Rep. Frank J. Mautino

Filed: 11/26/2012

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 3430

2    AMENDMENT NO. ______. Amend Senate Bill 3430 by replacing
3everything after the enacting clause with the following:
 
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.

 

 

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1        (2) Study the feasibility of establishing a
2    self-insurance plan for State property and prepare
3    estimates of the costs of reinsurance for risks beyond the
4    realistic limits of the self-insurance.
5        (3) Prepare a plan for centralizing the purchase of
6    property and casualty insurance on State property under a
7    master policy or policies and purchase the insurance
8    contracted for as provided in the Illinois Purchasing Act.
9        (4) Evaluate existing provisions for fidelity bonds
10    required of State employees and recommend changes that are
11    appropriate commensurate with risk experience and the
12    determinations respecting self-insurance or reinsurance so
13    as to permit reduction of costs without loss of coverage.
14        (5) Investigate procedures for inclusion of school
15    districts, public community college districts, and other
16    units of local government in programs for the centralized
17    purchase of insurance.
18        (6) Implement recommendations of the State Property
19    Insurance Study Commission that the Department finds
20    necessary or desirable in the performance of its powers and
21    duties under this Section to achieve efficient and
22    comprehensive risk management.
23        (7) Prepare and, in the discretion of the Director,
24    implement a plan providing for the purchase of public
25    liability insurance or for self-insurance for public
26    liability or for a combination of purchased insurance and

 

 

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1    self-insurance for public liability (i) covering the State
2    and drivers of motor vehicles owned, leased, or controlled
3    by the State of Illinois pursuant to the provisions and
4    limitations contained in the Illinois Vehicle Code, (ii)
5    covering other public liability exposures of the State and
6    its employees within the scope of their employment, and
7    (iii) covering drivers of motor vehicles not owned, leased,
8    or controlled by the State but used by a State employee on
9    State business, in excess of liability covered by an
10    insurance policy obtained by the owner of the motor vehicle
11    or in excess of the dollar amounts that the Department
12    shall determine to be reasonable. Any contract of insurance
13    let under this Law shall be by bid in accordance with the
14    procedure set forth in the Illinois Purchasing Act. Any
15    provisions for self-insurance shall conform to subdivision
16    (11).
17        The term "employee" as used in this subdivision (7) and
18    in subdivision (11) means a person while in the employ of
19    the State who is a member of the staff or personnel of a
20    State agency, bureau, board, commission, committee,
21    department, university, or college or who is a State
22    officer, elected official, commissioner, member of or ex
23    officio member of a State agency, bureau, board,
24    commission, committee, department, university, or college,
25    or a member of the National Guard while on active duty
26    pursuant to orders of the Governor of the State of

 

 

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1    Illinois, or any other person while using a licensed motor
2    vehicle owned, leased, or controlled by the State of
3    Illinois with the authorization of the State of Illinois,
4    provided the actual use of the motor vehicle is within the
5    scope of that authorization and within the course of State
6    service.
7        Subsequent to payment of a claim on behalf of an
8    employee pursuant to this Section and after reasonable
9    advance written notice to the employee, the Director may
10    exclude the employee from future coverage or limit the
11    coverage under the plan if (i) the Director determines that
12    the claim resulted from an incident in which the employee
13    was grossly negligent or had engaged in willful and wanton
14    misconduct or (ii) the Director determines that the
15    employee is no longer an acceptable risk based on a review
16    of prior accidents in which the employee was at fault and
17    for which payments were made pursuant to this Section.
18        The Director is authorized to promulgate
19    administrative rules that may be necessary to establish and
20    administer the plan.
21        Appropriations from the Road Fund shall be used to pay
22    auto liability claims and related expenses involving
23    employees of the Department of Transportation, the
24    Illinois State Police, and the Secretary of State.
25        (8) Charge, collect, and receive from all other
26    agencies of the State government fees or monies equivalent

 

 

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1    to the cost of purchasing the insurance.
2        (9) Establish, through the Director, charges for risk
3    management services rendered to State agencies by the
4    Department. The State agencies so charged shall reimburse
5    the Department by vouchers drawn against their respective
6    appropriations. The reimbursement shall be determined by
7    the Director as amounts sufficient to reimburse the
8    Department for expenditures incurred in rendering the
9    service.
10        The Department shall charge the employing State agency
11    or university for workers' compensation payments for
12    temporary total disability paid to any employee after the
13    employee has received temporary total disability payments
14    for 120 days if the employee's treating physician has
15    issued a release to return to work with restrictions and
16    the employee is able to perform modified duty work but the
17    employing State agency or university does not return the
18    employee to work at modified duty. Modified duty shall be
19    duties assigned that may or may not be delineated as part
20    of the duties regularly performed by the employee. Modified
21    duties shall be assigned within the prescribed
22    restrictions established by the treating physician and the
23    physician who performed the independent medical
24    examination. The amount of all reimbursements shall be
25    deposited into the Workers' Compensation Revolving Fund
26    which is hereby created as a revolving fund in the State

 

 

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1    treasury. In addition to any other purpose authorized by
2    law, moneys in the Fund shall be used, subject to
3    appropriation, to pay these or other temporary total
4    disability claims of employees of State agencies and
5    universities.
6        Beginning with fiscal year 1996, all amounts recovered
7    by the Department through subrogation in workers'
8    compensation and workers' occupational disease cases shall
9    be deposited into the Workers' Compensation Revolving Fund
10    created under this subdivision (9).
11        (10) Establish Through December 31, 2012, establish
12    rules, procedures, and forms to be used by State agencies
13    in the administration and payment of workers' compensation
14    claims. For claims filed prior to July 1, 2013 Through
15    December 31, 2012, the Department shall initially evaluate
16    and determine the compensability of any injury that is the
17    subject of a workers' compensation claim and provide for
18    the administration and payment of such a claim for all
19    State agencies. For claims filed on or after July 1, 2013,
20    the Department shall retain responsibility for certain
21    administrative payments including, but not limited to,
22    payments to the private vendor contracted to perform
23    services under subdivision (10b) of this Section, payments
24    related to travel expenses for employees of the Office of
25    the Attorney General, and payments to internal Department
26    staff responsible for the oversight and management of any

 

 

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1    contract awarded pursuant to subdivision (10b) of this
2    Section. Through December 31, 2012, the Director may
3    delegate to any agency with the agreement of the agency
4    head the responsibility for evaluation, administration,
5    and payment of that agency's claims. Neither the Department
6    nor the private vendor contracted to perform services under
7    subdivision (10b) of this Section shall be responsible for
8    providing workers' compensation services to State agencies
9    and universities that maintain self-funded workers'
10    compensation liability programs.
11        (10a) By April 1 of each year prior to calendar year
12    2013, the Director must report and provide information to
13    the State Workers' Compensation Program Advisory Board
14    concerning the status of the State workers' compensation
15    program for the next fiscal year. Information that the
16    Director must provide to the State Workers' Compensation
17    Program Advisory Board includes, but is not limited to,
18    documents, reports of negotiations, bid invitations,
19    requests for proposals, specifications, copies of proposed
20    and final contracts or agreements, and any other materials
21    concerning contracts or agreements for the program. By the
22    first of each month prior to calendar year 2013, the
23    Director must provide updated, and any new, information to
24    the State Workers' Compensation Program Advisory Board
25    until the State workers' compensation program for the next
26    fiscal year is determined.

 

 

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1        (10b) No later than January 1, 2013, the chief
2    procurement officer appointed under paragraph (4) of
3    subsection (a) of Section 10-20 of the Illinois Procurement
4    Code (hereinafter "chief procurement officer"), in
5    consultation with the Department of Central Management
6    Services, shall procure one or more private vendors to
7    administer, beginning January 1, 2013, the program
8    providing payments for workers' compensation liability
9    with respect to the employees of all State agencies. The
10    chief procurement officer may procure a single contract
11    applicable to all State agencies or multiple contracts
12    applicable to one or more State agencies. If the chief
13    procurement officer procures a single contract applicable
14    to all State agencies, then the Department of Central
15    Management Services shall be designated as the agency that
16    enters into the contract and shall be responsible for the
17    contract. If the chief procurement officer procures
18    multiple contracts applicable to one or more State
19    agencies, each agency to which the contract applies shall
20    be designated as the agency that shall enter into the
21    contract and shall be responsible for the contract. If the
22    chief procurement officer procures contracts applicable to
23    an individual State agency, the agency subject to the
24    contract shall be designated as the agency responsible for
25    the contract.
26        (10c) The procurement of private vendors for the

 

 

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

 

 

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1    workers' compensation program for State employees to the
2    selected private vendors. The Department shall submit a
3    copy of the plan to the General Assembly.
4        (11) Any plan for public liability self-insurance
5    implemented under this Section shall provide that (i) the
6    Department shall attempt to settle and may settle any
7    public liability claim filed against the State of Illinois
8    or any public liability claim filed against a State
9    employee on the basis of an occurrence in the course of the
10    employee's State employment; (ii) any settlement of such a
11    claim is not subject to fiscal year limitations and must be
12    approved by the Director and, in cases of settlements
13    exceeding $100,000, by the Governor; and (iii) a settlement
14    of any public liability claim against the State or a State
15    employee shall require an unqualified release of any right
16    of action against the State and the employee for acts
17    within the scope of the employee's employment giving rise
18    to the claim.
19        Whenever and to the extent that a State employee
20    operates a motor vehicle or engages in other activity
21    covered by self-insurance under this Section, the State of
22    Illinois shall defend, indemnify, and hold harmless the
23    employee against any claim in tort filed against the
24    employee for acts or omissions within the scope of the
25    employee's employment in any proper judicial forum and not
26    settled pursuant to this subdivision (11), provided that

 

 

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1    this obligation of the State of Illinois shall not exceed a
2    maximum liability of $2,000,000 for any single occurrence
3    in connection with the operation of a motor vehicle or
4    $100,000 per person per occurrence for any other single
5    occurrence, or $500,000 for any single occurrence in
6    connection with the provision of medical care by a licensed
7    physician employee.
8        Any claims against the State of Illinois under a
9    self-insurance plan that are not settled pursuant to this
10    subdivision (11) shall be heard and determined by the Court
11    of Claims and may not be filed or adjudicated in any other
12    forum. The Attorney General of the State of Illinois or the
13    Attorney General's designee shall be the attorney with
14    respect to all public liability self-insurance claims that
15    are not settled pursuant to this subdivision (11) and
16    therefore result in litigation. The payment of any award of
17    the Court of Claims entered against the State relating to
18    any public liability self-insurance claim shall act as a
19    release against any State employee involved in the
20    occurrence.
21        (12) Administer a plan the purpose of which is to make
22    payments on final settlements or final judgments in
23    accordance with the State Employee Indemnification Act.
24    The plan shall be funded through appropriations from the
25    General Revenue Fund specifically designated for that
26    purpose, except that indemnification expenses for

 

 

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

 

 

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

 

 

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197-895, eff. 8-3-12.)
 
2    Section 99. Effective date. This Act takes effect upon
3becoming law.".