093_HB3296

 
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 1        AN ACT concerning health care assistance.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  1.  Short  title.  This  Act may be cited as the
 5    Secured Health Care Assistance Retiree Exemption (SHARE) Act.

 6        Section 5.  Definitions.  As used in this Act, unless the
 7    context clearly indicates otherwise:
 8        "Board" means the Secured Health Care Assistance  Retiree
 9    Board.
10        "Department" means the Department of Labor.
11        "Eligible  retirees" means any resident of this State who
12    is a retiree of a company that paid health care benefits that
13    were established by contract or by  a  collective  bargaining
14    agreement  and that have expired due to the bankruptcy of the
15    company. The term shall also include the surviving spouse  or
16    dependents of any eligible retiree.
17        "Fund"  means  the Secured Health Care Assistance Retiree
18    Trust Fund.
19        "Medicare" means the Federal  program  established  under
20    Title XVIII of the Social Security Act.
21        "Program"   means  the  Secured  Health  Care  Assistance
22    Retiree Program established under Section 20.

23        Section  10.  Secured  Health  Care  Assistance   Retiree
24    Board.
25        (a)  There  is hereby established the Secured Health Care
26    Assistance Retiree Board as a Board under the Department.
27        (b)  The Board shall consist of 9  members  appointed  by
28    the  Governor,  at  least  3  of  whom are representatives of
29    organized labor, including one representing steelworkers.
30        (c)  Members of the Board shall receive  no  compensation
 
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 1    for   their  services  but  shall  be  reimbursed  for  their
 2    necessary expenses incurred while serving as Board members.
 3        (d)  A vacancy on  the  Board  shall  be  filled  by  the
 4    Governor for the balance of the term.
 5        (e)  Members  of  the  Board shall serve terms of 4 years
 6    and until a successor is appointed and qualified. Members may
 7    serve only 2 consecutive full terms. Any member of the  Board
 8    may  be removed by the Governor or by a majority of the other
 9    Board members for malfeasance in office,  failure  to  attend
10    regularly  scheduled  meetings, or any cause that renders the
11    member incapable of or unfit to discharge his or her duties.
12        (f)  Meetings of the Board shall be subject to  the  Open
13    Meetings  Act.  A quorum for a meeting shall be a majority of
14    the total membership of the Board. Any action  of  the  Board
15    requires the affirmative vote of a majority of a quorum.

16        Section  15.  Powers  and duties of the Board.  The Board
17    shall have the duty and the power to (i) implement  a  health
18    care  benefits  program  pursuant  to  Section  20;  and (ii)
19    administer the Fund established under Section 25.

20        Section  20.  Secured  Health  Care  Assistance   Retiree
21    Program.
22        (a)  The  Board  shall  implement the Secured Health Care
23    Assistance Retiree Program to provide group health plans  for
24    eligible retirees.
25        (b)  The  Board  shall model the structure of the program
26    on the structure of the Children's Health  Insurance  Program
27    under  the Children's Health Insurance Program Act. The Board
28    shall structure the program so that it includes the following
29    provisions:
30             (1)  Eligible retirees who are eligible  to  receive
31        Medicare  shall  enroll  or  continue to be enrolled in a
32        Medicare program.  The  program  shall  provide  for  the
 
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 1        enrollment  of  the eligible retirees who are eligible to
 2        receive Medicare in  a  commercially  available  Medicare
 3        supplement  plan. Additionally, the program shall provide
 4        for the enrollment of eligible retirees who are  eligible
 5        to   receive   Medicare   in   a  commercially  available
 6        prescription  drug   coverage   plan   to   provide   for
 7        prescription  drugs not covered under the Senior Citizens
 8        and   Disabled   Persons   Property   Tax   Relief    and
 9        Pharmaceutical  Assistance Act, the SeniorRx Care program
10        established under Section 5-5.12a of the Illinois  Public
11        Aid  Code,  or any other similar program. The Board shall
12        set the amount of monthly premiums to be paid by eligible
13        retirees who are eligible to  receive  Medicare  and  the
14        amount of copayment required for prescription drugs.
15             (2)  Eligible  retirees  who  are  not  eligible for
16        Medicare shall be provided enrollment in  a  commercially
17        available  health  care  plan that offers a comprehensive
18        benefit package and a commercially available prescription
19        drug coverage plan with coverages and benefits similar to
20        those they had or did receive from their prior  employer.
21        The  Board shall set the amount of monthly premiums to be
22        paid by  eligible  retirees  who  are  not  eligible  for
23        Medicare   and  the  amount  of  copayment  required  for
24        prescription drugs. Any eligible retiree under this  item
25        (2)  who subsequently becomes eligible for Medicare shall
26        be required to meet the requirements of item (1) of  this
27        subsection  (b)  and  any  other  requirements set by the
28        Board.
29             (3)  The Board shall make  every  effort  to  ensure
30        that administration costs are kept at a minimum.
31             (4)  The  Board  shall  make  every effort to ensure
32        that  all  applicable  insurance  companies   and   other
33        entities participate in the program.
34        (c)  If the federal government enacts a program providing
 
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 1    benefits  comparable  to  those  contained  in  this  Act  as
 2    determined by the Board, then the program established by this
 3    Act shall be discontinued.
 4        (d)  If  the federal government enacts a program that the
 5    Board  determines  not  to  be  comparable  to  the   program
 6    established  by  this  Act, the Board shall have the power to
 7    provide additional group health plan  coverage  and  benefits
 8    that supplement that program.

 9        Section 25.  Secured Health Care Assistance Retiree Trust
10    Fund.
11        (a)  The  Secured  Health  Care  Assistance Retiree Trust
12    Fund is created a special fund in the  State  Treasury.   All
13    interest  earned  from  the  investment  or deposit of moneys
14    accumulated in the Fund shall be deposited in  the  Fund  for
15    the same use.
16        (b)  All  moneys  deposited  into the Fund shall be used,
17    subject to appropriation, only to effectuate the purposes  of
18    this Act as determined by the Board.
19        (c)  The  proceeds  realized from the sale of bonds under
20    Section 7.7 of the General Obligation Bond Act shall be  paid
21    into  the  Fund and are specifically dedicated to the purpose
22    of this Act.

23        Section 905.  The State Finance Act is amended by  adding
24    Section 5.595 as follows:

25        (30 ILCS 105/5.595 new)
26        Sec.  5.595.  The  Secured Health Care Assistance Retiree
27    Trust Fund.

28        Section 910.  The General Obligation Bond Act is  amended
29    by changing Section 2 and adding Section 7.7 as follows:
 
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 1        (30 ILCS 330/2) (from Ch. 127, par. 652)
 2        Sec.  2.  Authorization for Bonds.  The State of Illinois
 3    is authorized to issue, sell and provide for  the  retirement
 4    of  General Obligation Bonds of the State of Illinois for the
 5    categories and specific  purposes  expressed  in  Sections  2
 6    through 8 of this Act, in the total amount of $17,883,149,369
 7    $17,658,149,369 $16,908,149,369 $16,015,007,500.
 8        The  bonds authorized in this Section 2 and in Section 16
 9    of this Act are herein called "Bonds".
10        Of the total amount of Bonds authorized in this  Act,  up
11    to  $2,200,000,000 in aggregate original principal amount may
12    be issued and  sold  in  accordance  with  the  Baccalaureate
13    Savings Act in the form of General Obligation College Savings
14    Bonds.
15        Of  the  total amount of Bonds authorized in this Act, up
16    to $300,000,000 in aggregate original principal amount may be
17    issued and sold in accordance with the Retirement Savings Act
18    in the form of General Obligation Retirement Savings Bonds.
19        The issuance and sale of Bonds pursuant  to  the  General
20    Obligation  Bond Act is an economical and efficient method of
21    financing the capital and  general  operating  needs  of  the
22    State.   This Act will permit the issuance of a multi-purpose
23    General Obligation Bond  with  uniform  terms  and  features.
24    This  will  not  only lower the cost of registration but also
25    reduce the overall cost of  issuing  debt  by  improving  the
26    marketability of Illinois General Obligation Bonds.
27    (Source:  P.A.  91-39,  eff.  6-15-99;  91-53,  eff  6-30-99;
28    91-710,  eff.  5-17-00;  92-13,  eff.  6-22-01;  92-596, eff.
29    6-28-02; 92-598, eff. 6-28-02; revised 10-8-02.)

30        (30 ILCS 330/7.7 new)
31        Sec. 7.7.  Retiree healthcare assistance. The  amount  of
32    $225,000,000  is  authorized  to  be used to fund the Secured
33    Health Care Assistance Retiree Trust Fund, which  Fund  shall
 
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 1    be  used  as  provided  in the Secured Health Care Assistance
 2    Retiree Exemption (SHARE) Act.
 3        Retiree healthcare assistance bonds issued under this Act
 4    and the income derived therefrom are free from  all  taxation
 5    by  the  State  or  its  political  subdivisions,  except for
 6    estate, transfer, and  inheritance  taxes.  For  purposes  of
 7    Section  250 of the Illinois Income Tax Act, the exemption of
 8    the income from retiree healthcare  assistance  bonds  issued
 9    under  this  Act  shall terminate after all of the bonds have
10    been paid. The amount of income that shall be added and  then
11    subtracted  on  the Illinois income tax return of a taxpayer,
12    pursuant to Section 203 of the Illinois Income Tax Act,  from
13    federal  adjusted  gross  income or federal taxable income in
14    computing Illinois base income shall be the interest  net  of
15    any bond premium amortization.