90th General Assembly
Status of SB0417
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 Full Text  Bill Summary
MADIGAN,R.

(CROSS-KENNER-WOOD-CLAYTON)

   New Act                                                                     

        Creates the Employee  Leasing  Company  Act  to  ensure  that  an      
   employer   that  leases  its  workers  obtains  workers'  compensation      
   insurance coverage for all of its employees and that premium  is  paid      
   commensurate with exposure and anticipated claim experience.  Provides      
   that  an  employee  leasing  company  shall  obtain a license from the      
   Department of Insurance.  Provides for registration in order to obtain      
   a license.   Provides  that  it  is  the  employee  leasing  company's      
   responsibility  to  purchase  and maintain a separate policy providing      
   standard worker's compensation and employers' liability insurance  for      
   each  client company.  Provides that a violation of the Act is grounds      
   for cancellation or nonrenewal of a  workers'  compensation  insurance      
   policy.  Provides that insurers shall audit policies issued under this      
   Act.   Contains other provisions.                                           
        SENATE AMENDMENT NO. 1.                                                
        Defines "long-term  temporary  arrangement".   Provides  that  an      
   employee  leasing  company  may  not  engage in business in this State      
   without first registering with the Department of Insurance (instead of      
   without first obtaining a license from the Department).  Provides that      
   the registration shall include a list of the officers and directors of      
   the company (instead of listing each and every person  or  entity  who      
   owns  or  owned  a  5% or greater interest in the business).  Provides      
   that each registrant shall pay to the  Department  upon  each  renewal      
   annually  (instead  of  every  3  years)  a  registration  fee of $500      
   (instead of $1,000).  Removes the provision that prohibits  registered      
   organizations  from  referring  to the registration in advertisements,      
   marketing material, or publications.  Provides that if any  person  is      
   aggrieved  by the misconduct of a registrant, that person may maintain      
   an action (instead of maintaining  an  action,  for  misconduct  of  a      
   licensee, in the person's own name upon the bond of the licensee or an      
   amount not to exceed $100,000).  Removes the provision that allows the      
   Department  to  adjust  any  premiums when warranted.  Provides that a      
   person or entity that  deprives  one  or  more  insurers  of  premiums      
   otherwise properly payable commits a Class A misdemeanor (instead of a      
   business  offense).  Includes failing to remit premiums on behalf of a      
   client company and otherwise converting money or other funds  remitted      
   by  the  client  company  for  payroll,  insurance  premiums, or other      
   benefits in this penalty provision.  Provides that upon conviction the      
   person or entity shall be subject to restitution and a fine of  $1,000      
   or  the amount specified in the offense, whichever is greater (instead      
   of a fine of not to exceed $1,000 for a  natural  person  and  not  to      
   exceed $5,000 for an organization).                                         
        HOUSE AMENDMENT NO. 1. (House recedes January 12, 1999)                
        Provides that the term "employee leasing  arrangement"  means  an      
   arrangement  whereby one business leases all or a majority (instead of      
   all or a significant) number of its  workers  from  another  business.      
   Provides  that  the  term "lessee" or "client company" means an entity      
   that obtains all or a majority (instead of all or part)  of  its  work      
   force  from  another  entity  through an employee leasing arrangement.      
   Provides that the term  "long-term  temporary  arrangement"  means  an      
   arrangement where all or a majority (instead of significant number) of      
   employees from one company are leased to another for a certain period.      
   Provides  that  an  insurer  may  require  an employee leasing company      
   (instead of making it the employee leasing  company's  responsibility)      
   to purchase and maintain a separate policy providing standard workers'      
   compensation  and  employers'  liability  insurance  for  each  client      
   company.   Moves  the provisions requiring an employee leasing company      
   to maintain and furnish  to  the  insurer  sufficient  information  to      
   permit  the  calculation  of  an  experience  modification  factor and      
   requires the experience modification to be utilized in the calculation      
   of any premium charged to the client company or lessee.   Removes  the      
   provisions  concerning  civil penalties. Adds provisions requiring the      
   Director of Insurance to issue an order to an employee leasing company      
   stating the  grounds  upon  which  the  removal  of  the  registrant's      
   eligibility is based and provides for a hearing.  Makes other changes.      
        CONFERENCE COMMITTEE REPORT NO. 1.                                     
        Recommends that the House recede from House Amendment No. 1.           
        Recommends that the bill be amended as follows:                        
          Deletes reference to:                                                
          New Act                                                              
          Deletes reference to:                                                
          215 ILCS 5/78                   from Ch. 73, par. 690                
          215 ILCS 152/10                                                      
        Replaces the title and  everything  after  the  enacting  clause.      
   Amends the Illinois Insurance Code to authorize government reciprocals      
   to  declare  dividends and to return guaranty fund or guaranty capital      
   contributions.  Amends the Service Contract Act  to  exempt  contracts      
   for  the  repair  and  monitoring of private alarm or private security      
   systems that are subject to  the  Private  Detective,  Private  Alarm,      
   Private Security, and Locksmith Act of 1993. Effective immediately.         
   97-02-05  S  FIRST READING                                                  
   97-02-05  S  REFERRED TO SENATE RULES COMMITTEE       RULES                 
   97-02-06  S       ASSIGNED TO COMMITTEE               COMM & INDUST         
   97-03-14  S       DO PASS                             009-000-000   SCED    
   97-03-14  S  PLACED ON CALENDAR ORDER OF 2ND READING  97-03-17              
   97-03-18  S  FILED WITH SECRETARY                                           
   97-03-18  S                             AMENDMENT NO. 01-DILLARD            
   97-03-18  S                     AMENDMENT REFERRED TO SRUL                  
   97-03-18  S                             AMENDMENT NO. 01-DILLARD            
   97-03-18  S                           RULES REFERS TO SCED                  
   97-03-19  S                             AMENDMENT NO. 01-DILLARD            
   97-03-19  S                                BE ADOPTED SCED/009-000-000      
   97-03-19  S  SECOND READING                                                 
   97-03-19  S                             AMENDMENT NO. 01-DILLARD            
   97-03-19  S                                   ADOPTED                       
   97-03-19  S  PLACED ON CALENDAR ORDER OF 3RD READING  97-03-20              
   97-03-19  S  ADDED AS A CHIEF CO-SPONSOR              FARLEY                
   97-03-20  S  THIRD READING - PASSED                   049-004-003           
   97-03-21  H  ARRIVE IN HOUSE                                                
   97-03-21  H  HOUSE SPONSOR                            CROSS                 
   97-03-21  H  FIRST READING                                                  
   97-03-21  H  REFERRED TO HOUSE RULES COMMITTEE        RULES                 
   97-04-08  H       ASSIGNED TO COMMITTEE               LABOR COMERCE         
   97-04-09  H  ADDED AS A JOINT SPONSOR                 KENNER                
   97-04-18  H  ADDED AS A JOINT SPONSOR                 WOOD                  
   97-05-01  H                             AMENDMENT NO. 01-LABOR-CMRC    H    
   97-05-01  H                                   ADOPTED 019-000-000           
   97-05-01  H  DO PASS AMENDED/SHORT DEBATE             015-004-002   HLBC    
   97-05-01  H  PLACED CALENDAR 2ND READING-SHORT DEBATE                       
   97-05-06  H  SECOND READING-SHORT DEBATE                                    
   97-05-06  H  PLCD CAL ORDER 3RD READING-SHORT DEBATE                        
   97-05-08  H  THIRD READING/SHORT DEBATE/PASSED        085-029-002           
   97-05-08  H  ADDED AS A JOINT SPONSOR                 CLAYTON               
   97-05-09  S  SECRETARYS DESK - CONCURRENCE            01                    
   97-05-16  S  FILED WITH SECRETARY                                           
   97-05-16  S    MOTION NON-CONCUR - HOUSE AMENDMENT NO 01-DILLARD            
   97-05-19  S  SEN NON-CONCURS IN HSE AMENDMENTS (NO.)  01                    
   97-05-19  H  ARRIVE IN HOUSE                                                
   97-05-19  H  PLACED CALENDAR ORDER NON-CONCURRENCE    01                    
   97-05-31  H       MOTION REFUSE RECEDE - HSE AMEND NO 01/CROSS              
   97-05-31  H  HSE REFUSES TO RECEDE FROM AMENDMENT NO  01                    
   97-05-31  H  HSE REQUESTS CONFERENCE COMMITTEE        1ST                   
   97-05-31  H  HSE CONFERENCE COMMITTEE APPOINTED       1ST/SCHAKOWSKY,       
   97-05-31  H                                           TURNER,ART, HANNIG    
   97-05-31  H                                           CHURCHILL & CROSS     
   97-05-31  S  SEN ACCEDE REQUEST CONFERENCE COMMITTEE  1ST                   
   97-10-29  S  SPONSOR REMOVED                          DILLARD               
   97-10-29  S  CHIEF SPONSOR CHANGED TO                 MADIGAN               
   98-05-22  S  SEN CONFERENCE COMMITTEE APPOINTED       1ST/MADIGAN,          
   98-05-22  S                                           WALSH,T, PETKA,       
   98-05-22  S                                           FARLEY, GARCIA        
   98-12-03  S  FILED WITH SECRETARY                                           
   98-12-03  S               CONFERENCE COMMITTEE REPORT 1ST/MADIGAN           
   98-12-03  S   CONFERENCE COMMITTEE REPORT REFERRED TO SRUL                  
   98-12-03  S               CONFERENCE COMMITTEE REPORT 1ST/MADIGAN           
   98-12-03  S                           RULES REFERS TO SINS                  
   98-12-03  S  SEN CONFERENCE COMMITTEE REPORT SUBMITED 1ST/98-12-03          
   99-01-04  S               CONFERENCE COMMITTEE REPORT 1ST/MADIGAN           
   99-01-04  S                                           BACK TO RULES         
   99-01-04  S                                           PURSUANT TO           
   99-01-04  S                                           SENATE RULE 3-9(B)    
   99-01-11  S               CONFERENCE COMMITTEE REPORT 1ST/MADIGAN,R         
   99-01-11  S                           RULES REFERS TO SINS                  
   99-01-12  S  SPONSOR REMOVED                          FARLEY                
   99-01-12  H  HSE CONFERENCE COMMITTEE REPORT SUBMITED 1ST/CROSS             
   99-01-12  H   CONFERENCE COMMITTEE REPORT REFERRED TO HRUL                  
   99-01-12  H                           RULES REFERS TO HINS                  
   99-01-12  H             BE APPROVED FOR CONSIDERATION HINS/014-000-000      
   99-01-12  H  HOUSE ADOPTED CONFERENCE REPORT          1ST/116-000-000       
   99-01-12  S               CONFERENCE COMMITTEE REPORT 1ST/MADIGAN,R         
   99-01-12  S             BE APPROVED FOR CONSIDERATION SINS/009-000-000      
   99-01-12  S  SEN CONFERENCE COMMITTEE REPORT SUBMITED 1ST/MADIGAN           
   99-01-12  S  SENATE ADOPTED CONFERENCE REPORT         1ST/058-000-000       
   99-01-12  S  BOTH HOUSES ADOPTED CONFERENCE REPORT    1ST                   
   99-01-12  S  PASSED BOTH HOUSES                                             
   99-01-28  S  SENT TO THE GOVERNOR                                           
   99-03-23  S  GOVERNOR APPROVED                                              
   99-03-23  S                            EFFECTIVE DATE 99-03-23              
   99-03-23  S  PUBLIC ACT.............................. 90-0817               

   END OF INQUIRY 



 Full Text  Bill Summary