HB 5089

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Full Text of HB5089
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	HB5089 - 104th General Assembly
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		HB5089 Engrossed		LRB104 20082 HLH 33533 b
1    AN ACT concerning State government.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Department of Central Management Services
5Law of the Civil Administrative Code of Illinois is amended by
6changing Section 405-105 as follows:
7    (20 ILCS 405/405-105)  (was 20 ILCS 405/64.1)
8    Sec. 405-105. Fidelity, surety, property, and casualty
9insurance. The Department shall establish and implement a
10program to coordinate the handling of all fidelity, surety,
11property, and casualty insurance exposures of the State and
12the departments, divisions, agencies, branches, and
13universities of the State. In performing this responsibility,
14the Department shall have the power and duty to do the
15following:
16        (1) Develop and maintain loss and exposure data on all
17    State property.
18        (2) Study the feasibility of establishing a
19    self-insurance plan for State property and prepare
20    estimates of the costs of reinsurance for risks beyond the
21    realistic limits of the self-insurance.
22        (3) Prepare a plan for centralizing the purchase of
23    property and casualty insurance on State property under a
		HB5089 Engrossed	- 2 -	LRB104 20082 HLH 33533 b
1    master policy or policies and purchase the insurance
2    contracted for as provided in the Illinois Purchasing Act.
3        (4) Evaluate existing provisions for fidelity bonds
4    required of State employees and recommend changes that are
5    appropriate commensurate with risk experience and the
6    determinations respecting self-insurance or reinsurance so
7    as to permit reduction of costs without loss of coverage.
8        (5) Investigate procedures for inclusion of school
9    districts, public community college districts, and other
10    units of local government in programs for the centralized
11    purchase of insurance.
12        (6) Implement recommendations of the State Property
13    Insurance Study Commission that the Department finds
14    necessary or desirable in the performance of its powers
15    and duties under this Section to achieve efficient and
16    comprehensive risk management.
17        (7) Prepare and, in the discretion of the Director,
18    implement a plan providing for the purchase of public
19    liability insurance or for self-insurance for public
20    liability or for a combination of purchased insurance and
21    self-insurance for public liability (i) covering the State
22    and drivers of motor vehicles owned, leased, or controlled
23    by the State of Illinois pursuant to the provisions and
24    limitations contained in the Illinois Vehicle Code, (ii)
25    covering other public liability exposures of the State and
26    its employees within the scope of their employment, and
		HB5089 Engrossed	- 3 -	LRB104 20082 HLH 33533 b
1    (iii) covering drivers of motor vehicles not owned,
2    leased, or controlled by the State but used by a State
3    employee on State business, in excess of liability covered
4    by an insurance policy obtained by the owner of the motor
5    vehicle or in excess of the dollar amounts that the
6    Department shall determine to be reasonable. Any contract
7    of insurance let under this Law shall be by bid in
8    accordance with the procedure set forth in the Illinois
9    Purchasing Act. Any provisions for self-insurance shall
10    conform to subdivision (11).
11        The term "employee" as used in this subdivision (7)
12    and in subdivision (11) means a person while in the employ
13    of the State who is a member of the staff or personnel of a
14    State agency, bureau, board, commission, committee,
15    department, university, or college or who is a State
16    officer, elected official, commissioner, member of or ex
17    officio member of a State agency, bureau, board,
18    commission, committee, department, university, or college,
19    or a member of the National Guard while on active duty
20    pursuant to orders of the Governor of the State of
21    Illinois, or any other person while using a licensed motor
22    vehicle owned, leased, or controlled by the State of
23    Illinois with the authorization of the State of Illinois,
24    provided the actual use of the motor vehicle is within the
25    scope of that authorization and within the course of State
26    service.
		HB5089 Engrossed	- 4 -	LRB104 20082 HLH 33533 b
1        Subsequent to payment of a claim on behalf of an
2    employee pursuant to this Section and after reasonable
3    advance written notice to the employee, the Director may
4    exclude the employee from future coverage or limit the
5    coverage under the plan if (i) the Director determines
6    that the claim resulted from an incident in which the
7    employee was grossly negligent or had engaged in willful
8    and wanton misconduct or (ii) the Director determines that
9    the employee is no longer an acceptable risk based on a
10    review of prior accidents in which the employee was at
11    fault and for which payments were made pursuant to this
12    Section.
13        The Director is authorized to promulgate
14    administrative rules that may be necessary to establish
15    and administer the plan.
16        Appropriations from the Road Fund shall be used to pay
17    auto liability claims and related expenses involving
18    employees of the Department of Transportation, the
19    Illinois State Police, and the Secretary of State.
20        (8) Charge, collect, and receive from all other
21    agencies of the State government fees or monies equivalent
22    to the cost of purchasing the insurance.
23        (9) Establish, through the Director, charges for risk
24    management services rendered to State agencies, officers,
25    boards, commissions, and universities by the Department.
26    The State agencies, officers, boards, commissions, and
		HB5089 Engrossed	- 5 -	LRB104 20082 HLH 33533 b
1    universities so charged shall reimburse the Department by
2    vouchers drawn against their respective appropriations.
3    The reimbursement shall be determined by the Director as
4    amounts sufficient to reimburse the Department for
5    expenditures incurred in rendering the service.
6        The Department shall charge the employing State
7    agency, officer, board, commission, or university for
8    workers' compensation payments for temporary total
9    disability paid to any employee after the employee has
10    received temporary total disability payments for 120 days
11    if the employee's treating physician, advanced practice
12    registered nurse, or physician assistant has issued a
13    release to return to work with restrictions and the
14    employee is able to perform modified duty work but the
15    employing State agency, officer, board, commission, or
16    university does not return the employee to work at
17    modified duty. Modified duty shall be duties assigned that
18    may or may not be delineated as part of the duties
19    regularly performed by the employee. Modified duties shall
20    be assigned within the prescribed restrictions established
21    by the treating physician and the physician who performed
22    the independent medical examination. The amount of all
23    reimbursements shall be deposited into the Workers'
24    Compensation Revolving Fund which is hereby created as a
25    revolving fund in the State treasury. In addition to any
26    other purpose authorized by law, moneys in the Fund shall
		HB5089 Engrossed	- 6 -	LRB104 20082 HLH 33533 b
1    be used, subject to appropriation, to pay these or other
2    temporary total disability claims of employees of State
3    agencies, officers, boards, commissions, and universities.
4        Beginning with fiscal year 1996, all amounts recovered
5    by the Department through subrogation in workers'
6    compensation and workers' occupational disease cases shall
7    be deposited into the Workers' Compensation Revolving Fund
8    created under this subdivision (9).
9        (10) Establish rules, procedures, and forms to be used
10    by State agencies, officers, boards, commissions, and
11    universities in the administration and payment of workers'
12    compensation claims. For claims filed prior to July 1,
13    2013, the Department shall initially evaluate and
14    determine the compensability of any injury that is the
15    subject of a workers' compensation claim and provide for
16    the administration and payment of such a claim for all
17    State agencies, officers, boards, commissions, and
18    universities. For claims filed on or after July 1, 2013,
19    the Department shall retain responsibility for certain
20    administrative payments including, but not limited to,
21    payments to the private vendor contracted to perform
22    services under subdivision (10b) of this Section, payments
23    related to travel expenses for employees of the Office of
24    the Attorney General, and payments to internal Department
25    staff responsible for the oversight and management of any
26    contract awarded pursuant to subdivision (10b) of this
		HB5089 Engrossed	- 7 -	LRB104 20082 HLH 33533 b
1    Section. Through December 31, 2012, the Director may
2    delegate to any agency with the agreement of the agency
3    head the responsibility for evaluation, administration,
4    and payment of that agency's claims. Neither the
5    Department nor the private vendor contracted to perform
6    services under subdivision (10b) of this Section shall be
7    responsible for providing workers' compensation services
8    to the Illinois State Toll Highway Authority or to State
9    universities that maintain self-funded workers'
10    compensation liability programs.
11        (10a) By April 1 of each year prior to calendar year
12    2013, the Director must report and provide information to
13    the State Workers' Compensation Program Advisory Board
14    concerning the status of the State workers' compensation
15    program for the next fiscal year. Information that the
16    Director must provide to the State Workers' Compensation
17    Program Advisory Board includes, but is not limited to,
18    documents, reports of negotiations, bid invitations,
19    requests for proposals, specifications, copies of proposed
20    and final contracts or agreements, and any other materials
21    concerning contracts or agreements for the program. By the
22    first of each month prior to calendar year 2013, the
23    Director must provide updated, and any new, information to
24    the State Workers' Compensation Program Advisory Board
25    until the State workers' compensation program for the next
26    fiscal year is determined.
		HB5089 Engrossed	- 8 -	LRB104 20082 HLH 33533 b
1        (10b) No later than January 1, 2013, the chief
2    procurement officer appointed under paragraph (4) of
3    subsection (a) of Section 10-20 of the Illinois
4    Procurement Code (hereinafter "chief procurement
5    officer"), in consultation with the Department of Central
6    Management Services, shall procure one or more private
7    vendors to administer the program providing payments for
8    workers' compensation liability with respect to the
9    employees of all State agencies, officers, boards,
10    commissions, and universities. The chief procurement
11    officer may procure a single contract applicable to all
12    State agencies, officers, boards, commissions, and
13    universities, or multiple contracts applicable to one or
14    more State agencies, officers, boards, commissions, and
15    universities. If the chief procurement officer procures a
16    single contract applicable to all State agencies,
17    officers, boards, commissions, and universities, then the
18    Department of Central Management Services shall be
19    designated as the agency that enters into the contract and
20    shall be responsible for the contract. If the chief
21    procurement officer procures multiple contracts applicable
22    to one or more State agencies, officers, boards,
23    commissions, and universities, each agency, officer,
24    board, commission, or university to which the contract
25    applies shall be designated as the agency, officer, board,
26    commission, or university that shall enter into the
		HB5089 Engrossed	- 9 -	LRB104 20082 HLH 33533 b
1    contract and shall be responsible for the contract. If the
2    chief procurement officer procures contracts applicable to
3    an individual State agency, officer, board, commission, or
4    university, the agency, officer, board, commission, or
5    university subject to the contract shall be designated as
6    the agency, officer, board, commission, or university
7    responsible for the contract.
8        (10c) The procurement of private vendors for the
9    administration of the workers' compensation program for
10    State employees is subject to the provisions of the
11    Illinois Procurement Code and administration by the chief
12    procurement officer.
13        (10d) Contracts for the procurement of private vendors
14    for the administration of the workers' compensation
15    program for State employees shall be based upon, but
16    limited to, the following criteria: (i) administrative
17    cost, (ii) service capabilities of the vendor, and (iii)
18    the compensation (including premiums, fees, or other
19    charges). A vendor for the administration of the workers'
20    compensation program for State employees shall provide
21    services, including, but not limited to:
22            (A) providing a web-based case management system
23        and provide access to the Office of the Attorney
24        General;
25            (B) ensuring claims adjusters are available to
26        provide testimony or information as requested by the
		HB5089 Engrossed	- 10 -	LRB104 20082 HLH 33533 b
1        Office of the Attorney General;
2            (C) establishing a preferred provider program for
3        all State agencies, officers, boards, commissions,
4        universities, and facilities; and
5            (D) authorizing the payment of medical bills at
6        the preferred provider discount rate.
7        (10e) By September 15, 2012, the Department of Central
8    Management Services shall prepare a plan to effectuate the
9    transfer of responsibility and administration of the
10    workers' compensation program for State employees to the
11    selected private vendors. The Department shall submit a
12    copy of the plan to the General Assembly.
13        (11) Any plan for public liability self-insurance
14    implemented under this Section shall provide that (i) the
15    Department shall attempt to settle and may settle any
16    public liability claim filed against the State of Illinois
17    or any public liability claim filed against a State
18    employee on the basis of an occurrence in the course of the
19    employee's State employment; (ii) any settlement of such a
20    claim is not subject to fiscal year limitations and must
21    be approved by the Director and, in cases of settlements
22    exceeding $250,000 [$100,000], by the Governor; and (iii) a
23    settlement of any public liability claim against the State
24    or a State employee shall require an unqualified release
25    of any right of action against the State and the employee
26    for acts within the scope of the employee's employment
		HB5089 Engrossed	- 11 -	LRB104 20082 HLH 33533 b
1    giving rise to the claim.
2        Whenever and to the extent that a State employee
3    operates a motor vehicle or engages in other activity
4    covered by self-insurance under this Section, the State of
5    Illinois shall defend, indemnify, and hold harmless the
6    employee against any claim in tort filed against the
7    employee for acts or omissions within the scope of the
8    employee's employment in any proper judicial forum and not
9    settled pursuant to this subdivision (11), provided that
10    this obligation of the State of Illinois shall not exceed
11    a maximum liability of $2,000,000 for any single
12    occurrence in connection with the operation of a motor
13    vehicle or $100,000 per person per occurrence for any
14    other single occurrence, or $500,000 for any single
15    occurrence in connection with the provision of medical
16    care by a licensed physician, advanced practice registered
17    nurse, or physician assistant employee.
18        Any claims against the State of Illinois under a
19    self-insurance plan that are not settled pursuant to this
20    subdivision (11) shall be heard and determined by the
21    Court of Claims and may not be filed or adjudicated in any
22    other forum. The Attorney General of the State of Illinois
23    or the Attorney General's designee shall be the attorney
24    with respect to all public liability self-insurance claims
25    that are not settled pursuant to this subdivision (11) and
26    therefore result in litigation. The payment of any award
		HB5089 Engrossed	- 12 -	LRB104 20082 HLH 33533 b
1    of the Court of Claims entered against the State relating
2    to any public liability self-insurance claim shall act as
3    a release against any State employee involved in the
4    occurrence.
5        (12) Administer a plan the purpose of which is to make
6    payments on final settlements or final judgments in
7    accordance with the State Employee Indemnification Act.
8    The plan shall be funded through appropriations from the
9    General Revenue Fund specifically designated for that
10    purpose, except that indemnification expenses for
11    employees of the Department of Transportation, the
12    Illinois State Police, and the Secretary of State, which
13    result from the Road Fund portion of their normal
14    operations, shall be paid from the Road Fund. The term
15    "employee" as used in this subdivision (12) has the same
16    meaning as under subsection (b) of Section 1 of the State
17    Employee Indemnification Act. Subject to sufficient
18    appropriation, the Director shall approve payment of any
19    claim, without regard to fiscal year limitations,
20    presented to the Director that is supported by a final
21    settlement or final judgment when the Attorney General and
22    the chief officer of the public body against whose
23    employee the claim or cause of action is asserted certify
24    to the Director that the claim is in accordance with the
25    State Employee Indemnification Act and that they approve
26    of the payment. In no event shall an amount in excess of
		HB5089 Engrossed	- 13 -	LRB104 20082 HLH 33533 b
1    $150,000 be paid from this plan to or for the benefit of
2    any claimant.
3        (13) Administer a plan the purpose of which is to make
4    payments on final settlements or final judgments for
5    employee wage claims in situations where there was an
6    appropriation relevant to the wage claim, the fiscal year
7    and lapse period have expired, and sufficient funds were
8    available to pay the claim. The plan shall be funded
9    through appropriations from the General Revenue Fund
10    specifically designated for that purpose.
11        Subject to sufficient appropriation, the Director is
12    authorized to pay any wage claim presented to the Director
13    that is supported by a final settlement or final judgment
14    when the chief officer of the State agency employing the
15    claimant certifies to the Director that the claim is a
16    valid wage claim and that the fiscal year and lapse period
17    have expired. Payment for claims that are properly
18    submitted and certified as valid by the Director shall
19    include interest accrued at the rate of 7% per annum from
20    the forty-fifth day after the claims are received by the
21    Department or 45 days from the date on which the amount of
22    payment is agreed upon, whichever is later, until the date
23    the claims are submitted to the Comptroller for payment.
24    When the Attorney General has filed an appearance in any
25    proceeding concerning a wage claim settlement or judgment,
26    the Attorney General shall certify to the Director that
		HB5089 Engrossed	- 14 -	LRB104 20082 HLH 33533 b
1    the wage claim is valid before any payment is made. In no
2    event shall an amount in excess of $150,000 be paid from
3    this plan to or for the benefit of any claimant.
4        Nothing in Public Act 84-961 shall be construed to
5    affect in any manner the jurisdiction of the Court of
6    Claims concerning wage claims made against the State of
7    Illinois.
8        (14) Prepare and, in the discretion of the Director,
9    implement a program for self-insurance for official
10    fidelity and surety bonds for officers and employees as
11    authorized by the Official Bond Act.
12(Source: P.A. 102-767, eff. 5-13-22.)