code. If an employer becomes a member of a group
15    workers' compensation pool, the employer shall not be
16    relieved of any obligations imposed by this Act.
17        If the sworn application and financial statement of
18    any such employer does not satisfy the Commission of the
19    financial ability of the employer who has filed it, the
20    Commission shall require such employer to,
21        (2) Furnish security, indemnity or a bond guaranteeing
22    the payment by the employer of the compensation provided
23    for in this Act, provided that any such employer whose
24    application and financial statement shall not have
25    satisfied the commission of his or her financial ability
26    and who shall have secured his liability in part by excess

 

 

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1    liability insurance shall be required to furnish to the
2    Commission security, indemnity or bond guaranteeing his or
3    her payment up to the effective limits of the excess
4    coverage, or
5        (3) Insure his entire liability to pay such
6    compensation in some insurance carrier authorized,
7    licensed, or permitted to do such insurance business in
8    this State. Every policy of an insurance carrier, insuring
9    the payment of compensation under this Act shall cover all
10    the employees and the entire compensation liability of the
11    insured: Provided, however, that any employer may insure
12    his or her compensation liability with 2 or more insurance
13    carriers or may insure a part and qualify under subsection
14    1, 2, or 4 for the remainder of his or her liability to pay
15    such compensation, subject to the following two
16    provisions:
17            Firstly, the entire compensation liability of the
18        employer to employees working at or from one location
19        shall be insured in one such insurance carrier or
20        shall be self-insured, and
21            Secondly, the employer shall submit evidence
22        satisfactorily to the Commission that his or her
23        entire liability for the compensation provided for in
24        this Act will be secured. Any provisions in any
25        policy, or in any endorsement attached thereto,
26        attempting to limit or modify in any way, the

 

 

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1        liability of the insurance carriers issuing the same
2        except as otherwise provided herein shall be wholly
3        void.
4        Nothing herein contained shall apply to policies of
5    excess liability carriage secured by employers who have
6    been approved by the Commission as self-insurers, or
7        (4) Make some other provision, satisfactory to the
8    Commission, for the securing of the payment of
9    compensation provided for in this Act, and
10        (5) Upon becoming subject to this Act and thereafter
11    as often as the Commission may in writing demand, file
12    with the Commission in form prescribed by it evidence of
13    his or her compliance with the provision of this Section.
14    (a-1) Regardless of its state of domicile or its principal
15place of business, an employer shall make payments to its
16insurance carrier or group self-insurance fund, where
17applicable, based upon the premium rates of the situs where
18the work or project is located in Illinois if:
19        (A) the employer is engaged primarily in the building
20    and construction industry; and
21        (B) subdivision (a)(3) of this Section applies to the
22    employer or the employer is a member of a group
23    self-insurance plan as defined in subsection (1) of
24    Section 4a.
25    The Illinois Workers' Compensation Commission shall impose
26a penalty upon an employer for violation of this subsection

 

 

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1(a-1) if:
2        (i) the employer is given an opportunity at a hearing
3    to present evidence of its compliance with this subsection
4    (a-1); and
5        (ii) after the hearing, the Commission finds that the
6    employer failed to make payments upon the premium rates of
7    the situs where the work or project is located in
8    Illinois.
9    The penalty shall not exceed $1,000 for each day of work
10for which the employer failed to make payments upon the
11premium rates of the situs where the work or project is located
12in Illinois, but the total penalty shall not exceed $50,000
13for each project or each contract under which the work was
14performed.
15    Any penalty under this subsection (a-1) must be imposed
16not later than one year after the expiration of the applicable
17limitation period specified in subsection (d) of Section 6 of
18this Act. Penalties imposed under this subsection (a-1) shall
19be deposited into the Illinois Workers' Compensation
20Commission Operations Fund, a special fund that is created in
21the State treasury. Subject to appropriation, moneys in the
22Fund shall be used solely for the operations of the Illinois
23Workers' Compensation Commission, the salaries and benefits of
24the Self-Insurers Advisory Board employees, the operating
25costs of the Self-Insurers Advisory Board, and by the
26Department of Insurance for the purposes authorized in

 

 

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1subsection (c) of Section 25.5 of this Act.
2    (a-2) Every Employee Leasing Company (ELC), as defined in
3Section 15 of the Employee Leasing Company Act, shall at a
4minimum provide the following information to the Commission or
5any entity designated by the Commission regarding each
6workers' compensation insurance policy issued to the ELC:
7        (1) Any client company of the ELC listed as an
8    additional named insured.
9        (2) Any informational schedule attached to the master
10    policy that identifies any individual client company's
11    name, FEIN, and job location.
12        (3) Any certificate of insurance coverage document
13    issued to a client company specifying its rights and
14    obligations under the master policy that establishes both
15    the identity and status of the client, as well as the dates
16    of inception and termination of coverage, if applicable.
17    (b) The sworn application and financial statement, or
18security, indemnity or bond, or amount of insurance, or other
19provisions, filed, furnished, carried, or made by the
20employer, as the case may be, shall be subject to the approval
21of the Commission.
22    Deposits under escrow agreements shall be cash, negotiable
23United States government bonds or negotiable general
24obligation bonds of the State of Illinois. Such cash or bonds
25shall be deposited in escrow with any State or National Bank or
26Trust Company having trust authority in the State of Illinois.

 

 

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1    Upon the approval of the sworn application and financial
2statement, security, indemnity or bond or amount of insurance,
3filed, furnished or carried, as the case may be, the
4Commission shall send to the employer written notice of its
5approval thereof. The certificate of compliance by the
6employer with the provisions of subparagraphs (2) and (3) of
7paragraph (a) of this Section shall be delivered by the
8insurance carrier to the Illinois Workers' Compensation
9Commission within five days after the effective date of the
10policy so certified. The insurance so certified shall cover
11all compensation liability occurring during the time that the
12insurance is in effect and no further certificate need be
13filed in case such insurance is renewed, extended or otherwise
14continued by such carrier. The insurance so certified shall
15not be cancelled or in the event that such insurance is not
16renewed, extended or otherwise continued, such insurance shall
17not be terminated until at least 10 days after receipt by the
18Illinois Workers' Compensation Commission of notice of the
19cancellation or termination of said insurance; provided,
20however, that if the employer has secured insurance from
21another insurance carrier, or has otherwise secured the
22payment of compensation in accordance with this Section, and
23such insurance or other security becomes effective prior to
24the expiration of the 10 days, cancellation or termination
25may, at the option of the insurance carrier indicated in such
26notice, be effective as of the effective date of such other

 

 

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1insurance or security.
2    (c) Whenever the Commission shall find that any
3corporation, company, association, aggregation of individuals,
4reciprocal or interinsurers exchange, or other insurer
5effecting workers' compensation insurance in this State shall
6be insolvent, financially unsound, or unable to fully meet all
7payments and liabilities assumed or to be assumed for
8compensation insurance in this State, or shall practice a
9policy of delay or unfairness toward employees in the
10adjustment, settlement, or payment of benefits due such
11employees, the Commission may after reasonable notice and
12hearing order and direct that such corporation, company,
13association, aggregation of individuals, reciprocal or
14interinsurers exchange, or insurer, shall from and after a
15date fixed in such order discontinue the writing of any such
16workers' compensation insurance in this State. Subject to such
17modification of the order as the Commission may later make on
18review of the order, as herein provided, it shall thereupon be
19unlawful for any such corporation, company, association,
20aggregation of individuals, reciprocal or interinsurers
21exchange, or insurer to effect any workers' compensation
22insurance in this State. A copy of the order shall be served
23upon the Director of Insurance by registered mail. Whenever
24the Commission finds that any service or adjustment company
25used or employed by a self-insured employer or by an insurance
26carrier to process, adjust, investigate, compromise or

 

 

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1otherwise handle claims under this Act, has practiced or is
2practicing a policy of delay or unfairness toward employees in
3the adjustment, settlement or payment of benefits due such
4employees, the Commission may after reasonable notice and
5hearing order and direct that such service or adjustment
6company shall from and after a date fixed in such order be
7prohibited from processing, adjusting, investigating,
8compromising or otherwise handling claims under this Act.
9    Whenever the Commission finds that any self-insured
10employer has practiced or is practicing delay or unfairness
11toward employees in the adjustment, settlement or payment of
12benefits due such employees, the Commission may, after
13reasonable notice and hearing, order and direct that after a
14date fixed in the order such self-insured employer shall be
15disqualified to operate as a self-insurer and shall be
16required to insure his entire liability to pay compensation in
17some insurance carrier authorized, licensed and permitted to
18do such insurance business in this State, as provided in
19subparagraph 3 of paragraph (a) of this Section.
20    All orders made by the Commission under this Section shall
21be subject to review by the courts, said review to be taken in
22the same manner and within the same time as provided by Section
2319 of this Act for review of awards and decisions of the
24Commission, upon the party seeking the review filing with the
25clerk of the court to which said review is taken a bond in an
26amount to be fixed and approved by the court to which the

 

 

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1review is taken, conditioned upon the payment of all
2compensation awarded against the person taking said review
3pending a decision thereof and further conditioned upon such
4other obligations as the court may impose. Upon the review the
5Circuit Court shall have power to review all questions of fact
6as well as of law. The penalty hereinafter provided for in this
7paragraph shall not attach and shall not begin to run until the
8final determination of the order of the Commission.
9    (d) Whenever a Commissioner, with due process and after a
10hearing, determines an employer has knowingly failed to
11provide coverage as required by paragraph (a) of this Section,
12the failure shall be deemed an immediate serious danger to
13public health, safety, and welfare sufficient to justify
14service by the Commission of a work-stop order on such
15employer, requiring the cessation of all business operations
16of such employer at the place of employment or job site. If a
17business is declared to be extra hazardous, as defined in
18Section 3, a Commissioner may issue an emergency work-stop
19order on such an employer ex parte, prior to holding a hearing,
20requiring the cessation of all business operations of such
21employer at the place of employment or job site while awaiting
22the ruling of the Commission. Whenever a Commissioner issues
23an emergency work-stop order, the Commission shall issue a
24notice of emergency work-stop hearing to be posted at the
25employer's places of employment and job sites. Any law
26enforcement agency in the State shall, at the request of the

 

 

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1Commission, render any assistance necessary to carry out the
2provisions of this Section, including, but not limited to,
3preventing any employee of such employer from remaining at a
4place of employment or job site after a work-stop order has
5taken effect. Any work-stop order shall be lifted upon proof
6of insurance as required by this Act. Any orders under this
7Section are appealable under Section 19(f) to the Circuit
8Court.
9    Any individual employer, corporate officer or director of
10a corporate employer, partner of an employer partnership, or
11member of an employer limited liability company who knowingly
12fails to provide coverage as required by paragraph (a) of this
13Section is guilty of a Class 4 felony. This provision shall not
14apply to any corporate officer or director of any
15publicly-owned corporation. Each day's violation constitutes a
16separate offense. The State's Attorney of the county in which
17the violation occurred, or the Attorney General, shall bring
18such actions in the name of the People of the State of
19Illinois, or may, in addition to other remedies provided in
20this Section, bring an action for an injunction to restrain
21the violation or to enjoin the operation of any such employer.
22    Any individual employer, corporate officer or director of
23a corporate employer, partner of an employer partnership, or
24member of an employer limited liability company who
25negligently fails to provide coverage as required by paragraph
26(a) of this Section is guilty of a Class A misdemeanor. This

 

 

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1provision shall not apply to any corporate officer or director
2of any publicly-owned corporation. Each day's violation
3constitutes a separate offense. The State's Attorney of the
4county in which the violation occurred, or the Attorney
5General, shall bring such actions in the name of the People of
6the State of Illinois.
7    The criminal penalties in this subsection (d) shall not
8apply where there exists a good faith dispute as to the
9existence of an employment relationship. Evidence of good
10faith shall include, but not be limited to, compliance with
11the definition of employee as used by the Internal Revenue
12Service.
13    All investigative actions must be acted upon within 90
14days of the issuance of the complaint. Employers who are
15subject to and who knowingly fail to comply with this Section
16shall not be entitled to the benefits of this Act during the
17period of noncompliance, but shall be liable in an action
18under any other applicable law of this State. In the action,
19such employer shall not avail himself or herself of the
20defenses of assumption of risk or negligence or that the
21injury was due to a co-employee. In the action, proof of the
22injury shall constitute prima facie evidence of negligence on
23the part of such employer and the burden shall be on such
24employer to show freedom of negligence resulting in the
25injury. The employer shall not join any other defendant in any
26such civil action. Nothing in this amendatory Act of the 94th

 

 

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1General Assembly shall affect the employee's rights under
2subdivision (a)3 of Section 1 of this Act. Any employer or
3carrier who makes payments under subdivision (a)3 of Section 1
4of this Act shall have a right of reimbursement from the
5proceeds of any recovery under this Section.
6    An employee of an uninsured employer, or the employee's
7dependents in case death ensued, may, instead of proceeding
8against the employer in a civil action in court, file an
9application for adjustment of claim with the Commission in
10accordance with the provisions of this Act and the Commission
11shall hear and determine the application for adjustment of
12claim in the manner in which other claims are heard and
13determined before the Commission.
14    All proceedings under this subsection (d) shall be
15reported on an annual basis to the Workers' Compensation
16Advisory Board.
17    An investigator with the Department of Insurance may issue
18a citation to any employer that is not in compliance with its
19obligation to have workers' compensation insurance under this
20Act. The amount of the fine shall be based on the period of
21time the employer was in non-compliance, but shall be no less
22than $500, and shall not exceed $10,000. An employer that has
23been issued a citation shall pay the fine to the Department of
24Insurance and provide to the Department of Insurance proof
25that it obtained the required workers' compensation insurance
26within 10 days after the citation was issued. This Section

 

 

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1does not affect any other obligations this Act imposes on
2employers.
3    Upon a finding by the Commission, after reasonable notice
4and hearing, of the knowing and willful failure or refusal of
5an employer to comply with any of the provisions of paragraph
6(a) of this Section, the failure or refusal of an employer,
7service or adjustment company, or an insurance carrier to
8comply with any order of the Illinois Workers' Compensation
9Commission pursuant to paragraph (c) of this Section
10disqualifying him or her to operate as a self insurer and
11requiring him or her to insure his or her liability, or the
12knowing and willful failure of an employer to comply with a
13citation issued by an investigator with the Department of
14Insurance, the Commission may assess a civil penalty of up to
15$500 per day for each day of such failure or refusal after the
16effective date of this amendatory Act of 1989. The minimum
17penalty under this Section shall be the sum of $10,000. Each
18day of such failure or refusal shall constitute a separate
19offense. The Commission may assess the civil penalty
20personally and individually against the corporate officers and
21directors of a corporate employer, the partners of an employer
22partnership, and the members of an employer limited liability
23company, after a finding of a knowing and willful refusal or
24failure of each such named corporate officer, director,
25partner, or member to comply with this Section. The liability
26for the assessed penalty shall be against the named employer

 

 

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1first, and if the named employer fails or refuses to pay the
2penalty to the Commission within 30 days after the final order
3of the Commission, then the named corporate officers,
4directors, partners, or members who have been found to have
5knowingly and willfully refused or failed to comply with this
6Section shall be liable for the unpaid penalty or any unpaid
7portion of the penalty. Upon investigation by the Department
8of Insurance, the Attorney General shall have the authority to
9prosecute all proceedings to enforce the civil and
10administrative provisions of this Section before the
11Commission. The Commission and the Department of Insurance
12shall promulgate procedural rules for enforcing this Section
13relating to their respective duties prescribed herein.
14    If an employer is found to be in non-compliance with any
15provisions of paragraph (a) of this Section more than once,
16all minimum penalties will double. Therefore, upon the failure
17or refusal of an employer, service or adjustment company, or
18insurance carrier to comply with any order of the Commission
19pursuant to paragraph (c) of this Section disqualifying him or
20her to operate as a self-insurer and requiring him or her to
21insure his or her liability, or the knowing and willful
22failure of an employer to comply with a citation issued by an
23investigator with the Department of Insurance, the Commission
24may assess a civil penalty of up to $1,000 per day for each day
25of such failure or refusal after the effective date of this
26amendatory Act of the 101st General Assembly. The minimum

 

 

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1penalty under this Section shall be the sum of $20,000. In
2addition, employers with 2 or more violations of any
3provisions of paragraph (a) of this Section may not
4self-insure for one year or until all penalties are paid.
5    A Commission decision imposing penalties under this
6Section may be judicially reviewed only as described in
7Section 19(f). After expiration of the period for seeking
8judicial review, the Commission's final decision imposing
9penalties may be enforced in the same manner as a judgment
10entered by a court of competent jurisdiction. The Commission's
11final decision imposing penalties is a debt due and owing to
12the State and can be enforced to the same extent as a judgment
13entered by a circuit court. The Attorney General shall
14represent the Commission and the Department of Insurance in
15any action challenging the final decision in circuit court. If
16the court affirms the Commission's decision, the court shall
17enter judgment against the employer in the amount of the fines
18assessed by the Commission. The Attorney General shall make
19reasonable efforts to collect the amounts due under the
20Commission's decision.
21    Upon the failure or refusal of any employer, service or
22adjustment company or insurance carrier to comply with the
23provisions of this Section and with the orders of the
24Commission under this Section, or the order of the court on
25review after final adjudication, the Commission may bring a
26civil action to recover the amount of the penalty in Cook

 

 

10300SB1996ham007- 22 -LRB103 28652 SPS 73612 a

1County or in Sangamon County in which litigation the
2Commission shall be represented by the Attorney General. The
3Commission shall send notice of its finding of non-compliance
4and assessment of the civil penalty to the Attorney General.
5It shall be the duty of the Attorney General within 30 days
6after receipt of the notice, to institute prosecutions and
7promptly prosecute all reported violations of this Section.
8    Any individual employer, corporate officer or director of
9a corporate employer, partner of an employer partnership, or
10member of an employer limited liability company who, with the
11intent to avoid payment of compensation under this Act to an
12injured employee or the employee's dependents, knowingly
13transfers, sells, encumbers, assigns, or in any manner
14disposes of, conceals, secretes, or destroys any property
15belonging to the employer, officer, director, partner, or
16member is guilty of a Class 4 felony.
17    Penalties and fines collected pursuant to this paragraph
18(d) shall be deposited upon receipt into a special fund which
19shall be designated the Injured Workers' Benefit Fund, of
20which the State Treasurer is ex-officio custodian, such
21special fund to be held and disbursed in accordance with this
22paragraph (d) for the purposes hereinafter stated in this
23paragraph (d), upon the final order of the Commission. The
24Injured Workers' Benefit Fund shall be deposited the same as
25are State funds and any interest accruing thereon shall be
26added thereto every 6 months. The Injured Workers' Benefit

 

 

10300SB1996ham007- 23 -LRB103 28652 SPS 73612 a

1Fund is subject to audit the same as State funds and accounts
2and is protected by the general bond given by the State
3Treasurer. The Injured Workers' Benefit Fund is considered
4always appropriated for the purposes of disbursements as
5provided in this paragraph, and shall be paid out and
6disbursed as herein provided and shall not at any time be
7appropriated or diverted to any other use or purpose. Moneys
8in the Injured Workers' Benefit Fund shall be used only for
9payment of workers' compensation benefits for injured
10employees when the employer has failed to provide coverage as
11determined under this paragraph (d) and has failed to pay the
12benefits due to the injured employee. The employer shall
13reimburse the Injured Workers' Benefit Fund for any amounts
14paid to an employee on account of the compensation awarded by
15the Commission. The Attorney General shall make reasonable
16efforts to obtain reimbursement for the Injured Workers'
17Benefit Fund.
18    The Commission shall have the right to obtain
19reimbursement from the employer for compensation obligations
20paid by the Injured Workers' Benefit Fund. Any such amounts
21obtained shall be deposited by the Commission into the Injured
22Workers' Benefit Fund. If an injured employee or his or her
23personal representative receives payment from the Injured
24Workers' Benefit Fund, the State of Illinois has the same
25rights under paragraph (b) of Section 5 that the employer who
26failed to pay the benefits due to the injured employee would

 

 

10300SB1996ham007- 24 -LRB103 28652 SPS 73612 a

1have had if the employer had paid those benefits, and any
2moneys recovered by the State as a result of the State's
3exercise of its rights under paragraph (b) of Section 5 shall
4be deposited into the Injured Workers' Benefit Fund. The
5custodian of the Injured Workers' Benefit Fund shall be joined
6with the employer as a party respondent in the application for
7adjustment of claim. After July 1, 2006, the Commission shall
8make disbursements from the Fund once each year to each
9eligible claimant. An eligible claimant is an injured worker
10who has within the previous fiscal year obtained a final award
11for benefits from the Commission against the employer and the
12Injured Workers' Benefit Fund and has notified the Commission
13within 90 days of receipt of such award. Within a reasonable
14time after the end of each fiscal year, the Commission shall
15make a disbursement to each eligible claimant. At the time of
16disbursement, if there are insufficient moneys in the Fund to
17pay all claims, each eligible claimant shall receive a
18pro-rata share, as determined by the Commission, of the
19available moneys in the Fund for that year. Payment from the
20Injured Workers' Benefit Fund to an eligible claimant pursuant
21to this provision shall discharge the obligations of the
22Injured Workers' Benefit Fund regarding the award entered by
23the Commission.
24    (e) This Act shall not affect or disturb the continuance
25of any existing insurance, mutual aid, benefit, or relief
26association or department, whether maintained in whole or in

 

 

10300SB1996ham007- 25 -LRB103 28652 SPS 73612 a

1part by the employer or whether maintained by the employees,
2the payment of benefits of such association or department
3being guaranteed by the employer or by some person, firm or
4corporation for him or her: Provided, the employer contributes
5to such association or department an amount not less than the
6full compensation herein provided, exclusive of the cost of
7the maintenance of such association or department and without
8any expense to the employee. This Act shall not prevent the
9organization and maintaining under the insurance laws of this
10State of any benefit or insurance company for the purpose of
11insuring against the compensation provided for in this Act,
12the expense of which is maintained by the employer. This Act
13shall not prevent the organization or maintaining under the
14insurance laws of this State of any voluntary mutual aid,
15benefit or relief association among employees for the payment
16of additional accident or sick benefits.
17    (f) No existing insurance, mutual aid, benefit or relief
18association or department shall, by reason of anything herein
19contained, be authorized to discontinue its operation without
20first discharging its obligations to any and all persons
21carrying insurance in the same or entitled to relief or
22benefits therein.
23    (g) Any contract, oral, written or implied, of employment
24providing for relief benefit, or insurance or any other device
25whereby the employee is required to pay any premium or
26premiums for insurance against the compensation provided for

 

 

10300SB1996ham007- 26 -LRB103 28652 SPS 73612 a

1in this Act shall be null and void. Any employer withholding
2from the wages of any employee any amount for the purpose of
3paying any such premium shall be guilty of a Class B
4misdemeanor.
5    In the event the employer does not pay the compensation
6for which he or she is liable, then an insurance company,
7association or insurer which may have insured such employer
8against such liability shall become primarily liable to pay to
9the employee, his or her personal representative or
10beneficiary the compensation required by the provisions of
11this Act to be paid by such employer. The insurance carrier may
12be made a party to the proceedings in which the employer is a
13party and an award may be entered jointly against the employer
14and the insurance carrier.
15    (h) It shall be unlawful for any employer, insurance
16company or service or adjustment company to interfere with,
17restrain or coerce an employee in any manner whatsoever in the
18exercise of the rights or remedies granted to him or her by
19this Act or to discriminate, attempt to discriminate, or
20threaten to discriminate against an employee in any way
21because of his or her exercise of the rights or remedies
22granted to him or her by this Act.
23    It shall be unlawful for any employer, individually or
24through any insurance company or service or adjustment
25company, to discharge or to threaten to discharge, or to
26refuse to rehire or recall to active service in a suitable

 

 

10300SB1996ham007- 27 -LRB103 28652 SPS 73612 a

1capacity an employee because of the exercise of his or her
2rights or remedies granted to him or her by this Act.
3    (i) If an employer elects to obtain a life insurance
4policy on his employees, he may also elect to apply such
5benefits in satisfaction of all or a portion of the death
6benefits payable under this Act, in which case, the employer's
7compensation premium shall be reduced accordingly.
8    (j) Within 45 days of receipt of an initial application or
9application to renew self-insurance privileges the
10Self-Insurers Advisory Board shall review and submit for
11approval by the Chairman of the Commission recommendations of
12disposition of all initial applications to self-insure and all
13applications to renew self-insurance privileges filed by
14private self-insurers pursuant to the provisions of this
15Section and Section 4a-9 of this Act. Each private
16self-insurer shall submit with its initial and renewal
17applications the application fee required by Section 4a-4 of
18this Act.
19    The Chairman of the Commission shall promptly act upon all
20initial applications and applications for renewal in full
21accordance with the recommendations of the Board or, should
22the Chairman disagree with any recommendation of disposition
23of the Self-Insurer's Advisory Board, he shall within 30 days
24of receipt of such recommendation provide to the Board in
25writing the reasons supporting his decision. The Chairman
26shall also promptly notify the employer of his decision within

 

 

10300SB1996ham007- 28 -LRB103 28652 SPS 73612 a

115 days of receipt of the recommendation of the Board.
2    If an employer is denied a renewal of self-insurance
3privileges pursuant to application it shall retain said
4privilege for 120 days after receipt of a notice of
5cancellation of the privilege from the Chairman of the
6Commission.
7    All orders made by the Chairman under this Section shall
8be subject to review by the courts, such review to be taken in
9the same manner and within the same time as provided by
10subsection (f) of Section 19 of this Act for review of awards
11and decisions of the Commission, upon the party seeking the
12review filing with the clerk of the court to which such review
13is taken a bond in an amount to be fixed and approved by the
14court to which the review is taken, conditioned upon the
15payment of all compensation awarded against the person taking
16such review pending a decision thereof and further conditioned
17upon such other obligations as the court may impose. Upon the
18review the Circuit Court shall have power to review all
19questions of fact as well as of law.
20(Source: P.A. 101-40, eff. 1-1-20; 102-37, eff. 7-1-21.)
 
21    (Text of Section from P.A. 101-384 and 102-37)
22    Sec. 4. (a) Any employer, including but not limited to
23general contractors and their subcontractors, who shall come
24within the provisions of Section 3 of this Act, and any other
25employer who shall elect to provide and pay the compensation

 

 

10300SB1996ham007- 29 -LRB103 28652 SPS 73612 a

1provided for in this Act shall:
2        (1) File with the Commission annually an application
3    for approval as a self-insurer which shall include a
4    current financial statement, and annually, thereafter, an
5    application for renewal of self-insurance, which shall
6    include a current financial statement. Said application
7    and financial statement shall be signed and sworn to by
8    the president or vice president and secretary or assistant
9    secretary of the employer if it be a corporation, or by all
10    of the partners, if it be a copartnership, or by the owner
11    if it be neither a copartnership nor a corporation. All
12    initial applications and all applications for renewal of
13    self-insurance must be submitted at least 60 days prior to
14    the requested effective date of self-insurance. An
15    employer may elect to provide and pay compensation as
16    provided for in this Act as a member of a group workers'
17    compensation pool under Article V 3/4 of the Illinois
18    Insurance Code. If an employer becomes a member of a group
19    workers' compensation pool, the employer shall not be
20    relieved of any obligations imposed by this Act.
21        If the sworn application and financial statement of
22    any such employer does not satisfy the Commission of the
23    financial ability of the employer who has filed it, the
24    Commission shall require such employer to,
25        (2) Furnish security, indemnity or a bond guaranteeing
26    the payment by the employer of the compensation provided

 

 

10300SB1996ham007- 30 -LRB103 28652 SPS 73612 a

1    for in this Act, provided that any such employer whose
2    application and financial statement shall not have
3    satisfied the commission of his or her financial ability
4    and who shall have secured his liability in part by excess
5    liability insurance shall be required to furnish to the
6    Commission security, indemnity or bond guaranteeing his or
7    her payment up to the effective limits of the excess
8    coverage, or
9        (3) Insure his entire liability to pay such
10    compensation in some insurance carrier authorized,
11    licensed, or permitted to do such insurance business in
12    this State. Every policy of an insurance carrier, insuring
13    the payment of compensation under this Act shall cover all
14    the employees and the entire compensation liability of the
15    insured: Provided, however, that any employer may insure
16    his or her compensation liability with 2 or more insurance
17    carriers or may insure a part and qualify under subsection
18    1, 2, or 4 for the remainder of his or her liability to pay
19    such compensation, subject to the following two
20    provisions:
21            Firstly, the entire compensation liability of the
22        employer to employees working at or from one location
23        shall be insured in one such insurance carrier or
24        shall be self-insured, and
25            Secondly, the employer shall submit evidence
26        satisfactorily to the Commission that his or her

 

 

10300SB1996ham007- 31 -LRB103 28652 SPS 73612 a

1        entire liability for the compensation provided for in
2        this Act will be secured. Any provisions in any
3        policy, or in any endorsement attached thereto,
4        attempting to limit or modify in any way, the
5        liability of the insurance carriers issuing the same
6        except as otherwise provided herein shall be wholly
7        void.
8        Nothing herein contained shall apply to policies of
9    excess liability carriage secured by employers who have
10    been approved by the Commission as self-insurers, or
11        (4) Make some other provision, satisfactory to the
12    Commission, for the securing of the payment of
13    compensation provided for in this Act, and
14        (5) Upon becoming subject to this Act and thereafter
15    as often as the Commission may in writing demand, file
16    with the Commission in form prescribed by it evidence of
17    his or her compliance with the provision of this Section.
18    (a-1) Regardless of its state of domicile or its principal
19place of business, an employer shall make payments to its
20insurance carrier or group self-insurance fund, where
21applicable, based upon the premium rates of the situs where
22the work or project is located in Illinois if:
23        (A) the employer is engaged primarily in the building
24    and construction industry; and
25        (B) subdivision (a)(3) of this Section applies to the
26    employer or the employer is a member of a group

 

 

10300SB1996ham007- 32 -LRB103 28652 SPS 73612 a

1    self-insurance plan as defined in subsection (1) of
2    Section 4a.
3    The Illinois Workers' Compensation Commission shall impose
4a penalty upon an employer for violation of this subsection
5(a-1) if:
6        (i) the employer is given an opportunity at a hearing
7    to present evidence of its compliance with this subsection
8    (a-1); and
9        (ii) after the hearing, the Commission finds that the
10    employer failed to make payments upon the premium rates of
11    the situs where the work or project is located in
12    Illinois.
13    The penalty shall not exceed $1,000 for each day of work
14for which the employer failed to make payments upon the
15premium rates of the situs where the work or project is located
16in Illinois, but the total penalty shall not exceed $50,000
17for each project or each contract under which the work was
18performed.
19    Any penalty under this subsection (a-1) must be imposed
20not later than one year after the expiration of the applicable
21limitation period specified in subsection (d) of Section 6 of
22this Act. Penalties imposed under this subsection (a-1) shall
23be deposited into the Illinois Workers' Compensation
24Commission Operations Fund, a special fund that is created in
25the State treasury. Subject to appropriation, moneys in the
26Fund shall be used solely for the operations of the Illinois

 

 

10300SB1996ham007- 33 -LRB103 28652 SPS 73612 a

1Workers' Compensation Commission and by the Department of
2Insurance for the purposes authorized in subsection (c) of
3Section 25.5 of this Act.
4    (a-2) Every Employee Leasing Company (ELC), as defined in
5Section 15 of the Employee Leasing Company Act, shall at a
6minimum provide the following information to the Commission or
7any entity designated by the Commission regarding each
8workers' compensation insurance policy issued to the ELC:
9        (1) Any client company of the ELC listed as an
10    additional named insured.
11        (2) Any informational schedule attached to the master
12    policy that identifies any individual client company's
13    name, FEIN, and job location.
14        (3) Any certificate of insurance coverage document
15    issued to a client company specifying its rights and
16    obligations under the master policy that establishes both
17    the identity and status of the client, as well as the dates
18    of inception and termination of coverage, if applicable.
19    (b) The sworn application and financial statement, or
20security, indemnity or bond, or amount of insurance, or other
21provisions, filed, furnished, carried, or made by the
22employer, as the case may be, shall be subject to the approval
23of the Commission.
24    Deposits under escrow agreements shall be cash, negotiable
25United States government bonds or negotiable general
26obligation bonds of the State of Illinois. Such cash or bonds

 

 

10300SB1996ham007- 34 -LRB103 28652 SPS 73612 a

1shall be deposited in escrow with any State or National Bank or
2Trust Company having trust authority in the State of Illinois.
3    Upon the approval of the sworn application and financial
4statement, security, indemnity or bond or amount of insurance,
5filed, furnished or carried, as the case may be, the
6Commission shall send to the employer written notice of its
7approval thereof. The certificate of compliance by the
8employer with the provisions of subparagraphs (2) and (3) of
9paragraph (a) of this Section shall be delivered by the
10insurance carrier to the Illinois Workers' Compensation
11Commission within five days after the effective date of the
12policy so certified. The insurance so certified shall cover
13all compensation liability occurring during the time that the
14insurance is in effect and no further certificate need be
15filed in case such insurance is renewed, extended or otherwise
16continued by such carrier. The insurance so certified shall
17not be cancelled or in the event that such insurance is not
18renewed, extended or otherwise continued, such insurance shall
19not be terminated until at least 10 days after receipt by the
20Illinois Workers' Compensation Commission of notice of the
21cancellation or termination of said insurance; provided,
22however, that if the employer has secured insurance from
23another insurance carrier, or has otherwise secured the
24payment of compensation in accordance with this Section, and
25such insurance or other security becomes effective prior to
26the expiration of the 10 days, cancellation or termination

 

 

10300SB1996ham007- 35 -LRB103 28652 SPS 73612 a

1may, at the option of the insurance carrier indicated in such
2notice, be effective as of the effective date of such other
3insurance or security.
4    (c) Whenever the Commission shall find that any
5corporation, company, association, aggregation of individuals,
6reciprocal or interinsurers exchange, or other insurer
7effecting workers' compensation insurance in this State shall
8be insolvent, financially unsound, or unable to fully meet all
9payments and liabilities assumed or to be assumed for
10compensation insurance in this State, or shall practice a
11policy of delay or unfairness toward employees in the
12adjustment, settlement, or payment of benefits due such
13employees, the Commission may after reasonable notice and
14hearing order and direct that such corporation, company,
15association, aggregation of individuals, reciprocal or
16interinsurers exchange, or insurer, shall from and after a
17date fixed in such order discontinue the writing of any such
18workers' compensation insurance in this State. Subject to such
19modification of the order as the Commission may later make on
20review of the order, as herein provided, it shall thereupon be
21unlawful for any such corporation, company, association,
22aggregation of individuals, reciprocal or interinsurers
23exchange, or insurer to effect any workers' compensation
24insurance in this State. A copy of the order shall be served
25upon the Director of Insurance by registered mail. Whenever
26the Commission finds that any service or adjustment company

 

 

10300SB1996ham007- 36 -LRB103 28652 SPS 73612 a

1used or employed by a self-insured employer or by an insurance
2carrier to process, adjust, investigate, compromise or
3otherwise handle claims under this Act, has practiced or is
4practicing a policy of delay or unfairness toward employees in
5the adjustment, settlement or payment of benefits due such
6employees, the Commission may after reasonable notice and
7hearing order and direct that such service or adjustment
8company shall from and after a date fixed in such order be
9prohibited from processing, adjusting, investigating,
10compromising or otherwise handling claims under this Act.
11    Whenever the Commission finds that any self-insured
12employer has practiced or is practicing delay or unfairness
13toward employees in the adjustment, settlement or payment of
14benefits due such employees, the Commission may, after
15reasonable notice and hearing, order and direct that after a
16date fixed in the order such self-insured employer shall be
17disqualified to operate as a self-insurer and shall be
18required to insure his entire liability to pay compensation in
19some insurance carrier authorized, licensed and permitted to
20do such insurance business in this State, as provided in
21subparagraph 3 of paragraph (a) of this Section.
22    All orders made by the Commission under this Section shall
23be subject to review by the courts, said review to be taken in
24the same manner and within the same time as provided by Section
2519 of this Act for review of awards and decisions of the
26Commission, upon the party seeking the review filing with the

 

 

10300SB1996ham007- 37 -LRB103 28652 SPS 73612 a

1clerk of the court to which said review is taken a bond in an
2amount to be fixed and approved by the court to which the
3review is taken, conditioned upon the payment of all
4compensation awarded against the person taking said review
5pending a decision thereof and further conditioned upon such
6other obligations as the court may impose. Upon the review the
7Circuit Court shall have power to review all questions of fact
8as well as of law. The penalty hereinafter provided for in this
9paragraph shall not attach and shall not begin to run until the
10final determination of the order of the Commission.
11    (d) Whenever a panel of 3 Commissioners comprised of one
12member of the employing class, one representative of a labor
13organization recognized under the National Labor Relations Act
14or an attorney who has represented labor organizations or has
15represented employees in workers' compensation cases, and one
16member not identified with either the employing class or a
17labor organization, with due process and after a hearing,
18determines an employer has knowingly failed to provide
19coverage as required by paragraph (a) of this Section, the
20failure shall be deemed an immediate serious danger to public
21health, safety, and welfare sufficient to justify service by
22the Commission of a work-stop order on such employer,
23requiring the cessation of all business operations of such
24employer at the place of employment or job site. Any law
25enforcement agency in the State shall, at the request of the
26Commission, render any assistance necessary to carry out the

 

 

10300SB1996ham007- 38 -LRB103 28652 SPS 73612 a

1provisions of this Section, including, but not limited to,
2preventing any employee of such employer from remaining at a
3place of employment or job site after a work-stop order has
4taken effect. Any work-stop order shall be lifted upon proof
5of insurance as required by this Act. Any orders under this
6Section are appealable under Section 19(f) to the Circuit
7Court.
8    Any individual employer, corporate officer or director of
9a corporate employer, partner of an employer partnership, or
10member of an employer limited liability company who knowingly
11fails to provide coverage as required by paragraph (a) of this
12Section is guilty of a Class 4 felony. This provision shall not
13apply to any corporate officer or director of any
14publicly-owned corporation. Each day's violation constitutes a
15separate offense. The State's Attorney of the county in which
16the violation occurred, or the Attorney General, shall bring
17such actions in the name of the People of the State of
18Illinois, or may, in addition to other remedies provided in
19this Section, bring an action for an injunction to restrain
20the violation or to enjoin the operation of any such employer.
21    Any individual employer, corporate officer or director of
22a corporate employer, partner of an employer partnership, or
23member of an employer limited liability company who
24negligently fails to provide coverage as required by paragraph
25(a) of this Section is guilty of a Class A misdemeanor. This
26provision shall not apply to any corporate officer or director

 

 

10300SB1996ham007- 39 -LRB103 28652 SPS 73612 a

1of any publicly-owned corporation. Each day's violation
2constitutes a separate offense. The State's Attorney of the
3county in which the violation occurred, or the Attorney
4General, shall bring such actions in the name of the People of
5the State of Illinois.
6    The criminal penalties in this subsection (d) shall not
7apply where there exists a good faith dispute as to the
8existence of an employment relationship. Evidence of good
9faith shall include, but not be limited to, compliance with
10the definition of employee as used by the Internal Revenue
11Service.
12    Employers who are subject to and who knowingly fail to
13comply with this Section shall not be entitled to the benefits
14of this Act during the period of noncompliance, but shall be
15liable in an action under any other applicable law of this
16State. In the action, such employer shall not avail himself or
17herself of the defenses of assumption of risk or negligence or
18that the injury was due to a co-employee. In the action, proof
19of the injury shall constitute prima facie evidence of
20negligence on the part of such employer and the burden shall be
21on such employer to show freedom of negligence resulting in
22the injury. The employer shall not join any other defendant in
23any such civil action. Nothing in this amendatory Act of the
2494th General Assembly shall affect the employee's rights under
25subdivision (a)3 of Section 1 of this Act. Any employer or
26carrier who makes payments under subdivision (a)3 of Section 1

 

 

10300SB1996ham007- 40 -LRB103 28652 SPS 73612 a

1of this Act shall have a right of reimbursement from the
2proceeds of any recovery under this Section.
3    An employee of an uninsured employer, or the employee's
4dependents in case death ensued, may, instead of proceeding
5against the employer in a civil action in court, file an
6application for adjustment of claim with the Commission in
7accordance with the provisions of this Act and the Commission
8shall hear and determine the application for adjustment of
9claim in the manner in which other claims are heard and
10determined before the Commission.
11    All proceedings under this subsection (d) shall be
12reported on an annual basis to the Workers' Compensation
13Advisory Board.
14    An investigator with the Department of Insurance may issue
15a citation to any employer that is not in compliance with its
16obligation to have workers' compensation insurance under this
17Act. The amount of the fine shall be based on the period of
18time the employer was in non-compliance, but shall be no less
19than $500, and shall not exceed $2,500. An employer that has
20been issued a citation shall pay the fine to the Department of
21Insurance and provide to the Department of Insurance proof
22that it obtained the required workers' compensation insurance
23within 10 days after the citation was issued. This Section
24does not affect any other obligations this Act imposes on
25employers.
26    Upon a finding by the Commission, after reasonable notice

 

 

10300SB1996ham007- 41 -LRB103 28652 SPS 73612 a

1and hearing, of the knowing and wilful failure or refusal of an
2employer to comply with any of the provisions of paragraph (a)
3of this Section, the failure or refusal of an employer,
4service or adjustment company, or an insurance carrier to
5comply with any order of the Illinois Workers' Compensation
6Commission pursuant to paragraph (c) of this Section
7disqualifying him or her to operate as a self insurer and
8requiring him or her to insure his or her liability, or the
9knowing and willful failure of an employer to comply with a
10citation issued by an investigator with the Department of
11Insurance, the Commission may assess a civil penalty of up to
12$500 per day for each day of such failure or refusal after the
13effective date of this amendatory Act of 1989. The minimum
14penalty under this Section shall be the sum of $10,000. Each
15day of such failure or refusal shall constitute a separate
16offense. The Commission may assess the civil penalty
17personally and individually against the corporate officers and
18directors of a corporate employer, the partners of an employer
19partnership, and the members of an employer limited liability
20company, after a finding of a knowing and willful refusal or
21failure of each such named corporate officer, director,
22partner, or member to comply with this Section. The liability
23for the assessed penalty shall be against the named employer
24first, and if the named employer fails or refuses to pay the
25penalty to the Commission within 30 days after the final order
26of the Commission, then the named corporate officers,

 

 

10300SB1996ham007- 42 -LRB103 28652 SPS 73612 a

1directors, partners, or members who have been found to have
2knowingly and willfully refused or failed to comply with this
3Section shall be liable for the unpaid penalty or any unpaid
4portion of the penalty. Upon investigation by the Department
5of Insurance, the Attorney General shall have the authority to
6prosecute all proceedings to enforce the civil and
7administrative provisions of this Section before the
8Commission. The Commission and the Department of Insurance
9shall promulgate procedural rules for enforcing this Section
10relating to their respective duties prescribed herein.
11    A Commission decision imposing penalties under this
12Section may be judicially reviewed only as described in
13Section 19(f). After expiration of the period for seeking
14judicial review, the Commission's final decision imposing
15penalties may be enforced in the same manner as a judgment
16entered by a court of competent jurisdiction. The Commission's
17final decision imposing penalties is a debt due and owing to
18the State and can be enforced to the same extent as a judgment
19entered by a circuit court. The Attorney General shall
20represent the Commission and the Department of Insurance in
21any action challenging the final decision in circuit court. If
22the court affirms the Commission's decision, the court shall
23enter judgment against the employer in the amount of the fines
24assessed by the Commission. The Attorney General shall make
25reasonable efforts to collect the amounts due under the
26Commission's decision.

 

 

10300SB1996ham007- 43 -LRB103 28652 SPS 73612 a

1    Upon the failure or refusal of any employer, service or
2adjustment company or insurance carrier to comply with the
3provisions of this Section and with the orders of the
4Commission under this Section, or the order of the court on
5review after final adjudication, the Commission may bring a
6civil action to recover the amount of the penalty in Cook
7County or in Sangamon County in which litigation the
8Commission shall be represented by the Attorney General. The
9Commission shall send notice of its finding of non-compliance
10and assessment of the civil penalty to the Attorney General.
11It shall be the duty of the Attorney General within 30 days
12after receipt of the notice, to institute prosecutions and
13promptly prosecute all reported violations of this Section.
14    Any individual employer, corporate officer or director of
15a corporate employer, partner of an employer partnership, or
16member of an employer limited liability company who, with the
17intent to avoid payment of compensation under this Act to an
18injured employee or the employee's dependents, knowingly
19transfers, sells, encumbers, assigns, or in any manner
20disposes of, conceals, secretes, or destroys any property
21belonging to the employer, officer, director, partner, or
22member is guilty of a Class 4 felony.
23    Penalties and fines collected pursuant to this paragraph
24(d) shall be deposited upon receipt into a special fund which
25shall be designated the Injured Workers' Benefit Fund, of
26which the State Treasurer is ex-officio custodian, such

 

 

10300SB1996ham007- 44 -LRB103 28652 SPS 73612 a

1special fund to be held and disbursed in accordance with this
2paragraph (d) for the purposes hereinafter stated in this
3paragraph (d), upon the final order of the Commission. The
4Injured Workers' Benefit Fund shall be deposited the same as
5are State funds and any interest accruing thereon shall be
6added thereto every 6 months. The Injured Workers' Benefit
7Fund is subject to audit the same as State funds and accounts
8and is protected by the general bond given by the State
9Treasurer. The Injured Workers' Benefit Fund is considered
10always appropriated for the purposes of disbursements as
11provided in this paragraph, and shall be paid out and
12disbursed as herein provided and shall not at any time be
13appropriated or diverted to any other use or purpose. Moneys
14in the Injured Workers' Benefit Fund shall be used only for
15payment of workers' compensation benefits for injured
16employees when the employer has failed to provide coverage as
17determined under this paragraph (d) and has failed to pay the
18benefits due to the injured employee. The employer shall
19reimburse the Injured Workers' Benefit Fund for any amounts
20paid to an employee on account of the compensation awarded by
21the Commission. The Attorney General shall make reasonable
22efforts to obtain reimbursement for the Injured Workers'
23Benefit Fund.
24    The Commission shall have the right to obtain
25reimbursement from the employer for compensation obligations
26paid by the Injured Workers' Benefit Fund. Any such amounts

 

 

10300SB1996ham007- 45 -LRB103 28652 SPS 73612 a

1obtained shall be deposited by the Commission into the Injured
2Workers' Benefit Fund. If an injured employee or his or her
3personal representative receives payment from the Injured
4Workers' Benefit Fund, the State of Illinois has the same
5rights under paragraph (b) of Section 5 that the employer who
6failed to pay the benefits due to the injured employee would
7have had if the employer had paid those benefits, and any
8moneys recovered by the State as a result of the State's
9exercise of its rights under paragraph (b) of Section 5 shall
10be deposited into the Injured Workers' Benefit Fund. The
11custodian of the Injured Workers' Benefit Fund shall be joined
12with the employer as a party respondent in the application for
13adjustment of claim. After July 1, 2006, the Commission shall
14make disbursements from the Fund once each year to each
15eligible claimant. An eligible claimant is an injured worker
16who has within the previous fiscal year obtained a final award
17for benefits from the Commission against the employer and the
18Injured Workers' Benefit Fund and has notified the Commission
19within 90 days of receipt of such award. Within a reasonable
20time after the end of each fiscal year, the Commission shall
21make a disbursement to each eligible claimant. At the time of
22disbursement, if there are insufficient moneys in the Fund to
23pay all claims, each eligible claimant shall receive a
24pro-rata share, as determined by the Commission, of the
25available moneys in the Fund for that year. Payment from the
26Injured Workers' Benefit Fund to an eligible claimant pursuant

 

 

10300SB1996ham007- 46 -LRB103 28652 SPS 73612 a

1to this provision shall discharge the obligations of the
2Injured Workers' Benefit Fund regarding the award entered by
3the Commission.
4    (e) This Act shall not affect or disturb the continuance
5of any existing insurance, mutual aid, benefit, or relief
6association or department, whether maintained in whole or in
7part by the employer or whether maintained by the employees,
8the payment of benefits of such association or department
9being guaranteed by the employer or by some person, firm or
10corporation for him or her: Provided, the employer contributes
11to such association or department an amount not less than the
12full compensation herein provided, exclusive of the cost of
13the maintenance of such association or department and without
14any expense to the employee. This Act shall not prevent the
15organization and maintaining under the insurance laws of this
16State of any benefit or insurance company for the purpose of
17insuring against the compensation provided for in this Act,
18the expense of which is maintained by the employer. This Act
19shall not prevent the organization or maintaining under the
20insurance laws of this State of any voluntary mutual aid,
21benefit or relief association among employees for the payment
22of additional accident or sick benefits.
23    (f) No existing insurance, mutual aid, benefit or relief
24association or department shall, by reason of anything herein
25contained, be authorized to discontinue its operation without
26first discharging its obligations to any and all persons

 

 

10300SB1996ham007- 47 -LRB103 28652 SPS 73612 a

1carrying insurance in the same or entitled to relief or
2benefits therein.
3    (g) Any contract, oral, written or implied, of employment
4providing for relief benefit, or insurance or any other device
5whereby the employee is required to pay any premium or
6premiums for insurance against the compensation provided for
7in this Act shall be null and void. Any employer withholding
8from the wages of any employee any amount for the purpose of
9paying any such premium shall be guilty of a Class B
10misdemeanor.
11    In the event the employer does not pay the compensation
12for which he or she is liable, then an insurance company,
13association or insurer which may have insured such employer
14against such liability shall become primarily liable to pay to
15the employee, his or her personal representative or
16beneficiary the compensation required by the provisions of
17this Act to be paid by such employer. The insurance carrier may
18be made a party to the proceedings in which the employer is a
19party and an award may be entered jointly against the employer
20and the insurance carrier.
21    (h) It shall be unlawful for any employer, insurance
22company or service or adjustment company to interfere with,
23restrain or coerce an employee in any manner whatsoever in the
24exercise of the rights or remedies granted to him or her by
25this Act or to discriminate, attempt to discriminate, or
26threaten to discriminate against an employee in any way

 

 

10300SB1996ham007- 48 -LRB103 28652 SPS 73612 a

1because of his or her exercise of the rights or remedies
2granted to him or her by this Act.
3    It shall be unlawful for any employer, individually or
4through any insurance company or service or adjustment
5company, to discharge or to threaten to discharge, or to
6refuse to rehire or recall to active service in a suitable
7capacity an employee because of the exercise of his or her
8rights or remedies granted to him or her by this Act.
9    (i) If an employer elects to obtain a life insurance
10policy on his employees, he may also elect to apply such
11benefits in satisfaction of all or a portion of the death
12benefits payable under this Act, in which case, the employer's
13compensation premium shall be reduced accordingly.
14    (j) Within 45 days of receipt of an initial application or
15application to renew self-insurance privileges the
16Self-Insurers Advisory Board shall review and submit for
17approval by the Chairman of the Commission recommendations of
18disposition of all initial applications to self-insure and all
19applications to renew self-insurance privileges filed by
20private self-insurers pursuant to the provisions of this
21Section and Section 4a-9 of this Act. Each private
22self-insurer shall submit with its initial and renewal
23applications the application fee required by Section 4a-4 of
24this Act.
25    The Chairman of the Commission shall promptly act upon all
26initial applications and applications for renewal in full

 

 

10300SB1996ham007- 49 -LRB103 28652 SPS 73612 a

1accordance with the recommendations of the Board or, should
2the Chairman disagree with any recommendation of disposition
3of the Self-Insurer's Advisory Board, he shall within 30 days
4of receipt of such recommendation provide to the Board in
5writing the reasons supporting his decision. The Chairman
6shall also promptly notify the employer of his decision within
715 days of receipt of the recommendation of the Board.
8    If an employer is denied a renewal of self-insurance
9privileges pursuant to application it shall retain said
10privilege for 120 days after receipt of a notice of
11cancellation of the privilege from the Chairman of the
12Commission.
13    All orders made by the Chairman under this Section shall
14be subject to review by the courts, such review to be taken in
15the same manner and within the same time as provided by
16subsection (f) of Section 19 of this Act for review of awards
17and decisions of the Commission, upon the party seeking the
18review filing with the clerk of the court to which such review
19is taken a bond in an amount to be fixed and approved by the
20court to which the review is taken, conditioned upon the
21payment of all compensation awarded against the person taking
22such review pending a decision thereof and further conditioned
23upon such other obligations as the court may impose. Upon the
24review the Circuit Court shall have power to review all
25questions of fact as well as of law.
26(Source: P.A. 101-384, eff. 1-1-20; 102-37, eff. 7-1-21.)
 

 

 

10300SB1996ham007- 50 -LRB103 28652 SPS 73612 a

1    (820 ILCS 305/4a-5)  (from Ch. 48, par. 138.4a-5)
2    Sec. 4a-5. There is hereby created a Self-Insurers
3Security Fund. The State Treasurer shall be the ex officio
4custodian of the Self-Insurers Security Fund. Moneys in the
5Fund shall be deposited in a separate account in the same
6manner as are State Funds and any interest accruing thereon
7shall be added thereto every 6 months. It shall be subject to
8audit the same as State funds and accounts and shall be
9protected by the general bond given by the State Treasurer.
10The funds in the Self-Insurers Security Fund shall not be
11subject to appropriation and shall be made available for the
12purposes of compensating employees who are eligible to receive
13benefits from their employers pursuant to the provisions of
14the Workers' Compensation Act or Workers' Occupational
15Diseases Act, when, pursuant to this Section, the Board has
16determined that a private self-insurer has become an insolvent
17self-insurer and is unable to pay compensation benefits due to
18financial insolvency. Moneys in the Fund may be used to
19compensate any type of injury or occupational disease which is
20compensable under either Act, and for all claims for related
21administrative fees, operating costs of the Board, attorney's
22fees, and other costs reasonably incurred by the Board. Moneys
23in the Self-Insurers Security Fund may also be used for paying
24the salaries and benefits of the Self-Insurers Advisory Board
25employees and the operating costs of the Board. The Chairman,

 

 

10300SB1996ham007- 51 -LRB103 28652 SPS 73612 a

1with the advice of the Board, may direct the State Comptroller
2and the State Treasurer to transfer up to $2,000,000 in any
3fiscal year from the Self-Insurers Security Fund to the
4Illinois Workers' Compensation Commission Operations Fund, to
5the extent that there are insufficient funds in the Illinois
6Workers' Compensation Commission Operations Fund to pay the
7operating costs of the Illinois Workers' Compensation
8Commission or the salaries and benefits of employees of the
9Illinois Workers' Compensation Commission. No later than
10October 31 of the fiscal year following any transfer from the
11Self-Insurers Security Fund to the Illinois Workers'
12Compensation Commission Operations Fund, the Chairman, with
13the advice of the Board, shall direct the State Comptroller
14and the State Treasurer to transfer from the Illinois Workers'
15Compensation Commission Operations Fund to the Self-Insurers
16Security Fund an amount equivalent to the sum of all amounts
17transferred from the Self-Insurers Security Fund to the
18Illinois Workers' Compensation Commission Operations Fund in
19the prior fiscal year with interest at the rate earned by
20moneys on deposit in the Self-Insurers Security Fund. Upon
21receipt of funds from any transfer between the Self-Insurers
22Security Fund and the Illinois Workers' Compensation
23Commission Operations Fund, the Chairman shall submit notice,
24including the date and amount of the transfer, to the Governor
25and the General Assembly. Payment from the Self-Insurers
26Security Fund shall be made by the Comptroller only upon the

 

 

10300SB1996ham007- 52 -LRB103 28652 SPS 73612 a

1authorization of the Chairman as evidenced by properly
2certified vouchers of the Commission, upon the direction of
3the Board.
4(Source: P.A. 101-40, eff. 1-1-20; 102-558, eff. 8-20-21;
5102-910, eff. 5-27-22.)
 
6    (820 ILCS 305/4d)
7    Sec. 4d. Illinois Workers' Compensation Commission
8Operations Fund Fee.
9    (a) As of the effective date of this amendatory Act of the
1093rd General Assembly, each employer that self-insures its
11liabilities arising under this Act or Workers' Occupational
12Diseases Act shall pay a fee measured by the annual actual
13wages paid in this State of such an employer in the manner
14provided in this Section. Such proceeds shall be deposited in
15the Illinois Workers' Compensation Commission Operations Fund.
16If an employer survives or was formed by a merger,
17consolidation, reorganization, or reincorporation, the actual
18wages paid in this State of all employers party to the merger,
19consolidation, reorganization, or reincorporation shall, for
20purposes of determining the amount of the fee imposed by this
21Section, be regarded as those of the surviving or new
22employer.
23    (b) Beginning on July 30, 2004 (the effective date of
24Public Act 93-840) and on July 1 of each year thereafter
25through 2023, the Chairman shall charge and collect an annual

 

 

10300SB1996ham007- 53 -LRB103 28652 SPS 73612 a

1Illinois Workers' Compensation Commission Operations Fund Fee
2from every employer subject to subsection (a) of this Section
3equal to 0.0075% of its annual actual wages paid in this State
4as reported in each employer's annual self-insurance renewal
5filed for the previous year as required by Section 4 of this
6Act and Section 4 of the Workers' Occupational Diseases Act.
7On July 1, 2024 and July 1, 2025, the Chairman shall charge and
8collect an annual Illinois Workers' Compensation Commission
9Operations Fund Fee from every employer subject to subsection
10(a) of this Section equal to 0.0081% of its annual actual wages
11paid in this State as reported in each employer's annual
12self-insurance renewal filed for the previous year as required
13by Section 4 of this Act and Section 4 of the Workers'
14Occupational Diseases Act. On July 1, 2026, the Chairman shall
15charge and collect an annual Illinois Workers' Compensation
16Commission Operations Fund Fee from every employer subject to
17subsection (a) of this Section equal to 0.0084% of its annual
18actual wages paid in this State as reported in each employer's
19annual self-insurance renewal filed for the previous year as
20required by Section 4 of this Act and Section 4 of the Workers'
21Occupational Diseases Act. On July 1, 2027, the Chairman shall
22charge and collect an annual Illinois Workers' Compensation
23Commission Operations Fund Fee from every employer subject to
24subsection (a) of this Section equal to 0.0087% of its annual
25actual wages paid in this State as reported in each employer's
26annual self-insurance renewal filed for the previous year as

 

 

10300SB1996ham007- 54 -LRB103 28652 SPS 73612 a

1required by Section 4 of this Act and Section 4 of the Workers'
2Occupational Diseases Act. On July 1, 2028 and on July 1 of
3each year thereafter, the Chairman shall charge and collect an
4annual Illinois Workers' Compensation Commission Operations
5Fund Fee from every employer subject to subsection (a) of this
6Section equal to 0.009% of its annual actual wages paid in this
7State as reported in each employer's annual self-insurance
8renewal filed for the previous year as required by Section 4 of
9this Act and Section 4 of the Workers' Occupational Diseases
10Act. All sums collected by the Commission under the provisions
11of this Section shall be paid promptly after the receipt of the
12same, accompanied by a detailed statement thereof, into the
13Illinois Workers' Compensation Commission Operations Fund. The
14fee due pursuant to Public Act 93-840 shall be collected
15instead of the fee due on July 1, 2004 under Public Act 93-32.
16Payment of the fee due under Public Act 93-840 shall discharge
17the employer's obligations due on July 1, 2004.
18    (c) In addition to the authority specifically granted
19under Section 16, the Chairman shall have such authority to
20adopt rules or establish forms as may be reasonably necessary
21for purposes of enforcing this Section. The Commission shall
22have authority to defer, waive, or abate the fee or any
23penalties imposed by this Section if in the Commission's
24opinion the employer's solvency and ability to meet its
25obligations to pay workers' compensation benefits would be
26immediately threatened by payment of the fee due.

 

 

10300SB1996ham007- 55 -LRB103 28652 SPS 73612 a

1    (d) When an employer fails to pay the full amount of any
2annual Illinois Workers' Compensation Commission Operations
3Fund Fee of $100 or more due under this Section, there shall be
4added to the amount due as a penalty the greater of $1,000 or
5an amount equal to 5% of the deficiency for each month or part
6of a month that the deficiency remains unpaid.
7    (e) The Commission may enforce the collection of any
8delinquent payment, penalty or portion thereof by legal action
9or in any other manner by which the collection of debts due the
10State of Illinois may be enforced under the laws of this State.
11    (f) Whenever it appears to the satisfaction of the
12Chairman that an employer has paid pursuant to this Act an
13Illinois Workers' Compensation Commission Operations Fund Fee
14in an amount in excess of the amount legally collectable from
15the employer, the Chairman shall issue a credit memorandum for
16an amount equal to the amount of such overpayment. A credit
17memorandum may be applied for the 2-year period from the date
18of issuance against the payment of any amount due during that
19period under the fee imposed by this Section or, subject to
20reasonable rule of the Commission including requirement of
21notification, may be assigned to any other employer subject to
22regulation under this Act. Any application of credit memoranda
23after the period provided for in this Section is void.
24(Source: P.A. 95-331, eff. 8-21-07.)
 
25    (820 ILCS 305/7)  (from Ch. 48, par. 138.7)

 

 

10300SB1996ham007- 56 -LRB103 28652 SPS 73612 a

1    Sec. 7. The amount of compensation which shall be paid for
2an accidental injury to the employee resulting in death is:
3    (a) If the employee leaves surviving a widow, widower,
4child or children, the applicable weekly compensation rate
5computed in accordance with subparagraph 2 of paragraph (b) of
6Section 8, shall be payable during the life of the widow or
7widower and if any surviving child or children shall not be
8physically or mentally incapacitated then until the death of
9the widow or widower or until the youngest child shall reach
10the age of 18, whichever shall come later; provided that if
11such child or children shall be enrolled as a full time student
12in any accredited educational institution, the payments shall
13continue until such child has attained the age of 25. In the
14event any surviving child or children shall be physically or
15mentally incapacitated, the payments shall continue for the
16duration of such incapacity.
17    The term "child" means a child whom the deceased employee
18left surviving, including a posthumous child, a child legally
19adopted, a child whom the deceased employee was legally
20obligated to support or a child to whom the deceased employee
21stood in loco parentis. The term "children" means the plural
22of "child".
23    The term "physically or mentally incapacitated child or
24children" means a child or children incapable of engaging in
25regular and substantial gainful employment.
26    In the event of the remarriage of a widow or widower, where

 

 

10300SB1996ham007- 57 -LRB103 28652 SPS 73612 a

1the decedent did not leave surviving any child or children
2who, at the time of such remarriage, are entitled to
3compensation benefits under this Act, the surviving spouse
4shall be paid a lump sum equal to 2 years compensation benefits
5and all further rights of such widow or widower shall be
6extinguished.
7    If the employee leaves surviving any child or children
8under 18 years of age who at the time of death shall be
9entitled to compensation under this paragraph (a) of this
10Section, the weekly compensation payments herein provided for
11such child or children shall in any event continue for a period
12of not less than 6 years.
13    Any beneficiary entitled to compensation under this
14paragraph (a) of this Section shall receive from the special
15fund provided in paragraph (f) of this Section, in addition to
16the compensation herein provided, supplemental benefits in
17accordance with paragraph (g) of Section 8.
18    (b) If no compensation is payable under paragraph (a) of
19this Section and the employee leaves surviving a parent or
20parents who at the time of the accident were totally dependent
21upon the earnings of the employee then weekly payments equal
22to the compensation rate payable in the case where the
23employee leaves surviving a widow or widower, shall be paid to
24such parent or parents for the duration of their lives, and in
25the event of the death of either, for the life of the survivor.
26    (c) If no compensation is payable under paragraphs (a) or

 

 

10300SB1996ham007- 58 -LRB103 28652 SPS 73612 a

1(b) of this Section and the employee leaves surviving any
2child or children who are not entitled to compensation under
3the foregoing paragraph (a) but who at the time of the accident
4were nevertheless in any manner dependent upon the earnings of
5the employee, or leaves surviving a parent or parents who at
6the time of the accident were partially dependent upon the
7earnings of the employee, then there shall be paid to such
8dependent or dependents for a period of 8 years weekly
9compensation payments at such proportion of the applicable
10rate if the employee had left surviving a widow or widower as
11such dependency bears to total dependency. In the event of the
12death of any such beneficiary the share of such beneficiary
13shall be divided equally among the surviving beneficiaries and
14in the event of the death of the last such beneficiary all the
15rights under this paragraph shall be extinguished.
16    (d) If no compensation is payable under paragraphs (a),
17(b) or (c) of this Section and the employee leaves surviving
18any grandparent, grandparents, grandchild or grandchildren or
19collateral heirs dependent upon the employee's earnings to the
20extent of 50% or more of total dependency, then there shall be
21paid to such dependent or dependents for a period of 5 years
22weekly compensation payments at such proportion of the
23applicable rate if the employee had left surviving a widow or
24widower as such dependency bears to total dependency. In the
25event of the death of any such beneficiary the share of such
26beneficiary shall be divided equally among the surviving

 

 

10300SB1996ham007- 59 -LRB103 28652 SPS 73612 a

1beneficiaries and in the event of the death of the last such
2beneficiary all rights hereunder shall be extinguished.
3    (e) The compensation to be paid for accidental injury
4which results in death, as provided in this Section, shall be
5paid to the persons who form the basis for determining the
6amount of compensation to be paid by the employer, the
7respective shares to be in the proportion of their respective
8dependency at the time of the accident on the earnings of the
9deceased. The Commission or an Arbitrator thereof may, in its
10or his discretion, order or award the payment to the parent or
11grandparent of a child for the latter's support the amount of
12compensation which but for such order or award would have been
13paid to such child as its share of the compensation payable,
14which order or award may be modified from time to time by the
15Commission in its discretion with respect to the person to
16whom shall be paid the amount of the order or award remaining
17unpaid at the time of the modification.
18    The payments of compensation by the employer in accordance
19with the order or award of the Commission discharges such
20employer from all further obligation as to such compensation.
21    (f) The sum of $8,000 for burial expenses shall be paid by
22the employer to the widow or widower, other dependent, next of
23kin or to the person or persons incurring the expense of
24burial.
25    In the event the employer failed to provide necessary
26first aid, medical, surgical or hospital service, he shall pay

 

 

10300SB1996ham007- 60 -LRB103 28652 SPS 73612 a

1the cost thereof to the person or persons entitled to
2compensation under paragraphs (a), (b), (c) or (d) of this
3Section, or to the person or persons incurring the obligation
4therefore, or providing the same.
5    On January 15 and July 15, 1981, and on January 15 and July
615 of each year thereafter the employer shall within 60 days
7pay a sum equal to 1/8 of 1% of all compensation payments made
8by him after July 1, 1980, either under this Act or the
9Workers' Occupational Diseases Act, whether by lump sum
10settlement or weekly compensation payments, but not including
11hospital, surgical or rehabilitation payments, made during the
12first 6 months and during the second 6 months respectively of
13the fiscal year next preceding the date of the payments, into a
14special fund which shall be designated the "Second Injury
15Fund", of which the State Treasurer is ex-officio custodian,
16such special fund to be held and disbursed for the purposes
17hereinafter stated in paragraphs (f) and (g) of Section 8,
18either upon the order of the Commission or of a competent
19court. Said special fund shall be deposited the same as are
20State funds and any interest accruing thereon shall be added
21thereto every 6 months. It is subject to audit the same as
22State funds and accounts and is protected by the General bond
23given by the State Treasurer. It is considered always
24appropriated for the purposes of disbursements as provided in
25Section 8, paragraph (f), of this Act, and shall be paid out
26and disbursed as therein provided and shall not at any time be

 

 

10300SB1996ham007- 61 -LRB103 28652 SPS 73612 a

1appropriated or diverted to any other use or purpose.
2    On January 15, 1991, the employer shall further pay a sum
3equal to one half of 1% of all compensation payments made by
4him from January 1, 1990 through June 30, 1990 either under
5this Act or under the Workers' Occupational Diseases Act,
6whether by lump sum settlement or weekly compensation
7payments, but not including hospital, surgical or
8rehabilitation payments, into an additional Special Fund which
9shall be designated as the "Rate Adjustment Fund". On March
1015, 1991, the employer shall pay into the Rate Adjustment Fund
11a sum equal to one half of 1% of all such compensation payments
12made from July 1, 1990 through December 31, 1990. Within 60
13days after July 15, 1991, the employer shall pay into the Rate
14Adjustment Fund a sum equal to one half of 1% of all such
15compensation payments made from January 1, 1991 through June
1630, 1991. Within 60 days after January 15 of 1992 and each
17subsequent year through 1996, the employer shall pay into the
18Rate Adjustment Fund a sum equal to one half of 1% of all such
19compensation payments made in the last 6 months of the
20preceding calendar year. Within 60 days after July 15 of 1992
21and each subsequent year through 1995, the employer shall pay
22into the Rate Adjustment Fund a sum equal to one half of 1% of
23all such compensation payments made in the first 6 months of
24the same calendar year. Within 60 days after January 15 of 1997
25and each subsequent year through 2005, the employer shall pay
26into the Rate Adjustment Fund a sum equal to three-fourths of

 

 

10300SB1996ham007- 62 -LRB103 28652 SPS 73612 a

11% of all such compensation payments made in the last 6 months
2of the preceding calendar year. Within 60 days after July 15 of
31996 and each subsequent year through 2004, the employer shall
4pay into the Rate Adjustment Fund a sum equal to three-fourths
5of 1% of all such compensation payments made in the first 6
6months of the same calendar year. Within 60 days after July 15
7of 2005, the employer shall pay into the Rate Adjustment Fund a
8sum equal to 1% of such compensation payments made in the first
96 months of the same calendar year. Within 60 days after
10January 15 of 2006 and each subsequent year through 2024, the
11employer shall pay into the Rate Adjustment Fund a sum equal to
121.25% of such compensation payments made in the last 6 months
13of the preceding calendar year. Within 60 days after July 15 of
142006 and each subsequent year through 2023, the employer shall
15pay into the Rate Adjustment Fund a sum equal to 1.25% of such
16compensation payments made in the first 6 months of the same
17calendar year. Within 60 days after July 15 of 2024, the
18employer shall pay into the Rate Adjustment Fund a sum equal to
191.375% of such compensation payments made in the first 6
20months of the same calendar year. Within 60 days after January
2115 of 2025, the employer shall pay into the Rate Adjustment
22Fund a sum equal to 1.375% of such compensation payments made
23in the last 6 months of the preceding calendar year. Within 60
24days after July 15 of 2026, the employer shall pay into the
25Rate Adjustment Fund a sum equal to 1.5% of such compensation
26payments made in the first 6 months of the same calendar year.

 

 

10300SB1996ham007- 63 -LRB103 28652 SPS 73612 a

1Within 60 days after January 15 of 2027 and each subsequent
2year thereafter, the employer shall pay into the Rate
3Adjustment Fund a sum equal to 1.5% of such compensation
4payments made in the last 6 months of the preceding calendar
5year. The administrative costs of collecting assessments from
6employers for the Rate Adjustment Fund shall be paid from the
7Rate Adjustment Fund. The cost of an actuarial audit of the
8Fund shall be paid from the Rate Adjustment Fund. The State
9Treasurer is ex officio custodian of such Special Fund and the
10same shall be held and disbursed for the purposes hereinafter
11stated in paragraphs (f) and (g) of Section 8 upon the order of
12the Commission or of a competent court. The Rate Adjustment
13Fund shall be deposited the same as are State funds and any
14interest accruing thereon shall be added thereto every 6
15months. It shall be subject to audit the same as State funds
16and accounts and shall be protected by the general bond given
17by the State Treasurer. It is considered always appropriated
18for the purposes of disbursements as provided in paragraphs
19(f) and (g) of Section 8 of this Act and shall be paid out and
20disbursed as therein provided and shall not at any time be
21appropriated or diverted to any other use or purpose. Within 5
22days after the effective date of this amendatory Act of 1990,
23the Comptroller and the State Treasurer shall transfer
24$1,000,000 from the General Revenue Fund to the Rate
25Adjustment Fund. By February 15, 1991, the Comptroller and the
26State Treasurer shall transfer $1,000,000 from the Rate

 

 

10300SB1996ham007- 64 -LRB103 28652 SPS 73612 a

1Adjustment Fund to the General Revenue Fund. The Comptroller
2and Treasurer are authorized to make transfers at the request
3of the Chairman up to a total of $19,000,000 from the Second
4Injury Fund, the General Revenue Fund, and the Workers'
5Compensation Benefit Trust Fund to the Rate Adjustment Fund to
6the extent that there is insufficient money in the Rate
7Adjustment Fund to pay claims and obligations. Amounts may be
8transferred from the General Revenue Fund only if the funds in
9the Second Injury Fund or the Workers' Compensation Benefit
10Trust Fund are insufficient to pay claims and obligations of
11the Rate Adjustment Fund. All amounts transferred from the
12Second Injury Fund, the General Revenue Fund, and the Workers'
13Compensation Benefit Trust Fund shall be repaid from the Rate
14Adjustment Fund within 270 days of a transfer, together with
15interest at the rate earned by moneys on deposit in the Fund or
16Funds from which the moneys were transferred.
17    Upon a finding by the Commission, after reasonable notice
18and hearing, that any employer has willfully and knowingly
19failed to pay the proper amounts into the Second Injury Fund or
20the Rate Adjustment Fund required by this Section or if such
21payments are not made within the time periods prescribed by
22this Section, the employer shall, in addition to such
23payments, pay a penalty of 20% of the amount required to be
24paid or $2,500, whichever is greater, for each year or part
25thereof of such failure to pay. This penalty shall only apply
26to obligations of an employer to the Second Injury Fund or the

 

 

10300SB1996ham007- 65 -LRB103 28652 SPS 73612 a

1Rate Adjustment Fund accruing after the effective date of this
2amendatory Act of 1989. All or part of such a penalty may be
3waived by the Commission for good cause shown.
4    Any obligations of an employer to the Second Injury Fund
5and Rate Adjustment Fund accruing prior to the effective date
6of this amendatory Act of 1989 shall be paid in full by such
7employer within 5 years of the effective date of this
8amendatory Act of 1989, with at least one-fifth of such
9obligation to be paid during each year following the effective
10date of this amendatory Act of 1989. If the Commission finds,
11following reasonable notice and hearing, that an employer has
12failed to make timely payment of any obligation accruing under
13the preceding sentence, the employer shall, in addition to all
14other payments required by this Section, be liable for a
15penalty equal to 20% of the overdue obligation or $2,500,
16whichever is greater, for each year or part thereof that
17obligation is overdue. All or part of such a penalty may be
18waived by the Commission for good cause shown.
19    The Chairman of the Illinois Workers' Compensation
20Commission shall, annually, furnish to the Director of the
21Department of Insurance a list of the amounts paid into the
22Second Injury Fund and the Rate Adjustment Fund by each
23insurance company on behalf of their insured employers. The
24Director shall verify to the Chairman that the amounts paid by
25each insurance company are accurate as best as the Director
26can determine from the records available to the Director. The

 

 

10300SB1996ham007- 66 -LRB103 28652 SPS 73612 a

1Chairman shall verify that the amounts paid by each
2self-insurer are accurate as best as the Chairman can
3determine from records available to the Chairman. The Chairman
4may require each self-insurer to provide information
5concerning the total compensation payments made upon which
6contributions to the Second Injury Fund and the Rate
7Adjustment Fund are predicated and any additional information
8establishing that such payments have been made into these
9funds. Any deficiencies in payments noted by the Director or
10Chairman shall be subject to the penalty provisions of this
11Act.
12    The State Treasurer, or his duly authorized
13representative, shall be named as a party to all proceedings
14in all cases involving claim for the loss of, or the permanent
15and complete loss of the use of one eye, one foot, one leg, one
16arm or one hand.
17    The State Treasurer or his duly authorized agent shall
18have the same rights as any other party to the proceeding,
19including the right to petition for review of any award. The
20reasonable expenses of litigation, such as medical
21examinations, testimony, and transcript of evidence, incurred
22by the State Treasurer or his duly authorized representative,
23shall be borne by the Second Injury Fund.
24    If the award is not paid within 30 days after the date the
25award has become final, the Commission shall proceed to take
26judgment thereon in its own name as is provided for other

 

 

10300SB1996ham007- 67 -LRB103 28652 SPS 73612 a

1awards by paragraph (g) of Section 19 of this Act and take the
2necessary steps to collect the award.
3    Any person, corporation or organization who has paid or
4become liable for the payment of burial expenses of the
5deceased employee may in his or its own name institute
6proceedings before the Commission for the collection thereof.
7    For the purpose of administration, receipts and
8disbursements, the Special Fund provided for in paragraph (f)
9of this Section shall be administered jointly with the Special
10Fund provided for in Section 7, paragraph (f) of the Workers'
11Occupational Diseases Act.
12    (g) All compensation, except for burial expenses provided
13in this Section to be paid in case accident results in death,
14shall be paid in installments equal to the percentage of the
15average earnings as provided for in Section 8, paragraph (b)
16of this Act, at the same intervals at which the wages or
17earnings of the employees were paid. If this is not feasible,
18then the installments shall be paid weekly. Such compensation
19may be paid in a lump sum upon petition as provided in Section
209 of this Act. However, in addition to the benefits provided by
21Section 9 of this Act where compensation for death is payable
22to the deceased's widow, widower or to the deceased's widow,
23widower and one or more children, and where a partial lump sum
24is applied for by such beneficiary or beneficiaries within 18
25months after the deceased's death, the Commission may, in its
26discretion, grant a partial lump sum of not to exceed 100 weeks

 

 

10300SB1996ham007- 68 -LRB103 28652 SPS 73612 a

1of the compensation capitalized at their present value upon
2the basis of interest calculated at 3% per annum with annual
3rests, upon a showing that such partial lump sum is for the
4best interest of such beneficiary or beneficiaries.
5    (h) In case the injured employee is under 16 years of age
6at the time of the accident and is illegally employed, the
7amount of compensation payable under paragraphs (a), (b), (c),
8(d) and (f) of this Section shall be increased 50%.
9    Nothing herein contained repeals or amends the provisions
10of the Child Labor Law relating to the employment of minors
11under the age of 16 years.
12    However, where an employer has on file an employment
13certificate issued pursuant to the Child Labor Law or work
14permit issued pursuant to the Federal Fair Labor Standards
15Act, as amended, or a birth certificate properly and duly
16issued, such certificate, permit or birth certificate is
17conclusive evidence as to the age of the injured minor
18employee for the purposes of this Section only.
19    (i) Whenever the dependents of a deceased employee are
20noncitizens not residing in the United States, Mexico or
21Canada, the amount of compensation payable is limited to the
22beneficiaries described in paragraphs (a), (b) and (c) of this
23Section and is 50% of the compensation provided in paragraphs
24(a), (b) and (c) of this Section, except as otherwise provided
25by treaty.
26    In a case where any of the persons who would be entitled to

 

 

10300SB1996ham007- 69 -LRB103 28652 SPS 73612 a

1compensation is living at any place outside of the United
2States, then payment shall be made to the personal
3representative of the deceased employee. The distribution by
4such personal representative to the persons entitled shall be
5made to such persons and in such manner as the Commission
6orders.
7(Source: P.A. 102-1030, eff. 5-27-22.)
 
8    (820 ILCS 305/19)  (from Ch. 48, par. 138.19)
9    Sec. 19. Any disputed questions of law or fact shall be
10determined as herein provided.
11    (a) It shall be the duty of the Commission upon
12notification that the parties have failed to reach an
13agreement, to designate an Arbitrator.
14        1. Whenever any claimant misconceives his remedy and
15    files an application for adjustment of claim under this
16    Act and it is subsequently discovered, at any time before
17    final disposition of such cause, that the claim for
18    disability or death which was the basis for such
19    application should properly have been made under the
20    Workers' Occupational Diseases Act, then the provisions of
21    Section 19, paragraph (a-1) of the Workers' Occupational
22    Diseases Act having reference to such application shall
23    apply.
24        2. Whenever any claimant misconceives his remedy and
25    files an application for adjustment of claim under the

 

 

10300SB1996ham007- 70 -LRB103 28652 SPS 73612 a

1    Workers' Occupational Diseases Act and it is subsequently
2    discovered, at any time before final disposition of such
3    cause that the claim for injury or death which was the
4    basis for such application should properly have been made
5    under this Act, then the application so filed under the
6    Workers' Occupational Diseases Act may be amended in form,
7    substance or both to assert claim for such disability or
8    death under this Act and it shall be deemed to have been so
9    filed as amended on the date of the original filing
10    thereof, and such compensation may be awarded as is
11    warranted by the whole evidence pursuant to this Act. When
12    such amendment is submitted, further or additional
13    evidence may be heard by the Arbitrator or Commission when
14    deemed necessary. Nothing in this Section contained shall
15    be construed to be or permit a waiver of any provisions of
16    this Act with reference to notice but notice if given
17    shall be deemed to be a notice under the provisions of this
18    Act if given within the time required herein.
19    (b) The Arbitrator shall make such inquiries and
20investigations as he or they shall deem necessary and may
21examine and inspect all books, papers, records, places, or
22premises relating to the questions in dispute and hear such
23proper evidence as the parties may submit.
24    The hearings before the Arbitrator shall be held in the
25vicinity where the injury occurred after 10 days' notice of
26the time and place of such hearing shall have been given to

 

 

10300SB1996ham007- 71 -LRB103 28652 SPS 73612 a

1each of the parties or their attorneys of record.
2    The Arbitrator may find that the disabling condition is
3temporary and has not yet reached a permanent condition and
4may order the payment of compensation up to the date of the
5hearing, which award shall be reviewable and enforceable in
6the same manner as other awards, and in no instance be a bar to
7a further hearing and determination of a further amount of
8temporary total compensation or of compensation for permanent
9disability, but shall be conclusive as to all other questions
10except the nature and extent of said disability.
11    The decision of the Arbitrator shall be filed with the
12Commission which Commission shall immediately send to each
13party or his attorney a copy of such decision, together with a
14notification of the time when it was filed. As of the effective
15date of this amendatory Act of the 94th General Assembly, all
16decisions of the Arbitrator shall set forth in writing
17findings of fact and conclusions of law, separately stated, if
18requested by either party. Unless a petition for review is
19filed by either party within 30 days after the receipt by such
20party of the copy of the decision and notification of time when
21filed, and unless such party petitioning for a review shall
22within 35 days after the receipt by him of the copy of the
23decision, file with the Commission either an agreed statement
24of the facts appearing upon the hearing before the Arbitrator,
25or if such party shall so elect a correct transcript of
26evidence of the proceedings at such hearings, then the

 

 

10300SB1996ham007- 72 -LRB103 28652 SPS 73612 a

1decision shall become the decision of the Commission and in
2the absence of fraud shall be conclusive. The Petition for
3Review shall contain a statement of the petitioning party's
4specific exceptions to the decision of the arbitrator. The
5jurisdiction of the Commission to review the decision of the
6arbitrator shall not be limited to the exceptions stated in
7the Petition for Review. The Commission, or any member
8thereof, may grant further time not exceeding 30 days, in
9which to file such agreed statement or transcript of evidence.
10Such agreed statement of facts or correct transcript of
11evidence, as the case may be, shall be authenticated by the
12signatures of the parties or their attorneys, and in the event
13they do not agree as to the correctness of the transcript of
14evidence it shall be authenticated by the signature of the
15Arbitrator designated by the Commission.
16    Whether the employee is working or not, if the employee is
17not receiving or has not received medical, surgical, or
18hospital services or other services or compensation as
19provided in paragraph (a) of Section 8, or compensation as
20provided in paragraph (b) of Section 8, the employee may at any
21time petition for an expedited hearing by an Arbitrator on the
22issue of whether or not he or she is entitled to receive
23payment of the services or compensation. Provided the employer
24continues to pay compensation pursuant to paragraph (b) of
25Section 8, the employer may at any time petition for an
26expedited hearing on the issue of whether or not the employee

 

 

10300SB1996ham007- 73 -LRB103 28652 SPS 73612 a

1is entitled to receive medical, surgical, or hospital services
2or other services or compensation as provided in paragraph (a)
3of Section 8, or compensation as provided in paragraph (b) of
4Section 8. When an employer has petitioned for an expedited
5hearing, the employer shall continue to pay compensation as
6provided in paragraph (b) of Section 8 unless the arbitrator
7renders a decision that the employee is not entitled to the
8benefits that are the subject of the expedited hearing or
9unless the employee's treating physician has released the
10employee to return to work at his or her regular job with the
11employer or the employee actually returns to work at any other
12job. If the arbitrator renders a decision that the employee is
13not entitled to the benefits that are the subject of the
14expedited hearing, a petition for review filed by the employee
15shall receive the same priority as if the employee had filed a
16petition for an expedited hearing by an Arbitrator. Neither
17party shall be entitled to an expedited hearing when the
18employee has returned to work and the sole issue in dispute
19amounts to less than 12 weeks of unpaid compensation pursuant
20to paragraph (b) of Section 8.
21    Expedited hearings shall have priority over all other
22petitions and shall be heard by the Arbitrator and Commission
23with all convenient speed. Any party requesting an expedited
24hearing shall give notice of a request for an expedited
25hearing under this paragraph. A copy of the Application for
26Adjustment of Claim shall be attached to the notice. The

 

 

10300SB1996ham007- 74 -LRB103 28652 SPS 73612 a

1Commission shall adopt rules and procedures under which the
2final decision of the Commission under this paragraph is filed
3not later than 180 days from the date that the Petition for
4Review is filed with the Commission.
5    Where 2 or more insurance carriers, private self-insureds,
6or a group workers' compensation pool under Article V 3/4 of
7the Illinois Insurance Code dispute coverage for the same
8injury, any such insurance carrier, private self-insured, or
9group workers' compensation pool may request an expedited
10hearing pursuant to this paragraph to determine the issue of
11coverage, provided coverage is the only issue in dispute and
12all other issues are stipulated and agreed to and further
13provided that all compensation benefits including medical
14benefits pursuant to Section 8(a) continue to be paid to or on
15behalf of petitioner. Any insurance carrier, private
16self-insured, or group workers' compensation pool that is
17determined to be liable for coverage for the injury in issue
18shall reimburse any insurance carrier, private self-insured,
19or group workers' compensation pool that has paid benefits to
20or on behalf of petitioner for the injury.
21    (b-1) If the employee is not receiving medical, surgical
22or hospital services as provided in paragraph (a) of Section 8
23or compensation as provided in paragraph (b) of Section 8, the
24employee, in accordance with Commission Rules, may file a
25petition for an emergency hearing by an Arbitrator on the
26issue of whether or not he is entitled to receive payment of

 

 

10300SB1996ham007- 75 -LRB103 28652 SPS 73612 a

1such compensation or services as provided therein. Such
2petition shall have priority over all other petitions and
3shall be heard by the Arbitrator and Commission with all
4convenient speed.
5    Such petition shall contain the following information and
6shall be served on the employer at least 15 days before it is
7filed:
8        (i) the date and approximate time of accident;
9        (ii) the approximate location of the accident;
10        (iii) a description of the accident;
11        (iv) the nature of the injury incurred by the
12    employee;
13        (v) the identity of the person, if known, to whom the
14    accident was reported and the date on which it was
15    reported;
16        (vi) the name and title of the person, if known,
17    representing the employer with whom the employee conferred
18    in any effort to obtain compensation pursuant to paragraph
19    (b) of Section 8 of this Act or medical, surgical or
20    hospital services pursuant to paragraph (a) of Section 8
21    of this Act and the date of such conference;
22        (vii) a statement that the employer has refused to pay
23    compensation pursuant to paragraph (b) of Section 8 of
24    this Act or for medical, surgical or hospital services
25    pursuant to paragraph (a) of Section 8 of this Act;
26        (viii) the name and address, if known, of each witness

 

 

10300SB1996ham007- 76 -LRB103 28652 SPS 73612 a

1    to the accident and of each other person upon whom the
2    employee will rely to support his allegations;
3        (ix) the dates of treatment related to the accident by
4    medical practitioners, and the names and addresses of such
5    practitioners, including the dates of treatment related to
6    the accident at any hospitals and the names and addresses
7    of such hospitals, and a signed authorization permitting
8    the employer to examine all medical records of all
9    practitioners and hospitals named pursuant to this
10    paragraph;
11        (x) a copy of a signed report by a medical
12    practitioner, relating to the employee's current inability
13    to return to work because of the injuries incurred as a
14    result of the accident or such other documents or
15    affidavits which show that the employee is entitled to
16    receive compensation pursuant to paragraph (b) of Section
17    8 of this Act or medical, surgical or hospital services
18    pursuant to paragraph (a) of Section 8 of this Act. Such
19    reports, documents or affidavits shall state, if possible,
20    the history of the accident given by the employee, and
21    describe the injury and medical diagnosis, the medical
22    services for such injury which the employee has received
23    and is receiving, the physical activities which the
24    employee cannot currently perform as a result of any
25    impairment or disability due to such injury, and the
26    prognosis for recovery;

 

 

10300SB1996ham007- 77 -LRB103 28652 SPS 73612 a

1        (xi) complete copies of any reports, records,
2    documents and affidavits in the possession of the employee
3    on which the employee will rely to support his
4    allegations, provided that the employer shall pay the
5    reasonable cost of reproduction thereof;
6        (xii) a list of any reports, records, documents and
7    affidavits which the employee has demanded by subpoena and
8    on which he intends to rely to support his allegations;
9        (xiii) a certification signed by the employee or his
10    representative that the employer has received the petition
11    with the required information 15 days before filing.
12    Fifteen days after receipt by the employer of the petition
13with the required information the employee may file said
14petition and required information and shall serve notice of
15the filing upon the employer. The employer may file a motion
16addressed to the sufficiency of the petition. If an objection
17has been filed to the sufficiency of the petition, the
18arbitrator shall rule on the objection within 2 working days.
19If such an objection is filed, the time for filing the final
20decision of the Commission as provided in this paragraph shall
21be tolled until the arbitrator has determined that the
22petition is sufficient.
23    The employer shall, within 15 days after receipt of the
24notice that such petition is filed, file with the Commission
25and serve on the employee or his representative a written
26response to each claim set forth in the petition, including

 

 

10300SB1996ham007- 78 -LRB103 28652 SPS 73612 a

1the legal and factual basis for each disputed allegation and
2the following information: (i) complete copies of any reports,
3records, documents and affidavits in the possession of the
4employer on which the employer intends to rely in support of
5his response, (ii) a list of any reports, records, documents
6and affidavits which the employer has demanded by subpoena and
7on which the employer intends to rely in support of his
8response, (iii) the name and address of each witness on whom
9the employer will rely to support his response, and (iv) the
10names and addresses of any medical practitioners selected by
11the employer pursuant to Section 12 of this Act and the time
12and place of any examination scheduled to be made pursuant to
13such Section.
14    Any employer who does not timely file and serve a written
15response without good cause may not introduce any evidence to
16dispute any claim of the employee but may cross examine the
17employee or any witness brought by the employee and otherwise
18be heard.
19    No document or other evidence not previously identified by
20either party with the petition or written response, or by any
21other means before the hearing, may be introduced into
22evidence without good cause. If, at the hearing, material
23information is discovered which was not previously disclosed,
24the Arbitrator may extend the time for closing proof on the
25motion of a party for a reasonable period of time which may be
26more than 30 days. No evidence may be introduced pursuant to

 

 

10300SB1996ham007- 79 -LRB103 28652 SPS 73612 a

1this paragraph as to permanent disability. No award may be
2entered for permanent disability pursuant to this paragraph.
3Either party may introduce into evidence the testimony taken
4by deposition of any medical practitioner.
5    The Commission shall adopt rules, regulations and
6procedures whereby the final decision of the Commission is
7filed not later than 90 days from the date the petition for
8review is filed but in no event later than 180 days from the
9date the petition for an emergency hearing is filed with the
10Illinois Workers' Compensation Commission.
11    All service required pursuant to this paragraph (b-1) must
12be by personal service or by certified mail and with evidence
13of receipt. In addition for the purposes of this paragraph,
14all service on the employer must be at the premises where the
15accident occurred if the premises are owned or operated by the
16employer. Otherwise service must be at the employee's
17principal place of employment by the employer. If service on
18the employer is not possible at either of the above, then
19service shall be at the employer's principal place of
20business. After initial service in each case, service shall be
21made on the employer's attorney or designated representative.
22    (c)(1) At a reasonable time in advance of and in
23connection with the hearing under Section 19(e) or 19(h), the
24Commission may on its own motion order an impartial physical
25or mental examination of a petitioner whose mental or physical
26condition is in issue, when in the Commission's discretion it

 

 

10300SB1996ham007- 80 -LRB103 28652 SPS 73612 a

1appears that such an examination will materially aid in the
2just determination of the case. The examination shall be made
3by a member or members of a panel of physicians chosen for
4their special qualifications by the Illinois State Medical
5Society. The Commission shall establish procedures by which a
6physician shall be selected from such list.
7    (2) Should the Commission at any time during the hearing
8find that compelling considerations make it advisable to have
9an examination and report at that time, the commission may in
10its discretion so order.
11    (3) A copy of the report of examination shall be given to
12the Commission and to the attorneys for the parties.
13    (4) Either party or the Commission may call the examining
14physician or physicians to testify. Any physician so called
15shall be subject to cross-examination.
16    (5) The examination shall be made, and the physician or
17physicians, if called, shall testify, without cost to the
18parties. The Commission shall determine the compensation and
19the pay of the physician or physicians. The compensation for
20this service shall not exceed the usual and customary amount
21for such service.
22    (6) The fees and payment thereof of all attorneys and
23physicians for services authorized by the Commission under
24this Act shall, upon request of either the employer or the
25employee or the beneficiary affected, be subject to the review
26and decision of the Commission.

 

 

10300SB1996ham007- 81 -LRB103 28652 SPS 73612 a

1    (d) If any employee shall persist in insanitary or
2injurious practices which tend to either imperil or retard his
3recovery or shall refuse to submit to such medical, surgical,
4or hospital treatment as is reasonably essential to promote
5his recovery, the Commission may, in its discretion, reduce or
6suspend the compensation of any such injured employee.
7However, when an employer and employee so agree in writing,
8the foregoing provision shall not be construed to authorize
9the reduction or suspension of compensation of an employee who
10is relying in good faith, on treatment by prayer or spiritual
11means alone, in accordance with the tenets and practice of a
12recognized church or religious denomination, by a duly
13accredited practitioner thereof.
14    (e) This paragraph shall apply to all hearings before the
15Commission. Such hearings may be held in its office or
16elsewhere as the Commission may deem advisable. The taking of
17testimony on such hearings may be had before any member of the
18Commission. If a petition for review and agreed statement of
19facts or transcript of evidence is filed, as provided herein,
20the Commission shall promptly review the decision of the
21Arbitrator and all questions of law or fact which appear from
22the statement of facts or transcript of evidence.
23    In all cases in which the hearing before the arbitrator is
24held after December 18, 1989, no additional evidence shall be
25introduced by the parties before the Commission on review of
26the decision of the Arbitrator. In reviewing decisions of an

 

 

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1arbitrator the Commission shall award such temporary
2compensation, permanent compensation and other payments as are
3due under this Act. The Commission shall file in its office its
4decision thereon, and shall immediately send to each party or
5his attorney a copy of such decision and a notification of the
6time when it was filed. Decisions shall be filed within 60 days
7after the Statement of Exceptions and Supporting Brief and
8Response thereto are required to be filed or oral argument
9whichever is later.
10    In the event either party requests oral argument, such
11argument shall be had before a panel of 3 members of the
12Commission (or before all available members pursuant to the
13determination of 7 members of the Commission that such
14argument be held before all available members of the
15Commission) pursuant to the rules and regulations of the
16Commission. A panel of 3 members, which shall be comprised of
17not more than one representative citizen of the employing
18class and not more than one representative from a labor
19organization recognized under the National Labor Relations Act
20or an attorney who has represented labor organizations or has
21represented employees in workers' compensation cases, shall
22hear the argument; provided that if all the issues in dispute
23are solely the nature and extent of the permanent partial
24disability, if any, a majority of the panel may deny the
25request for such argument and such argument shall not be held;
26and provided further that 7 members of the Commission may

 

 

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1determine that the argument be held before all available
2members of the Commission. A decision of the Commission shall
3be approved by a majority of Commissioners present at such
4hearing if any; provided, if no such hearing is held, a
5decision of the Commission shall be approved by a majority of a
6panel of 3 members of the Commission as described in this
7Section. The Commission shall give 10 days' notice to the
8parties or their attorneys of the time and place of such taking
9of testimony and of such argument.
10    In any case the Commission in its decision may find
11specially upon any question or questions of law or fact which
12shall be submitted in writing by either party whether ultimate
13or otherwise; provided that on issues other than nature and
14extent of the disability, if any, the Commission in its
15decision shall find specially upon any question or questions
16of law or fact, whether ultimate or otherwise, which are
17submitted in writing by either party; provided further that
18not more than 5 such questions may be submitted by either
19party. Any party may, within 20 days after receipt of notice of
20the Commission's decision, or within such further time, not
21exceeding 30 days, as the Commission may grant, file with the
22Commission either an agreed statement of the facts appearing
23upon the hearing, or, if such party shall so elect, a correct
24transcript of evidence of the additional proceedings presented
25before the Commission, in which report the party may embody a
26correct statement of such other proceedings in the case as

 

 

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1such party may desire to have reviewed, such statement of
2facts or transcript of evidence to be authenticated by the
3signature of the parties or their attorneys, and in the event
4that they do not agree, then the authentication of such
5transcript of evidence shall be by the signature of any member
6of the Commission.
7    If a reporter does not for any reason furnish a transcript
8of the proceedings before the Arbitrator in any case for use on
9a hearing for review before the Commission, within the
10limitations of time as fixed in this Section, the Commission
11may, in its discretion, order a trial de novo before the
12Commission in such case upon application of either party. The
13applications for adjustment of claim and other documents in
14the nature of pleadings filed by either party, together with
15the decisions of the Arbitrator and of the Commission and the
16statement of facts or transcript of evidence hereinbefore
17provided for in paragraphs (b) and (c) shall be the record of
18the proceedings of the Commission, and shall be subject to
19review as hereinafter provided.
20    At the request of either party or on its own motion, the
21Commission shall set forth in writing the reasons for the
22decision, including findings of fact and conclusions of law
23separately stated. The Commission shall by rule adopt a format
24for written decisions for the Commission and arbitrators. The
25written decisions shall be concise and shall succinctly state
26the facts and reasons for the decision. The Commission may

 

 

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1adopt in whole or in part, the decision of the arbitrator as
2the decision of the Commission. When the Commission does so
3adopt the decision of the arbitrator, it shall do so by order.
4Whenever the Commission adopts part of the arbitrator's
5decision, but not all, it shall include in the order the
6reasons for not adopting all of the arbitrator's decision.
7When a majority of a panel, after deliberation, has arrived at
8its decision, the decision shall be filed as provided in this
9Section without unnecessary delay, and without regard to the
10fact that a member of the panel has expressed an intention to
11dissent. Any member of the panel may file a dissent. Any
12dissent shall be filed no later than 10 days after the decision
13of the majority has been filed.
14    Decisions rendered by the Commission and dissents, if any,
15shall be published together by the Commission. The conclusions
16of law set out in such decisions shall be regarded as
17precedents by arbitrators for the purpose of achieving a more
18uniform administration of this Act.
19    (f) The decision of the Commission acting within its
20powers, according to the provisions of paragraph (d) of
21Section 4 and paragraph (e) of this Section shall, in the
22absence of fraud, be conclusive unless reviewed as in this
23paragraph hereinafter provided. However, the Arbitrator or the
24Commission may on his or its own motion, or on the motion of
25either party, correct any clerical error or errors in
26computation within 15 days after the date of receipt of any

 

 

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1award by such Arbitrator or any decision on review of the
2Commission and shall have the power to recall the original
3award on arbitration or decision on review, and issue in lieu
4thereof such corrected award or decision. Where such
5correction is made the time for review herein specified shall
6begin to run from the date of the receipt of the corrected
7award or decision.
8        (1) Except in cases of claims against the State of
9    Illinois other than those claims under Section 18.1, in
10    which case the decision of the Commission shall not be
11    subject to judicial review, the Circuit Court of the
12    county where any of the parties defendant may be found, or
13    if none of the parties defendant can be found in this State
14    then the Circuit Court of the county where the accident
15    occurred, shall by summons to the Commission have power to
16    review all questions of law and fact presented by such
17    record.
18        A proceeding for review shall be commenced within 20
19    days of the receipt of notice of the decision of the
20    Commission. The summons shall be issued by the clerk of
21    such court upon written request returnable on a designated
22    return day, not less than 10 or more than 60 days from the
23    date of issuance thereof, and the written request shall
24    contain the last known address of other parties in
25    interest and their attorneys of record who are to be
26    served by summons. Service upon any member of the

 

 

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1    Commission or the Secretary or the Assistant Secretary
2    thereof shall be service upon the Commission, and service
3    upon other parties in interest and their attorneys of
4    record shall be by summons, and such service shall be made
5    upon the Commission and other parties in interest by
6    mailing notices of the commencement of the proceedings and
7    the return day of the summons to the office of the
8    Commission and to the last known place of residence of
9    other parties in interest or their attorney or attorneys
10    of record. The clerk of the court issuing the summons
11    shall on the day of issue mail notice of the commencement
12    of the proceedings which shall be done by mailing a copy of
13    the summons to the office of the Commission, and a copy of
14    the summons to the other parties in interest or their
15    attorney or attorneys of record and the clerk of the court
16    shall make certificate that he has so sent said notices in
17    pursuance of this Section, which shall be evidence of
18    service on the Commission and other parties in interest.
19        The Commission shall not be required to certify the
20    record of their proceedings to the Circuit Court, unless
21    the party commencing the proceedings for review in the
22    Circuit Court as above provided, shall file with the
23    Commission notice of intent to file for review in Circuit
24    Court. It shall be the duty of the Commission upon such
25    filing of notice of intent to file for review in the
26    Circuit Court to prepare a true and correct copy of such

 

 

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1    testimony and a true and correct copy of all other matters
2    contained in such record and certified to by the Secretary
3    or Assistant Secretary thereof. The changes made to this
4    subdivision (f)(1) by this amendatory Act of the 98th
5    General Assembly apply to any Commission decision entered
6    after the effective date of this amendatory Act of the
7    98th General Assembly.
8        No request for a summons may be filed and no summons
9    shall issue unless the party seeking to review the
10    decision of the Commission shall exhibit to the clerk of
11    the Circuit Court proof of filing with the Commission of
12    the notice of the intent to file for review in the Circuit
13    Court or an affidavit of the attorney setting forth that
14    notice of intent to file for review in the Circuit Court
15    has been given in writing to the Secretary or Assistant
16    Secretary of the Commission.
17        (2) No such summons shall issue unless the one against
18    whom the Commission shall have rendered an award for the
19    payment of money shall upon the filing of his written
20    request for such summons file with the clerk of the court a
21    bond conditioned that if he shall not successfully
22    prosecute the review, he will pay the award and the costs
23    of the proceedings in the courts. The amount of the bond
24    shall be fixed by any member of the Commission and the
25    surety or sureties of the bond shall be approved by the
26    clerk of the court. The acceptance of the bond by the clerk

 

 

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1    of the court shall constitute evidence of his approval of
2    the bond.
3        The following shall not be required to file a bond to
4    secure the payment of the award and the costs of the
5    proceedings in the court to authorize the court to issue
6    such summons:
7            (1) the State Treasurer, for a fund administered
8        by the State Treasurer ex officio against whom the
9        Commission shall have rendered an award for the
10        payment of money; and
11            (2) a county, city, town, township, incorporated
12        village, school district, body politic, or municipal
13        corporation against whom the Commission shall have
14        rendered an award for the payment of money.
15        The court may confirm or set aside the decision of the
16    Commission. If the decision is set aside and the facts
17    found in the proceedings before the Commission are
18    sufficient, the court may enter such decision as is
19    justified by law, or may remand the cause to the
20    Commission for further proceedings and may state the
21    questions requiring further hearing, and give such other
22    instructions as may be proper. If the court affirms the
23    Commission's decision imposing fines on the employer under
24    subsection (d) of Section 4, the court shall enter
25    judgment against the employer in the amount of the fines
26    assessed by the Commission. Appeals shall be taken to the

 

 

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1    Appellate Court in accordance with Supreme Court Rules
2    22(g) and 303. Appeals shall be taken from the Appellate
3    Court to the Supreme Court in accordance with Supreme
4    Court Rule 315.
5        It shall be the duty of the clerk of any court
6    rendering a decision affecting or affirming an award of
7    the Commission to promptly furnish the Commission with a
8    copy of such decision, without charge.
9        The decision of a majority of the members of the panel
10    of the Commission, shall be considered the decision of the
11    Commission.
12    (g) Except in the case of a claim against the State of
13Illinois, either party may present a certified copy of the
14award of the Arbitrator, or a certified copy of the decision of
15the Commission when the same has become final, when no
16proceedings for review are pending, providing for the payment
17of compensation according to this Act, to the Circuit Court of
18the county in which such accident occurred or either of the
19parties are residents, whereupon the court shall enter a
20judgment in accordance therewith. In a case where the employer
21refuses to pay compensation according to such final award or
22such final decision upon which such judgment is entered the
23court shall in entering judgment thereon, tax as costs against
24him the reasonable costs and attorney fees in the arbitration
25proceedings and in the court entering the judgment for the
26person in whose favor the judgment is entered, which judgment

 

 

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1and costs taxed as therein provided shall, until and unless
2set aside, have the same effect as though duly entered in an
3action duly tried and determined by the court, and shall with
4like effect, be entered and docketed. The Circuit Court shall
5have power at any time upon application to make any such
6judgment conform to any modification required by any
7subsequent decision of the Supreme Court upon appeal, or as
8the result of any subsequent proceedings for review, as
9provided in this Act.
10    Judgment shall not be entered until 15 days' notice of the
11time and place of the application for the entry of judgment
12shall be served upon the employer by filing such notice with
13the Commission, which Commission shall, in case it has on file
14the address of the employer or the name and address of its
15agent upon whom notices may be served, immediately send a copy
16of the notice to the employer or such designated agent.
17    (h) An agreement or award under this Act providing for
18compensation in installments, may at any time within 18 months
19after such agreement or award be reviewed by the Commission at
20the request of either the employer or the employee, on the
21ground that the disability of the employee has subsequently
22recurred, increased, diminished or ended.
23    However, as to accidents occurring subsequent to July 1,
241955, which are covered by any agreement or award under this
25Act providing for compensation in installments made as a
26result of such accident, such agreement or award may at any

 

 

10300SB1996ham007- 92 -LRB103 28652 SPS 73612 a

1time within 30 months, or 60 months in the case of an award
2under Section 8(d)1, after such agreement or award be reviewed
3by the Commission at the request of either the employer or the
4employee on the ground that the disability of the employee has
5subsequently recurred, increased, diminished or ended.
6    On such review, compensation payments may be
7re-established, increased, diminished or ended. The Commission
8shall give 15 days' notice to the parties of the hearing for
9review. Any employee, upon any petition for such review being
10filed by the employer, shall be entitled to one day's notice
11for each 100 miles necessary to be traveled by him in attending
12the hearing of the Commission upon the petition, and 3 days in
13addition thereto. Such employee shall, at the discretion of
14the Commission, also be entitled to 5 cents per mile
15necessarily traveled by him within the State of Illinois in
16attending such hearing, not to exceed a distance of 300 miles,
17to be taxed by the Commission as costs and deposited with the
18petition of the employer.
19    When compensation which is payable in accordance with an
20award or settlement contract approved by the Commission, is
21ordered paid in a lump sum by the Commission, no review shall
22be had as in this paragraph mentioned.
23    (i) Each party, upon taking any proceedings or steps
24whatsoever before any Arbitrator, Commission or court, shall
25file with the Commission his address, or the name and address
26of any agent upon whom all notices to be given to such party

 

 

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1shall be served, either personally or by registered mail,
2addressed to such party or agent at the last address so filed
3with the Commission. In the event such party has not filed his
4address, or the name and address of an agent as above provided,
5service of any notice may be had by filing such notice with the
6Commission.
7    (j) Whenever in any proceeding testimony has been taken or
8a final decision has been rendered and after the taking of such
9testimony or after such decision has become final, the injured
10employee dies, then in any subsequent proceedings brought by
11the personal representative or beneficiaries of the deceased
12employee, such testimony in the former proceeding may be
13introduced with the same force and effect as though the
14witness having so testified were present in person in such
15subsequent proceedings and such final decision, if any, shall
16be taken as final adjudication of any of the issues which are
17the same in both proceedings.
18    (k) In case where there has been any unreasonable or
19vexatious delay of payment or intentional underpayment of
20compensation, or proceedings have been instituted or carried
21on by the one liable to pay the compensation, which do not
22present a real controversy, but are merely frivolous or for
23delay, then the Commission may award compensation additional
24to that otherwise payable under this Act equal to 50% of the
25amount payable at the time of such award. Failure to pay
26compensation in accordance with the provisions of Section 8,

 

 

10300SB1996ham007- 94 -LRB103 28652 SPS 73612 a

1paragraph (b) of this Act, shall be considered unreasonable
2delay.
3    When determining whether this subsection (k) shall apply,
4the Commission shall consider whether an Arbitrator has
5determined that the claim is not compensable or whether the
6employer has made payments under Section 8(j).
7    (l) If the employee has made written demand for payment of
8benefits under Section 8(a) or Section 8(b), the employer
9shall have 14 days after receipt of the demand to set forth in
10writing the reason for the delay. In the case of demand for
11payment of medical benefits under Section 8(a), the time for
12the employer to respond shall not commence until the
13expiration of the allotted 30 days specified under Section
148.2(d). In case the employer or his or her insurance carrier
15shall without good and just cause fail, neglect, refuse, or
16unreasonably delay the payment of benefits under Section 8(a)
17or Section 8(b), the Arbitrator or the Commission shall allow
18to the employee additional compensation in the sum of $30 per
19day for each day that the benefits under Section 8(a) or
20Section 8(b) have been so withheld or refused, not to exceed
21$10,000. A delay in payment of 14 days or more shall create a
22rebuttable presumption of unreasonable delay.
23    (m) If the commission finds that an accidental injury was
24directly and proximately caused by the employer's wilful
25violation of a health and safety standard under the Health and
26Safety Act or the Occupational Safety and Health Act in force

 

 

10300SB1996ham007- 95 -LRB103 28652 SPS 73612 a

1at the time of the accident, the arbitrator or the Commission
2shall allow to the injured employee or his dependents, as the
3case may be, additional compensation equal to 25% of the
4amount which otherwise would be payable under the provisions
5of this Act exclusive of this paragraph. The additional
6compensation herein provided shall be allowed by an
7appropriate increase in the applicable weekly compensation
8rate.
9    (n) After June 30, 1984, decisions of the Illinois
10Workers' Compensation Commission reviewing an award of an
11arbitrator of the Commission shall draw interest at a rate
12equal to the yield on indebtedness issued by the United States
13Government with a 26-week maturity next previously auctioned
14on the day on which the decision is filed. Said rate of
15interest shall be set forth in the Arbitrator's Decision.
16Interest shall be drawn from the date of the arbitrator's
17award on all accrued compensation due the employee through the
18day prior to the date of payments. However, when an employee
19appeals an award of an Arbitrator or the Commission, and the
20appeal results in no change or a decrease in the award,
21interest shall not further accrue from the date of such
22appeal.
23    The employer or his insurance carrier may tender the
24payments due under the award to stop the further accrual of
25interest on such award notwithstanding the prosecution by
26either party of review, certiorari, appeal to the Supreme

 

 

10300SB1996ham007- 96 -LRB103 28652 SPS 73612 a

1Court or other steps to reverse, vacate or modify the award.
2    (o) By the 15th day of each month each insurer providing
3coverage for losses under this Act shall notify each insured
4employer of any compensable claim incurred during the
5preceding month and the amounts paid or reserved on the claim
6including a summary of the claim and a brief statement of the
7reasons for compensability. A cumulative report of all claims
8incurred during a calendar year or continued from the previous
9year shall be furnished to the insured employer by the insurer
10within 30 days after the end of that calendar year.
11    The insured employer may challenge, in proceeding before
12the Commission, payments made by the insurer without
13arbitration and payments made after a case is determined to be
14noncompensable. If the Commission finds that the case was not
15compensable, the insurer shall purge its records as to that
16employer of any loss or expense associated with the claim,
17reimburse the employer for attorneys' fees arising from the
18challenge and for any payment required of the employer to the
19Rate Adjustment Fund or the Second Injury Fund, and may not
20reflect the loss or expense for rate making purposes. The
21employee shall not be required to refund the challenged
22payment. The decision of the Commission may be reviewed in the
23same manner as in arbitrated cases. No challenge may be
24initiated under this paragraph more than 3 years after the
25payment is made. An employer may waive the right of challenge
26under this paragraph on a case by case basis.

 

 

10300SB1996ham007- 97 -LRB103 28652 SPS 73612 a

1    (p) After filing an application for adjustment of claim
2but prior to the hearing on arbitration the parties may
3voluntarily agree to submit such application for adjustment of
4claim for decision by an arbitrator under this subsection (p)
5where such application for adjustment of claim raises only a
6dispute over temporary total disability, permanent partial
7disability or medical expenses. Such agreement shall be in
8writing in such form as provided by the Commission.
9Applications for adjustment of claim submitted for decision by
10an arbitrator under this subsection (p) shall proceed
11according to rule as established by the Commission. The
12Commission shall promulgate rules including, but not limited
13to, rules to ensure that the parties are adequately informed
14of their rights under this subsection (p) and of the voluntary
15nature of proceedings under this subsection (p). The findings
16of fact made by an arbitrator acting within his or her powers
17under this subsection (p) in the absence of fraud shall be
18conclusive. However, the arbitrator may on his own motion, or
19the motion of either party, correct any clerical errors or
20errors in computation within 15 days after the date of receipt
21of such award of the arbitrator and shall have the power to
22recall the original award on arbitration, and issue in lieu
23thereof such corrected award. The decision of the arbitrator
24under this subsection (p) shall be considered the decision of
25the Commission and proceedings for review of questions of law
26arising from the decision may be commenced by either party

 

 

10300SB1996ham007- 98 -LRB103 28652 SPS 73612 a

1pursuant to subsection (f) of Section 19. The Advisory Board
2established under Section 13.1 shall compile a list of
3certified Commission arbitrators, each of whom shall be
4approved by at least 7 members of the Advisory Board. The
5chairman shall select 5 persons from such list to serve as
6arbitrators under this subsection (p). By agreement, the
7parties shall select one arbitrator from among the 5 persons
8selected by the chairman except that if the parties do not
9agree on an arbitrator from among the 5 persons, the parties
10may, by agreement, select an arbitrator of the American
11Arbitration Association, whose fee shall be paid by the State
12in accordance with rules promulgated by the Commission.
13Arbitration under this subsection (p) shall be voluntary.
14(Source: P.A. 101-384, eff. 1-1-20; 102-775, eff. 5-13-22.)
 
15    (820 ILCS 305/25.5)
16    Sec. 25.5. Unlawful acts; penalties.
17    (a) It is unlawful for any person, company, corporation,
18insurance carrier, healthcare provider, or other entity to:
19        (1) Intentionally present or cause to be presented any
20    false or fraudulent claim for the payment of any workers'
21    compensation benefit.
22        (2) Intentionally make or cause to be made any false
23    or fraudulent material statement or material
24    representation for the purpose of obtaining or denying any
25    workers' compensation benefit.

 

 

10300SB1996ham007- 99 -LRB103 28652 SPS 73612 a

1        (3) Intentionally make or cause to be made any false
2    or fraudulent statements with regard to entitlement to
3    workers' compensation benefits with the intent to prevent
4    an injured worker from making a legitimate claim for any
5    workers' compensation benefits.
6        (4) Intentionally prepare or provide an invalid,
7    false, or counterfeit certificate of insurance as proof of
8    workers' compensation insurance.
9        (5) Intentionally make or cause to be made any false
10    or fraudulent material statement or material
11    representation for the purpose of obtaining workers'
12    compensation insurance at less than the proper amount for
13    that insurance.
14        (6) Intentionally make or cause to be made any false
15    or fraudulent material statement or material
16    representation on an initial or renewal self-insurance
17    application or accompanying financial statement for the
18    purpose of obtaining self-insurance status or reducing the
19    amount of security that may be required to be furnished
20    pursuant to Section 4 of this Act.
21        (7) Intentionally make or cause to be made any false
22    or fraudulent material statement to the Department of
23    Insurance's fraud and insurance non-compliance unit in the
24    course of an investigation of fraud or insurance
25    non-compliance.
26        (8) Intentionally assist, abet, solicit, or conspire

 

 

10300SB1996ham007- 100 -LRB103 28652 SPS 73612 a

1    with any person, company, or other entity to commit any of
2    the acts in paragraph (1), (2), (3), (4), (5), (6), or (7)
3    of this subsection (a).
4        (8.5) Intentionally assist, abet, solicit, or conspire
5    with any person, company, or other entity to commit any of
6    the acts in paragraph (4) of this subsection (a).
7        (9) Intentionally present a bill or statement for the
8    payment for medical services that were not provided.
9    For the purposes of paragraphs (2), (3), (5), (6), (7),
10and (9), the term "statement" includes any writing, notice,
11proof of injury, bill for services, hospital or doctor records
12and reports, or X-ray and test results.
13    (b) Sentences for violations of paragraphs (1), (2), (3),
14(5), (6), (7), (8), and (9) of subsection (a) are as follows:
15        (1) A violation in which the value of the property
16    obtained or attempted to be obtained is $300 or less is a
17    Class A misdemeanor.
18        (2) A violation in which the value of the property
19    obtained or attempted to be obtained is more than $300 but
20    not more than $10,000 is a Class 3 felony.
21        (3) A violation in which the value of the property
22    obtained or attempted to be obtained is more than $10,000
23    but not more than $100,000 is a Class 2 felony.
24        (4) A violation in which the value of the property
25    obtained or attempted to be obtained is more than $100,000
26    is a Class 1 felony.

 

 

10300SB1996ham007- 101 -LRB103 28652 SPS 73612 a

1        (5) A person convicted under this subsection Section
2    shall be ordered to pay monetary restitution to the
3    injured worker, insurance company, or self-insured entity,
4    or any other person for any financial loss sustained as a
5    result of a violation of this Section, including any court
6    costs and attorney fees. An order of restitution also
7    includes expenses incurred and paid by the State of
8    Illinois, or an insurance company, a or self-insured
9    entity, an injured worker, or any other person in
10    connection with any medical evaluation or treatment
11    services. For the purposes of this subsection, "person"
12    includes any legal entity created under Section 535 of the
13    Illinois Insurance Code.
14    For the purposes of this subsection Section, where the
15exact value of property obtained or attempted to be obtained
16is either not alleged or is not specifically set by the terms
17of a policy of insurance, the value of the property shall be
18the fair market replacement value of the property claimed to
19be lost, the reasonable costs of reimbursing a vendor or other
20claimant for services to be rendered, or both. Notwithstanding
21the foregoing, an injured worker, an insurance company,
22self-insured entity, or any other person suffering financial
23loss sustained as a result of violation of this Section may
24seek restitution, including court costs and attorney's fees in
25a civil action in a court of competent jurisdiction.
26    (b-5) Sentences for violations of paragraphs (4) and (8.5)

 

 

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1of
subsection (a) are as follows:
2        (1) A violation in which the value of the property
3    obtained or attempted to be obtained is $10,000 or less,
4    is a Class 3 felony and a civil penalty of up to $10,000
5    per violation, payable to the Injured Workers' Benefit
6    Fund, shall be assessed.
7        (2) A violation in which the value of the property
8    obtained or attempted to be obtained is more than $10,000,
9    but not more than $100,000, is a Class 2 felony and a civil
10    penalty of up to $10,000 per violation, payable to the
11    Injured Workers' Benefit Fund, shall be assessed.
12        (3) A violation in which the value of the property
13    obtained or attempted to be obtained is more than $100,000
14    is a Class 1 felony and a civil penalty of up to $10,000
15    per violation, payable to the Injured Workers' Benefit
16    Fund, shall be assessed.
17        (4) A person convicted under this subsection shall be
18    ordered to pay monetary restitution to the injured worker,
19    insurance company, self-insured entity, or any other
20    person for any financial loss sustained as a result of a
21    violation of this Section. An order of restitution also
22    includes expenses incurred and paid by the State of
23    Illinois, an insurance company, a self-insured entity, an
24    injured person, or any other person in connection with any
25    medical evaluation or treatment services.
26    For the purposes of this subsection, the value of the

 

 

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1property obtained or attempted to be obtained shall be the
2amount of premiums saved by use of the invalid, false, or
3counterfeit certificate of insurance, the value of any
4payments under any contract obtained by reliance on the
5invalid, false, or counterfeit certificate of insurance, or
6both. Notwithstanding the foregoing, an injured worker,
7insurance company, self-insured entity, or any other person
8suffering financial loss sustained as a result of violation of
9this subsection may seek restitution, including court costs
10and attorney's fees in a civil action in a court of competent
11jurisdiction.
12    (c) The Department of Insurance shall establish a fraud
13and insurance non-compliance unit responsible for
14investigating incidences of fraud and insurance non-compliance
15pursuant to this Section. The size of the staff of the unit
16shall be subject to appropriation by the General Assembly. It
17shall be the duty of the fraud and insurance non-compliance
18unit to determine the identity of insurance carriers,
19employers, employees, or other persons or entities who have
20violated the fraud and insurance non-compliance provisions of
21this Section. The fraud and insurance non-compliance unit
22shall report violations of the fraud and insurance
23non-compliance provisions of this Section to the Special
24Prosecutions Bureau of the Criminal Division of the Office of
25the Attorney General or to the State's Attorney of the county
26in which the offense allegedly occurred, either of whom has

 

 

10300SB1996ham007- 104 -LRB103 28652 SPS 73612 a

1the authority to prosecute violations under this Section.
2    With respect to the subject of any investigation being
3conducted, the fraud and insurance non-compliance unit shall
4have the general power of subpoena of the Department of
5Insurance, including the authority to issue a subpoena to a
6medical provider, pursuant to Section 8-802 of the Code of
7Civil Procedure.
8    (d) Any person may report allegations of insurance
9non-compliance and fraud pursuant to this Section to the
10Department of Insurance's fraud and insurance non-compliance
11unit whose duty it shall be to investigate the report. The unit
12shall notify the Commission of reports of insurance
13non-compliance. Any person reporting an allegation of
14insurance non-compliance or fraud against either an employee
15or employer under this Section must identify himself. Except
16as provided in this subsection and in subsection (e), all
17reports shall remain confidential except to refer an
18investigation to the Attorney General or State's Attorney for
19prosecution or if the fraud and insurance non-compliance
20unit's investigation reveals that the conduct reported may be
21in violation of other laws or regulations of the State of
22Illinois, the unit may report such conduct to the appropriate
23governmental agency charged with administering such laws and
24regulations. Any person who intentionally makes a false report
25under this Section to the fraud and insurance non-compliance
26unit is guilty of a Class A misdemeanor.

 

 

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1    (e) In order for the fraud and insurance non-compliance
2unit to investigate a report of fraud related to an employee's
3claim, (i) the employee must have filed with the Commission an
4Application for Adjustment of Claim and the employee must have
5either received or attempted to receive benefits under this
6Act that are related to the reported fraud or (ii) the employee
7must have made a written demand for the payment of benefits
8that are related to the reported fraud. There shall be no
9immunity, under this Act or otherwise, for any person who
10files a false report or who files a report without good and
11just cause. Confidentiality of medical information shall be
12strictly maintained. Investigations that are not referred for
13prosecution shall be destroyed upon the expiration of the
14statute of limitations for the acts under investigation and
15shall not be disclosed except that the person making the
16report shall be notified that the investigation is being
17closed. It is unlawful for any employer, insurance carrier,
18service adjustment company, third party administrator,
19self-insured, or similar entity to file or threaten to file a
20report of fraud against an employee because of the exercise by
21the employee of the rights and remedies granted to the
22employee by this Act.
23    (e-5) (Blank).
24    (f) Any person convicted of fraud related to workers'
25compensation pursuant to this Section shall be subject to the
26penalties prescribed in the Criminal Code of 2012 and shall be

 

 

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1ineligible to receive or retain any compensation, disability,
2or medical benefits as defined in this Act if the
3compensation, disability, or medical benefits were owed or
4received as a result of fraud for which the recipient of the
5compensation, disability, or medical benefit was convicted.
6This subsection applies to accidental injuries or diseases
7that occur on or after the effective date of this amendatory
8Act of the 94th General Assembly.
9    (g) Civil liability. Any person convicted of fraud who
10knowingly obtains, attempts to obtain, or causes to be
11obtained any benefits under this Act by the making of a false
12claim or who knowingly misrepresents any material fact shall
13be civilly liable to the payor of benefits or the insurer or
14the payor's or insurer's subrogee or assignee in an amount
15equal to 3 times the value of the benefits or insurance
16coverage wrongfully obtained or twice the value of the
17benefits or insurance coverage attempted to be obtained, plus
18reasonable attorney's fees and expenses incurred by the payor
19or the payor's subrogee or assignee who successfully brings a
20claim under this subsection. This subsection applies to
21accidental injuries or diseases that occur on or after the
22effective date of this amendatory Act of the 94th General
23Assembly.
24    (h) The fraud and insurance non-compliance unit shall
25submit a written report on an annual basis to the Chairman of
26the Commission, the Workers' Compensation Advisory Board, the

 

 

10300SB1996ham007- 107 -LRB103 28652 SPS 73612 a

1General Assembly, the Governor, and the Attorney General by
2January 1 and July 1 of each year. This report shall include,
3at the minimum, the following information:
4        (1) The number of allegations of insurance
5    non-compliance and fraud reported to the fraud and
6    insurance non-compliance unit.
7        (2) The source of the reported allegations
8    (individual, employer, or other).
9        (3) The number of allegations investigated by the
10    fraud and insurance non-compliance unit.
11        (4) The number of criminal referrals made in
12    accordance with this Section and the entity to which the
13    referral was made.
14        (5) All proceedings under this Section.
15        (6) Recommendations regarding opportunities for
16    additional fraud detection.
17(Source: P.A. 102-37, eff. 7-1-21.)
 
18    Section 99. Effective date. This Act takes effect upon
19becoming law.".