98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB1726

 

Introduced 2/15/2013, by Sen. John G. Mulroe

 

SYNOPSIS AS INTRODUCED:
 
5 ILCS 220/6  from Ch. 127, par. 746

    Amends the Intergovernmental Cooperation Act. Provides that any intergovernmental contract for joint self-insurance among public agency members that is executed, amended, or renewed on or after the effective date of the amendatory Act must authorize a public agency member to terminate its participation in the joint insurance pool or intergovernmental cooperative after giving written notice to the joint insurance pool or intergovernmental cooperative (i) at least 90 days before terminating its participation in the joint insurance pool or intergovernmental cooperative or (ii) after some shorter period of time if mutually agreed upon by the parties to the contract.


LRB098 07701 JDS 37777 b

 

 

A BILL FOR

 

SB1726LRB098 07701 JDS 37777 b

1    AN ACT concerning government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Intergovernmental Cooperation Act is
5amended by changing Section 6 as follows:
 
6    (5 ILCS 220/6)  (from Ch. 127, par. 746)
7    Sec. 6. Joint self-insurance. An intergovernmental
8contract may, among other undertakings, authorize public
9agencies to jointly self-insure and authorize each public
10agency member of the contract to utilize its funds to pay to a
11joint insurance pool its costs and reserves to protect, wholly
12or partially, itself or any public agency member of the
13contract against liability or loss in the designated insurable
14area. A joint insurance pool shall have an annual audit
15performed by an independent certified public accountant and
16shall file an annual audited financial report with the Director
17of Insurance no later than 150 days after the end of the pool's
18immediately preceding fiscal year. The Director of Insurance
19shall issue rules necessary to implement this audit and report
20requirement. The rule shall establish the due date for filing
21the initial annual audited financial report. Within 30 days
22after January 1, 1991, and within 30 days after each January 1
23thereafter, public agencies that are jointly self-insured to

 

 

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1protect against liability under the Workers' Compensation Act
2and the Workers' Occupational Diseases Act shall file with the
3Illinois Workers' Compensation Commission a report indicating
4an election to self-insure.
5    For purposes of this Section, "public agency member" means
6any public agency defined or created under this Act, any local
7public entity as defined in Section 1-206 of the Local
8Governmental and Governmental Employees Tort Immunity Act, and
9any public agency, authority, instrumentality, council, board,
10service region, district, unit, bureau, or, commission, or any
11municipal corporation, college, or university, whether
12corporate or otherwise, and any other local governmental body
13or similar entity that is presently existing or created after
14the effective date of this amendatory Act of the 92nd General
15Assembly, whether or not specified in this Section. Only public
16agency members with tax receipts, tax revenues, taxing
17authority, or other resources sufficient to pay costs and to
18service debt related to intergovernmental activities described
19in this Section, or public agency members created by or as part
20of a public agency with these powers, may enter into contracts
21or otherwise associate among themselves as permitted in this
22Section.
23    No joint insurance pool or other intergovernmental
24cooperative offering health insurance shall interfere with the
25statutory obligation of any public agency member to bargain
26over or to reach agreement with a labor organization over a

 

 

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1mandatory subject of collective bargaining as those terms are
2used in the Illinois Public Labor Relations Act. No
3intergovernmental contract of insurance offering health
4insurance shall limit the rights or obligations of public
5agency members to engage in collective bargaining, and it shall
6be unlawful for a joint insurance pool or other
7intergovernmental cooperative offering health insurance to
8discriminate against public agency members or otherwise
9retaliate against such members for limiting their
10participation in a joint insurance pool as a result of a
11collective bargaining agreement.
12    It shall not be considered a violation of this Section for
13an intergovernmental contract of insurance relating to health
14insurance coverage, life insurance coverage, or both to permit
15the pool or cooperative, if a member withdraws employees or
16officers into a union-sponsored program, to re-price the costs
17of benefits provided to the continuing employees or officers
18based upon the same underwriting criteria used by that pool or
19cooperative in the normal course of its business, but no member
20shall be expelled from a pool or cooperative if the continuing
21employees or officers meet the general criteria required of
22other members.
23    Any intergovernmental contract for joint self-insurance
24among public agency members that is executed, amended, or
25renewed on or after the effective date of this amendatory Act
26of the 98th General Assembly shall authorize a public agency

 

 

SB1726- 4 -LRB098 07701 JDS 37777 b

1member to terminate its participation in the joint insurance
2pool or intergovernmental cooperative after giving written
3notice to the joint insurance pool or intergovernmental
4cooperative (i) at least 90 days before terminating its
5participation in the joint insurance pool or intergovernmental
6cooperative or (ii) after some shorter period of time if
7mutually agreed upon by the parties to the contract.
8(Source: P.A. 93-721, eff. 1-1-05; 94-685, eff. 11-2-05.)