SB1996 EnrolledLRB103 28652 SPS 55033 b

1    AN ACT concerning employment.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Insurance Code is amended by
5changing Section 416 as follows:
 
6    (215 ILCS 5/416)
7    Sec. 416. Illinois Workers' Compensation Commission
8Operations Fund Surcharge.
9    (a) As of July 30, 2004 (the effective date of Public Act
1093-840), every company licensed or authorized by the Illinois
11Department of Insurance and insuring employers' liabilities
12arising under the Workers' Compensation Act or the Workers'
13Occupational Diseases Act shall remit to the Director a
14surcharge based upon the annual direct written premium, as
15reported under Section 136 of this Act, of the company in the
16manner provided in this Section. Such proceeds shall be
17deposited into the Illinois Workers' Compensation Commission
18Operations Fund as established in the Workers' Compensation
19Act. If a company survives or was formed by a merger,
20consolidation, reorganization, or reincorporation, the direct
21written premiums of all companies party to the merger,
22consolidation, reorganization, or reincorporation shall, for
23purposes of determining the amount of the fee imposed by this

 

 

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1Section, be regarded as those of the surviving or new company.
2    (b) Beginning (1) Except as provided in subsection (b)(2)
3of this Section, beginning on July 30, 2004 (the effective
4date of Public Act 93-840) and on July 1 of each year
5thereafter through 2023, the Director shall charge an annual
6Illinois Workers' Compensation Commission Operations Fund
7Surcharge from every company subject to subsection (a) of this
8Section equal to 1.01% of its direct written premium for
9insuring employers' liabilities arising under the Workers'
10Compensation Act or Workers' Occupational Diseases Act as
11reported in each company's annual statement filed for the
12previous year as required by Section 136. Within 15 days after
13the effective date of this amendatory Act of the 103rd General
14Assembly and on July 1 of each year thereafter, the Director
15shall charge an annual Illinois Workers' Compensation
16Commission Operations Fund Surcharge from every company
17subject to subsection (a) of this Section equal to 1.092% of
18its direct written premium for insuring employers' liabilities
19arising under the Workers' Compensation Act or Workers'
20Occupational Diseases Act as reported in each company's annual
21statement filed for the previous year as required by Section
22136. The Illinois Workers' Compensation Commission Operations
23Fund Surcharge shall be collected by companies subject to
24subsection (a) of this Section as a separately stated
25surcharge on insured employers at the rate of 1.092% 1.01% of
26direct written premium for the surcharge due in 2024 and each

 

 

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1year thereafter. The Illinois Workers' Compensation Commission
2Operations Fund Surcharge shall not be collected by companies
3subject to subsection (a) of this Section from any employer
4that self-insures its liabilities arising under the Workers'
5Compensation Act or Workers' Occupational Diseases Act,
6provided that the employer has paid the Illinois Workers'
7Compensation Commission Operations Fund Fee pursuant to
8Section 4d of the Workers' Compensation Act. All sums
9collected by the Department of Insurance under the provisions
10of this Section shall be paid promptly after the receipt of the
11same, accompanied by a detailed statement thereof, into the
12Illinois Workers' Compensation Commission Operations Fund in
13the State treasury.
14    (b)(2) (Blank). The surcharge due pursuant to Public Act
1593-840 shall be collected instead of the surcharge due on July
161, 2004 under Public Act 93-32. Payment of the surcharge due
17under Public Act 93-840 shall discharge the employer's
18obligations due on July 1, 2004.
19    (c) In addition to the authority specifically granted
20under Article XXV of this Code, the Director shall have such
21authority to adopt rules or establish forms as may be
22reasonably necessary for purposes of enforcing this Section.
23The Director shall also have authority to defer, waive, or
24abate the surcharge or any penalties imposed by this Section
25if in the Director's opinion the company's solvency and
26ability to meet its insured obligations would be immediately

 

 

SB1996 Enrolled- 4 -LRB103 28652 SPS 55033 b

1threatened by payment of the surcharge due.
2    (d) When a company fails to pay the full amount of any
3annual Illinois Workers' Compensation Commission Operations
4Fund Surcharge of $100 or more due under this Section, there
5shall be added to the amount due as a penalty an amount equal
6to 10% of the deficiency for each month or part of a month that
7the deficiency remains unpaid.
8    (e) The Department of Insurance may enforce the collection
9of any delinquent payment, penalty, or portion thereof by
10legal action or in any other manner by which the collection of
11debts due the State of Illinois may be enforced under the laws
12of this State.
13    (f) Whenever it appears to the satisfaction of the
14Director that a company has paid pursuant to this Act an
15Illinois Workers' Compensation Commission Operations Fund
16Surcharge in an amount in excess of the amount legally
17collectable from the company, the Director shall issue a
18credit memorandum for an amount equal to the amount of such
19overpayment. A credit memorandum may be applied for the 2-year
20period from the date of issuance, against the payment of any
21amount due during that period under the surcharge imposed by
22this Section or, subject to reasonable rule of the Department
23of Insurance including requirement of notification, may be
24assigned to any other company subject to regulation under this
25Act. Any application of credit memoranda after the period
26provided for in this Section is void.

 

 

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1    (g) Annually, the Governor may direct a transfer of up to
22% of all moneys collected under this Section to the Insurance
3Financial Regulation Fund.
4(Source: P.A. 102-775, eff. 5-13-22.)
 
5    Section 10. The Workers' Compensation Act is amended by
6changing Sections 4, 4a-5, 4d, 7, 19, and 25.5 as follows:
 
7    (820 ILCS 305/4)  (from Ch. 48, par. 138.4)
8    (Text of Section from P.A. 101-40 and 102-37)
9    Sec. 4. (a) Any employer, including but not limited to
10general contractors and their subcontractors, who shall come
11within the provisions of Section 3 of this Act, and any other
12employer who shall elect to provide and pay the compensation
13provided for in this Act shall:
14        (1) File with the Commission annually an application
15    for approval as a self-insurer which shall include a
16    current financial statement, and annually, thereafter, an
17    application for renewal of self-insurance, which shall
18    include a current financial statement. Said application
19    and financial statement shall be signed and sworn to by
20    the president or vice president and secretary or assistant
21    secretary of the employer if it be a corporation, or by all
22    of the partners, if it be a copartnership, or by the owner
23    if it be neither a copartnership nor a corporation. All
24    initial applications and all applications for renewal of

 

 

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1    self-insurance must be submitted at least 60 days prior to
2    the requested effective date of self-insurance. An
3    employer may elect to provide and pay compensation as
4    provided for in this Act as a member of a group workers'
5    compensation pool under Article V 3/4 of the Illinois
6    Insurance Code. If an employer becomes a member of a group
7    workers' compensation pool, the employer shall not be
8    relieved of any obligations imposed by this Act.
9        If the sworn application and financial statement of
10    any such employer does not satisfy the Commission of the
11    financial ability of the employer who has filed it, the
12    Commission shall require such employer to,
13        (2) Furnish security, indemnity or a bond guaranteeing
14    the payment by the employer of the compensation provided
15    for in this Act, provided that any such employer whose
16    application and financial statement shall not have
17    satisfied the commission of his or her financial ability
18    and who shall have secured his liability in part by excess
19    liability insurance shall be required to furnish to the
20    Commission security, indemnity or bond guaranteeing his or
21    her payment up to the effective limits of the excess
22    coverage, or
23        (3) Insure his entire liability to pay such
24    compensation in some insurance carrier authorized,
25    licensed, or permitted to do such insurance business in
26    this State. Every policy of an insurance carrier, insuring

 

 

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1    the payment of compensation under this Act shall cover all
2    the employees and the entire compensation liability of the
3    insured: Provided, however, that any employer may insure
4    his or her compensation liability with 2 or more insurance
5    carriers or may insure a part and qualify under subsection
6    1, 2, or 4 for the remainder of his or her liability to pay
7    such compensation, subject to the following two
8    provisions:
9            Firstly, the entire compensation liability of the
10        employer to employees working at or from one location
11        shall be insured in one such insurance carrier or
12        shall be self-insured, and
13            Secondly, the employer shall submit evidence
14        satisfactorily to the Commission that his or her
15        entire liability for the compensation provided for in
16        this Act will be secured. Any provisions in any
17        policy, or in any endorsement attached thereto,
18        attempting to limit or modify in any way, the
19        liability of the insurance carriers issuing the same
20        except as otherwise provided herein shall be wholly
21        void.
22        Nothing herein contained shall apply to policies of
23    excess liability carriage secured by employers who have
24    been approved by the Commission as self-insurers, or
25        (4) Make some other provision, satisfactory to the
26    Commission, for the securing of the payment of

 

 

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1    compensation provided for in this Act, and
2        (5) Upon becoming subject to this Act and thereafter
3    as often as the Commission may in writing demand, file
4    with the Commission in form prescribed by it evidence of
5    his or her compliance with the provision of this Section.
6    (a-1) Regardless of its state of domicile or its principal
7place of business, an employer shall make payments to its
8insurance carrier or group self-insurance fund, where
9applicable, based upon the premium rates of the situs where
10the work or project is located in Illinois if:
11        (A) the employer is engaged primarily in the building
12    and construction industry; and
13        (B) subdivision (a)(3) of this Section applies to the
14    employer or the employer is a member of a group
15    self-insurance plan as defined in subsection (1) of
16    Section 4a.
17    The Illinois Workers' Compensation Commission shall impose
18a penalty upon an employer for violation of this subsection
19(a-1) if:
20        (i) the employer is given an opportunity at a hearing
21    to present evidence of its compliance with this subsection
22    (a-1); and
23        (ii) after the hearing, the Commission finds that the
24    employer failed to make payments upon the premium rates of
25    the situs where the work or project is located in
26    Illinois.

 

 

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1    The penalty shall not exceed $1,000 for each day of work
2for which the employer failed to make payments upon the
3premium rates of the situs where the work or project is located
4in Illinois, but the total penalty shall not exceed $50,000
5for each project or each contract under which the work was
6performed.
7    Any penalty under this subsection (a-1) must be imposed
8not later than one year after the expiration of the applicable
9limitation period specified in subsection (d) of Section 6 of
10this Act. Penalties imposed under this subsection (a-1) shall
11be deposited into the Illinois Workers' Compensation
12Commission Operations Fund, a special fund that is created in
13the State treasury. Subject to appropriation, moneys in the
14Fund shall be used solely for the operations of the Illinois
15Workers' Compensation Commission, the salaries and benefits of
16the Self-Insurers Advisory Board employees, the operating
17costs of the Self-Insurers Advisory Board, and by the
18Department of Insurance for the purposes authorized in
19subsection (c) of Section 25.5 of this Act.
20    (a-2) Every Employee Leasing Company (ELC), as defined in
21Section 15 of the Employee Leasing Company Act, shall at a
22minimum provide the following information to the Commission or
23any entity designated by the Commission regarding each
24workers' compensation insurance policy issued to the ELC:
25        (1) Any client company of the ELC listed as an
26    additional named insured.

 

 

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1        (2) Any informational schedule attached to the master
2    policy that identifies any individual client company's
3    name, FEIN, and job location.
4        (3) Any certificate of insurance coverage document
5    issued to a client company specifying its rights and
6    obligations under the master policy that establishes both
7    the identity and status of the client, as well as the dates
8    of inception and termination of coverage, if applicable.
9    (b) The sworn application and financial statement, or
10security, indemnity or bond, or amount of insurance, or other
11provisions, filed, furnished, carried, or made by the
12employer, as the case may be, shall be subject to the approval
13of the Commission.
14    Deposits under escrow agreements shall be cash, negotiable
15United States government bonds or negotiable general
16obligation bonds of the State of Illinois. Such cash or bonds
17shall be deposited in escrow with any State or National Bank or
18Trust Company having trust authority in the State of Illinois.
19    Upon the approval of the sworn application and financial
20statement, security, indemnity or bond or amount of insurance,
21filed, furnished or carried, as the case may be, the
22Commission shall send to the employer written notice of its
23approval thereof. The certificate of compliance by the
24employer with the provisions of subparagraphs (2) and (3) of
25paragraph (a) of this Section shall be delivered by the
26insurance carrier to the Illinois Workers' Compensation

 

 

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1Commission within five days after the effective date of the
2policy so certified. The insurance so certified shall cover
3all compensation liability occurring during the time that the
4insurance is in effect and no further certificate need be
5filed in case such insurance is renewed, extended or otherwise
6continued by such carrier. The insurance so certified shall
7not be cancelled or in the event that such insurance is not
8renewed, extended or otherwise continued, such insurance shall
9not be terminated until at least 10 days after receipt by the
10Illinois Workers' Compensation Commission of notice of the
11cancellation or termination of said insurance; provided,
12however, that if the employer has secured insurance from
13another insurance carrier, or has otherwise secured the
14payment of compensation in accordance with this Section, and
15such insurance or other security becomes effective prior to
16the expiration of the 10 days, cancellation or termination
17may, at the option of the insurance carrier indicated in such
18notice, be effective as of the effective date of such other
19insurance or security.
20    (c) Whenever the Commission shall find that any
21corporation, company, association, aggregation of individuals,
22reciprocal or interinsurers exchange, or other insurer
23effecting workers' compensation insurance in this State shall
24be insolvent, financially unsound, or unable to fully meet all
25payments and liabilities assumed or to be assumed for
26compensation insurance in this State, or shall practice a

 

 

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1policy of delay or unfairness toward employees in the
2adjustment, settlement, or payment of benefits due such
3employees, the Commission may after reasonable notice and
4hearing order and direct that such corporation, company,
5association, aggregation of individuals, reciprocal or
6interinsurers exchange, or insurer, shall from and after a
7date fixed in such order discontinue the writing of any such
8workers' compensation insurance in this State. Subject to such
9modification of the order as the Commission may later make on
10review of the order, as herein provided, it shall thereupon be
11unlawful for any such corporation, company, association,
12aggregation of individuals, reciprocal or interinsurers
13exchange, or insurer to effect any workers' compensation
14insurance in this State. A copy of the order shall be served
15upon the Director of Insurance by registered mail. Whenever
16the Commission finds that any service or adjustment company
17used or employed by a self-insured employer or by an insurance
18carrier to process, adjust, investigate, compromise or
19otherwise handle claims under this Act, has practiced or is
20practicing a policy of delay or unfairness toward employees in
21the adjustment, settlement or payment of benefits due such
22employees, the Commission may after reasonable notice and
23hearing order and direct that such service or adjustment
24company shall from and after a date fixed in such order be
25prohibited from processing, adjusting, investigating,
26compromising or otherwise handling claims under this Act.

 

 

SB1996 Enrolled- 13 -LRB103 28652 SPS 55033 b

1    Whenever the Commission finds that any self-insured
2employer has practiced or is practicing delay or unfairness
3toward employees in the adjustment, settlement or payment of
4benefits due such employees, the Commission may, after
5reasonable notice and hearing, order and direct that after a
6date fixed in the order such self-insured employer shall be
7disqualified to operate as a self-insurer and shall be
8required to insure his entire liability to pay compensation in
9some insurance carrier authorized, licensed and permitted to
10do such insurance business in this State, as provided in
11subparagraph 3 of paragraph (a) of this Section.
12    All orders made by the Commission under this Section shall
13be subject to review by the courts, said review to be taken in
14the same manner and within the same time as provided by Section
1519 of this Act for review of awards and decisions of the
16Commission, upon the party seeking the review filing with the
17clerk of the court to which said review is taken a bond in an
18amount to be fixed and approved by the court to which the
19review is taken, conditioned upon the payment of all
20compensation awarded against the person taking said review
21pending a decision thereof and further conditioned upon such
22other obligations as the court may impose. Upon the review the
23Circuit Court shall have power to review all questions of fact
24as well as of law. The penalty hereinafter provided for in this
25paragraph shall not attach and shall not begin to run until the
26final determination of the order of the Commission.

 

 

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1    (d) Whenever a Commissioner, with due process and after a
2hearing, determines an employer has knowingly failed to
3provide coverage as required by paragraph (a) of this Section,
4the failure shall be deemed an immediate serious danger to
5public health, safety, and welfare sufficient to justify
6service by the Commission of a work-stop order on such
7employer, requiring the cessation of all business operations
8of such employer at the place of employment or job site. If a
9business is declared to be extra hazardous, as defined in
10Section 3, a Commissioner may issue an emergency work-stop
11order on such an employer ex parte, prior to holding a hearing,
12requiring the cessation of all business operations of such
13employer at the place of employment or job site while awaiting
14the ruling of the Commission. Whenever a Commissioner issues
15an emergency work-stop order, the Commission shall issue a
16notice of emergency work-stop hearing to be posted at the
17employer's places of employment and job sites. Any law
18enforcement agency in the State shall, at the request of the
19Commission, render any assistance necessary to carry out the
20provisions of this Section, including, but not limited to,
21preventing any employee of such employer from remaining at a
22place of employment or job site after a work-stop order has
23taken effect. Any work-stop order shall be lifted upon proof
24of insurance as required by this Act. Any orders under this
25Section are appealable under Section 19(f) to the Circuit
26Court.

 

 

SB1996 Enrolled- 15 -LRB103 28652 SPS 55033 b

1    Any individual employer, corporate officer or director of
2a corporate employer, partner of an employer partnership, or
3member of an employer limited liability company who knowingly
4fails to provide coverage as required by paragraph (a) of this
5Section is guilty of a Class 4 felony. This provision shall not
6apply to any corporate officer or director of any
7publicly-owned corporation. Each day's violation constitutes a
8separate offense. The State's Attorney of the county in which
9the violation occurred, or the Attorney General, shall bring
10such actions in the name of the People of the State of
11Illinois, or may, in addition to other remedies provided in
12this Section, bring an action for an injunction to restrain
13the violation or to enjoin the operation of any such employer.
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
17negligently fails to provide coverage as required by paragraph
18(a) of this Section is guilty of a Class A misdemeanor. This
19provision shall not apply to any corporate officer or director
20of any publicly-owned corporation. Each day's violation
21constitutes a separate offense. The State's Attorney of the
22county in which the violation occurred, or the Attorney
23General, shall bring such actions in the name of the People of
24the State of Illinois.
25    The criminal penalties in this subsection (d) shall not
26apply where there exists a good faith dispute as to the

 

 

SB1996 Enrolled- 16 -LRB103 28652 SPS 55033 b

1existence of an employment relationship. Evidence of good
2faith shall include, but not be limited to, compliance with
3the definition of employee as used by the Internal Revenue
4Service.
5    All investigative actions must be acted upon within 90
6days of the issuance of the complaint. Employers who are
7subject to and who knowingly fail to comply with this Section
8shall not be entitled to the benefits of this Act during the
9period of noncompliance, but shall be liable in an action
10under any other applicable law of this State. In the action,
11such employer shall not avail himself or herself of the
12defenses of assumption of risk or negligence or that the
13injury was due to a co-employee. In the action, proof of the
14injury shall constitute prima facie evidence of negligence on
15the part of such employer and the burden shall be on such
16employer to show freedom of negligence resulting in the
17injury. The employer shall not join any other defendant in any
18such civil action. Nothing in this amendatory Act of the 94th
19General Assembly shall affect the employee's rights under
20subdivision (a)3 of Section 1 of this Act. Any employer or
21carrier who makes payments under subdivision (a)3 of Section 1
22of this Act shall have a right of reimbursement from the
23proceeds of any recovery under this Section.
24    An employee of an uninsured employer, or the employee's
25dependents in case death ensued, may, instead of proceeding
26against the employer in a civil action in court, file an

 

 

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1application for adjustment of claim with the Commission in
2accordance with the provisions of this Act and the Commission
3shall hear and determine the application for adjustment of
4claim in the manner in which other claims are heard and
5determined before the Commission.
6    All proceedings under this subsection (d) shall be
7reported on an annual basis to the Workers' Compensation
8Advisory Board.
9    An investigator with the Department of Insurance may issue
10a citation to any employer that is not in compliance with its
11obligation to have workers' compensation insurance under this
12Act. The amount of the fine shall be based on the period of
13time the employer was in non-compliance, but shall be no less
14than $500, and shall not exceed $10,000. An employer that has
15been issued a citation shall pay the fine to the Department of
16Insurance and provide to the Department of Insurance proof
17that it obtained the required workers' compensation insurance
18within 10 days after the citation was issued. This Section
19does not affect any other obligations this Act imposes on
20employers.
21    Upon a finding by the Commission, after reasonable notice
22and hearing, of the knowing and willful failure or refusal of
23an employer to comply with any of the provisions of paragraph
24(a) of this Section, the failure or refusal of an employer,
25service or adjustment company, or an insurance carrier to
26comply with any order of the Illinois Workers' Compensation

 

 

SB1996 Enrolled- 18 -LRB103 28652 SPS 55033 b

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

 

 

SB1996 Enrolled- 19 -LRB103 28652 SPS 55033 b

1prosecute all proceedings to enforce the civil and
2administrative provisions of this Section before the
3Commission. The Commission and the Department of Insurance
4shall promulgate procedural rules for enforcing this Section
5relating to their respective duties prescribed herein.
6    If an employer is found to be in non-compliance with any
7provisions of paragraph (a) of this Section more than once,
8all minimum penalties will double. Therefore, upon the failure
9or refusal of an employer, service or adjustment company, or
10insurance carrier to comply with any order of the Commission
11pursuant to paragraph (c) of this Section disqualifying him or
12her to operate as a self-insurer and requiring him or her to
13insure his or her liability, or the knowing and willful
14failure of an employer to comply with a citation issued by an
15investigator with the Department of Insurance, the Commission
16may assess a civil penalty of up to $1,000 per day for each day
17of such failure or refusal after the effective date of this
18amendatory Act of the 101st General Assembly. The minimum
19penalty under this Section shall be the sum of $20,000. In
20addition, employers with 2 or more violations of any
21provisions of paragraph (a) of this Section may not
22self-insure for one year or until all penalties are paid.
23    A Commission decision imposing penalties under this
24Section may be judicially reviewed only as described in
25Section 19(f). After expiration of the period for seeking
26judicial review, the Commission's final decision imposing

 

 

SB1996 Enrolled- 20 -LRB103 28652 SPS 55033 b

1penalties may be enforced in the same manner as a judgment
2entered by a court of competent jurisdiction. The Commission's
3final decision imposing penalties is a debt due and owing to
4the State and can be enforced to the same extent as a judgment
5entered by a circuit court. The Attorney General shall
6represent the Commission and the Department of Insurance in
7any action challenging the final decision in circuit court. If
8the court affirms the Commission's decision, the court shall
9enter judgment against the employer in the amount of the fines
10assessed by the Commission. The Attorney General shall make
11reasonable efforts to collect the amounts due under the
12Commission's decision.
13    Upon the failure or refusal of any employer, service or
14adjustment company or insurance carrier to comply with the
15provisions of this Section and with the orders of the
16Commission under this Section, or the order of the court on
17review after final adjudication, the Commission may bring a
18civil action to recover the amount of the penalty in Cook
19County or in Sangamon County in which litigation the
20Commission shall be represented by the Attorney General. The
21Commission shall send notice of its finding of non-compliance
22and assessment of the civil penalty to the Attorney General.
23It shall be the duty of the Attorney General within 30 days
24after receipt of the notice, to institute prosecutions and
25promptly prosecute all reported violations of this Section.
26    Any individual employer, corporate officer or director of

 

 

SB1996 Enrolled- 21 -LRB103 28652 SPS 55033 b

1a corporate employer, partner of an employer partnership, or
2member of an employer limited liability company who, with the
3intent to avoid payment of compensation under this Act to an
4injured employee or the employee's dependents, knowingly
5transfers, sells, encumbers, assigns, or in any manner
6disposes of, conceals, secretes, or destroys any property
7belonging to the employer, officer, director, partner, or
8member is guilty of a Class 4 felony.
9    Penalties and fines collected pursuant to this paragraph
10(d) shall be deposited upon receipt into a special fund which
11shall be designated the Injured Workers' Benefit Fund, of
12which the State Treasurer is ex-officio custodian, such
13special fund to be held and disbursed in accordance with this
14paragraph (d) for the purposes hereinafter stated in this
15paragraph (d), upon the final order of the Commission. The
16Injured Workers' Benefit Fund shall be deposited the same as
17are State funds and any interest accruing thereon shall be
18added thereto every 6 months. The Injured Workers' Benefit
19Fund is subject to audit the same as State funds and accounts
20and is protected by the general bond given by the State
21Treasurer. The Injured Workers' Benefit Fund is considered
22always appropriated for the purposes of disbursements as
23provided in this paragraph, and shall be paid out and
24disbursed as herein provided and shall not at any time be
25appropriated or diverted to any other use or purpose. Moneys
26in the Injured Workers' Benefit Fund shall be used only for

 

 

SB1996 Enrolled- 22 -LRB103 28652 SPS 55033 b

1payment of workers' compensation benefits for injured
2employees when the employer has failed to provide coverage as
3determined under this paragraph (d) and has failed to pay the
4benefits due to the injured employee. The employer shall
5reimburse the Injured Workers' Benefit Fund for any amounts
6paid to an employee on account of the compensation awarded by
7the Commission. The Attorney General shall make reasonable
8efforts to obtain reimbursement for the Injured Workers'
9Benefit Fund.
10    The Commission shall have the right to obtain
11reimbursement from the employer for compensation obligations
12paid by the Injured Workers' Benefit Fund. Any such amounts
13obtained shall be deposited by the Commission into the Injured
14Workers' Benefit Fund. If an injured employee or his or her
15personal representative receives payment from the Injured
16Workers' Benefit Fund, the State of Illinois has the same
17rights under paragraph (b) of Section 5 that the employer who
18failed to pay the benefits due to the injured employee would
19have had if the employer had paid those benefits, and any
20moneys recovered by the State as a result of the State's
21exercise of its rights under paragraph (b) of Section 5 shall
22be deposited into the Injured Workers' Benefit Fund. The
23custodian of the Injured Workers' Benefit Fund shall be joined
24with the employer as a party respondent in the application for
25adjustment of claim. After July 1, 2006, the Commission shall
26make disbursements from the Fund once each year to each

 

 

SB1996 Enrolled- 23 -LRB103 28652 SPS 55033 b

1eligible claimant. An eligible claimant is an injured worker
2who has within the previous fiscal year obtained a final award
3for benefits from the Commission against the employer and the
4Injured Workers' Benefit Fund and has notified the Commission
5within 90 days of receipt of such award. Within a reasonable
6time after the end of each fiscal year, the Commission shall
7make a disbursement to each eligible claimant. At the time of
8disbursement, if there are insufficient moneys in the Fund to
9pay all claims, each eligible claimant shall receive a
10pro-rata share, as determined by the Commission, of the
11available moneys in the Fund for that year. Payment from the
12Injured Workers' Benefit Fund to an eligible claimant pursuant
13to this provision shall discharge the obligations of the
14Injured Workers' Benefit Fund regarding the award entered by
15the Commission.
16    (e) This Act shall not affect or disturb the continuance
17of any existing insurance, mutual aid, benefit, or relief
18association or department, whether maintained in whole or in
19part by the employer or whether maintained by the employees,
20the payment of benefits of such association or department
21being guaranteed by the employer or by some person, firm or
22corporation for him or her: Provided, the employer contributes
23to such association or department an amount not less than the
24full compensation herein provided, exclusive of the cost of
25the maintenance of such association or department and without
26any expense to the employee. This Act shall not prevent the

 

 

SB1996 Enrolled- 24 -LRB103 28652 SPS 55033 b

1organization and maintaining under the insurance laws of this
2State of any benefit or insurance company for the purpose of
3insuring against the compensation provided for in this Act,
4the expense of which is maintained by the employer. This Act
5shall not prevent the organization or maintaining under the
6insurance laws of this State of any voluntary mutual aid,
7benefit or relief association among employees for the payment
8of additional accident or sick benefits.
9    (f) No existing insurance, mutual aid, benefit or relief
10association or department shall, by reason of anything herein
11contained, be authorized to discontinue its operation without
12first discharging its obligations to any and all persons
13carrying insurance in the same or entitled to relief or
14benefits therein.
15    (g) Any contract, oral, written or implied, of employment
16providing for relief benefit, or insurance or any other device
17whereby the employee is required to pay any premium or
18premiums for insurance against the compensation provided for
19in this Act shall be null and void. Any employer withholding
20from the wages of any employee any amount for the purpose of
21paying any such premium shall be guilty of a Class B
22misdemeanor.
23    In the event the employer does not pay the compensation
24for which he or she is liable, then an insurance company,
25association or insurer which may have insured such employer
26against such liability shall become primarily liable to pay to

 

 

SB1996 Enrolled- 25 -LRB103 28652 SPS 55033 b

1the employee, his or her personal representative or
2beneficiary the compensation required by the provisions of
3this Act to be paid by such employer. The insurance carrier may
4be made a party to the proceedings in which the employer is a
5party and an award may be entered jointly against the employer
6and the insurance carrier.
7    (h) It shall be unlawful for any employer, insurance
8company or service or adjustment company to interfere with,
9restrain or coerce an employee in any manner whatsoever in the
10exercise of the rights or remedies granted to him or her by
11this Act or to discriminate, attempt to discriminate, or
12threaten to discriminate against an employee in any way
13because of his or her exercise of the rights or remedies
14granted to him or her by this Act.
15    It shall be unlawful for any employer, individually or
16through any insurance company or service or adjustment
17company, to discharge or to threaten to discharge, or to
18refuse to rehire or recall to active service in a suitable
19capacity an employee because of the exercise of his or her
20rights or remedies granted to him or her by this Act.
21    (i) If an employer elects to obtain a life insurance
22policy on his employees, he may also elect to apply such
23benefits in satisfaction of all or a portion of the death
24benefits payable under this Act, in which case, the employer's
25compensation premium shall be reduced accordingly.
26    (j) Within 45 days of receipt of an initial application or

 

 

SB1996 Enrolled- 26 -LRB103 28652 SPS 55033 b

1application to renew self-insurance privileges the
2Self-Insurers Advisory Board shall review and submit for
3approval by the Chairman of the Commission recommendations of
4disposition of all initial applications to self-insure and all
5applications to renew self-insurance privileges filed by
6private self-insurers pursuant to the provisions of this
7Section and Section 4a-9 of this Act. Each private
8self-insurer shall submit with its initial and renewal
9applications the application fee required by Section 4a-4 of
10this Act.
11    The Chairman of the Commission shall promptly act upon all
12initial applications and applications for renewal in full
13accordance with the recommendations of the Board or, should
14the Chairman disagree with any recommendation of disposition
15of the Self-Insurer's Advisory Board, he shall within 30 days
16of receipt of such recommendation provide to the Board in
17writing the reasons supporting his decision. The Chairman
18shall also promptly notify the employer of his decision within
1915 days of receipt of the recommendation of the Board.
20    If an employer is denied a renewal of self-insurance
21privileges pursuant to application it shall retain said
22privilege for 120 days after receipt of a notice of
23cancellation of the privilege from the Chairman of the
24Commission.
25    All orders made by the Chairman under this Section shall
26be subject to review by the courts, such review to be taken in

 

 

SB1996 Enrolled- 27 -LRB103 28652 SPS 55033 b

1the same manner and within the same time as provided by
2subsection (f) of Section 19 of this Act for review of awards
3and decisions of the Commission, upon the party seeking the
4review filing with the clerk of the court to which such review
5is taken a bond in an amount to be fixed and approved by the
6court to which the review is taken, conditioned upon the
7payment of all compensation awarded against the person taking
8such review pending a decision thereof and further conditioned
9upon such other obligations as the court may impose. Upon the
10review the Circuit Court shall have power to review all
11questions of fact as well as of law.
12(Source: P.A. 101-40, eff. 1-1-20; 102-37, eff. 7-1-21.)
 
13    (Text of Section from P.A. 101-384 and 102-37)
14    Sec. 4. (a) Any employer, including but not limited to
15general contractors and their subcontractors, who shall come
16within the provisions of Section 3 of this Act, and any other
17employer who shall elect to provide and pay the compensation
18provided for in this Act shall:
19        (1) File with the Commission annually an application
20    for approval as a self-insurer which shall include a
21    current financial statement, and annually, thereafter, an
22    application for renewal of self-insurance, which shall
23    include a current financial statement. Said application
24    and financial statement shall be signed and sworn to by
25    the president or vice president and secretary or assistant

 

 

SB1996 Enrolled- 28 -LRB103 28652 SPS 55033 b

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

 

 

SB1996 Enrolled- 29 -LRB103 28652 SPS 55033 b

1        (3) Insure his entire liability to pay such
2    compensation in some insurance carrier authorized,
3    licensed, or permitted to do such insurance business in
4    this State. Every policy of an insurance carrier, insuring
5    the payment of compensation under this Act shall cover all
6    the employees and the entire compensation liability of the
7    insured: Provided, however, that any employer may insure
8    his or her compensation liability with 2 or more insurance
9    carriers or may insure a part and qualify under subsection
10    1, 2, or 4 for the remainder of his or her liability to pay
11    such compensation, subject to the following two
12    provisions:
13            Firstly, the entire compensation liability of the
14        employer to employees working at or from one location
15        shall be insured in one such insurance carrier or
16        shall be self-insured, and
17            Secondly, the employer shall submit evidence
18        satisfactorily to the Commission that his or her
19        entire liability for the compensation provided for in
20        this Act will be secured. Any provisions in any
21        policy, or in any endorsement attached thereto,
22        attempting to limit or modify in any way, the
23        liability of the insurance carriers issuing the same
24        except as otherwise provided herein shall be wholly
25        void.
26        Nothing herein contained shall apply to policies of

 

 

SB1996 Enrolled- 30 -LRB103 28652 SPS 55033 b

1    excess liability carriage secured by employers who have
2    been approved by the Commission as self-insurers, or
3        (4) Make some other provision, satisfactory to the
4    Commission, for the securing of the payment of
5    compensation provided for in this Act, and
6        (5) Upon becoming subject to this Act and thereafter
7    as often as the Commission may in writing demand, file
8    with the Commission in form prescribed by it evidence of
9    his or her compliance with the provision of this Section.
10    (a-1) Regardless of its state of domicile or its principal
11place of business, an employer shall make payments to its
12insurance carrier or group self-insurance fund, where
13applicable, based upon the premium rates of the situs where
14the work or project is located in Illinois if:
15        (A) the employer is engaged primarily in the building
16    and construction industry; and
17        (B) subdivision (a)(3) of this Section applies to the
18    employer or the employer is a member of a group
19    self-insurance plan as defined in subsection (1) of
20    Section 4a.
21    The Illinois Workers' Compensation Commission shall impose
22a penalty upon an employer for violation of this subsection
23(a-1) if:
24        (i) the employer is given an opportunity at a hearing
25    to present evidence of its compliance with this subsection
26    (a-1); and

 

 

SB1996 Enrolled- 31 -LRB103 28652 SPS 55033 b

1        (ii) after the hearing, the Commission finds that the
2    employer failed to make payments upon the premium rates of
3    the situs where the work or project is located in
4    Illinois.
5    The penalty shall not exceed $1,000 for each day of work
6for which the employer failed to make payments upon the
7premium rates of the situs where the work or project is located
8in Illinois, but the total penalty shall not exceed $50,000
9for each project or each contract under which the work was
10performed.
11    Any penalty under this subsection (a-1) must be imposed
12not later than one year after the expiration of the applicable
13limitation period specified in subsection (d) of Section 6 of
14this Act. Penalties imposed under this subsection (a-1) shall
15be deposited into the Illinois Workers' Compensation
16Commission Operations Fund, a special fund that is created in
17the State treasury. Subject to appropriation, moneys in the
18Fund shall be used solely for the operations of the Illinois
19Workers' Compensation Commission and by the Department of
20Insurance for the purposes authorized in subsection (c) of
21Section 25.5 of this Act.
22    (a-2) Every Employee Leasing Company (ELC), as defined in
23Section 15 of the Employee Leasing Company Act, shall at a
24minimum provide the following information to the Commission or
25any entity designated by the Commission regarding each
26workers' compensation insurance policy issued to the ELC:

 

 

SB1996 Enrolled- 32 -LRB103 28652 SPS 55033 b

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

 

 

SB1996 Enrolled- 33 -LRB103 28652 SPS 55033 b

1paragraph (a) of this Section shall be delivered by the
2insurance carrier to the Illinois Workers' Compensation
3Commission within five days after the effective date of the
4policy so certified. The insurance so certified shall cover
5all compensation liability occurring during the time that the
6insurance is in effect and no further certificate need be
7filed in case such insurance is renewed, extended or otherwise
8continued by such carrier. The insurance so certified shall
9not be cancelled or in the event that such insurance is not
10renewed, extended or otherwise continued, such insurance shall
11not be terminated until at least 10 days after receipt by the
12Illinois Workers' Compensation Commission of notice of the
13cancellation or termination of said insurance; provided,
14however, that if the employer has secured insurance from
15another insurance carrier, or has otherwise secured the
16payment of compensation in accordance with this Section, and
17such insurance or other security becomes effective prior to
18the expiration of the 10 days, cancellation or termination
19may, at the option of the insurance carrier indicated in such
20notice, be effective as of the effective date of such other
21insurance or security.
22    (c) Whenever the Commission shall find that any
23corporation, company, association, aggregation of individuals,
24reciprocal or interinsurers exchange, or other insurer
25effecting workers' compensation insurance in this State shall
26be insolvent, financially unsound, or unable to fully meet all

 

 

SB1996 Enrolled- 34 -LRB103 28652 SPS 55033 b

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

 

 

SB1996 Enrolled- 35 -LRB103 28652 SPS 55033 b

1prohibited from processing, adjusting, investigating,
2compromising or otherwise handling claims under this Act.
3    Whenever the Commission finds that any self-insured
4employer has practiced or is practicing delay or unfairness
5toward employees in the adjustment, settlement or payment of
6benefits due such employees, the Commission may, after
7reasonable notice and hearing, order and direct that after a
8date fixed in the order such self-insured employer shall be
9disqualified to operate as a self-insurer and shall be
10required to insure his entire liability to pay compensation in
11some insurance carrier authorized, licensed and permitted to
12do such insurance business in this State, as provided in
13subparagraph 3 of paragraph (a) of this Section.
14    All orders made by the Commission under this Section shall
15be subject to review by the courts, said review to be taken in
16the same manner and within the same time as provided by Section
1719 of this Act for review of awards and decisions of the
18Commission, upon the party seeking the review filing with the
19clerk of the court to which said review is taken a bond in an
20amount to be fixed and approved by the court to which the
21review is taken, conditioned upon the payment of all
22compensation awarded against the person taking said review
23pending a decision thereof and further conditioned upon such
24other obligations as the court may impose. Upon the review the
25Circuit Court shall have power to review all questions of fact
26as well as of law. The penalty hereinafter provided for in this

 

 

SB1996 Enrolled- 36 -LRB103 28652 SPS 55033 b

1paragraph shall not attach and shall not begin to run until the
2final determination of the order of the Commission.
3    (d) Whenever a panel of 3 Commissioners comprised of one
4member of the employing class, one representative of a labor
5organization recognized under the National Labor Relations Act
6or an attorney who has represented labor organizations or has
7represented employees in workers' compensation cases, and one
8member not identified with either the employing class or a
9labor organization, with due process and after a hearing,
10determines an employer has knowingly failed to provide
11coverage as required by paragraph (a) of this Section, the
12failure shall be deemed an immediate serious danger to public
13health, safety, and welfare sufficient to justify service by
14the Commission of a work-stop order on such employer,
15requiring the cessation of all business operations of such
16employer at the place of employment or job site. Any law
17enforcement agency in the State shall, at the request of the
18Commission, render any assistance necessary to carry out the
19provisions of this Section, including, but not limited to,
20preventing any employee of such employer from remaining at a
21place of employment or job site after a work-stop order has
22taken effect. Any work-stop order shall be lifted upon proof
23of insurance as required by this Act. Any orders under this
24Section are appealable under Section 19(f) to the Circuit
25Court.
26    Any individual employer, corporate officer or director of

 

 

SB1996 Enrolled- 37 -LRB103 28652 SPS 55033 b

1a corporate employer, partner of an employer partnership, or
2member of an employer limited liability company who knowingly
3fails to provide coverage as required by paragraph (a) of this
4Section is guilty of a Class 4 felony. This provision shall not
5apply to any corporate officer or director of any
6publicly-owned corporation. Each day's violation constitutes a
7separate offense. The State's Attorney of the county in which
8the violation occurred, or the Attorney General, shall bring
9such actions in the name of the People of the State of
10Illinois, or may, in addition to other remedies provided in
11this Section, bring an action for an injunction to restrain
12the violation or to enjoin the operation of any such employer.
13    Any individual employer, corporate officer or director of
14a corporate employer, partner of an employer partnership, or
15member of an employer limited liability company who
16negligently fails to provide coverage as required by paragraph
17(a) of this Section is guilty of a Class A misdemeanor. This
18provision shall not apply to any corporate officer or director
19of any publicly-owned corporation. Each day's violation
20constitutes a separate offense. The State's Attorney of the
21county in which the violation occurred, or the Attorney
22General, shall bring such actions in the name of the People of
23the State of Illinois.
24    The criminal penalties in this subsection (d) shall not
25apply where there exists a good faith dispute as to the
26existence of an employment relationship. Evidence of good

 

 

SB1996 Enrolled- 38 -LRB103 28652 SPS 55033 b

1faith shall include, but not be limited to, compliance with
2the definition of employee as used by the Internal Revenue
3Service.
4    Employers who are subject to and who knowingly fail to
5comply with this Section shall not be entitled to the benefits
6of this Act during the period of noncompliance, but shall be
7liable in an action under any other applicable law of this
8State. In the action, such employer shall not avail himself or
9herself of the defenses of assumption of risk or negligence or
10that the injury was due to a co-employee. In the action, proof
11of the injury shall constitute prima facie evidence of
12negligence on the part of such employer and the burden shall be
13on such employer to show freedom of negligence resulting in
14the injury. The employer shall not join any other defendant in
15any such civil action. Nothing in this amendatory Act of the
1694th General Assembly shall affect the employee's rights under
17subdivision (a)3 of Section 1 of this Act. Any employer or
18carrier who makes payments under subdivision (a)3 of Section 1
19of this Act shall have a right of reimbursement from the
20proceeds of any recovery under this Section.
21    An employee of an uninsured employer, or the employee's
22dependents in case death ensued, may, instead of proceeding
23against the employer in a civil action in court, file an
24application for adjustment of claim with the Commission in
25accordance with the provisions of this Act and the Commission
26shall hear and determine the application for adjustment of

 

 

SB1996 Enrolled- 39 -LRB103 28652 SPS 55033 b

1claim in the manner in which other claims are heard and
2determined before the Commission.
3    All proceedings under this subsection (d) shall be
4reported on an annual basis to the Workers' Compensation
5Advisory Board.
6    An investigator with the Department of Insurance may issue
7a citation to any employer that is not in compliance with its
8obligation to have workers' compensation insurance under this
9Act. The amount of the fine shall be based on the period of
10time the employer was in non-compliance, but shall be no less
11than $500, and shall not exceed $2,500. An employer that has
12been issued a citation shall pay the fine to the Department of
13Insurance and provide to the Department of Insurance proof
14that it obtained the required workers' compensation insurance
15within 10 days after the citation was issued. This Section
16does not affect any other obligations this Act imposes on
17employers.
18    Upon a finding by the Commission, after reasonable notice
19and hearing, of the knowing and wilful failure or refusal of an
20employer to comply with any of the provisions of paragraph (a)
21of this Section, the failure or refusal of an employer,
22service or adjustment company, or an insurance carrier to
23comply with any order of the Illinois Workers' Compensation
24Commission pursuant to paragraph (c) of this Section
25disqualifying him or her to operate as a self insurer and
26requiring him or her to insure his or her liability, or the

 

 

SB1996 Enrolled- 40 -LRB103 28652 SPS 55033 b

1knowing and willful failure of an employer to comply with a
2citation issued by an investigator with the Department of
3Insurance, the Commission may assess a civil penalty of up to
4$500 per day for each day of such failure or refusal after the
5effective date of this amendatory Act of 1989. The minimum
6penalty under this Section shall be the sum of $10,000. Each
7day of such failure or refusal shall constitute a separate
8offense. The Commission may assess the civil penalty
9personally and individually against the corporate officers and
10directors of a corporate employer, the partners of an employer
11partnership, and the members of an employer limited liability
12company, after a finding of a knowing and willful refusal or
13failure of each such named corporate officer, director,
14partner, or member to comply with this Section. The liability
15for the assessed penalty shall be against the named employer
16first, and if the named employer fails or refuses to pay the
17penalty to the Commission within 30 days after the final order
18of the Commission, then the named corporate officers,
19directors, partners, or members who have been found to have
20knowingly and willfully refused or failed to comply with this
21Section shall be liable for the unpaid penalty or any unpaid
22portion of the penalty. Upon investigation by the Department
23of Insurance, the Attorney General shall have the authority to
24prosecute all proceedings to enforce the civil and
25administrative provisions of this Section before the
26Commission. The Commission and the Department of Insurance

 

 

SB1996 Enrolled- 41 -LRB103 28652 SPS 55033 b

1shall promulgate procedural rules for enforcing this Section
2relating to their respective duties prescribed herein.
3    A Commission decision imposing penalties under this
4Section may be judicially reviewed only as described in
5Section 19(f). After expiration of the period for seeking
6judicial review, the Commission's final decision imposing
7penalties may be enforced in the same manner as a judgment
8entered by a court of competent jurisdiction. The Commission's
9final decision imposing penalties is a debt due and owing to
10the State and can be enforced to the same extent as a judgment
11entered by a circuit court. The Attorney General shall
12represent the Commission and the Department of Insurance in
13any action challenging the final decision in circuit court. If
14the court affirms the Commission's decision, the court shall
15enter judgment against the employer in the amount of the fines
16assessed by the Commission. The Attorney General shall make
17reasonable efforts to collect the amounts due under the
18Commission's decision.
19    Upon the failure or refusal of any employer, service or
20adjustment company or insurance carrier to comply with the
21provisions of this Section and with the orders of the
22Commission under this Section, or the order of the court on
23review after final adjudication, the Commission may bring a
24civil action to recover the amount of the penalty in Cook
25County or in Sangamon County in which litigation the
26Commission shall be represented by the Attorney General. The

 

 

SB1996 Enrolled- 42 -LRB103 28652 SPS 55033 b

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

 

 

SB1996 Enrolled- 43 -LRB103 28652 SPS 55033 b

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

 

 

SB1996 Enrolled- 44 -LRB103 28652 SPS 55033 b

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

 

 

SB1996 Enrolled- 45 -LRB103 28652 SPS 55033 b

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

 

 

SB1996 Enrolled- 46 -LRB103 28652 SPS 55033 b

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

 

 

SB1996 Enrolled- 47 -LRB103 28652 SPS 55033 b

1    (i) If an employer elects to obtain a life insurance
2policy on his employees, he may also elect to apply such
3benefits in satisfaction of all or a portion of the death
4benefits payable under this Act, in which case, the employer's
5compensation premium shall be reduced accordingly.
6    (j) Within 45 days of receipt of an initial application or
7application to renew self-insurance privileges the
8Self-Insurers Advisory Board shall review and submit for
9approval by the Chairman of the Commission recommendations of
10disposition of all initial applications to self-insure and all
11applications to renew self-insurance privileges filed by
12private self-insurers pursuant to the provisions of this
13Section and Section 4a-9 of this Act. Each private
14self-insurer shall submit with its initial and renewal
15applications the application fee required by Section 4a-4 of
16this Act.
17    The Chairman of the Commission shall promptly act upon all
18initial applications and applications for renewal in full
19accordance with the recommendations of the Board or, should
20the Chairman disagree with any recommendation of disposition
21of the Self-Insurer's Advisory Board, he shall within 30 days
22of receipt of such recommendation provide to the Board in
23writing the reasons supporting his decision. The Chairman
24shall also promptly notify the employer of his decision within
2515 days of receipt of the recommendation of the Board.
26    If an employer is denied a renewal of self-insurance

 

 

SB1996 Enrolled- 48 -LRB103 28652 SPS 55033 b

1privileges pursuant to application it shall retain said
2privilege for 120 days after receipt of a notice of
3cancellation of the privilege from the Chairman of the
4Commission.
5    All orders made by the Chairman under this Section shall
6be subject to review by the courts, such review to be taken in
7the same manner and within the same time as provided by
8subsection (f) of Section 19 of this Act for review of awards
9and decisions of the Commission, upon the party seeking the
10review filing with the clerk of the court to which such review
11is taken a bond in an amount to be fixed and approved by the
12court to which the review is taken, conditioned upon the
13payment of all compensation awarded against the person taking
14such review pending a decision thereof and further conditioned
15upon such other obligations as the court may impose. Upon the
16review the Circuit Court shall have power to review all
17questions of fact as well as of law.
18(Source: P.A. 101-384, eff. 1-1-20; 102-37, eff. 7-1-21.)
 
19    (820 ILCS 305/4a-5)  (from Ch. 48, par. 138.4a-5)
20    Sec. 4a-5. There is hereby created a Self-Insurers
21Security Fund. The State Treasurer shall be the ex officio
22custodian of the Self-Insurers Security Fund. Moneys in the
23Fund shall be deposited in a separate account in the same
24manner as are State Funds and any interest accruing thereon
25shall be added thereto every 6 months. It shall be subject to

 

 

SB1996 Enrolled- 49 -LRB103 28652 SPS 55033 b

1audit the same as State funds and accounts and shall be
2protected by the general bond given by the State Treasurer.
3The funds in the Self-Insurers Security Fund shall not be
4subject to appropriation and shall be made available for the
5purposes of compensating employees who are eligible to receive
6benefits from their employers pursuant to the provisions of
7the Workers' Compensation Act or Workers' Occupational
8Diseases Act, when, pursuant to this Section, the Board has
9determined that a private self-insurer has become an insolvent
10self-insurer and is unable to pay compensation benefits due to
11financial insolvency. Moneys in the Fund may be used to
12compensate any type of injury or occupational disease which is
13compensable under either Act, and for all claims for related
14administrative fees, operating costs of the Board, attorney's
15fees, and other costs reasonably incurred by the Board. Moneys
16in the Self-Insurers Security Fund may also be used for paying
17the salaries and benefits of the Self-Insurers Advisory Board
18employees and the operating costs of the Board. The Chairman,
19with the advice of the Board, may direct the State Comptroller
20and the State Treasurer to transfer up to $2,000,000 in any
21fiscal year from the Self-Insurers Security Fund to the
22Illinois Workers' Compensation Commission Operations Fund, to
23the extent that there are insufficient funds in the Illinois
24Workers' Compensation Commission Operations Fund to pay the
25operating costs of the Illinois Workers' Compensation
26Commission or the salaries and benefits of employees of the

 

 

SB1996 Enrolled- 50 -LRB103 28652 SPS 55033 b

1Illinois Workers' Compensation Commission. No later than
2October 31 of the fiscal year following any transfer from the
3Self-Insurers Security Fund to the Illinois Workers'
4Compensation Commission Operations Fund, the Chairman, with
5the advice of the Board, shall direct the State Comptroller
6and the State Treasurer to transfer from the Illinois Workers'
7Compensation Commission Operations Fund to the Self-Insurers
8Security Fund an amount equivalent to the sum of all amounts
9transferred from the Self-Insurers Security Fund to the
10Illinois Workers' Compensation Commission Operations Fund in
11the prior fiscal year with interest at the rate earned by
12moneys on deposit in the Self-Insurers Security Fund. Upon
13receipt of funds from any transfer between the Self-Insurers
14Security Fund and the Illinois Workers' Compensation
15Commission Operations Fund, the Chairman shall submit notice,
16including the date and amount of the transfer, to the Governor
17and the General Assembly. Payment from the Self-Insurers
18Security Fund shall be made by the Comptroller only upon the
19authorization of the Chairman as evidenced by properly
20certified vouchers of the Commission, upon the direction of
21the Board.
22(Source: P.A. 101-40, eff. 1-1-20; 102-558, eff. 8-20-21;
23102-910, eff. 5-27-22.)
 
24    (820 ILCS 305/4d)
25    Sec. 4d. Illinois Workers' Compensation Commission

 

 

SB1996 Enrolled- 51 -LRB103 28652 SPS 55033 b

1Operations Fund Fee.
2    (a) As of the effective date of this amendatory Act of the
393rd General Assembly, each employer that self-insures its
4liabilities arising under this Act or Workers' Occupational
5Diseases Act shall pay a fee measured by the annual actual
6wages paid in this State of such an employer in the manner
7provided in this Section. Such proceeds shall be deposited in
8the Illinois Workers' Compensation Commission Operations Fund.
9If an employer survives or was formed by a merger,
10consolidation, reorganization, or reincorporation, the actual
11wages paid in this State of all employers party to the merger,
12consolidation, reorganization, or reincorporation shall, for
13purposes of determining the amount of the fee imposed by this
14Section, be regarded as those of the surviving or new
15employer.
16    (b) Beginning on July 30, 2004 (the effective date of
17Public Act 93-840) and on July 1 of each year thereafter
18through 2023, the Chairman shall charge and collect an annual
19Illinois Workers' Compensation Commission Operations Fund Fee
20from every employer subject to subsection (a) of this Section
21equal to 0.0075% of its annual actual wages paid in this State
22as reported in each employer's annual self-insurance renewal
23filed for the previous year as required by Section 4 of this
24Act and Section 4 of the Workers' Occupational Diseases Act.
25Beginning on July 1, 2024 and on July 1 of each year
26thereafter, the Chairman shall charge and collect an annual

 

 

SB1996 Enrolled- 52 -LRB103 28652 SPS 55033 b

1Illinois Workers' Compensation Commission Operations Fund Fee
2from every employer subject to subsection (a) of this Section
3equal to 0.0081% 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.
7All sums collected by the Commission under the provisions of
8this Section shall be paid promptly after the receipt of the
9same, accompanied by a detailed statement thereof, into the
10Illinois Workers' Compensation Commission Operations Fund. The
11fee due pursuant to Public Act 93-840 shall be collected
12instead of the fee due on July 1, 2004 under Public Act 93-32.
13Payment of the fee due under Public Act 93-840 shall discharge
14the employer's obligations due on July 1, 2004.
15    (c) In addition to the authority specifically granted
16under Section 16, the Chairman shall have such authority to
17adopt rules or establish forms as may be reasonably necessary
18for purposes of enforcing this Section. The Commission shall
19have authority to defer, waive, or abate the fee or any
20penalties imposed by this Section if in the Commission's
21opinion the employer's solvency and ability to meet its
22obligations to pay workers' compensation benefits would be
23immediately threatened by payment of the fee due.
24    (d) When an employer fails to pay the full amount of any
25annual Illinois Workers' Compensation Commission Operations
26Fund Fee of $100 or more due under this Section, there shall be

 

 

SB1996 Enrolled- 53 -LRB103 28652 SPS 55033 b

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

 

 

SB1996 Enrolled- 54 -LRB103 28652 SPS 55033 b

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

 

 

SB1996 Enrolled- 55 -LRB103 28652 SPS 55033 b

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

 

 

SB1996 Enrolled- 56 -LRB103 28652 SPS 55033 b

1were nevertheless in any manner dependent upon the earnings of
2the employee, or leaves surviving a parent or parents who at
3the time of the accident were partially dependent upon the
4earnings of the employee, then there shall be paid to such
5dependent or dependents for a period of 8 years weekly
6compensation payments at such proportion of the applicable
7rate if the employee had left surviving a widow or widower as
8such dependency bears to total dependency. In the event of the
9death of any such beneficiary the share of such beneficiary
10shall be divided equally among the surviving beneficiaries and
11in the event of the death of the last such beneficiary all the
12rights under this paragraph shall be extinguished.
13    (d) If no compensation is payable under paragraphs (a),
14(b) or (c) of this Section and the employee leaves surviving
15any grandparent, grandparents, grandchild or grandchildren or
16collateral heirs dependent upon the employee's earnings to the
17extent of 50% or more of total dependency, then there shall be
18paid to such dependent or dependents for a period of 5 years
19weekly compensation payments at such proportion of the
20applicable rate if the employee had left surviving a widow or
21widower as such dependency bears to total dependency. In the
22event of the death of any such beneficiary the share of such
23beneficiary shall be divided equally among the surviving
24beneficiaries and in the event of the death of the last such
25beneficiary all rights hereunder shall be extinguished.
26    (e) The compensation to be paid for accidental injury

 

 

SB1996 Enrolled- 57 -LRB103 28652 SPS 55033 b

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

 

 

SB1996 Enrolled- 58 -LRB103 28652 SPS 55033 b

1therefore, or providing the same.
2    On January 15 and July 15, 1981, and on January 15 and July
315 of each year thereafter the employer shall within 60 days
4pay a sum equal to 1/8 of 1% of all compensation payments made
5by him after July 1, 1980, either under this Act or the
6Workers' Occupational Diseases Act, whether by lump sum
7settlement or weekly compensation payments, but not including
8hospital, surgical or rehabilitation payments, made during the
9first 6 months and during the second 6 months respectively of
10the fiscal year next preceding the date of the payments, into a
11special fund which shall be designated the "Second Injury
12Fund", of which the State Treasurer is ex-officio custodian,
13such special fund to be held and disbursed for the purposes
14hereinafter stated in paragraphs (f) and (g) of Section 8,
15either upon the order of the Commission or of a competent
16court. Said special fund shall be deposited the same as are
17State funds and any interest accruing thereon shall be added
18thereto every 6 months. It is subject to audit the same as
19State funds and accounts and is protected by the General bond
20given by the State Treasurer. It is considered always
21appropriated for the purposes of disbursements as provided in
22Section 8, paragraph (f), of this Act, and shall be paid out
23and disbursed as therein provided and shall not at any time be
24appropriated or diverted to any other use or purpose.
25    On January 15, 1991, the employer shall further pay a sum
26equal to one half of 1% of all compensation payments made by

 

 

SB1996 Enrolled- 59 -LRB103 28652 SPS 55033 b

1him from January 1, 1990 through June 30, 1990 either under
2this Act or under the Workers' Occupational Diseases Act,
3whether by lump sum settlement or weekly compensation
4payments, but not including hospital, surgical or
5rehabilitation payments, into an additional Special Fund which
6shall be designated as the "Rate Adjustment Fund". On March
715, 1991, the employer shall pay into the Rate Adjustment Fund
8a sum equal to one half of 1% of all such compensation payments
9made from July 1, 1990 through December 31, 1990. Within 60
10days after July 15, 1991, the employer shall pay into the Rate
11Adjustment Fund a sum equal to one half of 1% of all such
12compensation payments made from January 1, 1991 through June
1330, 1991. Within 60 days after January 15 of 1992 and each
14subsequent year through 1996, the employer shall pay into the
15Rate Adjustment Fund a sum equal to one half of 1% of all such
16compensation payments made in the last 6 months of the
17preceding calendar year. Within 60 days after July 15 of 1992
18and each subsequent year through 1995, the employer shall pay
19into the Rate Adjustment Fund a sum equal to one half of 1% of
20all such compensation payments made in the first 6 months of
21the same calendar year. Within 60 days after January 15 of 1997
22and each subsequent year through 2005, the employer shall pay
23into the Rate Adjustment Fund a sum equal to three-fourths of
241% of all such compensation payments made in the last 6 months
25of the preceding calendar year. Within 60 days after July 15 of
261996 and each subsequent year through 2004, the employer shall

 

 

SB1996 Enrolled- 60 -LRB103 28652 SPS 55033 b

1pay into the Rate Adjustment Fund a sum equal to three-fourths
2of 1% of all such compensation payments made in the first 6
3months of the same calendar year. Within 60 days after July 15
4of 2005, the employer shall pay into the Rate Adjustment Fund a
5sum equal to 1% of such compensation payments made in the first
66 months of the same calendar year. Within 60 days after
7January 15 of 2006 and each subsequent year through 2024, the
8employer shall pay into the Rate Adjustment Fund a sum equal to
91.25% of such compensation payments made in the last 6 months
10of the preceding calendar year. Within 60 days after July 15 of
112006 and each subsequent year through 2023, the employer shall
12pay into the Rate Adjustment Fund a sum equal to 1.25% of such
13compensation payments made in the first 6 months of the same
14calendar year. Within 60 days after July 15 of 2024 and each
15subsequent year thereafter, the employer shall pay into the
16Rate Adjustment Fund a sum equal to 1.375% of such
17compensation payments made in the first 6 months of the same
18calendar year. Within 60 days after January 15 of 2025 and each
19subsequent year thereafter, the employer shall pay into the
20Rate Adjustment Fund a sum equal to 1.375% of such
21compensation payments made in the last 6 months of the
22preceding calendar year. The administrative costs of
23collecting assessments from employers for the Rate Adjustment
24Fund shall be paid from the Rate Adjustment Fund. The cost of
25an actuarial audit of the Fund shall be paid from the Rate
26Adjustment Fund. The State Treasurer is ex officio custodian

 

 

SB1996 Enrolled- 61 -LRB103 28652 SPS 55033 b

1of such Special Fund and the same shall be held and disbursed
2for the purposes hereinafter stated in paragraphs (f) and (g)
3of Section 8 upon the order of the Commission or of a competent
4court. The Rate Adjustment Fund shall be deposited the same as
5are State funds and any interest accruing thereon shall be
6added thereto every 6 months. It shall be subject to audit the
7same as State funds and accounts and shall be protected by the
8general bond given by the State Treasurer. It is considered
9always appropriated for the purposes of disbursements as
10provided in paragraphs (f) and (g) of Section 8 of this Act and
11shall be paid out and disbursed as therein provided and shall
12not at any time be appropriated or diverted to any other use or
13purpose. Within 5 days after the effective date of this
14amendatory Act of 1990, the Comptroller and the State
15Treasurer shall transfer $1,000,000 from the General Revenue
16Fund to the Rate Adjustment Fund. By February 15, 1991, the
17Comptroller and the State Treasurer shall transfer $1,000,000
18from the Rate Adjustment Fund to the General Revenue Fund. The
19Comptroller and Treasurer are authorized to make transfers at
20the request of the Chairman up to a total of $19,000,000 from
21the Second Injury Fund, the General Revenue Fund, and the
22Workers' Compensation Benefit Trust Fund to the Rate
23Adjustment Fund to the extent that there is insufficient money
24in the Rate Adjustment Fund to pay claims and obligations.
25Amounts may be transferred from the General Revenue Fund only
26if the funds in the Second Injury Fund or the Workers'

 

 

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1Compensation Benefit Trust Fund are insufficient to pay claims
2and obligations of the Rate Adjustment Fund. All amounts
3transferred from the Second Injury Fund, the General Revenue
4Fund, and the Workers' Compensation Benefit Trust Fund shall
5be repaid from the Rate Adjustment Fund within 270 days of a
6transfer, together with interest at the rate earned by moneys
7on deposit in the Fund or Funds from which the moneys were
8transferred.
9    Upon a finding by the Commission, after reasonable notice
10and hearing, that any employer has willfully and knowingly
11failed to pay the proper amounts into the Second Injury Fund or
12the Rate Adjustment Fund required by this Section or if such
13payments are not made within the time periods prescribed by
14this Section, the employer shall, in addition to such
15payments, pay a penalty of 20% of the amount required to be
16paid or $2,500, whichever is greater, for each year or part
17thereof of such failure to pay. This penalty shall only apply
18to obligations of an employer to the Second Injury Fund or the
19Rate Adjustment Fund accruing after the effective date of this
20amendatory Act of 1989. All or part of such a penalty may be
21waived by the Commission for good cause shown.
22    Any obligations of an employer to the Second Injury Fund
23and Rate Adjustment Fund accruing prior to the effective date
24of this amendatory Act of 1989 shall be paid in full by such
25employer within 5 years of the effective date of this
26amendatory Act of 1989, with at least one-fifth of such

 

 

SB1996 Enrolled- 63 -LRB103 28652 SPS 55033 b

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

 

 

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1funds. Any deficiencies in payments noted by the Director or
2Chairman shall be subject to the penalty provisions of this
3Act.
4    The State Treasurer, or his duly authorized
5representative, shall be named as a party to all proceedings
6in all cases involving claim for the loss of, or the permanent
7and complete loss of the use of one eye, one foot, one leg, one
8arm or one hand.
9    The State Treasurer or his duly authorized agent shall
10have the same rights as any other party to the proceeding,
11including the right to petition for review of any award. The
12reasonable expenses of litigation, such as medical
13examinations, testimony, and transcript of evidence, incurred
14by the State Treasurer or his duly authorized representative,
15shall be borne by the Second Injury Fund.
16    If the award is not paid within 30 days after the date the
17award has become final, the Commission shall proceed to take
18judgment thereon in its own name as is provided for other
19awards by paragraph (g) of Section 19 of this Act and take the
20necessary steps to collect the award.
21    Any person, corporation or organization who has paid or
22become liable for the payment of burial expenses of the
23deceased employee may in his or its own name institute
24proceedings before the Commission for the collection thereof.
25    For the purpose of administration, receipts and
26disbursements, the Special Fund provided for in paragraph (f)

 

 

SB1996 Enrolled- 65 -LRB103 28652 SPS 55033 b

1of this Section shall be administered jointly with the Special
2Fund provided for in Section 7, paragraph (f) of the Workers'
3Occupational Diseases Act.
4    (g) All compensation, except for burial expenses provided
5in this Section to be paid in case accident results in death,
6shall be paid in installments equal to the percentage of the
7average earnings as provided for in Section 8, paragraph (b)
8of this Act, at the same intervals at which the wages or
9earnings of the employees were paid. If this is not feasible,
10then the installments shall be paid weekly. Such compensation
11may be paid in a lump sum upon petition as provided in Section
129 of this Act. However, in addition to the benefits provided by
13Section 9 of this Act where compensation for death is payable
14to the deceased's widow, widower or to the deceased's widow,
15widower and one or more children, and where a partial lump sum
16is applied for by such beneficiary or beneficiaries within 18
17months after the deceased's death, the Commission may, in its
18discretion, grant a partial lump sum of not to exceed 100 weeks
19of the compensation capitalized at their present value upon
20the basis of interest calculated at 3% per annum with annual
21rests, upon a showing that such partial lump sum is for the
22best interest of such beneficiary or beneficiaries.
23    (h) In case the injured employee is under 16 years of age
24at the time of the accident and is illegally employed, the
25amount of compensation payable under paragraphs (a), (b), (c),
26(d) and (f) of this Section shall be increased 50%.

 

 

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1    Nothing herein contained repeals or amends the provisions
2of the Child Labor Law relating to the employment of minors
3under the age of 16 years.
4    However, where an employer has on file an employment
5certificate issued pursuant to the Child Labor Law or work
6permit issued pursuant to the Federal Fair Labor Standards
7Act, as amended, or a birth certificate properly and duly
8issued, such certificate, permit or birth certificate is
9conclusive evidence as to the age of the injured minor
10employee for the purposes of this Section only.
11    (i) Whenever the dependents of a deceased employee are
12noncitizens not residing in the United States, Mexico or
13Canada, the amount of compensation payable is limited to the
14beneficiaries described in paragraphs (a), (b) and (c) of this
15Section and is 50% of the compensation provided in paragraphs
16(a), (b) and (c) of this Section, except as otherwise provided
17by treaty.
18    In a case where any of the persons who would be entitled to
19compensation is living at any place outside of the United
20States, then payment shall be made to the personal
21representative of the deceased employee. The distribution by
22such personal representative to the persons entitled shall be
23made to such persons and in such manner as the Commission
24orders.
25(Source: P.A. 102-1030, eff. 5-27-22.)
 

 

 

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1    (820 ILCS 305/19)  (from Ch. 48, par. 138.19)
2    Sec. 19. Any disputed questions of law or fact shall be
3determined as herein provided.
4    (a) It shall be the duty of the Commission upon
5notification that the parties have failed to reach an
6agreement, to designate an Arbitrator.
7        1. Whenever any claimant misconceives his remedy and
8    files an application for adjustment of claim under this
9    Act and it is subsequently discovered, at any time before
10    final disposition of such cause, that the claim for
11    disability or death which was the basis for such
12    application should properly have been made under the
13    Workers' Occupational Diseases Act, then the provisions of
14    Section 19, paragraph (a-1) of the Workers' Occupational
15    Diseases Act having reference to such application shall
16    apply.
17        2. Whenever any claimant misconceives his remedy and
18    files an application for adjustment of claim under the
19    Workers' Occupational Diseases Act and it is subsequently
20    discovered, at any time before final disposition of such
21    cause that the claim for injury or death which was the
22    basis for such application should properly have been made
23    under this Act, then the application so filed under the
24    Workers' Occupational Diseases Act may be amended in form,
25    substance or both to assert claim for such disability or
26    death under this Act and it shall be deemed to have been so

 

 

SB1996 Enrolled- 68 -LRB103 28652 SPS 55033 b

1    filed as amended on the date of the original filing
2    thereof, and such compensation may be awarded as is
3    warranted by the whole evidence pursuant to this Act. When
4    such amendment is submitted, further or additional
5    evidence may be heard by the Arbitrator or Commission when
6    deemed necessary. Nothing in this Section contained shall
7    be construed to be or permit a waiver of any provisions of
8    this Act with reference to notice but notice if given
9    shall be deemed to be a notice under the provisions of this
10    Act if given within the time required herein.
11    (b) The Arbitrator shall make such inquiries and
12investigations as he or they shall deem necessary and may
13examine and inspect all books, papers, records, places, or
14premises relating to the questions in dispute and hear such
15proper evidence as the parties may submit.
16    The hearings before the Arbitrator shall be held in the
17vicinity where the injury occurred after 10 days' notice of
18the time and place of such hearing shall have been given to
19each of the parties or their attorneys of record.
20    The Arbitrator may find that the disabling condition is
21temporary and has not yet reached a permanent condition and
22may order the payment of compensation up to the date of the
23hearing, which award shall be reviewable and enforceable in
24the same manner as other awards, and in no instance be a bar to
25a further hearing and determination of a further amount of
26temporary total compensation or of compensation for permanent

 

 

SB1996 Enrolled- 69 -LRB103 28652 SPS 55033 b

1disability, but shall be conclusive as to all other questions
2except the nature and extent of said disability.
3    The decision of the Arbitrator shall be filed with the
4Commission which Commission shall immediately send to each
5party or his attorney a copy of such decision, together with a
6notification of the time when it was filed. As of the effective
7date of this amendatory Act of the 94th General Assembly, all
8decisions of the Arbitrator shall set forth in writing
9findings of fact and conclusions of law, separately stated, if
10requested by either party. Unless a petition for review is
11filed by either party within 30 days after the receipt by such
12party of the copy of the decision and notification of time when
13filed, and unless such party petitioning for a review shall
14within 35 days after the receipt by him of the copy of the
15decision, file with the Commission either an agreed statement
16of the facts appearing upon the hearing before the Arbitrator,
17or if such party shall so elect a correct transcript of
18evidence of the proceedings at such hearings, then the
19decision shall become the decision of the Commission and in
20the absence of fraud shall be conclusive. The Petition for
21Review shall contain a statement of the petitioning party's
22specific exceptions to the decision of the arbitrator. The
23jurisdiction of the Commission to review the decision of the
24arbitrator shall not be limited to the exceptions stated in
25the Petition for Review. The Commission, or any member
26thereof, may grant further time not exceeding 30 days, in

 

 

SB1996 Enrolled- 70 -LRB103 28652 SPS 55033 b

1which to file such agreed statement or transcript of evidence.
2Such agreed statement of facts or correct transcript of
3evidence, as the case may be, shall be authenticated by the
4signatures of the parties or their attorneys, and in the event
5they do not agree as to the correctness of the transcript of
6evidence it shall be authenticated by the signature of the
7Arbitrator designated by the Commission.
8    Whether the employee is working or not, if the employee is
9not receiving or has not received medical, surgical, or
10hospital services or other services or compensation as
11provided in paragraph (a) of Section 8, or compensation as
12provided in paragraph (b) of Section 8, the employee may at any
13time petition for an expedited hearing by an Arbitrator on the
14issue of whether or not he or she is entitled to receive
15payment of the services or compensation. Provided the employer
16continues to pay compensation pursuant to paragraph (b) of
17Section 8, the employer may at any time petition for an
18expedited hearing on the issue of whether or not the employee
19is entitled to receive medical, surgical, or hospital services
20or other services or compensation as provided in paragraph (a)
21of Section 8, or compensation as provided in paragraph (b) of
22Section 8. When an employer has petitioned for an expedited
23hearing, the employer shall continue to pay compensation as
24provided in paragraph (b) of Section 8 unless the arbitrator
25renders a decision that the employee is not entitled to the
26benefits that are the subject of the expedited hearing or

 

 

SB1996 Enrolled- 71 -LRB103 28652 SPS 55033 b

1unless the employee's treating physician has released the
2employee to return to work at his or her regular job with the
3employer or the employee actually returns to work at any other
4job. If the arbitrator renders a decision that the employee is
5not entitled to the benefits that are the subject of the
6expedited hearing, a petition for review filed by the employee
7shall receive the same priority as if the employee had filed a
8petition for an expedited hearing by an Arbitrator. Neither
9party shall be entitled to an expedited hearing when the
10employee has returned to work and the sole issue in dispute
11amounts to less than 12 weeks of unpaid compensation pursuant
12to paragraph (b) of Section 8.
13    Expedited hearings shall have priority over all other
14petitions and shall be heard by the Arbitrator and Commission
15with all convenient speed. Any party requesting an expedited
16hearing shall give notice of a request for an expedited
17hearing under this paragraph. A copy of the Application for
18Adjustment of Claim shall be attached to the notice. The
19Commission shall adopt rules and procedures under which the
20final decision of the Commission under this paragraph is filed
21not later than 180 days from the date that the Petition for
22Review is filed with the Commission.
23    Where 2 or more insurance carriers, private self-insureds,
24or a group workers' compensation pool under Article V 3/4 of
25the Illinois Insurance Code dispute coverage for the same
26injury, any such insurance carrier, private self-insured, or

 

 

SB1996 Enrolled- 72 -LRB103 28652 SPS 55033 b

1group workers' compensation pool may request an expedited
2hearing pursuant to this paragraph to determine the issue of
3coverage, provided coverage is the only issue in dispute and
4all other issues are stipulated and agreed to and further
5provided that all compensation benefits including medical
6benefits pursuant to Section 8(a) continue to be paid to or on
7behalf of petitioner. Any insurance carrier, private
8self-insured, or group workers' compensation pool that is
9determined to be liable for coverage for the injury in issue
10shall reimburse any insurance carrier, private self-insured,
11or group workers' compensation pool that has paid benefits to
12or on behalf of petitioner for the injury.
13    (b-1) If the employee is not receiving medical, surgical
14or hospital services as provided in paragraph (a) of Section 8
15or compensation as provided in paragraph (b) of Section 8, the
16employee, in accordance with Commission Rules, may file a
17petition for an emergency hearing by an Arbitrator on the
18issue of whether or not he is entitled to receive payment of
19such compensation or services as provided therein. Such
20petition shall have priority over all other petitions and
21shall be heard by the Arbitrator and Commission with all
22convenient speed.
23    Such petition shall contain the following information and
24shall be served on the employer at least 15 days before it is
25filed:
26        (i) the date and approximate time of accident;

 

 

SB1996 Enrolled- 73 -LRB103 28652 SPS 55033 b

1        (ii) the approximate location of the accident;
2        (iii) a description of the accident;
3        (iv) the nature of the injury incurred by the
4    employee;
5        (v) the identity of the person, if known, to whom the
6    accident was reported and the date on which it was
7    reported;
8        (vi) the name and title of the person, if known,
9    representing the employer with whom the employee conferred
10    in any effort to obtain compensation pursuant to paragraph
11    (b) of Section 8 of this Act or medical, surgical or
12    hospital services pursuant to paragraph (a) of Section 8
13    of this Act and the date of such conference;
14        (vii) a statement that the employer has refused to pay
15    compensation pursuant to paragraph (b) of Section 8 of
16    this Act or for medical, surgical or hospital services
17    pursuant to paragraph (a) of Section 8 of this Act;
18        (viii) the name and address, if known, of each witness
19    to the accident and of each other person upon whom the
20    employee will rely to support his allegations;
21        (ix) the dates of treatment related to the accident by
22    medical practitioners, and the names and addresses of such
23    practitioners, including the dates of treatment related to
24    the accident at any hospitals and the names and addresses
25    of such hospitals, and a signed authorization permitting
26    the employer to examine all medical records of all

 

 

SB1996 Enrolled- 74 -LRB103 28652 SPS 55033 b

1    practitioners and hospitals named pursuant to this
2    paragraph;
3        (x) a copy of a signed report by a medical
4    practitioner, relating to the employee's current inability
5    to return to work because of the injuries incurred as a
6    result of the accident or such other documents or
7    affidavits which show that the employee is entitled to
8    receive compensation pursuant to paragraph (b) of Section
9    8 of this Act or medical, surgical or hospital services
10    pursuant to paragraph (a) of Section 8 of this Act. Such
11    reports, documents or affidavits shall state, if possible,
12    the history of the accident given by the employee, and
13    describe the injury and medical diagnosis, the medical
14    services for such injury which the employee has received
15    and is receiving, the physical activities which the
16    employee cannot currently perform as a result of any
17    impairment or disability due to such injury, and the
18    prognosis for recovery;
19        (xi) complete copies of any reports, records,
20    documents and affidavits in the possession of the employee
21    on which the employee will rely to support his
22    allegations, provided that the employer shall pay the
23    reasonable cost of reproduction thereof;
24        (xii) a list of any reports, records, documents and
25    affidavits which the employee has demanded by subpoena and
26    on which he intends to rely to support his allegations;

 

 

SB1996 Enrolled- 75 -LRB103 28652 SPS 55033 b

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

 

 

SB1996 Enrolled- 76 -LRB103 28652 SPS 55033 b

1the employer will rely to support his response, and (iv) the
2names and addresses of any medical practitioners selected by
3the employer pursuant to Section 12 of this Act and the time
4and place of any examination scheduled to be made pursuant to
5such Section.
6    Any employer who does not timely file and serve a written
7response without good cause may not introduce any evidence to
8dispute any claim of the employee but may cross examine the
9employee or any witness brought by the employee and otherwise
10be heard.
11    No document or other evidence not previously identified by
12either party with the petition or written response, or by any
13other means before the hearing, may be introduced into
14evidence without good cause. If, at the hearing, material
15information is discovered which was not previously disclosed,
16the Arbitrator may extend the time for closing proof on the
17motion of a party for a reasonable period of time which may be
18more than 30 days. No evidence may be introduced pursuant to
19this paragraph as to permanent disability. No award may be
20entered for permanent disability pursuant to this paragraph.
21Either party may introduce into evidence the testimony taken
22by deposition of any medical practitioner.
23    The Commission shall adopt rules, regulations and
24procedures whereby the final decision of the Commission is
25filed not later than 90 days from the date the petition for
26review is filed but in no event later than 180 days from the

 

 

SB1996 Enrolled- 77 -LRB103 28652 SPS 55033 b

1date the petition for an emergency hearing is filed with the
2Illinois Workers' Compensation Commission.
3    All service required pursuant to this paragraph (b-1) must
4be by personal service or by certified mail and with evidence
5of receipt. In addition for the purposes of this paragraph,
6all service on the employer must be at the premises where the
7accident occurred if the premises are owned or operated by the
8employer. Otherwise service must be at the employee's
9principal place of employment by the employer. If service on
10the employer is not possible at either of the above, then
11service shall be at the employer's principal place of
12business. After initial service in each case, service shall be
13made on the employer's attorney or designated representative.
14    (c)(1) At a reasonable time in advance of and in
15connection with the hearing under Section 19(e) or 19(h), the
16Commission may on its own motion order an impartial physical
17or mental examination of a petitioner whose mental or physical
18condition is in issue, when in the Commission's discretion it
19appears that such an examination will materially aid in the
20just determination of the case. The examination shall be made
21by a member or members of a panel of physicians chosen for
22their special qualifications by the Illinois State Medical
23Society. The Commission shall establish procedures by which a
24physician shall be selected from such list.
25    (2) Should the Commission at any time during the hearing
26find that compelling considerations make it advisable to have

 

 

SB1996 Enrolled- 78 -LRB103 28652 SPS 55033 b

1an examination and report at that time, the commission may in
2its discretion so order.
3    (3) A copy of the report of examination shall be given to
4the Commission and to the attorneys for the parties.
5    (4) Either party or the Commission may call the examining
6physician or physicians to testify. Any physician so called
7shall be subject to cross-examination.
8    (5) The examination shall be made, and the physician or
9physicians, if called, shall testify, without cost to the
10parties. The Commission shall determine the compensation and
11the pay of the physician or physicians. The compensation for
12this service shall not exceed the usual and customary amount
13for such service.
14    (6) The fees and payment thereof of all attorneys and
15physicians for services authorized by the Commission under
16this Act shall, upon request of either the employer or the
17employee or the beneficiary affected, be subject to the review
18and decision of the Commission.
19    (d) If any employee shall persist in insanitary or
20injurious practices which tend to either imperil or retard his
21recovery or shall refuse to submit to such medical, surgical,
22or hospital treatment as is reasonably essential to promote
23his recovery, the Commission may, in its discretion, reduce or
24suspend the compensation of any such injured employee.
25However, when an employer and employee so agree in writing,
26the foregoing provision shall not be construed to authorize

 

 

SB1996 Enrolled- 79 -LRB103 28652 SPS 55033 b

1the reduction or suspension of compensation of an employee who
2is relying in good faith, on treatment by prayer or spiritual
3means alone, in accordance with the tenets and practice of a
4recognized church or religious denomination, by a duly
5accredited practitioner thereof.
6    (e) This paragraph shall apply to all hearings before the
7Commission. Such hearings may be held in its office or
8elsewhere as the Commission may deem advisable. The taking of
9testimony on such hearings may be had before any member of the
10Commission. If a petition for review and agreed statement of
11facts or transcript of evidence is filed, as provided herein,
12the Commission shall promptly review the decision of the
13Arbitrator and all questions of law or fact which appear from
14the statement of facts or transcript of evidence.
15    In all cases in which the hearing before the arbitrator is
16held after December 18, 1989, no additional evidence shall be
17introduced by the parties before the Commission on review of
18the decision of the Arbitrator. In reviewing decisions of an
19arbitrator the Commission shall award such temporary
20compensation, permanent compensation and other payments as are
21due under this Act. The Commission shall file in its office its
22decision thereon, and shall immediately send to each party or
23his attorney a copy of such decision and a notification of the
24time when it was filed. Decisions shall be filed within 60 days
25after the Statement of Exceptions and Supporting Brief and
26Response thereto are required to be filed or oral argument

 

 

SB1996 Enrolled- 80 -LRB103 28652 SPS 55033 b

1whichever is later.
2    In the event either party requests oral argument, such
3argument shall be had before a panel of 3 members of the
4Commission (or before all available members pursuant to the
5determination of 7 members of the Commission that such
6argument be held before all available members of the
7Commission) pursuant to the rules and regulations of the
8Commission. A panel of 3 members, which shall be comprised of
9not more than one representative citizen of the employing
10class and not more than one representative from a labor
11organization recognized under the National Labor Relations Act
12or an attorney who has represented labor organizations or has
13represented employees in workers' compensation cases, shall
14hear the argument; provided that if all the issues in dispute
15are solely the nature and extent of the permanent partial
16disability, if any, a majority of the panel may deny the
17request for such argument and such argument shall not be held;
18and provided further that 7 members of the Commission may
19determine that the argument be held before all available
20members of the Commission. A decision of the Commission shall
21be approved by a majority of Commissioners present at such
22hearing if any; provided, if no such hearing is held, a
23decision of the Commission shall be approved by a majority of a
24panel of 3 members of the Commission as described in this
25Section. The Commission shall give 10 days' notice to the
26parties or their attorneys of the time and place of such taking

 

 

SB1996 Enrolled- 81 -LRB103 28652 SPS 55033 b

1of testimony and of such argument.
2    In any case the Commission in its decision may find
3specially upon any question or questions of law or fact which
4shall be submitted in writing by either party whether ultimate
5or otherwise; provided that on issues other than nature and
6extent of the disability, if any, the Commission in its
7decision shall find specially upon any question or questions
8of law or fact, whether ultimate or otherwise, which are
9submitted in writing by either party; provided further that
10not more than 5 such questions may be submitted by either
11party. Any party may, within 20 days after receipt of notice of
12the Commission's decision, or within such further time, not
13exceeding 30 days, as the Commission may grant, file with the
14Commission either an agreed statement of the facts appearing
15upon the hearing, or, if such party shall so elect, a correct
16transcript of evidence of the additional proceedings presented
17before the Commission, in which report the party may embody a
18correct statement of such other proceedings in the case as
19such party may desire to have reviewed, such statement of
20facts or transcript of evidence to be authenticated by the
21signature of the parties or their attorneys, and in the event
22that they do not agree, then the authentication of such
23transcript of evidence shall be by the signature of any member
24of the Commission.
25    If a reporter does not for any reason furnish a transcript
26of the proceedings before the Arbitrator in any case for use on

 

 

SB1996 Enrolled- 82 -LRB103 28652 SPS 55033 b

1a hearing for review before the Commission, within the
2limitations of time as fixed in this Section, the Commission
3may, in its discretion, order a trial de novo before the
4Commission in such case upon application of either party. The
5applications for adjustment of claim and other documents in
6the nature of pleadings filed by either party, together with
7the decisions of the Arbitrator and of the Commission and the
8statement of facts or transcript of evidence hereinbefore
9provided for in paragraphs (b) and (c) shall be the record of
10the proceedings of the Commission, and shall be subject to
11review as hereinafter provided.
12    At the request of either party or on its own motion, the
13Commission shall set forth in writing the reasons for the
14decision, including findings of fact and conclusions of law
15separately stated. The Commission shall by rule adopt a format
16for written decisions for the Commission and arbitrators. The
17written decisions shall be concise and shall succinctly state
18the facts and reasons for the decision. The Commission may
19adopt in whole or in part, the decision of the arbitrator as
20the decision of the Commission. When the Commission does so
21adopt the decision of the arbitrator, it shall do so by order.
22Whenever the Commission adopts part of the arbitrator's
23decision, but not all, it shall include in the order the
24reasons for not adopting all of the arbitrator's decision.
25When a majority of a panel, after deliberation, has arrived at
26its decision, the decision shall be filed as provided in this

 

 

SB1996 Enrolled- 83 -LRB103 28652 SPS 55033 b

1Section without unnecessary delay, and without regard to the
2fact that a member of the panel has expressed an intention to
3dissent. Any member of the panel may file a dissent. Any
4dissent shall be filed no later than 10 days after the decision
5of the majority has been filed.
6    Decisions rendered by the Commission and dissents, if any,
7shall be published together by the Commission. The conclusions
8of law set out in such decisions shall be regarded as
9precedents by arbitrators for the purpose of achieving a more
10uniform administration of this Act.
11    (f) The decision of the Commission acting within its
12powers, according to the provisions of paragraph (d) of
13Section 4 and paragraph (e) of this Section shall, in the
14absence of fraud, be conclusive unless reviewed as in this
15paragraph hereinafter provided. However, the Arbitrator or the
16Commission may on his or its own motion, or on the motion of
17either party, correct any clerical error or errors in
18computation within 15 days after the date of receipt of any
19award by such Arbitrator or any decision on review of the
20Commission and shall have the power to recall the original
21award on arbitration or decision on review, and issue in lieu
22thereof such corrected award or decision. Where such
23correction is made the time for review herein specified shall
24begin to run from the date of the receipt of the corrected
25award or decision.
26        (1) Except in cases of claims against the State of

 

 

SB1996 Enrolled- 84 -LRB103 28652 SPS 55033 b

1    Illinois other than those claims under Section 18.1, in
2    which case the decision of the Commission shall not be
3    subject to judicial review, the Circuit Court of the
4    county where any of the parties defendant may be found, or
5    if none of the parties defendant can be found in this State
6    then the Circuit Court of the county where the accident
7    occurred, shall by summons to the Commission have power to
8    review all questions of law and fact presented by such
9    record.
10        A proceeding for review shall be commenced within 20
11    days of the receipt of notice of the decision of the
12    Commission. The summons shall be issued by the clerk of
13    such court upon written request returnable on a designated
14    return day, not less than 10 or more than 60 days from the
15    date of issuance thereof, and the written request shall
16    contain the last known address of other parties in
17    interest and their attorneys of record who are to be
18    served by summons. Service upon any member of the
19    Commission or the Secretary or the Assistant Secretary
20    thereof shall be service upon the Commission, and service
21    upon other parties in interest and their attorneys of
22    record shall be by summons, and such service shall be made
23    upon the Commission and other parties in interest by
24    mailing notices of the commencement of the proceedings and
25    the return day of the summons to the office of the
26    Commission and to the last known place of residence of

 

 

SB1996 Enrolled- 85 -LRB103 28652 SPS 55033 b

1    other parties in interest or their attorney or attorneys
2    of record. The clerk of the court issuing the summons
3    shall on the day of issue mail notice of the commencement
4    of the proceedings which shall be done by mailing a copy of
5    the summons to the office of the Commission, and a copy of
6    the summons to the other parties in interest or their
7    attorney or attorneys of record and the clerk of the court
8    shall make certificate that he has so sent said notices in
9    pursuance of this Section, which shall be evidence of
10    service on the Commission and other parties in interest.
11        The Commission shall not be required to certify the
12    record of their proceedings to the Circuit Court, unless
13    the party commencing the proceedings for review in the
14    Circuit Court as above provided, shall file with the
15    Commission notice of intent to file for review in Circuit
16    Court. It shall be the duty of the Commission upon such
17    filing of notice of intent to file for review in the
18    Circuit Court to prepare a true and correct copy of such
19    testimony and a true and correct copy of all other matters
20    contained in such record and certified to by the Secretary
21    or Assistant Secretary thereof. The changes made to this
22    subdivision (f)(1) by this amendatory Act of the 98th
23    General Assembly apply to any Commission decision entered
24    after the effective date of this amendatory Act of the
25    98th General Assembly.
26        No request for a summons may be filed and no summons

 

 

SB1996 Enrolled- 86 -LRB103 28652 SPS 55033 b

1    shall issue unless the party seeking to review the
2    decision of the Commission shall exhibit to the clerk of
3    the Circuit Court proof of filing with the Commission of
4    the notice of the intent to file for review in the Circuit
5    Court or an affidavit of the attorney setting forth that
6    notice of intent to file for review in the Circuit Court
7    has been given in writing to the Secretary or Assistant
8    Secretary of the Commission.
9        (2) No such summons shall issue unless the one against
10    whom the Commission shall have rendered an award for the
11    payment of money shall upon the filing of his written
12    request for such summons file with the clerk of the court a
13    bond conditioned that if he shall not successfully
14    prosecute the review, he will pay the award and the costs
15    of the proceedings in the courts. The amount of the bond
16    shall be fixed by any member of the Commission and the
17    surety or sureties of the bond shall be approved by the
18    clerk of the court. The acceptance of the bond by the clerk
19    of the court shall constitute evidence of his approval of
20    the bond.
21        The following shall not be required to file a bond to
22    secure the payment of the award and the costs of the
23    proceedings in the court to authorize the court to issue
24    such summons:
25            (1) the State Treasurer, for a fund administered
26        by the State Treasurer ex officio against whom the

 

 

SB1996 Enrolled- 87 -LRB103 28652 SPS 55033 b

1        Commission shall have rendered an award for the
2        payment of money; and
3            (2) a county, city, town, township, incorporated
4        village, school district, body politic, or municipal
5        corporation against whom the Commission shall have
6        rendered an award for the payment of money.
7        The court may confirm or set aside the decision of the
8    Commission. If the decision is set aside and the facts
9    found in the proceedings before the Commission are
10    sufficient, the court may enter such decision as is
11    justified by law, or may remand the cause to the
12    Commission for further proceedings and may state the
13    questions requiring further hearing, and give such other
14    instructions as may be proper. If the court affirms the
15    Commission's decision imposing fines on the employer under
16    subsection (d) of Section 4, the court shall enter
17    judgment against the employer in the amount of the fines
18    assessed by the Commission. Appeals shall be taken to the
19    Appellate Court in accordance with Supreme Court Rules
20    22(g) and 303. Appeals shall be taken from the Appellate
21    Court to the Supreme Court in accordance with Supreme
22    Court Rule 315.
23        It shall be the duty of the clerk of any court
24    rendering a decision affecting or affirming an award of
25    the Commission to promptly furnish the Commission with a
26    copy of such decision, without charge.

 

 

SB1996 Enrolled- 88 -LRB103 28652 SPS 55033 b

1        The decision of a majority of the members of the panel
2    of the Commission, shall be considered the decision of the
3    Commission.
4    (g) Except in the case of a claim against the State of
5Illinois, either party may present a certified copy of the
6award of the Arbitrator, or a certified copy of the decision of
7the Commission when the same has become final, when no
8proceedings for review are pending, providing for the payment
9of compensation according to this Act, to the Circuit Court of
10the county in which such accident occurred or either of the
11parties are residents, whereupon the court shall enter a
12judgment in accordance therewith. In a case where the employer
13refuses to pay compensation according to such final award or
14such final decision upon which such judgment is entered the
15court shall in entering judgment thereon, tax as costs against
16him the reasonable costs and attorney fees in the arbitration
17proceedings and in the court entering the judgment for the
18person in whose favor the judgment is entered, which judgment
19and costs taxed as therein provided shall, until and unless
20set aside, have the same effect as though duly entered in an
21action duly tried and determined by the court, and shall with
22like effect, be entered and docketed. The Circuit Court shall
23have power at any time upon application to make any such
24judgment conform to any modification required by any
25subsequent decision of the Supreme Court upon appeal, or as
26the result of any subsequent proceedings for review, as

 

 

SB1996 Enrolled- 89 -LRB103 28652 SPS 55033 b

1provided in this Act.
2    Judgment shall not be entered until 15 days' notice of the
3time and place of the application for the entry of judgment
4shall be served upon the employer by filing such notice with
5the Commission, which Commission shall, in case it has on file
6the address of the employer or the name and address of its
7agent upon whom notices may be served, immediately send a copy
8of the notice to the employer or such designated agent.
9    (h) An agreement or award under this Act providing for
10compensation in installments, may at any time within 18 months
11after such agreement or award be reviewed by the Commission at
12the request of either the employer or the employee, on the
13ground that the disability of the employee has subsequently
14recurred, increased, diminished or ended.
15    However, as to accidents occurring subsequent to July 1,
161955, which are covered by any agreement or award under this
17Act providing for compensation in installments made as a
18result of such accident, such agreement or award may at any
19time within 30 months, or 60 months in the case of an award
20under Section 8(d)1, after such agreement or award be reviewed
21by the Commission at the request of either the employer or the
22employee on the ground that the disability of the employee has
23subsequently recurred, increased, diminished or ended.
24    On such review, compensation payments may be
25re-established, increased, diminished or ended. The Commission
26shall give 15 days' notice to the parties of the hearing for

 

 

SB1996 Enrolled- 90 -LRB103 28652 SPS 55033 b

1review. Any employee, upon any petition for such review being
2filed by the employer, shall be entitled to one day's notice
3for each 100 miles necessary to be traveled by him in attending
4the hearing of the Commission upon the petition, and 3 days in
5addition thereto. Such employee shall, at the discretion of
6the Commission, also be entitled to 5 cents per mile
7necessarily traveled by him within the State of Illinois in
8attending such hearing, not to exceed a distance of 300 miles,
9to be taxed by the Commission as costs and deposited with the
10petition of the employer.
11    When compensation which is payable in accordance with an
12award or settlement contract approved by the Commission, is
13ordered paid in a lump sum by the Commission, no review shall
14be had as in this paragraph mentioned.
15    (i) Each party, upon taking any proceedings or steps
16whatsoever before any Arbitrator, Commission or court, shall
17file with the Commission his address, or the name and address
18of any agent upon whom all notices to be given to such party
19shall be served, either personally or by registered mail,
20addressed to such party or agent at the last address so filed
21with the Commission. In the event such party has not filed his
22address, or the name and address of an agent as above provided,
23service of any notice may be had by filing such notice with the
24Commission.
25    (j) Whenever in any proceeding testimony has been taken or
26a final decision has been rendered and after the taking of such

 

 

SB1996 Enrolled- 91 -LRB103 28652 SPS 55033 b

1testimony or after such decision has become final, the injured
2employee dies, then in any subsequent proceedings brought by
3the personal representative or beneficiaries of the deceased
4employee, such testimony in the former proceeding may be
5introduced with the same force and effect as though the
6witness having so testified were present in person in such
7subsequent proceedings and such final decision, if any, shall
8be taken as final adjudication of any of the issues which are
9the same in both proceedings.
10    (k) In case where there has been any unreasonable or
11vexatious delay of payment or intentional underpayment of
12compensation, or proceedings have been instituted or carried
13on by the one liable to pay the compensation, which do not
14present a real controversy, but are merely frivolous or for
15delay, then the Commission may award compensation additional
16to that otherwise payable under this Act equal to 50% of the
17amount payable at the time of such award. Failure to pay
18compensation in accordance with the provisions of Section 8,
19paragraph (b) of this Act, shall be considered unreasonable
20delay.
21    When determining whether this subsection (k) shall apply,
22the Commission shall consider whether an Arbitrator has
23determined that the claim is not compensable or whether the
24employer has made payments under Section 8(j).
25    (l) If the employee has made written demand for payment of
26benefits under Section 8(a) or Section 8(b), the employer

 

 

SB1996 Enrolled- 92 -LRB103 28652 SPS 55033 b

1shall have 14 days after receipt of the demand to set forth in
2writing the reason for the delay. In the case of demand for
3payment of medical benefits under Section 8(a), the time for
4the employer to respond shall not commence until the
5expiration of the allotted 30 days specified under Section
68.2(d). In case the employer or his or her insurance carrier
7shall without good and just cause fail, neglect, refuse, or
8unreasonably delay the payment of benefits under Section 8(a)
9or Section 8(b), the Arbitrator or the Commission shall allow
10to the employee additional compensation in the sum of $30 per
11day for each day that the benefits under Section 8(a) or
12Section 8(b) have been so withheld or refused, not to exceed
13$10,000. A delay in payment of 14 days or more shall create a
14rebuttable presumption of unreasonable delay.
15    (m) If the commission finds that an accidental injury was
16directly and proximately caused by the employer's wilful
17violation of a health and safety standard under the Health and
18Safety Act or the Occupational Safety and Health Act in force
19at the time of the accident, the arbitrator or the Commission
20shall allow to the injured employee or his dependents, as the
21case may be, additional compensation equal to 25% of the
22amount which otherwise would be payable under the provisions
23of this Act exclusive of this paragraph. The additional
24compensation herein provided shall be allowed by an
25appropriate increase in the applicable weekly compensation
26rate.

 

 

SB1996 Enrolled- 93 -LRB103 28652 SPS 55033 b

1    (n) After June 30, 1984, decisions of the Illinois
2Workers' Compensation Commission reviewing an award of an
3arbitrator of the Commission shall draw interest at a rate
4equal to the yield on indebtedness issued by the United States
5Government with a 26-week maturity next previously auctioned
6on the day on which the decision is filed. Said rate of
7interest shall be set forth in the Arbitrator's Decision.
8Interest shall be drawn from the date of the arbitrator's
9award on all accrued compensation due the employee through the
10day prior to the date of payments. However, when an employee
11appeals an award of an Arbitrator or the Commission, and the
12appeal results in no change or a decrease in the award,
13interest shall not further accrue from the date of such
14appeal.
15    The employer or his insurance carrier may tender the
16payments due under the award to stop the further accrual of
17interest on such award notwithstanding the prosecution by
18either party of review, certiorari, appeal to the Supreme
19Court or other steps to reverse, vacate or modify the award.
20    (o) By the 15th day of each month each insurer providing
21coverage for losses under this Act shall notify each insured
22employer of any compensable claim incurred during the
23preceding month and the amounts paid or reserved on the claim
24including a summary of the claim and a brief statement of the
25reasons for compensability. A cumulative report of all claims
26incurred during a calendar year or continued from the previous

 

 

SB1996 Enrolled- 94 -LRB103 28652 SPS 55033 b

1year shall be furnished to the insured employer by the insurer
2within 30 days after the end of that calendar year.
3    The insured employer may challenge, in proceeding before
4the Commission, payments made by the insurer without
5arbitration and payments made after a case is determined to be
6noncompensable. If the Commission finds that the case was not
7compensable, the insurer shall purge its records as to that
8employer of any loss or expense associated with the claim,
9reimburse the employer for attorneys' fees arising from the
10challenge and for any payment required of the employer to the
11Rate Adjustment Fund or the Second Injury Fund, and may not
12reflect the loss or expense for rate making purposes. The
13employee shall not be required to refund the challenged
14payment. The decision of the Commission may be reviewed in the
15same manner as in arbitrated cases. No challenge may be
16initiated under this paragraph more than 3 years after the
17payment is made. An employer may waive the right of challenge
18under this paragraph on a case by case basis.
19    (p) After filing an application for adjustment of claim
20but prior to the hearing on arbitration the parties may
21voluntarily agree to submit such application for adjustment of
22claim for decision by an arbitrator under this subsection (p)
23where such application for adjustment of claim raises only a
24dispute over temporary total disability, permanent partial
25disability or medical expenses. Such agreement shall be in
26writing in such form as provided by the Commission.

 

 

SB1996 Enrolled- 95 -LRB103 28652 SPS 55033 b

1Applications for adjustment of claim submitted for decision by
2an arbitrator under this subsection (p) shall proceed
3according to rule as established by the Commission. The
4Commission shall promulgate rules including, but not limited
5to, rules to ensure that the parties are adequately informed
6of their rights under this subsection (p) and of the voluntary
7nature of proceedings under this subsection (p). The findings
8of fact made by an arbitrator acting within his or her powers
9under this subsection (p) in the absence of fraud shall be
10conclusive. However, the arbitrator may on his own motion, or
11the motion of either party, correct any clerical errors or
12errors in computation within 15 days after the date of receipt
13of such award of the arbitrator and shall have the power to
14recall the original award on arbitration, and issue in lieu
15thereof such corrected award. The decision of the arbitrator
16under this subsection (p) shall be considered the decision of
17the Commission and proceedings for review of questions of law
18arising from the decision may be commenced by either party
19pursuant to subsection (f) of Section 19. The Advisory Board
20established under Section 13.1 shall compile a list of
21certified Commission arbitrators, each of whom shall be
22approved by at least 7 members of the Advisory Board. The
23chairman shall select 5 persons from such list to serve as
24arbitrators under this subsection (p). By agreement, the
25parties shall select one arbitrator from among the 5 persons
26selected by the chairman except that if the parties do not

 

 

SB1996 Enrolled- 96 -LRB103 28652 SPS 55033 b

1agree on an arbitrator from among the 5 persons, the parties
2may, by agreement, select an arbitrator of the American
3Arbitration Association, whose fee shall be paid by the State
4in accordance with rules promulgated by the Commission.
5Arbitration under this subsection (p) shall be voluntary.
6(Source: P.A. 101-384, eff. 1-1-20; 102-775, eff. 5-13-22.)
 
7    (820 ILCS 305/25.5)
8    Sec. 25.5. Unlawful acts; penalties.
9    (a) It is unlawful for any person, company, corporation,
10insurance carrier, healthcare provider, or other entity to:
11        (1) Intentionally present or cause to be presented any
12    false or fraudulent claim for the payment of any workers'
13    compensation benefit.
14        (2) Intentionally make or cause to be made any false
15    or fraudulent material statement or material
16    representation for the purpose of obtaining or denying any
17    workers' compensation benefit.
18        (3) Intentionally make or cause to be made any false
19    or fraudulent statements with regard to entitlement to
20    workers' compensation benefits with the intent to prevent
21    an injured worker from making a legitimate claim for any
22    workers' compensation benefits.
23        (4) Intentionally prepare or provide an invalid,
24    false, or counterfeit certificate of insurance as proof of
25    workers' compensation insurance.

 

 

SB1996 Enrolled- 97 -LRB103 28652 SPS 55033 b

1        (5) Intentionally make or cause to be made any false
2    or fraudulent material statement or material
3    representation for the purpose of obtaining workers'
4    compensation insurance at less than the proper amount for
5    that insurance.
6        (6) Intentionally make or cause to be made any false
7    or fraudulent material statement or material
8    representation on an initial or renewal self-insurance
9    application or accompanying financial statement for the
10    purpose of obtaining self-insurance status or reducing the
11    amount of security that may be required to be furnished
12    pursuant to Section 4 of this Act.
13        (7) Intentionally make or cause to be made any false
14    or fraudulent material statement to the Department of
15    Insurance's fraud and insurance non-compliance unit in the
16    course of an investigation of fraud or insurance
17    non-compliance.
18        (8) Intentionally assist, abet, solicit, or conspire
19    with any person, company, or other entity to commit any of
20    the acts in paragraph (1), (2), (3), (4), (5), (6), or (7)
21    of this subsection (a).
22        (8.5) Intentionally assist, abet, solicit, or conspire
23    with any person, company, or other entity to commit any of
24    the acts in paragraph (4) of this subsection (a).
25        (9) Intentionally present a bill or statement for the
26    payment for medical services that were not provided.

 

 

SB1996 Enrolled- 98 -LRB103 28652 SPS 55033 b

1    For the purposes of paragraphs (2), (3), (5), (6), (7),
2and (9), the term "statement" includes any writing, notice,
3proof of injury, bill for services, hospital or doctor records
4and reports, or X-ray and test results.
5    (b) Sentences for violations of paragraphs (1), (2), (3),
6(5), (6), (7), (8), and (9) of subsection (a) are as follows:
7        (1) A violation in which the value of the property
8    obtained or attempted to be obtained is $300 or less is a
9    Class A misdemeanor.
10        (2) A violation in which the value of the property
11    obtained or attempted to be obtained is more than $300 but
12    not more than $10,000 is a Class 3 felony.
13        (3) A violation in which the value of the property
14    obtained or attempted to be obtained is more than $10,000
15    but not more than $100,000 is a Class 2 felony.
16        (4) A violation in which the value of the property
17    obtained or attempted to be obtained is more than $100,000
18    is a Class 1 felony.
19        (5) A person convicted under this subsection Section
20    shall be ordered to pay monetary restitution to the
21    injured worker, insurance company, or self-insured entity,
22    or any other person for any financial loss sustained as a
23    result of a violation of this Section, including any court
24    costs and attorney fees. An order of restitution also
25    includes expenses incurred and paid by the State of
26    Illinois, or an insurance company, a or self-insured

 

 

SB1996 Enrolled- 99 -LRB103 28652 SPS 55033 b

1    entity, an injured worker, or any other person in
2    connection with any medical evaluation or treatment
3    services. For the purposes of this subsection, "person"
4    includes any legal entity created under Section 535 of the
5    Illinois Insurance Code.
6    For the purposes of this subsection Section, where the
7exact value of property obtained or attempted to be obtained
8is either not alleged or is not specifically set by the terms
9of a policy of insurance, the value of the property shall be
10the fair market replacement value of the property claimed to
11be lost, the reasonable costs of reimbursing a vendor or other
12claimant for services to be rendered, or both. Notwithstanding
13the foregoing, an injured worker, an insurance company,
14self-insured entity, or any other person suffering financial
15loss sustained as a result of violation of this Section may
16seek restitution, including court costs and attorney's fees in
17a civil action in a court of competent jurisdiction.
18    (b-5) Sentences for violations of paragraphs (4) and (8.5)
19of
subsection (a) are as follows:
20        (1) A violation in which the value of the property
21    obtained or attempted to be obtained is $10,000 or less,
22    is a Class 3 felony and a civil penalty of up to $10,000
23    per violation, payable to the Injured Workers' Benefit
24    Fund, shall be assessed.
25        (2) A violation in which the value of the property
26    obtained or attempted to be obtained is more than $10,000,

 

 

SB1996 Enrolled- 100 -LRB103 28652 SPS 55033 b

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

 

 

SB1996 Enrolled- 101 -LRB103 28652 SPS 55033 b

1this subsection may seek restitution, including court costs
2and attorney's fees in a civil action in a court of competent
3jurisdiction.
4    (c) The Department of Insurance shall establish a fraud
5and insurance non-compliance unit responsible for
6investigating incidences of fraud and insurance non-compliance
7pursuant to this Section. The size of the staff of the unit
8shall be subject to appropriation by the General Assembly. It
9shall be the duty of the fraud and insurance non-compliance
10unit to determine the identity of insurance carriers,
11employers, employees, or other persons or entities who have
12violated the fraud and insurance non-compliance provisions of
13this Section. The fraud and insurance non-compliance unit
14shall report violations of the fraud and insurance
15non-compliance provisions of this Section to the Special
16Prosecutions Bureau of the Criminal Division of the Office of
17the Attorney General or to the State's Attorney of the county
18in which the offense allegedly occurred, either of whom has
19the authority to prosecute violations under this Section.
20    With respect to the subject of any investigation being
21conducted, the fraud and insurance non-compliance unit shall
22have the general power of subpoena of the Department of
23Insurance, including the authority to issue a subpoena to a
24medical provider, pursuant to Section 8-802 of the Code of
25Civil Procedure.
26    (d) Any person may report allegations of insurance

 

 

SB1996 Enrolled- 102 -LRB103 28652 SPS 55033 b

1non-compliance and fraud pursuant to this Section to the
2Department of Insurance's fraud and insurance non-compliance
3unit whose duty it shall be to investigate the report. The unit
4shall notify the Commission of reports of insurance
5non-compliance. Any person reporting an allegation of
6insurance non-compliance or fraud against either an employee
7or employer under this Section must identify himself. Except
8as provided in this subsection and in subsection (e), all
9reports shall remain confidential except to refer an
10investigation to the Attorney General or State's Attorney for
11prosecution or if the fraud and insurance non-compliance
12unit's investigation reveals that the conduct reported may be
13in violation of other laws or regulations of the State of
14Illinois, the unit may report such conduct to the appropriate
15governmental agency charged with administering such laws and
16regulations. Any person who intentionally makes a false report
17under this Section to the fraud and insurance non-compliance
18unit is guilty of a Class A misdemeanor.
19    (e) In order for the fraud and insurance non-compliance
20unit to investigate a report of fraud related to an employee's
21claim, (i) the employee must have filed with the Commission an
22Application for Adjustment of Claim and the employee must have
23either received or attempted to receive benefits under this
24Act that are related to the reported fraud or (ii) the employee
25must have made a written demand for the payment of benefits
26that are related to the reported fraud. There shall be no

 

 

SB1996 Enrolled- 103 -LRB103 28652 SPS 55033 b

1immunity, under this Act or otherwise, for any person who
2files a false report or who files a report without good and
3just cause. Confidentiality of medical information shall be
4strictly maintained. Investigations that are not referred for
5prosecution shall be destroyed upon the expiration of the
6statute of limitations for the acts under investigation and
7shall not be disclosed except that the person making the
8report shall be notified that the investigation is being
9closed. It is unlawful for any employer, insurance carrier,
10service adjustment company, third party administrator,
11self-insured, or similar entity to file or threaten to file a
12report of fraud against an employee because of the exercise by
13the employee of the rights and remedies granted to the
14employee by this Act.
15    (e-5) (Blank).
16    (f) Any person convicted of fraud related to workers'
17compensation pursuant to this Section shall be subject to the
18penalties prescribed in the Criminal Code of 2012 and shall be
19ineligible to receive or retain any compensation, disability,
20or medical benefits as defined in this Act if the
21compensation, disability, or medical benefits were owed or
22received as a result of fraud for which the recipient of the
23compensation, disability, or medical benefit was convicted.
24This subsection applies to accidental injuries or diseases
25that occur on or after the effective date of this amendatory
26Act of the 94th General Assembly.

 

 

SB1996 Enrolled- 104 -LRB103 28652 SPS 55033 b

1    (g) Civil liability. Any person convicted of fraud who
2knowingly obtains, attempts to obtain, or causes to be
3obtained any benefits under this Act by the making of a false
4claim or who knowingly misrepresents any material fact shall
5be civilly liable to the payor of benefits or the insurer or
6the payor's or insurer's subrogee or assignee in an amount
7equal to 3 times the value of the benefits or insurance
8coverage wrongfully obtained or twice the value of the
9benefits or insurance coverage attempted to be obtained, plus
10reasonable attorney's fees and expenses incurred by the payor
11or the payor's subrogee or assignee who successfully brings a
12claim under this subsection. This subsection applies to
13accidental injuries or diseases that occur on or after the
14effective date of this amendatory Act of the 94th General
15Assembly.
16    (h) The fraud and insurance non-compliance unit shall
17submit a written report on an annual basis to the Chairman of
18the Commission, the Workers' Compensation Advisory Board, the
19General Assembly, the Governor, and the Attorney General by
20January 1 and July 1 of each year. This report shall include,
21at the minimum, the following information:
22        (1) The number of allegations of insurance
23    non-compliance and fraud reported to the fraud and
24    insurance non-compliance unit.
25        (2) The source of the reported allegations
26    (individual, employer, or other).

 

 

SB1996 Enrolled- 105 -LRB103 28652 SPS 55033 b

1        (3) The number of allegations investigated by the
2    fraud and insurance non-compliance unit.
3        (4) The number of criminal referrals made in
4    accordance with this Section and the entity to which the
5    referral was made.
6        (5) All proceedings under this Section.
7        (6) Recommendations regarding opportunities for
8    additional fraud detection.
9(Source: P.A. 102-37, eff. 7-1-21.)
 
10    Section 99. Effective date. This Act takes effect upon
11becoming law.