SB3430 EnrolledLRB097 19176 HLH 64418 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 Through December 31, 2012, establish
5    rules, procedures, and forms to be used by State agencies
6    in the administration and payment of workers' compensation
7    claims. For claims filed prior to July 1, 2013 Through
8    December 31, 2012, the Department shall initially evaluate
9    and determine the compensability of any injury that is the
10    subject of a workers' compensation claim and provide for
11    the administration and payment of such a claim for all
12    State agencies. For claims filed on or after July 1, 2013,
13    the Department shall retain responsibility for certain
14    administrative payments including, but not limited to,
15    payments to the private vendor contracted to perform
16    services under subdivision (10b) of this Section, payments
17    related to travel expenses for employees of the Office of
18    the Attorney General, and payments to internal Department
19    staff responsible for the oversight and management of any
20    contract awarded pursuant to subdivision (10b) of this
21    Section. Through December 31, 2012, the Director may
22    delegate to any agency with the agreement of the agency
23    head the responsibility for evaluation, administration,
24    and payment of that agency's claims. Neither the Department
25    nor the private vendor contracted to perform services under
26    subdivision (10b) of this Section shall be responsible for

 

 

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1    providing workers' compensation services to the Illinois
2    State Toll Highway Authority or to State universities that
3    maintain self-funded workers' compensation liability
4    programs.
5        (10a) By April 1 of each year prior to calendar year
6    2013, the Director must report and provide information to
7    the State Workers' Compensation Program Advisory Board
8    concerning the status of the State workers' compensation
9    program for the next fiscal year. Information that the
10    Director must provide to the State Workers' Compensation
11    Program Advisory Board includes, but is not limited to,
12    documents, reports of negotiations, bid invitations,
13    requests for proposals, specifications, copies of proposed
14    and final contracts or agreements, and any other materials
15    concerning contracts or agreements for the program. By the
16    first of each month prior to calendar year 2013, the
17    Director must provide updated, and any new, information to
18    the State Workers' Compensation Program Advisory Board
19    until the State workers' compensation program for the next
20    fiscal year is determined.
21        (10b) No later than January 1, 2013, the chief
22    procurement officer appointed under paragraph (4) of
23    subsection (a) of Section 10-20 of the Illinois Procurement
24    Code (hereinafter "chief procurement officer"), in
25    consultation with the Department of Central Management
26    Services, shall procure one or more private vendors to

 

 

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1    administer, beginning January 1, 2013, the program
2    providing payments for workers' compensation liability
3    with respect to the employees of all State agencies. The
4    chief procurement officer may procure a single contract
5    applicable to all State agencies or multiple contracts
6    applicable to one or more State agencies. If the chief
7    procurement officer procures a single contract applicable
8    to all State agencies, then the Department of Central
9    Management Services shall be designated as the agency that
10    enters into the contract and shall be responsible for the
11    contract. If the chief procurement officer procures
12    multiple contracts applicable to one or more State
13    agencies, each agency to which the contract applies shall
14    be designated as the agency that shall enter into the
15    contract and shall be responsible for the contract. If the
16    chief procurement officer procures contracts applicable to
17    an individual State agency, the agency subject to the
18    contract shall be designated as the agency responsible for
19    the contract.
20        (10c) The procurement of private vendors for the
21    administration of the workers' compensation program for
22    State employees is subject to the provisions of the
23    Illinois Procurement Code and administration by the chief
24    procurement officer.
25        (10d) Contracts for the procurement of private vendors
26    for the administration of the workers' compensation

 

 

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1    program for State employees shall be based upon, but
2    limited to, the following criteria: (i) administrative
3    cost, (ii) service capabilities of the vendor, and (iii)
4    the compensation (including premiums, fees, or other
5    charges). A vendor for the administration of the workers'
6    compensation program for State employees shall provide
7    services, including, but not limited to:
8            (A) providing a web-based case management system
9        and provide access to the Office of the Attorney
10        General;
11            (B) ensuring claims adjusters are available to
12        provide testimony or information as requested by the
13        Office of the Attorney General;
14            (C) establishing a preferred provider program for
15        all State agencies and facilities; and
16            (D) authorizing the payment of medical bills at the
17        preferred provider discount rate.
18        (10e) By September 15, 2012, the Department of Central
19    Management Services shall prepare a plan to effectuate the
20    transfer of responsibility and administration of the
21    workers' compensation program for State employees to the
22    selected private vendors. The Department shall submit a
23    copy of the plan to the General Assembly.
24        (11) Any plan for public liability self-insurance
25    implemented under this Section shall provide that (i) the
26    Department shall attempt to settle and may settle any

 

 

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1    public liability claim filed against the State of Illinois
2    or any public liability claim filed against a State
3    employee on the basis of an occurrence in the course of the
4    employee's State employment; (ii) any settlement of such a
5    claim is not subject to fiscal year limitations and must be
6    approved by the Director and, in cases of settlements
7    exceeding $100,000, by the Governor; and (iii) a settlement
8    of any public liability claim against the State or a State
9    employee shall require an unqualified release of any right
10    of action against the State and the employee for acts
11    within the scope of the employee's employment giving rise
12    to the claim.
13        Whenever and to the extent that a State employee
14    operates a motor vehicle or engages in other activity
15    covered by self-insurance under this Section, the State of
16    Illinois shall defend, indemnify, and hold harmless the
17    employee against any claim in tort filed against the
18    employee for acts or omissions within the scope of the
19    employee's employment in any proper judicial forum and not
20    settled pursuant to this subdivision (11), provided that
21    this obligation of the State of Illinois shall not exceed a
22    maximum liability of $2,000,000 for any single occurrence
23    in connection with the operation of a motor vehicle or
24    $100,000 per person per occurrence for any other single
25    occurrence, or $500,000 for any single occurrence in
26    connection with the provision of medical care by a licensed

 

 

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1    physician employee.
2        Any claims against the State of Illinois under a
3    self-insurance plan that are not settled pursuant to this
4    subdivision (11) shall be heard and determined by the Court
5    of Claims and may not be filed or adjudicated in any other
6    forum. The Attorney General of the State of Illinois or the
7    Attorney General's designee shall be the attorney with
8    respect to all public liability self-insurance claims that
9    are not settled pursuant to this subdivision (11) and
10    therefore result in litigation. The payment of any award of
11    the Court of Claims entered against the State relating to
12    any public liability self-insurance claim shall act as a
13    release against any State employee involved in the
14    occurrence.
15        (12) Administer a plan the purpose of which is to make
16    payments on final settlements or final judgments in
17    accordance with the State Employee Indemnification Act.
18    The plan shall be funded through appropriations from the
19    General Revenue Fund specifically designated for that
20    purpose, except that indemnification expenses for
21    employees of the Department of Transportation, the
22    Illinois State Police, and the Secretary of State shall be
23    paid from the Road Fund. The term "employee" as used in
24    this subdivision (12) has the same meaning as under
25    subsection (b) of Section 1 of the State Employee
26    Indemnification Act. Subject to sufficient appropriation,

 

 

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1    the Director shall approve payment of any claim, without
2    regard to fiscal year limitations, presented to the
3    Director that is supported by a final settlement or final
4    judgment when the Attorney General and the chief officer of
5    the public body against whose employee the claim or cause
6    of action is asserted certify to the Director that the
7    claim is in accordance with the State Employee
8    Indemnification Act and that they approve of the payment.
9    In no event shall an amount in excess of $150,000 be paid
10    from this plan to or for the benefit of any claimant.
11        (13) Administer a plan the purpose of which is to make
12    payments on final settlements or final judgments for
13    employee wage claims in situations where there was an
14    appropriation relevant to the wage claim, the fiscal year
15    and lapse period have expired, and sufficient funds were
16    available to pay the claim. The plan shall be funded
17    through appropriations from the General Revenue Fund
18    specifically designated for that purpose.
19        Subject to sufficient appropriation, the Director is
20    authorized to pay any wage claim presented to the Director
21    that is supported by a final settlement or final judgment
22    when the chief officer of the State agency employing the
23    claimant certifies to the Director that the claim is a
24    valid wage claim and that the fiscal year and lapse period
25    have expired. Payment for claims that are properly
26    submitted and certified as valid by the Director shall

 

 

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1    include interest accrued at the rate of 7% per annum from
2    the forty-fifth day after the claims are received by the
3    Department or 45 days from the date on which the amount of
4    payment is agreed upon, whichever is later, until the date
5    the claims are submitted to the Comptroller for payment.
6    When the Attorney General has filed an appearance in any
7    proceeding concerning a wage claim settlement or judgment,
8    the Attorney General shall certify to the Director that the
9    wage claim is valid before any payment is made. In no event
10    shall an amount in excess of $150,000 be paid from this
11    plan to or for the benefit of any claimant.
12        Nothing in Public Act 84-961 shall be construed to
13    affect in any manner the jurisdiction of the Court of
14    Claims concerning wage claims made against the State of
15    Illinois.
16        (14) Prepare and, in the discretion of the Director,
17    implement a program for self-insurance for official
18    fidelity and surety bonds for officers and employees as
19    authorized by the Official Bond Act.
20(Source: P.A. 96-928, eff. 6-15-10; 97-18, eff. 6-28-11;
2197-895, eff. 8-3-12.)
 
22    Section 99. Effective date. This Act takes effect upon
23becoming law.