98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB0115

 

Introduced 1/10/2013, by Rep. Dwight Kay

 

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 of Central Management Services shall charge the employing State agency for workers' compensation payments for medical expenses and temporary total disability benefits (now, just for temporary total disability) paid to any employee (now, the Department shall charge the State agency only after the employee has received temporary total disability payments for 120 days if the employee's physician has issued a release to return to work but the employing State agency does not return the employee to work).


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB0115LRB098 03991 HLH 34011 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    medical expenses and temporary total disability benefits
6    paid to any employee after the employee has received
7    temporary total disability payments for 120 days if the
8    employee's treating physician has issued a release to
9    return to work with restrictions and the employee is able
10    to perform modified duty work but the employing State
11    agency or university does not return the employee to work
12    at modified duty. Modified duty shall be duties assigned
13    that may or may not be delineated as part of the duties
14    regularly performed by the employee. Modified duties shall
15    be assigned within the prescribed restrictions established
16    by the treating physician and the physician who performed
17    the independent medical examination. The amount of all
18    reimbursements shall be deposited into the Workers'
19    Compensation Revolving Fund which is hereby created as a
20    revolving fund in the State treasury. In addition to any
21    other purpose authorized by law, moneys in the Fund shall
22    be used, subject to appropriation, to pay these medical or
23    other temporary total disability claims of employees of
24    State agencies and 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) Through December 31, 2012, establish rules,
5    procedures, and forms to be used by State agencies in the
6    administration and payment of workers' compensation
7    claims. Through December 31, 2012, the Department shall
8    initially evaluate and determine the compensability of any
9    injury that is the subject of a workers' compensation claim
10    and provide for the administration and payment of such a
11    claim for all State agencies. Through December 31, 2012,
12    the Director may delegate to any agency with the agreement
13    of the agency head the responsibility for evaluation,
14    administration, and payment of that agency's claims.
15        (10a) By April 1 of each year prior to calendar year
16    2013, the Director must report and provide information to
17    the State Workers' Compensation Program Advisory Board
18    concerning the status of the State workers' compensation
19    program for the next fiscal year. Information that the
20    Director must provide to the State Workers' Compensation
21    Program Advisory Board includes, but is not limited to,
22    documents, reports of negotiations, bid invitations,
23    requests for proposals, specifications, copies of proposed
24    and final contracts or agreements, and any other materials
25    concerning contracts or agreements for the program. By the
26    first of each month prior to calendar year 2013, the

 

 

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

 

 

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

 

 

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1        preferred provider discount rate.
2        (10e) By September 15, 2012, the Department of Central
3    Management Services shall prepare a plan to effectuate the
4    transfer of responsibility and administration of the
5    workers' compensation program for State employees to the
6    selected private vendors. The Department shall submit a
7    copy of the plan to the General Assembly.
8        (11) Any plan for public liability self-insurance
9    implemented under this Section shall provide that (i) the
10    Department shall attempt to settle and may settle any
11    public liability claim filed against the State of Illinois
12    or any public liability claim filed against a State
13    employee on the basis of an occurrence in the course of the
14    employee's State employment; (ii) any settlement of such a
15    claim is not subject to fiscal year limitations and must be
16    approved by the Director and, in cases of settlements
17    exceeding $100,000, by the Governor; and (iii) a settlement
18    of any public liability claim against the State or a State
19    employee shall require an unqualified release of any right
20    of action against the State and the employee for acts
21    within the scope of the employee's employment giving rise
22    to the claim.
23        Whenever and to the extent that a State employee
24    operates a motor vehicle or engages in other activity
25    covered by self-insurance under this Section, the State of
26    Illinois shall defend, indemnify, and hold harmless the

 

 

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

 

 

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

 

 

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

 

 

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1    implement a program for self-insurance for official
2    fidelity and surety bonds for officers and employees as
3    authorized by the Official Bond Act.
4(Source: P.A. 96-928, eff. 6-15-10; 97-18, eff. 6-28-11;
597-895, eff. 8-3-12.)