93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
HB6892

 

Introduced 02/09/04, by Terry R. Parke

 

SYNOPSIS AS INTRODUCED:
 
215 ILCS 5/416
820 ILCS 305/4d

    Amends the Illinois Insurance Code. Provides that the Industrial Commission Operations Fund Surcharge shall not be imposed on and after July 1, 2004, and that this does not affect the powers and duties of the Director of Insurance with regard to any payments due before July 1, 2004 and any deliquencies, penalties, and overpayments with respect to those payments. Amends the Worker's Compensation Act. Provides that the Industrial Commission Operations Fund Fee shall not be imposed on and after July 1, 2004, and that this does not affect the powers and duties of the Chairman of the Commission with regard to any payments due before July 1, 2004 and any deliquencies, penalties, and overpayments with respect to those payments. Effective July 1, 2004.


LRB093 20628 SAS 46463 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB6892 LRB093 20628 SAS 46463 b

1     AN ACT concerning the Industrial Commission Operations
2 Fund.
 
3     Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
 
5     Section 5. The Illinois Insurance Code is amended by
6 changing Section 416 as follows:
 
7     (215 ILCS 5/416)
8     Sec. 416. Industrial Commission Operations Fund Surcharge.
9     (a) As of the effective date of this amendatory Act of the
10 93rd General Assembly, every company licensed or authorized by
11 the Illinois Department of Insurance and insuring employers'
12 liabilities arising under the Workers' Compensation Act or the
13 Workers' Occupational Diseases Act shall remit to the Director
14 a surcharge based upon the annual direct written premium, as
15 reported under Section 136 of this Act, of the company in the
16 manner provided in this Section. Such proceeds shall be
17 deposited into the Industrial Commission Operations Fund as
18 established in the Workers' Compensation Act. If a company
19 survives or was formed by a merger, consolidation,
20 reorganization, or reincorporation, the direct written
21 premiums of all companies party to the merger, consolidation,
22 reorganization, or reincorporation shall, for purposes of
23 determining the amount of the fee imposed by this Section, be
24 regarded as those of the surviving or new company.
25     (b)(1) (Blank). Except as provided in subsection (b)(2) of
26 this Section, beginning on July 1, 2004 and each year
27 thereafter, the Director shall charge an annual Industrial
28 Commission Operations Fund Surcharge from every company
29 subject to subsection (a) of this Section equal to 1.5% of its
30 direct written premium for insuring employers' liabilities
31 arising under the Workers' Compensation Act or Workers'
32 Occupational Diseases Act as reported in each company's annual

 

 

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1 statement filed for the previous year as required by Section
2 136. The Industrial Commission Operations Fund Surcharge shall
3 be collected by companies subject to subsection (a) of this
4 Section as a separately stated surcharge on insured employers
5 at the rate of 1.5% of direct written premium. All sums
6 collected by the Department of Insurance under the provisions
7 of this Section shall be paid promptly after the receipt of the
8 same, accompanied by a detailed statement thereof, into the
9 Industrial Commission Operations Fund in the State treasury.
10     (b)(2) Prior to July 1, 2004, the Director shall charge and
11 collect the surcharge set forth in subparagraph (b)(1) of this
12 Section on or before September 1, 2003, December 1, 2003, March
13 1, 2004 and June 1, 2004. For purposes of this subsection
14 (b)(2), the company shall remit the amounts to the Director
15 based on estimated direct premium for each quarter beginning on
16 July 1, 2003, together with a sworn statement attesting to the
17 reasonableness of the estimate, and the estimated amount of
18 direct premium written forming the bases of the remittance.
19     (c) In addition to the authority specifically granted under
20 Article XXV of this Code, the Director shall have such
21 authority to adopt rules or establish forms as may be
22 reasonably necessary for purposes of enforcing this Section.
23 The Director shall also have authority to defer, waive, or
24 abate the surcharge or any penalties imposed by this Section if
25 in the Director's opinion the company's solvency and ability to
26 meet its insured obligations would be immediately threatened by
27 payment of the surcharge due.
28     (d) When a company fails to pay the full amount of any
29 annual Industrial Commission Operations Fund Surcharge of $100
30 or more due under this Section, there shall be added to the
31 amount due as a penalty the greater of $1,000 or an amount
32 equal to 5% of the deficiency for each month or part of a month
33 that the deficiency remains unpaid.
34     (e) The Department of Insurance may enforce the collection
35 of any delinquent payment, penalty, or portion thereof by legal
36 action or in any other manner by which the collection of debts

 

 

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1 due the State of Illinois may be enforced under the laws of
2 this State.
3     (f) Whenever it appears to the satisfaction of the Director
4 that a company has paid pursuant to this Act an Industrial
5 Commission Operations Fund Surcharge in an amount in excess of
6 the amount legally collectable from the company, the Director
7 shall issue a credit memorandum for an amount equal to the
8 amount of such overpayment. A credit memorandum may be applied
9 for the 2-year period from the date of issuance, against the
10 payment of any amount due during that period under the
11 surcharge imposed by this Section or, subject to reasonable
12 rule of the Department of Insurance including requirement of
13 notification, may be assigned to any other company subject to
14 regulation under this Act. Any application of credit memoranda
15 after the period provided for in this Section is void.
16     (g) Annually, the Governor may direct a transfer of up to
17 2% of all moneys collected under this Section to the Insurance
18 Financial Regulation Fund.
19     (h) Notwithstanding any other provision of this Section,
20 the Industrial Commission Operations Fund Surcharge shall not
21 be imposed on and after July 1, 2004. This subsection (h) does
22 not affect the powers and duties of the Director under this
23 Section with regard to payments due under subsection (b)(2) and
24 any deliquencies, penalties, and overpayments with respect to
25 payments due under subsection (b)(2).
26 (Source: P.A. 93-32, eff. 6-20-03.)
 
27     Section 10. The Workers' Compensation Act is amended by
28 changing Section 4d as follows:
 
29     (820 ILCS 305/4d)
30     Sec. 4d. Industrial Commission Operations Fund Fee.
31     (a) As of the effective date of this amendatory Act of the
32 93rd General Assembly, each employer that self-insures its
33 liabilities arising under this Act or Workers' Occupational
34 Diseases Act shall pay a fee measured by the annual actual

 

 

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1 wages paid in this State of such an employer in the manner
2 provided in this Section. Such proceeds shall be deposited in
3 the Industrial Commission Operations Fund. If an employer
4 survives or was formed by a merger, consolidation,
5 reorganization, or reincorporation, the actual wages paid in
6 this State of all employers party to the merger, consolidation,
7 reorganization, or reincorporation shall, for purposes of
8 determining the amount of the fee imposed by this Section, be
9 regarded as those of the surviving or new employer.
10     (b) (Blank). Beginning on the effective date of this
11 amendatory Act of the 93rd General Assembly and on July 1 of
12 each year thereafter, the Chairman shall charge and collect an
13 annual Industrial Commission Operations Fund Fee from every
14 employer subject to subsection (a) of this Section equal to
15 0.045% of its annual actual wages paid in this State as
16 reported in each employer's annual self-insurance renewal
17 filed for the previous year as required by Section 4 of this
18 Act and Section 4 of the Workers' Occupational Diseases Act.
19 All sums collected by the Commission under the provisions of
20 this Section shall be paid promptly after the receipt of the
21 same, accompanied by a detailed statement thereof, into the
22 Industrial Commission Operations Fund.
23     (c) In addition to the authority specifically granted under
24 Section 16, the Chairman shall have such authority to adopt
25 rules or establish forms as may be reasonably necessary for
26 purposes of enforcing this Section. The Commission shall have
27 authority to defer, waive, or abate the fee or any penalties
28 imposed by this Section if in the Commission's opinion the
29 employer's solvency and ability to meet its obligations to pay
30 workers' compensation benefits would be immediately threatened
31 by payment of the fee due.
32     (d) When an employer fails to pay the full amount of any
33 annual Industrial Commission Operations Fund Fee of $100 or
34 more due under this Section, there shall be added to the amount
35 due as a penalty the greater of $1,000 or an amount equal to 5%
36 of the deficiency for each month or part of a month that the

 

 

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1 deficiency remains unpaid.
2     (e) The Commission may enforce the collection of any
3 delinquent payment, penalty or portion thereof by legal action
4 or in any other manner by which the collection of debts due the
5 State of Illinois may be enforced under the laws of this State.
6     (f) Whenever it appears to the satisfaction of the Chairman
7 that an employer has paid pursuant to this Act an Industrial
8 Commission Operations Fund Fee in an amount in excess of the
9 amount legally collectable from the employer, the Chairman
10 shall issue a credit memorandum for an amount equal to the
11 amount of such overpayment. A credit memorandum may be applied
12 for the 2-year period from the date of issuance against the
13 payment of any amount due during that period under the fee
14 imposed by this Section or, subject to reasonable rule of the
15 Commission including requirement of notification, may be
16 assigned to any other employer subject to regulation under this
17 Act. Any application of credit memoranda after the period
18 provided for in this Section is void.
19     (g) Notwithstanding any other provision of this Section,
20 the Industrial Commission Operations Fund Fee shall not be
21 imposed on and after July 1, 2004. This subsection (g) does not
22 affect the powers and duties of the Chairman under this Section
23 with regard to payments that were due under subsection (b)
24 through June 30, 2004 and any deliquencies, penalties, and
25 overpayments with respect to those payments.
26 (Source: P.A. 93-32, eff. 6-20-03.)
 
27     Section 99. Effective date. This Act takes effect July 1,
28 2004.