97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB2148

 

Introduced 2/10/2011, by Sen. Emil Jones, III

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 405/405-105  was 20 ILCS 405/64.1

    Amends the Department of Central Management Services Law of the Civil Administrative Code of Illinois. Provides that the Department, when paying a wage claim, shall not include interest if the interest owed would be less than $5. Effective January 1, 2012.


LRB097 08336 PJG 48463 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB2148LRB097 08336 PJG 48463 b

1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Department of Central Management Services
5Law of the Civil Administrative Code of Illinois is amended by
6changing Section 405-105 as follows:
 
7    (20 ILCS 405/405-105)  (was 20 ILCS 405/64.1)
8    Sec. 405-105. Fidelity, surety, property, and casualty
9insurance. The Department shall establish and implement a
10program to coordinate the handling of all fidelity, surety,
11property, and casualty insurance exposures of the State and the
12departments, divisions, agencies, branches, and universities
13of the State. In performing this responsibility, the Department
14shall have the power and duty to do the following:
15        (1) Develop and maintain loss and exposure data on all
16    State property.
17        (2) Study the feasibility of establishing a
18    self-insurance plan for State property and prepare
19    estimates of the costs of reinsurance for risks beyond the
20    realistic limits of the self-insurance.
21        (3) Prepare a plan for centralizing the purchase of
22    property and casualty insurance on State property under a
23    master policy or policies and purchase the insurance

 

 

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1    contracted for as provided in the Illinois Purchasing Act.
2        (4) Evaluate existing provisions for fidelity bonds
3    required of State employees and recommend changes that are
4    appropriate commensurate with risk experience and the
5    determinations respecting self-insurance or reinsurance so
6    as to permit reduction of costs without loss of coverage.
7        (5) Investigate procedures for inclusion of school
8    districts, public community college districts, and other
9    units of local government in programs for the centralized
10    purchase of insurance.
11        (6) Implement recommendations of the State Property
12    Insurance Study Commission that the Department finds
13    necessary or desirable in the performance of its powers and
14    duties under this Section to achieve efficient and
15    comprehensive risk management.
16        (7) Prepare and, in the discretion of the Director,
17    implement a plan providing for the purchase of public
18    liability insurance or for self-insurance for public
19    liability or for a combination of purchased insurance and
20    self-insurance for public liability (i) covering the State
21    and drivers of motor vehicles owned, leased, or controlled
22    by the State of Illinois pursuant to the provisions and
23    limitations contained in the Illinois Vehicle Code, (ii)
24    covering other public liability exposures of the State and
25    its employees within the scope of their employment, and
26    (iii) covering drivers of motor vehicles not owned, leased,

 

 

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1    or controlled by the State but used by a State employee on
2    State business, in excess of liability covered by an
3    insurance policy obtained by the owner of the motor vehicle
4    or in excess of the dollar amounts that the Department
5    shall determine to be reasonable. Any contract of insurance
6    let under this Law shall be by bid in accordance with the
7    procedure set forth in the Illinois Purchasing Act. Any
8    provisions for self-insurance shall conform to subdivision
9    (11).
10        The term "employee" as used in this subdivision (7) and
11    in subdivision (11) means a person while in the employ of
12    the State who is a member of the staff or personnel of a
13    State agency, bureau, board, commission, committee,
14    department, university, or college or who is a State
15    officer, elected official, commissioner, member of or ex
16    officio member of a State agency, bureau, board,
17    commission, committee, department, university, or college,
18    or a member of the National Guard while on active duty
19    pursuant to orders of the Governor of the State of
20    Illinois, or any other person while using a licensed motor
21    vehicle owned, leased, or controlled by the State of
22    Illinois with the authorization of the State of Illinois,
23    provided the actual use of the motor vehicle is within the
24    scope of that authorization and within the course of State
25    service.
26        Subsequent to payment of a claim on behalf of an

 

 

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1    employee pursuant to this Section and after reasonable
2    advance written notice to the employee, the Director may
3    exclude the employee from future coverage or limit the
4    coverage under the plan if (i) the Director determines that
5    the claim resulted from an incident in which the employee
6    was grossly negligent or had engaged in willful and wanton
7    misconduct or (ii) the Director determines that the
8    employee is no longer an acceptable risk based on a review
9    of prior accidents in which the employee was at fault and
10    for which payments were made pursuant to this Section.
11        The Director is authorized to promulgate
12    administrative rules that may be necessary to establish and
13    administer the plan.
14        Appropriations from the Road Fund shall be used to pay
15    auto liability claims and related expenses involving
16    employees of the Department of Transportation, the
17    Illinois State Police, and the Secretary of State.
18        (8) Charge, collect, and receive from all other
19    agencies of the State government fees or monies equivalent
20    to the cost of purchasing the insurance.
21        (9) Establish, through the Director, charges for risk
22    management services rendered to State agencies by the
23    Department. The State agencies so charged shall reimburse
24    the Department by vouchers drawn against their respective
25    appropriations. The reimbursement shall be determined by
26    the Director as amounts sufficient to reimburse the

 

 

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1    Department for expenditures incurred in rendering the
2    service.
3        The Department shall charge the employing State agency
4    or university for workers' compensation payments for
5    temporary total disability paid to any employee after the
6    employee has received temporary total disability payments
7    for 120 days if the employee's treating physician has
8    issued a release to return to work with restrictions and
9    the employee is able to perform modified duty work but the
10    employing State agency or university does not return the
11    employee to work at modified duty. Modified duty shall be
12    duties assigned that may or may not be delineated as part
13    of the duties regularly performed by the employee. Modified
14    duties shall be assigned within the prescribed
15    restrictions established by the treating physician and the
16    physician who performed the independent medical
17    examination. The amount of all reimbursements shall be
18    deposited into the Workers' Compensation Revolving Fund
19    which is hereby created as a revolving fund in the State
20    treasury. In addition to any other purpose authorized by
21    law, moneys in the Fund shall be used, subject to
22    appropriation, to pay these or other temporary total
23    disability claims of employees of State agencies and
24    universities.
25        Beginning with fiscal year 1996, all amounts recovered
26    by the Department through subrogation in workers'

 

 

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1    compensation and workers' occupational disease cases shall
2    be deposited into the Workers' Compensation Revolving Fund
3    created under this subdivision (9).
4        (10) Establish rules, procedures, and forms to be used
5    by State agencies in the administration and payment of
6    workers' compensation claims. The Department shall
7    initially evaluate and determine the compensability of any
8    injury that is the subject of a workers' compensation claim
9    and provide for the administration and payment of such a
10    claim for all State agencies. The Director may delegate to
11    any agency with the agreement of the agency head the
12    responsibility for evaluation, administration, and payment
13    of that agency's claims.
14        (11) Any plan for public liability self-insurance
15    implemented under this Section shall provide that (i) the
16    Department shall attempt to settle and may settle any
17    public liability claim filed against the State of Illinois
18    or any public liability claim filed against a State
19    employee on the basis of an occurrence in the course of the
20    employee's State employment; (ii) any settlement of such a
21    claim is not subject to fiscal year limitations and must be
22    approved by the Director and, in cases of settlements
23    exceeding $100,000, by the Governor; and (iii) a settlement
24    of any public liability claim against the State or a State
25    employee shall require an unqualified release of any right
26    of action against the State and the employee for acts

 

 

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1    within the scope of the employee's employment giving rise
2    to the claim.
3        Whenever and to the extent that a State employee
4    operates a motor vehicle or engages in other activity
5    covered by self-insurance under this Section, the State of
6    Illinois shall defend, indemnify, and hold harmless the
7    employee against any claim in tort filed against the
8    employee for acts or omissions within the scope of the
9    employee's employment in any proper judicial forum and not
10    settled pursuant to this subdivision (11), provided that
11    this obligation of the State of Illinois shall not exceed a
12    maximum liability of $2,000,000 for any single occurrence
13    in connection with the operation of a motor vehicle or
14    $100,000 per person per occurrence for any other single
15    occurrence, or $500,000 for any single occurrence in
16    connection with the provision of medical care by a licensed
17    physician employee.
18        Any claims against the State of Illinois under a
19    self-insurance plan that are not settled pursuant to this
20    subdivision (11) shall be heard and determined by the Court
21    of Claims and may not be filed or adjudicated in any other
22    forum. The Attorney General of the State of Illinois or the
23    Attorney General's designee shall be the attorney with
24    respect to all public liability self-insurance claims that
25    are not settled pursuant to this subdivision (11) and
26    therefore result in litigation. The payment of any award of

 

 

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1    the Court of Claims entered against the State relating to
2    any public liability self-insurance claim shall act as a
3    release against any State employee involved in the
4    occurrence.
5        (12) Administer a plan the purpose of which is to make
6    payments on final settlements or final judgments in
7    accordance with the State Employee Indemnification Act.
8    The plan shall be funded through appropriations from the
9    General Revenue Fund specifically designated for that
10    purpose, except that indemnification expenses for
11    employees of the Department of Transportation, the
12    Illinois State Police, and the Secretary of State shall be
13    paid from the Road Fund. The term "employee" as used in
14    this subdivision (12) has the same meaning as under
15    subsection (b) of Section 1 of the State Employee
16    Indemnification Act. Subject to sufficient appropriation,
17    the Director shall approve payment of any claim, without
18    regard to fiscal year limitations, presented to the
19    Director that is supported by a final settlement or final
20    judgment when the Attorney General and the chief officer of
21    the public body against whose employee the claim or cause
22    of action is asserted certify to the Director that the
23    claim is in accordance with the State Employee
24    Indemnification Act and that they approve of the payment.
25    In no event shall an amount in excess of $150,000 be paid
26    from this plan to or for the benefit of any claimant.

 

 

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1        (13) Administer a plan the purpose of which is to make
2    payments on final settlements or final judgments for
3    employee wage claims in situations where there was an
4    appropriation relevant to the wage claim, the fiscal year
5    and lapse period have expired, and sufficient funds were
6    available to pay the claim. The plan shall be funded
7    through appropriations from the General Revenue Fund
8    specifically designated for that purpose.
9        Subject to sufficient appropriation, the Director is
10    authorized to pay any wage claim presented to the Director
11    that is supported by a final settlement or final judgment
12    when the chief officer of the State agency employing the
13    claimant certifies to the Director that the claim is a
14    valid wage claim and that the fiscal year and lapse period
15    have expired. Except when the interest owed would be less
16    than $5, payment Payment for claims that are properly
17    submitted and certified as valid by the Director shall
18    include interest accrued at the rate of 7% per annum from
19    the forty-fifth day after the claims are received by the
20    Department or 45 days from the date on which the amount of
21    payment is agreed upon, whichever is later, until the date
22    the claims are submitted to the Comptroller for payment.
23    When the Attorney General has filed an appearance in any
24    proceeding concerning a wage claim settlement or judgment,
25    the Attorney General shall certify to the Director that the
26    wage claim is valid before any payment is made. In no event

 

 

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1    shall an amount in excess of $150,000 be paid from this
2    plan to or for the benefit of any claimant.
3        Nothing in Public Act 84-961 shall be construed to
4    affect in any manner the jurisdiction of the Court of
5    Claims concerning wage claims made against the State of
6    Illinois.
7        (14) Prepare and, in the discretion of the Director,
8    implement a program for self-insurance for official
9    fidelity and surety bonds for officers and employees as
10    authorized by the Official Bond Act.
11(Source: P.A. 96-928, eff. 6-15-10.)
 
12    Section 99. Effective date. This Act takes effect January
131, 2012.