Illinois General Assembly - Full Text of SB3392
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Full Text of SB3392  98th General Assembly

SB3392 98TH GENERAL ASSEMBLY

  
  

 


 
98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB3392

 

Introduced 2/14/2014, by Sen. John M. Sullivan

 

SYNOPSIS AS INTRODUCED:
 
820 ILCS 305/7  from Ch. 48, par. 138.7

    Amends the Workers' Compensation Act. Provides that benefits accruing because of an accidental injury resulting in death shall be payable until the death of a widow or widower of a firefighter or police officer without consideration of whether the widow or widower remarries. Effective immediately.


LRB098 19697 JLS 54906 b

FISCAL NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

 

 

A BILL FOR

 

SB3392LRB098 19697 JLS 54906 b

1    AN ACT concerning employment.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Workers' Compensation Act is amended by
5changing Section 7 as follows:
 
6    (820 ILCS 305/7)  (from Ch. 48, par. 138.7)
7    Sec. 7. The amount of compensation which shall be paid for
8an accidental injury to the employee resulting in death is:
9    (a) If the employee leaves surviving a widow, widower,
10child or children, the applicable weekly compensation rate
11computed in accordance with subparagraph 2 of paragraph (b) of
12Section 8, shall be payable during the life of the widow or
13widower and if any surviving child or children shall not be
14physically or mentally incapacitated then until the death of
15the widow or widower or until the youngest child shall reach
16the age of 18, whichever shall come later; provided that if
17such child or children shall be enrolled as a full time student
18in any accredited educational institution, the payments shall
19continue until such child has attained the age of 25. In the
20event any surviving child or children shall be physically or
21mentally incapacitated, the payments shall continue for the
22duration of such incapacity.
23    The term "child" means a child whom the deceased employee

 

 

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1left surviving, including a posthumous child, a child legally
2adopted, a child whom the deceased employee was legally
3obligated to support or a child to whom the deceased employee
4stood in loco parentis. The term "children" means the plural of
5"child".
6    The term "physically or mentally incapacitated child or
7children" means a child or children incapable of engaging in
8regular and substantial gainful employment.
9    In the event of the remarriage of a widow or widower, other
10than a widow or widower of a firefighter or police officer,
11where the decedent did not leave surviving any child or
12children who, at the time of such remarriage, are entitled to
13compensation benefits under this Act, the surviving spouse
14shall be paid a lump sum equal to 2 years compensation benefits
15and all further rights of such widow or widower shall be
16extinguished. If the widow or widower of a firefighter or
17police officer remarries, he or she shall continue to receive
18benefits.
19    If the employee leaves surviving any child or children
20under 18 years of age who at the time of death shall be
21entitled to compensation under this paragraph (a) of this
22Section, the weekly compensation payments herein provided for
23such child or children shall in any event continue for a period
24of not less than 6 years.
25    Any beneficiary entitled to compensation under this
26paragraph (a) of this Section shall receive from the special

 

 

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1fund provided in paragraph (f) of this Section, in addition to
2the compensation herein provided, supplemental benefits in
3accordance with paragraph (g) of Section 8.
4    (b) If no compensation is payable under paragraph (a) of
5this Section and the employee leaves surviving a parent or
6parents who at the time of the accident were totally dependent
7upon the earnings of the employee then weekly payments equal to
8the compensation rate payable in the case where the employee
9leaves surviving a widow or widower, shall be paid to such
10parent or parents for the duration of their lives, and in the
11event of the death of either, for the life of the survivor.
12    (c) If no compensation is payable under paragraphs (a) or
13(b) of this Section and the employee leaves surviving any child
14or children who are not entitled to compensation under the
15foregoing paragraph (a) but who at the time of the accident
16were nevertheless in any manner dependent upon the earnings of
17the employee, or leaves surviving a parent or parents who at
18the time of the accident were partially dependent upon the
19earnings of the employee, then there shall be paid to such
20dependent or dependents for a period of 8 years weekly
21compensation payments at such proportion of the applicable rate
22if the employee had left surviving a widow or widower as such
23dependency bears to total dependency. In the event of the death
24of any such beneficiary the share of such beneficiary shall be
25divided equally among the surviving beneficiaries and in the
26event of the death of the last such beneficiary all the rights

 

 

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1under this paragraph shall be extinguished.
2    (d) If no compensation is payable under paragraphs (a), (b)
3or (c) of this Section and the employee leaves surviving any
4grandparent, grandparents, grandchild or grandchildren or
5collateral heirs dependent upon the employee's earnings to the
6extent of 50% or more of total dependency, then there shall be
7paid to such dependent or dependents for a period of 5 years
8weekly compensation payments at such proportion of the
9applicable rate if the employee had left surviving a widow or
10widower as such dependency bears to total dependency. In the
11event of the death of any such beneficiary the share of such
12beneficiary shall be divided equally among the surviving
13beneficiaries and in the event of the death of the last such
14beneficiary all rights hereunder shall be extinguished.
15    (e) The compensation to be paid for accidental injury which
16results in death, as provided in this Section, shall be paid to
17the persons who form the basis for determining the amount of
18compensation to be paid by the employer, the respective shares
19to be in the proportion of their respective dependency at the
20time of the accident on the earnings of the deceased. The
21Commission or an Arbitrator thereof may, in its or his
22discretion, order or award the payment to the parent or
23grandparent of a child for the latter's support the amount of
24compensation which but for such order or award would have been
25paid to such child as its share of the compensation payable,
26which order or award may be modified from time to time by the

 

 

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1Commission in its discretion with respect to the person to whom
2shall be paid the amount of the order or award remaining unpaid
3at the time of the modification.
4    The payments of compensation by the employer in accordance
5with the order or award of the Commission discharges such
6employer from all further obligation as to such compensation.
7    (f) The sum of $8,000 for burial expenses shall be paid by
8the employer to the widow or widower, other dependent, next of
9kin or to the person or persons incurring the expense of
10burial.
11    In the event the employer failed to provide necessary first
12aid, medical, surgical or hospital service, he shall pay the
13cost thereof to the person or persons entitled to compensation
14under paragraphs (a), (b), (c) or (d) of this Section, or to
15the person or persons incurring the obligation therefore, or
16providing the same.
17    On January 15 and July 15, 1981, and on January 15 and July
1815 of each year thereafter the employer shall within 60 days
19pay a sum equal to 1/8 of 1% of all compensation payments made
20by him after July 1, 1980, either under this Act or the
21Workers' Occupational Diseases Act, whether by lump sum
22settlement or weekly compensation payments, but not including
23hospital, surgical or rehabilitation payments, made during the
24first 6 months and during the second 6 months respectively of
25the fiscal year next preceding the date of the payments, into a
26special fund which shall be designated the "Second Injury

 

 

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1Fund", of which the State Treasurer is ex-officio custodian,
2such special fund to be held and disbursed for the purposes
3hereinafter stated in paragraphs (f) and (g) of Section 8,
4either upon the order of the Commission or of a competent
5court. Said special fund shall be deposited the same as are
6State funds and any interest accruing thereon shall be added
7thereto every 6 months. It is subject to audit the same as
8State funds and accounts and is protected by the General bond
9given by the State Treasurer. It is considered always
10appropriated for the purposes of disbursements as provided in
11Section 8, paragraph (f), of this Act, and shall be paid out
12and disbursed as therein provided and shall not at any time be
13appropriated or diverted to any other use or purpose.
14    On January 15, 1991, the employer shall further pay a sum
15equal to one half of 1% of all compensation payments made by
16him from January 1, 1990 through June 30, 1990 either under
17this Act or under the Workers' Occupational Diseases Act,
18whether by lump sum settlement or weekly compensation payments,
19but not including hospital, surgical or rehabilitation
20payments, into an additional Special Fund which shall be
21designated as the "Rate Adjustment Fund". On March 15, 1991,
22the employer shall pay into the Rate Adjustment Fund a sum
23equal to one half of 1% of all such compensation payments made
24from July 1, 1990 through December 31, 1990. Within 60 days
25after July 15, 1991, the employer shall pay into the Rate
26Adjustment Fund a sum equal to one half of 1% of all such

 

 

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1compensation payments made from January 1, 1991 through June
230, 1991. Within 60 days after January 15 of 1992 and each
3subsequent year through 1996, the employer shall pay into the
4Rate Adjustment Fund a sum equal to one half of 1% of all such
5compensation payments made in the last 6 months of the
6preceding calendar year. Within 60 days after July 15 of 1992
7and each subsequent year through 1995, the employer shall pay
8into the Rate Adjustment Fund a sum equal to one half of 1% of
9all such compensation payments made in the first 6 months of
10the same calendar year. Within 60 days after January 15 of 1997
11and each subsequent year through 2005, the employer shall pay
12into the Rate Adjustment Fund a sum equal to three-fourths of
131% of all such compensation payments made in the last 6 months
14of the preceding calendar year. Within 60 days after July 15 of
151996 and each subsequent year through 2004, the employer shall
16pay into the Rate Adjustment Fund a sum equal to three-fourths
17of 1% of all such compensation payments made in the first 6
18months of the same calendar year. Within 60 days after July 15
19of 2005, the employer shall pay into the Rate Adjustment Fund a
20sum equal to 1% of such compensation payments made in the first
216 months of the same calendar year. Within 60 days after
22January 15 of 2006 and each subsequent year, the employer shall
23pay into the Rate Adjustment Fund a sum equal to 1.25% of such
24compensation payments made in the last 6 months of the
25preceding calendar year. Within 60 days after July 15 of 2006
26and each subsequent year, the employer shall pay into the Rate

 

 

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1Adjustment Fund a sum equal to 1.25% of such compensation
2payments made in the first 6 months of the same calendar year.
3The administrative costs of collecting assessments from
4employers for the Rate Adjustment Fund shall be paid from the
5Rate Adjustment Fund. The cost of an actuarial audit of the
6Fund shall be paid from the Rate Adjustment Fund. The State
7Treasurer is ex officio custodian of such Special Fund and the
8same shall be held and disbursed for the purposes hereinafter
9stated in paragraphs (f) and (g) of Section 8 upon the order of
10the Commission or of a competent court. The Rate Adjustment
11Fund shall be deposited the same as are State funds and any
12interest accruing thereon shall be added thereto every 6
13months. It shall be subject to audit the same as State funds
14and accounts and shall be protected by the general bond given
15by the State Treasurer. It is considered always appropriated
16for the purposes of disbursements as provided in paragraphs (f)
17and (g) of Section 8 of this Act and shall be paid out and
18disbursed as therein provided and shall not at any time be
19appropriated or diverted to any other use or purpose. Within 5
20days after the effective date of this amendatory Act of 1990,
21the Comptroller and the State Treasurer shall transfer
22$1,000,000 from the General Revenue Fund to the Rate Adjustment
23Fund. By February 15, 1991, the Comptroller and the State
24Treasurer shall transfer $1,000,000 from the Rate Adjustment
25Fund to the General Revenue Fund. The Comptroller and Treasurer
26are authorized to make transfers at the request of the Chairman

 

 

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1up to a total of $19,000,000 from the Second Injury Fund, the
2General Revenue Fund, and the Workers' Compensation Benefit
3Trust Fund to the Rate Adjustment Fund to the extent that there
4is insufficient money in the Rate Adjustment Fund to pay claims
5and obligations. Amounts may be transferred from the General
6Revenue Fund only if the funds in the Second Injury Fund or the
7Workers' Compensation Benefit Trust Fund are insufficient to
8pay claims and obligations of the Rate Adjustment Fund. All
9amounts transferred from the Second Injury Fund, the General
10Revenue Fund, and the Workers' Compensation Benefit Trust Fund
11shall be repaid from the Rate Adjustment Fund within 270 days
12of a transfer, together with interest at the rate earned by
13moneys on deposit in the Fund or Funds from which the moneys
14were transferred.
15    Upon a finding by the Commission, after reasonable notice
16and hearing, that any employer has willfully and knowingly
17failed to pay the proper amounts into the Second Injury Fund or
18the Rate Adjustment Fund required by this Section or if such
19payments are not made within the time periods prescribed by
20this Section, the employer shall, in addition to such payments,
21pay a penalty of 20% of the amount required to be paid or
22$2,500, whichever is greater, for each year or part thereof of
23such failure to pay. This penalty shall only apply to
24obligations of an employer to the Second Injury Fund or the
25Rate Adjustment Fund accruing after the effective date of this
26amendatory Act of 1989. All or part of such a penalty may be

 

 

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1waived by the Commission for good cause shown.
2    Any obligations of an employer to the Second Injury Fund
3and Rate Adjustment Fund accruing prior to the effective date
4of this amendatory Act of 1989 shall be paid in full by such
5employer within 5 years of the effective date of this
6amendatory Act of 1989, with at least one-fifth of such
7obligation to be paid during each year following the effective
8date of this amendatory Act of 1989. If the Commission finds,
9following reasonable notice and hearing, that an employer has
10failed to make timely payment of any obligation accruing under
11the preceding sentence, the employer shall, in addition to all
12other payments required by this Section, be liable for a
13penalty equal to 20% of the overdue obligation or $2,500,
14whichever is greater, for each year or part thereof that
15obligation is overdue. All or part of such a penalty may be
16waived by the Commission for good cause shown.
17    The Chairman of the Illinois Workers' Compensation
18Commission shall, annually, furnish to the Director of the
19Department of Insurance a list of the amounts paid into the
20Second Injury Fund and the Rate Adjustment Fund by each
21insurance company on behalf of their insured employers. The
22Director shall verify to the Chairman that the amounts paid by
23each insurance company are accurate as best as the Director can
24determine from the records available to the Director. The
25Chairman shall verify that the amounts paid by each
26self-insurer are accurate as best as the Chairman can determine

 

 

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1from records available to the Chairman. The Chairman may
2require each self-insurer to provide information concerning
3the total compensation payments made upon which contributions
4to the Second Injury Fund and the Rate Adjustment Fund are
5predicated and any additional information establishing that
6such payments have been made into these funds. Any deficiencies
7in payments noted by the Director or Chairman shall be subject
8to the penalty provisions of this Act.
9    The State Treasurer, or his duly authorized
10representative, shall be named as a party to all proceedings in
11all cases involving claim for the loss of, or the permanent and
12complete loss of the use of one eye, one foot, one leg, one arm
13or one hand.
14    The State Treasurer or his duly authorized agent shall have
15the same rights as any other party to the proceeding, including
16the right to petition for review of any award. The reasonable
17expenses of litigation, such as medical examinations,
18testimony, and transcript of evidence, incurred by the State
19Treasurer or his duly authorized representative, shall be borne
20by the Second Injury Fund.
21    If the award is not paid within 30 days after the date the
22award has become final, the Commission shall proceed to take
23judgment thereon in its own name as is provided for other
24awards by paragraph (g) of Section 19 of this Act and take the
25necessary steps to collect the award.
26    Any person, corporation or organization who has paid or

 

 

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1become liable for the payment of burial expenses of the
2deceased employee may in his or its own name institute
3proceedings before the Commission for the collection thereof.
4    For the purpose of administration, receipts and
5disbursements, the Special Fund provided for in paragraph (f)
6of this Section shall be administered jointly with the Special
7Fund provided for in Section 7, paragraph (f) of the Workers'
8Occupational Diseases Act.
9    (g) All compensation, except for burial expenses provided
10in this Section to be paid in case accident results in death,
11shall be paid in installments equal to the percentage of the
12average earnings as provided for in Section 8, paragraph (b) of
13this Act, at the same intervals at which the wages or earnings
14of the employees were paid. If this is not feasible, then the
15installments shall be paid weekly. Such compensation may be
16paid in a lump sum upon petition as provided in Section 9 of
17this Act. However, in addition to the benefits provided by
18Section 9 of this Act where compensation for death is payable
19to the deceased's widow, widower or to the deceased's widow,
20widower and one or more children, and where a partial lump sum
21is applied for by such beneficiary or beneficiaries within 18
22months after the deceased's death, the Commission may, in its
23discretion, grant a partial lump sum of not to exceed 100 weeks
24of the compensation capitalized at their present value upon the
25basis of interest calculated at 3% per annum with annual rests,
26upon a showing that such partial lump sum is for the best

 

 

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1interest of such beneficiary or beneficiaries.
2    (h) In case the injured employee is under 16 years of age
3at the time of the accident and is illegally employed, the
4amount of compensation payable under paragraphs (a), (b), (c),
5(d) and (f) of this Section shall be increased 50%.
6    Nothing herein contained repeals or amends the provisions
7of the Child Labor Law relating to the employment of minors
8under the age of 16 years.
9    However, where an employer has on file an employment
10certificate issued pursuant to the Child Labor Law or work
11permit issued pursuant to the Federal Fair Labor Standards Act,
12as amended, or a birth certificate properly and duly issued,
13such certificate, permit or birth certificate is conclusive
14evidence as to the age of the injured minor employee for the
15purposes of this Section only.
16    (i) Whenever the dependents of a deceased employee are
17aliens not residing in the United States, Mexico or Canada, the
18amount of compensation payable is limited to the beneficiaries
19described in paragraphs (a), (b) and (c) of this Section and is
2050% of the compensation provided in paragraphs (a), (b) and (c)
21of this Section, except as otherwise provided by treaty.
22    In a case where any of the persons who would be entitled to
23compensation is living at any place outside of the United
24States, then payment shall be made to the personal
25representative of the deceased employee. The distribution by
26such personal representative to the persons entitled shall be

 

 

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1made to such persons and in such manner as the Commission
2orders.
3(Source: P.A. 93-721, eff. 1-1-05; 94-277, eff. 7-20-05;
494-695, eff. 11-16-05.)
 
5    Section 99. Effective date. This Act takes effect upon
6becoming law.