Sen. Michael W. Frerichs
Filed: 5/25/2011
 
 


 




09700SB0178sam001LRB097 03971 JDS 56112 a



1
AMENDMENT TO SENATE BILL 178




2 AMENDMENT NO. ______. Amend Senate Bill 178 by replacing 
3everything after the enacting clause with the following:


4 "Section 1. Short title. This Act may be cited as the State 
5Healthcare Purchasing Reorganization Act.

6 Section 10. Revocation of Executive Order 3 (2005). On 
7January 1, 2012, Executive Order 3 (2005) is superseded by this 
8Act with the exception of Section I (renaming the Department of 
9Public Aid as the Department of Healthcare and Family 
10Services), which remains in effect.

11 Section 15. Transfer back of State healthcare purchasing 
12functions transferred by Executive Order 3 (2005).
13 (a) On January 1, 2012 or as soon thereafter as practical, 
14all of the powers, duties, rights, and responsibilities related 
15to State healthcare purchasing that were transferred from the 
 
 
09700SB0178sam001- 2 -LRB097 03971 JDS 56112 a


1Department of Central Management Services, the Department of 
2Corrections, the Department of Human Services, and the 
3Department of Veterans' Affairs to the Department of Healthcare 
4and Family Services by Executive Order 3 (2005) are transferred 
5back to the Departments from which those powers, duties, 
6rights, and responsibilities were transferred; however, 
7powers, duties, rights, and responsibilities related to State 
8healthcare purchasing that were exercised by the Department of 
9Corrections before Executive Order 3 (2005) but that pertain to 
10individuals resident in facilities operated by Department of 
11Juvenile Justice are transferred to the Department of Juvenile 
12Justice.
13 (b) The functions associated with State healthcare 
14purchasing that are transferred from the Department of 
15Healthcare and Family Services under this Section include, 
16without limitation, the following:
17  (1) Rate development and negotiation with hospitals, 
18 physicians, and managed care providers.
19  (2) Health care procurement development.
20  (3) Contract implementation and fiscal monitoring.
21  (4) Contract amendments.
22  (5) Payment processing.
23  (6) Purchasing aspects of health care plans 
24 administered by the State on behalf of the following:
25   (A) State employees. These healthcare purchasing 
26 functions include the following health care plans: 
 
 
09700SB0178sam001- 3 -LRB097 03971 JDS 56112 a


1 quality health care plan; managed health care plan; 
2 vision plan; pharmacy benefits plan; dental plan; 
3 behavioral health plan; employee assistance plan; 
4 utilization management plan; and SHIPs and various 
5 subrogation agreements. These healthcare purchasing 
6 functions also include the purchasing and 
7 administration of flu shots, hepatitis B vaccinations, 
8 and tuberculosis tests.
9   (B) Persons other than State employees. These 
10 healthcare purchasing functions include the following 
11 health care plans: the retired teachers' health 
12 insurance plan under the State Employees Group 
13 Insurance Act of 1971; the local government health 
14 insurance plan under the State Employees Group 
15 Insurance Act of 1971; the community colleges health 
16 insurance plan under the State Employees Group 
17 Insurance Act of 1971; and the active teacher 
18 prescription program.
19   (C) Residents of State-operated facilities, 
20 including (i) correctional and youth facilities 
21 operated by the Department of Corrections or the 
22 Department of Juvenile Justice, (ii) mental health 
23 centers and developmental centers operated by the 
24 Department of Human Services, and (iii) veterans homes 
25 operated by the Department of Veterans' Affairs.
26 (c) The powers, duties, rights, and responsibilities 
 
 
09700SB0178sam001- 4 -LRB097 03971 JDS 56112 a


1vested in or associated with State healthcare purchasing are 
2not affected by this Act, except that all management and staff 
3support or other resources necessary to the operation of a 
4State healthcare purchasing function shall be provided by the 
5Department to which that function is transferred under this 
6Act.

7 Section 20. Representation on boards or other entities. 
8When any provision of an Executive Order or Act provides for 
9the membership of the Director of Healthcare and Family 
10Services on any council, commission, board, or other entity 
11that exercises any of the State healthcare purchasing functions 
12transferred by this Act, the Director or Secretary of the 
13Department to which the State healthcare purchasing function is 
14transferred under this Act, or his or her designee, shall serve 
15in the place of the Director of Healthcare and Family Services, 
16but only with regard to the exercise of the function 
17transferred under this Act. If more than one such person is 
18required by law to serve on any council, commission, board, or 
19other entity, then an equivalent number of the representatives 
20of the Department to which the applicable function is 
21transferred under this Act shall so serve. In addition, any 
22statutory mandate that provides for action on the part of the 
23Director of Healthcare and Family Services relating to a State 
24healthcare purchasing function transferred under this Act 
25shall become the responsibility of the Director or Secretary of 
 
 
09700SB0178sam001- 5 -LRB097 03971 JDS 56112 a


1the Department to which that function is transferred under this 
2Act.

3 Section 25. Personnel transferred.  
4 (a) The status and rights of employees of the Department of 
5Healthcare and Family Services engaged in the performance of 
6State healthcare purchasing functions transferred back to the 
7Department of Central Management Services are not affected by 
8this Act. The status and rights of those employees, and the 
9rights of the State of Illinois and its agencies, under the 
10Personnel Code and applicable collective bargaining agreements 
11or under any pension, retirement, or annuity plan are not 
12affected by this Act. Personnel and positions within the 
13Department of Healthcare and Family Services that are engaged 
14in the performance of State healthcare purchasing functions 
15transferred back to the Department of Central Management 
16Services are transferred to and shall continue their service 
17within the Department of Central Management Services.
18 (b) Personnel and positions of the Department of 
19Corrections, the Department of Juvenile Justice, the 
20Department of Human Services, and the Department of Veterans' 
21Affairs were not in fact transferred under Executive Order 3 
22(2005) and are not affected by this Act.

23 Section 30. Books and records transferred. All books, 
24records, papers, documents, property (real and personal), 
 
 
09700SB0178sam001- 6 -LRB097 03971 JDS 56112 a


1contracts, and pending business pertaining to the powers, 
2duties, rights, and responsibilities related to any of the 
3State healthcare purchasing functions transferred under this 
4Act from the Department of Healthcare and Family Services to 
5the Department of Central Management Services, the Department 
6of Corrections, the Department of Juvenile Justice, the 
7Department of Human Services, and the Department of Veterans' 
8Affairs, including, but not limited to, material in electronic 
9or magnetic format and necessary computer hardware and 
10software, shall be delivered to the Department to which that 
11State healthcare purchasing function is transferred under this 
12Act, provided that the delivery of that information may not 
13violate any applicable confidentiality constraints. The access 
14by personnel of the Department of Central Management Services, 
15the Department of Corrections, the Department of Juvenile 
16Justice, the Department of Human Services, and the Department 
17of Veterans' Affairs to databases and electronic health 
18information that are currently maintained by the Department of 
19Healthcare and Family Services and that contain data and 
20information necessary to the performance of the State 
21healthcare purchasing functions shall continue in the same 
22manner and level of access as before this Act. Staff of the 
23Department of Central Management Services, the Department of 
24Corrections, the Department of Juvenile Justice, the 
25Department of Human Services, and the Department of Veterans' 
26Affairs may work with staff of the Department of Healthcare and 
 
 
09700SB0178sam001- 7 -LRB097 03971 JDS 56112 a


1Family Services to add new information relevant to State 
2healthcare purchasing functions.

3 Section 35. Unexpended moneys transferred. 
4 (a) With respect to the State healthcare purchasing 
5functions transferred under this Act, the Department of Central 
6Management Services is the successor agency to the Department 
7of Healthcare and Family Services under the Successor Agency 
8Act and Section 9b of the State Finance Act. All unexpended 
9appropriations and balances and other moneys available for use 
10in connection with any of the State healthcare purchasing 
11functions transferred from the Department of Healthcare and 
12Family Services to the Department of Central Management 
13Services are transferred for use by the Department of Central 
14Management Services for the exercise of those functions 
15pursuant to the direction of the Governor. Unexpended balances 
16so transferred shall be expended only for the purpose for which 
17the appropriations were originally made.
18 (b) Appropriations of the Department of Corrections, the 
19Department of Juvenile Justice, the Department of Human 
20Services, and the Department of Veterans' Affairs that were not 
21in fact transferred under Executive Order 3 (2005) are not 
22affected by this Act.

23 Section 40. Exercise of transferred powers; savings 
24provisions. The powers, duties, rights, and responsibilities 
 
 
09700SB0178sam001- 8 -LRB097 03971 JDS 56112 a


1related to the State healthcare purchasing functions 
2transferred under this Act are vested in and shall be exercised 
3by the Department to which the applicable function is 
4transferred. Each act done in the exercise of those powers, 
5duties, rights, and responsibilities shall have the same legal 
6effect as if done by the Department of Healthcare and Family 
7Services or its divisions, officers, or employees.

8 Section 45. Rights, obligations, and duties unaffected by 
9transfer. The
transfer of
powers, duties, rights, and 
10responsibilities from the Department of Healthcare and Family 
11Services under this Act does not affect any person's rights, 
12obligations, or
duties,
including any civil or criminal 
13penalties applicable thereto, arising out of
those
transferred 
14powers, duties, rights, and responsibilities.

15 Section 50. Agency officers; penalties. Every officer of 
16the Department of Central Management Services, the Department 
17of Corrections, the Department of Juvenile Justice, the 
18Department of Human Services, and the Department of Veterans' 
19Affairs is, for any offense, subject to the same penalty or 
20penalties, civil or criminal, as are prescribed by existing law 
21for the same offense by any officer whose powers or duties are 
22transferred under this Act.

23 Section 55. Reports, notices, or papers. Whenever reports 
 
 
09700SB0178sam001- 9 -LRB097 03971 JDS 56112 a


1or notices are required to be made or given or papers or 
2documents furnished or served by any person to or upon the 
3Department of Healthcare and Family Services in connection with 
4any State healthcare purchasing function transferred under 
5this Act, the same shall be made, given, furnished, or served 
6in the same manner to or upon the Department to which that 
7State healthcare purchasing function is transferred.

8 Section 60. Acts and actions unaffected by transfer. This 
9Act does not affect any act done, ratified, or canceled, or any 
10right occurring or established, before January 1, 2012, in 
11connection with any State healthcare purchasing function 
12transferred under this Act. This Act does not affect any action 
13or proceeding had or commenced before January 1, 2012, in an 
14administrative, civil, or criminal cause regarding a State 
15healthcare purchasing function transferred from the Department 
16of Healthcare and Family Services under this Act, but any such 
17action or proceeding may be defended, prosecuted, or continued 
18by the Department to which the applicable State healthcare 
19purchasing function is transferred.

20 Section 900. The State Employees Group Insurance Act of 
211971 is amended by adding Sections 2.5 and 5.5 and changing 
22Sections 3, 5, 6.5, 6.10, 10, and 13.1 as follows:

23 (5 ILCS 375/2.5 new)

 
 
09700SB0178sam001- 10 -LRB097 03971 JDS 56112 a


1 Sec. 2.5. State healthcare purchasing. On and after January 
21, 2012, as provided in the State Healthcare Purchasing 
3Reorganization Act, all of the powers, duties, rights, and 
4responsibilities related to State healthcare purchasing under 
5this Act that were transferred from the Department of Central 
6Management Services to the Department of Healthcare and Family 
7Services by Executive Order 3 (2005) are transferred back to 
8the Department.




9 (5 ILCS 375/3) (from Ch. 127, par. 523)


10 Sec. 3. Definitions. Unless the context otherwise 
11requires, the
following words and phrases as used in this Act 
12shall have the following
meanings. The Department may define 
13these and other words and phrases
separately for the purpose of 
14implementing specific programs providing benefits
under this 
15Act.

16 (a) "Administrative service organization" means any 
17person, firm or
corporation experienced in the handling of 
18claims which is
fully qualified, financially sound and capable 
19of meeting the service
requirements of a contract of 
20administration executed with the Department.

21 (b) "Annuitant" means (1) an employee who retires, or has 
22retired,
on or after January 1, 1966 on an immediate annuity 
23under the provisions
of Articles 2, 14 (including an employee 
24who has elected to receive an alternative retirement 
25cancellation payment under Section 14-108.5 of the Illinois 
 
 
09700SB0178sam001- 11 -LRB097 03971 JDS 56112 a


1Pension Code in lieu of an annuity), 15 (including an employee 
2who has retired under the optional
retirement program 
3established under Section 15-158.2),
paragraphs (2), (3), or 
4(5) of Section 16-106, or
Article 18 of the Illinois Pension 
5Code; (2) any person who was receiving
group insurance coverage 
6under this Act as of March 31, 1978 by
reason of his status as 
7an annuitant, even though the annuity in relation
to which such 
8coverage was provided is a proportional annuity based on less

9than the minimum period of service required for a retirement 
10annuity in
the system involved; (3) any person not otherwise 
11covered by this Act
who has retired as a participating member 
12under Article 2 of the Illinois
Pension Code but is ineligible 
13for the retirement annuity under Section
2-119 of the Illinois 
14Pension Code; (4) the spouse of any person who
is receiving a 
15retirement annuity under Article 18 of the Illinois Pension

16Code and who is covered under a group health insurance program 
17sponsored
by a governmental employer other than the State of 
18Illinois and who has
irrevocably elected to waive his or her 
19coverage under this Act and to have
his or her spouse 
20considered as the "annuitant" under this Act and not as
a 
21"dependent"; or (5) an employee who retires, or has retired, 
22from a
qualified position, as determined according to rules 
23promulgated by the
Director, under a qualified local 
24government, a qualified rehabilitation
facility, a qualified 
25domestic violence shelter or service, or a qualified child 
26advocacy center. (For definition
of "retired employee", see (p) 
 
 
09700SB0178sam001- 12 -LRB097 03971 JDS 56112 a


1post).

2 (b-5) "New SERS annuitant" means a person who, on or after 
3January 1,
1998, becomes an annuitant, as defined in subsection 
4(b), by virtue of
beginning to receive a retirement annuity 
5under Article 14 of the Illinois
Pension Code (including an 
6employee who has elected to receive an alternative retirement 
7cancellation payment under Section 14-108.5 of that Code in 
8lieu of an annuity), and is eligible to participate in the 
9basic program of group
health benefits provided for annuitants 
10under this Act.

11 (b-6) "New SURS annuitant" means a person who (1) on or 
12after January 1,
1998, becomes an annuitant, as defined in 
13subsection (b), by virtue of
beginning to receive a retirement 
14annuity under Article 15 of the Illinois
Pension Code, (2) has 
15not made the election authorized under Section 15-135.1
of the 
16Illinois Pension Code, and (3) is eligible to participate in 
17the basic
program of group
health benefits provided for 
18annuitants under this Act.

19 (b-7) "New TRS State annuitant" means a person who, on or 
20after July
1, 1998, becomes an annuitant, as defined in 
21subsection (b), by virtue of
beginning to receive a retirement 
22annuity under Article 16 of the Illinois
Pension Code based on 
23service as a teacher as defined in
paragraph (2), (3), or (5) 
24of Section 16-106 of that Code, and is eligible
to participate 
25in the basic program of group health benefits provided for

26annuitants under this Act.

 
 
09700SB0178sam001- 13 -LRB097 03971 JDS 56112 a


1 (c) "Carrier" means (1) an insurance company, a corporation 
2organized
under the Limited Health Service Organization Act or 
3the Voluntary Health
Services Plan Act, a partnership, or other 
4nongovernmental organization,
which is authorized to do group 
5life or group health insurance business in
Illinois, or (2) the 
6State of Illinois as a self-insurer.

7 (d) "Compensation" means salary or wages payable on a 
8regular
payroll by the State Treasurer on a warrant of the 
9State Comptroller out
of any State, trust or federal fund, or 
10by the Governor of the State
through a disbursing officer of 
11the State out of a trust or out of
federal funds, or by any 
12Department out of State, trust, federal or
other funds held by 
13the State Treasurer or the Department, to any person
for 
14personal services currently performed, and ordinary or 
15accidental
disability benefits under Articles 2, 14, 15 
16(including ordinary or accidental
disability benefits under 
17the optional retirement program established under
Section 
1815-158.2), paragraphs (2), (3), or (5) of
Section 16-106, or 
19Article 18 of the Illinois Pension Code, for disability

20incurred after January 1, 1966, or benefits payable under the 
21Workers'
Compensation or Occupational Diseases Act or benefits 
22payable under a sick
pay plan established in accordance with 
23Section 36 of the State Finance Act.
"Compensation" also means 
24salary or wages paid to an employee of any
qualified local 
25government, qualified rehabilitation facility,
qualified 
26domestic violence shelter or service, or qualified child 
 
 
09700SB0178sam001- 14 -LRB097 03971 JDS 56112 a


1advocacy center.

2 (e) "Commission" means the State Employees Group Insurance 
3Advisory
Commission authorized by this Act. Commencing July 1, 
41984, "Commission"
as used in this Act means the Commission on 
5Government Forecasting and Accountability as
established by 
6the Legislative Commission Reorganization Act of 1984.

7 (f) "Contributory", when referred to as contributory 
8coverage, shall
mean optional coverages or benefits elected by 
9the member toward the cost of
which such member makes 
10contribution, or which are funded in whole or in part
through 
11the acceptance of a reduction in earnings or the foregoing of 
12an
increase in earnings by an employee, as distinguished from 
13noncontributory
coverage or benefits which are paid entirely by 
14the State of Illinois
without reduction of the member's salary.

15 (g) "Department" means any department, institution, board,

16commission, officer, court or any agency of the State 
17government
receiving appropriations and having power to 
18certify payrolls to the
Comptroller authorizing payments of 
19salary and wages against such
appropriations as are made by the 
20General Assembly from any State fund, or
against trust funds 
21held by the State Treasurer and includes boards of
trustees of 
22the retirement systems created by Articles 2, 14, 15, 16 and
18 
23of the Illinois Pension Code. "Department" also includes the 
24Illinois
Comprehensive Health Insurance Board, the Board of 
25Examiners established under
the Illinois Public Accounting 
26Act, and the Illinois Finance Authority.

 
 
09700SB0178sam001- 15 -LRB097 03971 JDS 56112 a


1 (h) "Dependent", when the term is used in the context of 
2the health
and life plan, means a member's spouse and any child 
3(1) from
birth to age 26 including an adopted child, a child 
4who lives with the
member from the time of the filing of a 
5petition for adoption until entry
of an order of adoption, a 
6stepchild or adjudicated child, or a child who lives with the 
7member
if such member is a court appointed guardian of the 
8child or (2)
age 19 or over who is mentally
or physically 
9disabled from a cause originating prior to the age of 19 (age 
1026 if enrolled as an adult child dependent). For
the health 
11plan only, the term "dependent" also includes (1) any person

12enrolled prior to the effective date of this Section who is 
13dependent upon
the member to the extent that the member may 
14claim such person as a
dependent for income tax deduction 
15purposes and (2) any person who
has received after June 30, 
162000 an organ transplant and who is financially
dependent upon 
17the member and eligible to be claimed as a dependent for income

18tax purposes. A member requesting to cover any dependent must 
19provide documentation as requested by the Department of Central 
20Management Services and file with the Department any and all 
21forms required by the Department. 

22 (i) "Director" means the Director of the Illinois 
23Department of Central
Management Services or of any successor 
24agency designated to administer this Act.

25 (j) "Eligibility period" means the period of time a member 
26has to
elect enrollment in programs or to select benefits 
 
 
09700SB0178sam001- 16 -LRB097 03971 JDS 56112 a


1without regard to
age, sex or health.

2 (k) "Employee" means and includes each officer or employee 
3in the
service of a department who (1) receives his 
4compensation for
service rendered to the department on a 
5warrant issued pursuant to a payroll
certified by a department 
6or on a warrant or check issued and drawn by a
department upon 
7a trust, federal or other fund or on a warrant issued
pursuant 
8to a payroll certified by an elected or duly appointed officer

9of the State or who receives payment of the performance of 
10personal
services on a warrant issued pursuant to a payroll 
11certified by a
Department and drawn by the Comptroller upon the 
12State Treasurer against
appropriations made by the General 
13Assembly from any fund or against
trust funds held by the State 
14Treasurer, and (2) is employed full-time or
part-time in a 
15position normally requiring actual performance of duty
during 
16not less than 1/2 of a normal work period, as established by 
17the
Director in cooperation with each department, except that 
18persons elected
by popular vote will be considered employees 
19during the entire
term for which they are elected regardless of 
20hours devoted to the
service of the State, and (3) except that 
21"employee" does not include any
person who is not eligible by 
22reason of such person's employment to
participate in one of the 
23State retirement systems under Articles 2, 14, 15
(either the 
24regular Article 15 system or the optional retirement program

25established under Section 15-158.2) or 18, or under paragraph 
26(2), (3), or
(5) of Section 16-106, of the Illinois
Pension 
 
 
09700SB0178sam001- 17 -LRB097 03971 JDS 56112 a


1Code, but such term does include persons who are employed 
2during
the 6 month qualifying period under Article 14 of the 
3Illinois Pension
Code. Such term also includes any person who 
4(1) after January 1, 1966,
is receiving ordinary or accidental 
5disability benefits under Articles
2, 14, 15 (including 
6ordinary or accidental disability benefits under the
optional 
7retirement program established under Section 15-158.2), 
8paragraphs
(2), (3), or (5) of Section 16-106, or Article 18 of 
9the
Illinois Pension Code, for disability incurred after 
10January 1, 1966, (2)
receives total permanent or total 
11temporary disability under the Workers'
Compensation Act or 
12Occupational Disease Act as a result of injuries
sustained or 
13illness contracted in the course of employment with the
State 
14of Illinois, or (3) is not otherwise covered under this Act and 
15has
retired as a participating member under Article 2 of the 
16Illinois Pension
Code but is ineligible for the retirement 
17annuity under Section 2-119 of
the Illinois Pension Code. 
18However, a person who satisfies the criteria
of the foregoing 
19definition of "employee" except that such person is made

20ineligible to participate in the State Universities Retirement 
21System by
clause (4) of subsection (a) of Section 15-107 of the 
22Illinois Pension
Code is also an "employee" for the purposes of 
23this Act. "Employee" also
includes any person receiving or 
24eligible for benefits under a sick pay
plan established in 
25accordance with Section 36 of the State Finance Act.
"Employee" 
26also includes (i) each officer or employee in the service of a

 
 
09700SB0178sam001- 18 -LRB097 03971 JDS 56112 a


1qualified local government, including persons appointed as 
2trustees of
sanitary districts regardless of hours devoted to 
3the service of the
sanitary district, (ii) each employee in the 
4service of a qualified
rehabilitation facility, (iii) each 
5full-time employee in the service of a
qualified domestic 
6violence shelter or service, and (iv) each full-time employee 
7in the service of a qualified child advocacy center, as 
8determined according to
rules promulgated by the Director.

9 (l) "Member" means an employee, annuitant, retired 
10employee or survivor.

11 (m) "Optional coverages or benefits" means those coverages 
12or
benefits available to the member on his or her voluntary 
13election, and at
his or her own expense.

14 (n) "Program" means the group life insurance, health 
15benefits and other
employee benefits designed and contracted 
16for by the Director under this Act.

17 (o) "Health plan" means a health benefits
program offered

18by the State of Illinois for persons eligible for the plan.

19 (p) "Retired employee" means any person who would be an 
20annuitant as
that term is defined herein but for the fact that 
21such person retired prior to
January 1, 1966. Such term also 
22includes any person formerly employed by
the University of 
23Illinois in the Cooperative Extension Service who would
be an 
24annuitant but for the fact that such person was made ineligible 
25to
participate in the State Universities Retirement System by 
26clause (4) of
subsection (a) of Section 15-107 of the Illinois

 
 
09700SB0178sam001- 19 -LRB097 03971 JDS 56112 a


1Pension Code.

2 (q) "Survivor" means a person receiving an annuity as a 
3survivor of an
employee or of an annuitant. "Survivor" also 
4includes: (1) the surviving
dependent of a person who satisfies 
5the definition of "employee" except that
such person is made 
6ineligible to participate in the State Universities
Retirement 
7System by clause (4) of subsection (a)
of Section 15-107 of the 
8Illinois Pension Code; (2) the surviving
dependent of any 
9person formerly employed by the University of Illinois in
the 
10Cooperative Extension Service who would be an annuitant except 
11for the
fact that such person was made ineligible to 
12participate in the State
Universities Retirement System by 
13clause (4) of subsection (a) of Section
15-107 of the Illinois 
14Pension Code; and (3) the surviving dependent of a person who 
15was an annuitant under this Act by virtue of receiving an 
16alternative retirement cancellation payment under Section 
1714-108.5 of the Illinois Pension Code.

18 (q-2) "SERS" means the State Employees' Retirement System 
19of Illinois, created under Article 14 of the Illinois Pension 
20Code.

21 (q-3) "SURS" means the State Universities Retirement 
22System, created under Article 15 of the Illinois Pension Code.

23 (q-4) "TRS" means the Teachers' Retirement System of the 
24State of Illinois, created under Article 16 of the Illinois 
25Pension Code.

26 (q-5) "New SERS survivor" means a survivor, as defined in 
 
 
09700SB0178sam001- 20 -LRB097 03971 JDS 56112 a


1subsection (q),
whose annuity is paid under Article 14 of the 
2Illinois Pension Code and is
based on the death of (i) an 
3employee whose death occurs on or after January 1,
1998, or 
4(ii) a new SERS annuitant as defined in subsection (b-5). "New 
5SERS survivor" includes the surviving dependent of a person who 
6was an annuitant under this Act by virtue of receiving an 
7alternative retirement cancellation payment under Section 
814-108.5 of the Illinois Pension Code.


9 (q-6) "New SURS survivor" means a survivor, as defined in 
10subsection (q),
whose annuity is paid under Article 15 of the 
11Illinois Pension Code and is
based on the death of (i) an 
12employee whose death occurs on or after January 1,
1998, or 
13(ii) a new SURS annuitant as defined in subsection (b-6).

14 (q-7) "New TRS State survivor" means a survivor, as defined 
15in subsection
(q), whose annuity is paid under Article 16 of 
16the Illinois Pension Code and is
based on the death of (i) an 
17employee who is a teacher as defined in paragraph
(2), (3), or 
18(5) of Section 16-106 of that Code and whose death occurs on or

19after July 1, 1998, or (ii) a new TRS State annuitant as 
20defined in subsection
(b-7).

21 (r) "Medical services" means the services provided within 
22the scope
of their licenses by practitioners in all categories 
23licensed under the
Medical Practice Act of 1987.

24 (s) "Unit of local government" means any county, 
25municipality,
township, school district (including a 
26combination of school districts under
the Intergovernmental 
 
 
09700SB0178sam001- 21 -LRB097 03971 JDS 56112 a


1Cooperation Act), special district or other unit,
designated as 
2a
unit of local government by law, which exercises limited 
3governmental
powers or powers in respect to limited 
4governmental subjects, any
not-for-profit association with a 
5membership that primarily includes
townships and township 
6officials, that has duties that include provision of
research 
7service, dissemination of information, and other acts for the

8purpose of improving township government, and that is funded 
9wholly or
partly in accordance with Section 85-15 of the 
10Township Code; any
not-for-profit corporation or association, 
11with a membership consisting
primarily of municipalities, that 
12operates its own utility system, and
provides research, 
13training, dissemination of information, or other acts to

14promote cooperation between and among municipalities that 
15provide utility
services and for the advancement of the goals 
16and purposes of its
membership;
the Southern Illinois 
17Collegiate Common Market, which is a consortium of higher

18education institutions in Southern Illinois; the Illinois 
19Association of
Park Districts; and any hospital provider that 
20is owned by a county that has 100 or fewer hospital beds and 
21has not already joined the program. "Qualified
local 
22government" means a unit of local government approved by the 
23Director and
participating in a program created under 
24subsection (i) of Section 10 of this
Act.

25 (t) "Qualified rehabilitation facility" means any 
26not-for-profit
organization that is accredited by the 
 
 
09700SB0178sam001- 22 -LRB097 03971 JDS 56112 a


1Commission on Accreditation of
Rehabilitation Facilities or 
2certified by the Department
of Human Services (as successor to 
3the Department of Mental Health
and Developmental 
4Disabilities) to provide services to persons with
disabilities

5and which receives funds from the State of Illinois for 
6providing those
services, approved by the Director and 
7participating in a program created
under subsection (j) of 
8Section 10 of this Act.

9 (u) "Qualified domestic violence shelter or service" means 
10any Illinois
domestic violence shelter or service and its 
11administrative offices funded
by the Department of Human 
12Services (as successor to the Illinois Department of
Public 
13Aid),
approved by the Director and
participating in a program 
14created under subsection (k) of Section 10.

15 (v) "TRS benefit recipient" means a person who:


16  (1) is not a "member" as defined in this Section; and


17  (2) is receiving a monthly benefit or retirement 
18 annuity
under Article 16 of the Illinois Pension Code; and


19  (3) either (i) has at least 8 years of creditable 
20 service under Article
16 of the Illinois Pension Code, or 
21 (ii) was enrolled in the health insurance
program offered 
22 under that Article on January 1, 1996, or (iii) is the 
23 survivor
of a benefit recipient who had at least 8
years of 
24 creditable service under Article 16 of the Illinois Pension 
25 Code or
was enrolled in the health insurance program 
26 offered under that Article on
the effective date of this 
 
 
09700SB0178sam001- 23 -LRB097 03971 JDS 56112 a


1 amendatory Act of 1995, or (iv) is a recipient or
survivor 
2 of a recipient of a disability benefit under Article 16 of 
3 the
Illinois Pension Code.

4 (w) "TRS dependent beneficiary" means a person who:


5  (1) is not a "member" or "dependent" as defined in this 
6 Section; and


7  (2) is a TRS benefit recipient's: (A) spouse, (B) 
8 dependent parent who
is receiving at least half of his or 
9 her support from the TRS benefit
recipient, or (C) natural, 
10 step, adjudicated, or adopted child who is (i) under age 
11 26, (ii) was, on January 1, 1996, participating as a 
12 dependent
beneficiary in the health insurance program 
13 offered under Article 16 of the
Illinois Pension Code, or 
14 (iii) age 19 or over who is mentally or physically disabled 
15 from a cause originating prior to the age of 19 (age 26 if 
16 enrolled as an adult child).

17 (x) "Military leave" refers to individuals in basic

18training for reserves, special/advanced training, annual 
19training, emergency
call up, activation by the President of the 
20United States, or any other training or duty in service to the 
21United States Armed Forces.

22 (y) (Blank).

23 (z) "Community college benefit recipient" means a person 
24who:


25  (1) is not a "member" as defined in this Section; and


26  (2) is receiving a monthly survivor's annuity or 
 
 
09700SB0178sam001- 24 -LRB097 03971 JDS 56112 a


1 retirement annuity
under Article 15 of the Illinois Pension 
2 Code; and


3  (3) either (i) was a full-time employee of a community 
4 college district or
an association of community college 
5 boards created under the Public Community
College Act 
6 (other than an employee whose last employer under Article 
7 15 of the
Illinois Pension Code was a community college 
8 district subject to Article VII
of the Public Community 
9 College Act) and was eligible to participate in a group

10 health benefit plan as an employee during the time of 
11 employment with a
community college district (other than a 
12 community college district subject to
Article VII of the 
13 Public Community College Act) or an association of 
14 community
college boards, or (ii) is the survivor of a 
15 person described in item (i).

16 (aa) "Community college dependent beneficiary" means a 
17person who:


18  (1) is not a "member" or "dependent" as defined in this 
19 Section; and


20  (2) is a community college benefit recipient's: (A) 
21 spouse, (B) dependent
parent who is receiving at least half 
22 of his or her support from the community
college benefit 
23 recipient, or (C) natural, step, adjudicated, or adopted 
24 child who is (i)
under age 26, or (ii)
age 19 or over and 
25 mentally or physically disabled from a cause originating 
26 prior to the age of 19 (age 26 if enrolled as an adult 
 
 
09700SB0178sam001- 25 -LRB097 03971 JDS 56112 a


1 child).

2 (bb) "Qualified child advocacy center" means any Illinois 
3child advocacy center and its administrative offices funded by 
4the Department of Children and Family Services, as defined by 
5the Children's Advocacy Center Act (55 ILCS 80/), approved by 
6the Director and participating in a program created under 
7subsection (n) of Section 10.

8(Source: P.A. 95-331, eff. 8-21-07; 95-632, eff. 9-25-07; 
996-756, eff. 1-1-10; 96-1519, eff. 2-4-11.)





10 (5 ILCS 375/5) (from Ch. 127, par. 525)



11 Sec. 5. Employee benefits; declaration of State policy.
The 
12General Assembly declares that it is the policy of the State 
13and in the best interest of the State to assure quality 
14benefits to members and their dependents under this Act. The 
15implementation of this policy depends upon, among other things, 
16stability and continuity of coverage, care, and services under 
17benefit programs for members and their dependents. 
18Specifically, but without limitation, members should have 
19continued access, on substantially similar terms and 
20conditions, to trusted family health care providers with whom 
21they have developed long-term relationships through a benefit 
22program under this Act. Therefore, the Director must administer 
23this Act consistent with that State policy, but may consider 
24affordability, cost of coverage and care, and competition among 
25health insurers and providers. All contracts for provision of 
 
 
09700SB0178sam001- 26 -LRB097 03971 JDS 56112 a


1employee benefits, including those portions of any proposed 
2collective bargaining agreement that would require 
3implementation through contracts entered into under this Act, 
4are subject to Section 5.5 and the following requirements:
5  (i) By January April 1 of each year, the Director must 
6 report and provide information to the Commission 
7 concerning the status of the employee benefits program to 
8 be offered for the next fiscal year. Information includes, 
9 but is not limited to, documents, reports of negotiations, 
10 bid invitations, requests for proposals, specifications, 
11 copies of proposed and final contracts or agreements, and 
12 any other materials concerning contracts or agreements for 
13 the employee benefits program. By the first of each month 
14 thereafter, the Director must provide updated, and any new, 
15 information to the Commission until the employee benefits 
16 program for the next fiscal year is finalized determined. 
17 In addition to these monthly reporting requirements, at any 
18 time the Commission makes a written request, the Director 
19 must promptly, but in no event later than 5 business days 
20 after receipt of the request, provide to the Commission any 
21 additional requested information in the possession of the 
22 Director concerning employee benefits programs. The 
23 Commission may waive any of the reporting requirements of 
24 this item (i) upon the written request by the Director. Any 
25 waiver granted under this item (i) must be in writing. 
26 Nothing in this item is intended to abrogate any 
 
 
09700SB0178sam001- 27 -LRB097 03971 JDS 56112 a


1 attorney-client privilege.

2  (ii) Within 30 days after notice of the awarding or 
3 letting of a contract has appeared in the Illinois 
4 Procurement Bulletin in accordance with subsection (b) of 
5 Section 15-25 of the Illinois Procurement Code, the 
6 Commission may request in writing from the Director and the 
7 Director shall promptly, but in no event later than 5 
8 business days after receipt of the request, provide to the 
9 Commission information in the possession of the Director 
10 concerning the proposed contract. Nothing in this item is 
11 intended to waive or abrogate any privilege or right of 
12 confidentiality authorized by law.
13  (iii) No contract subject to this Section may be 
14 entered into until the 30-day period described in item (ii) 
15 has expired, unless the Director requests in writing that 
16 the Commission waive the period and the Commission grants 
17 the waiver in writing.
18  (iv) If the Director seeks to make any substantive 
19 modification to any provision of a proposed contract after 
20 it is submitted to the Commission in accordance with item 
21 (ii), the modified contract shall be subject to the 
22 requirements of items (ii) and (iii) unless the Commission 
23 agrees, in writing, to a waiver of those requirements with 
24 respect to the modified contract.

25  (v) By April 1 of each year the date of the beginning 
26 of the annual benefit choice period, the Director must 
 
 
09700SB0178sam001- 28 -LRB097 03971 JDS 56112 a


1 transmit to the Commission a copy of each final contract or 
2 agreement for the employee benefits program to be offered 
3 for the next fiscal year. The annual benefit choice period 
4 for an employee benefits program must begin on May 1 of the 
5 fiscal year preceding the year for which the program is to 
6 be offered. If, however, in any such preceding fiscal year 
7 collective bargaining over employee benefit programs for 
8 the next fiscal year remains pending on April 15, the 
9 beginning date of the annual benefit choice period shall be 
10 not later than 15 days after ratification of the collective 
11 bargaining agreement.

12  (vi) The Director must provide the reports, 
13 information, and contracts required under items (i), (ii), 
14 (iv), and (v) by electronic or other means satisfactory to 
15 the Commission. Reports, information, and contracts in the 
16 possession of the Commission pursuant to items (i), (ii), 
17 (iv), and (v) are exempt from disclosure by the Commission 
18 and its members and employees under the Freedom of 
19 Information Act. Reports, information, and contracts 
20 received by the Commission pursuant to items (i), (ii), 
21 (iv), and (v) must be kept confidential by and may not be 
22 disclosed or used by the Commission or its members or 
23 employees if such disclosure or use could compromise the 
24 fairness or integrity of the procurement, bidding, or 
25 contract process. Commission meetings, or portions of 
26 Commission meetings, in which reports, information, and 
 
 
09700SB0178sam001- 29 -LRB097 03971 JDS 56112 a


1 contracts received by the Commission pursuant to items (i), 
2 (ii), (iv), and (v) are discussed must be closed if 
3 disclosure or use of the report or information could 
4 compromise the fairness or integrity of the procurement, 
5 bidding, or contract process.

6 All contracts entered into under this Section are subject 
7to appropriation and shall comply with Section 20-60(b) of the 
8Illinois Procurement Code (30 ILCS 500/20-60(b)).

9 The Director shall contract or otherwise make available 
10group
life insurance, health benefits and other
employee 
11benefits to eligible members and, where elected,
their eligible 
12dependents. Any contract or, if
applicable, contracts or other 
13arrangement for provision of benefits
shall be on terms 
14consistent with State policy and
based on, but not limited to, 
15such
criteria as administrative cost, service capabilities of 
16the carrier
or other contractor and premiums, fees or charges 
17as related to benefits.

18 The Director may prepare and issue specifications
for group 
19life insurance, health benefits, other employee benefits
and 
20administrative services for the purpose of receiving proposals

21from interested parties. 

22 The Director is authorized to execute a contract, or

23contracts, for the programs of group life insurance, health

24benefits, other employee benefits and administrative services

25authorized by this Act (including, without limitation, 
26prescription drug benefits). All of the benefits provided under 
 
 
09700SB0178sam001- 30 -LRB097 03971 JDS 56112 a


1this Act may be
included in one or more contracts, or the 
2benefits may be classified into
different types with each type 
3included under one or more similar contracts
with the same or 
4different companies.

5 Except as otherwise provided in this Act, the The term of 
6any contract may not extend beyond 5 fiscal years.
Upon 
7recommendation of the Commission, the Director may exercise 
8renewal
options of the same contract for up to a period of 5 
9years or for an additional period of time, as authorized under 
10Section 5.5. Any
increases in premiums, fees or charges 
11requested by a contractor whose
contract may be renewed 
12pursuant to a renewal option contained therein,
must be 
13justified on the basis of (1) audited experience data, (2)

14increases in the costs of health care services provided under 
15the contract,
(3) contractor performance, (4) increases in 
16contractor responsibilities,
or (5) any combination thereof.

17 Any contractor shall agree to abide by all
requirements of 
18this Act and Rules and Regulations promulgated and adopted

19thereto; to submit such information and data as may from time 
20to time be
deemed necessary by the Director for effective 
21administration of the
provisions of this Act and the programs 
22established
hereunder, and to fully cooperate in any audit.

23(Source: P.A. 93-839, eff. 7-30-04.)


24 (5 ILCS 375/5.5 new)
25 Sec. 5.5. State healthcare purchasing oversight; timely 
 
 
09700SB0178sam001- 31 -LRB097 03971 JDS 56112 a


1provision of health benefits. 
2 (a) If, after reviewing the information submitted to it 
3under item (ii) of Section 5 of this Act, the Commission makes 
4a formal written determination that a proposed contract 
5inadequately balances the policies identified in Section 5 of 
6this Act, then the Commission may disapprove the proposed 
7contract at any time before it is finalized. If the Commission 
8disapproves a proposed contract, then that proposed contract 
9may not be finalized unless subsequently approved by a joint 
10resolution of the General Assembly.
11 (b) If, within 90 days before the start of a fiscal year, 
12the Chief Procurement Officer responsible for awarding group 
13health insurance contracts under this Act has not finalized all 
14written contracts for the provision of group health insurance 
15benefits under this Act for the coming fiscal year, then the 
16Commission may direct the Chief Procurement Officer (i) not to 
17finalize any proposed group health insurance contracts for that 
18fiscal year, as well as associated requests for proposals, and 
19(ii) to seek to extend existing contracts for those benefits 
20for a term of 2 additional years.




21 (5 ILCS 375/6.5)



22 Sec. 6.5. Health benefits for TRS benefit recipients and 
23TRS dependent
beneficiaries.
24 (a) Purpose. It is the purpose of this amendatory Act of 
251995 to transfer
the administration of the program of health 
 
 
09700SB0178sam001- 32 -LRB097 03971 JDS 56112 a


1benefits established for benefit
recipients and their 
2dependent beneficiaries under Article 16 of the Illinois

3Pension Code to the Department of Central Management Services.

4 (b) Transition provisions. The Board of Trustees of the 
5Teachers'
Retirement System shall continue to administer the 
6health benefit program
established under Article 16 of the 
7Illinois Pension Code through December 31,
1995. Beginning 
8January 1, 1996, the Department of Central Management Services

9shall be responsible for administering a program of health 
10benefits for TRS
benefit recipients and TRS dependent 
11beneficiaries under this Section.
The Department of Central 
12Management Services and the Teachers' Retirement
System shall 
13cooperate in this endeavor and shall coordinate their 
14activities
so as to ensure a smooth transition and 
15uninterrupted health benefit coverage.

16 (c) Eligibility. All persons who were enrolled in the 
17Article 16 program at
the time of the transfer shall be 
18eligible to participate in the program
established under this 
19Section without any interruption or delay in coverage
or 
20limitation as to pre-existing medical conditions. Eligibility 
21to
participate shall be determined by the Teachers' Retirement 
22System.
Eligibility information shall be communicated to the 
23Department of Central
Management Services in a format 
24acceptable to the Department.

25 A TRS dependent beneficiary who is a child age 19 or over 
26and
mentally or physically disabled does not become ineligible 
 
 
09700SB0178sam001- 33 -LRB097 03971 JDS 56112 a


1to participate
by reason of (i) becoming ineligible to be 
2claimed as a dependent for Illinois
or federal income tax 
3purposes or (ii) receiving earned income, so long as
those 
4earnings are insufficient for the child to be fully 
5self-sufficient.

6 (d) Coverage. The level of health benefits provided under 
7this Section
shall be similar to the level of benefits provided 
8by the
program previously established under Article 16 of the 
9Illinois Pension Code.

10 Group life insurance benefits are not included in the 
11benefits
to be provided to TRS benefit recipients and TRS 
12dependent beneficiaries under
this Act.

13 The program of health benefits under this Section may 
14include any or all of
the benefit limitations, including but 
15not limited to a reduction in benefits
based on eligibility for 
16federal medicare benefits, that are provided under
subsection 
17(a) of Section 6 of this Act for other health benefit programs 
18under
this Act.

19 (e) Insurance rates and premiums. The Director shall 
20determine the
insurance rates and premiums for TRS benefit 
21recipients and TRS dependent
beneficiaries,
and shall present 
22to the Teachers' Retirement System of
the State of Illinois, by 
23April 15 of each calendar year, the rate-setting
methodology 
24(including but not limited to utilization levels and costs) 
25used
to determine the amount of the health care premiums.

26  For Fiscal Year 1996, the premium shall be equal to the 
 
 
09700SB0178sam001- 34 -LRB097 03971 JDS 56112 a


1 premium actually
charged in Fiscal Year 1995; in subsequent 
2 years, the premium shall
never be lower than the premium 
3 charged in Fiscal Year 1995. 
4  For Fiscal Year
2003, the premium shall not exceed 110% 
5 of the premium actually charged in
Fiscal Year 2002. 
6  For Fiscal Year 2004, the premium shall not exceed 112% 
7 of
the premium actually charged in Fiscal Year 2003.

8  For Fiscal Year 2005, the premium shall not exceed a 
9 weighted average of 106.6% of
the premium actually charged 
10 in Fiscal Year 2004.

11  For Fiscal Year 2006, the premium shall not exceed a 
12 weighted average of 109.1% of
the premium actually charged 
13 in Fiscal Year 2005.

14  For Fiscal Year 2007, the premium shall not exceed a 
15 weighted average of 103.9% of
the premium actually charged 
16 in Fiscal Year 2006.

17  For Fiscal Year 2008 and thereafter, the premium in 
18 each fiscal year shall not exceed 105% of
the premium 
19 actually charged in the previous fiscal year.

20 Rates and premiums may be based in part on age and 
21eligibility for federal
medicare coverage. However, the cost of 
22participation for a TRS dependent
beneficiary who is an 
23unmarried child age 19 or over and mentally or physically

24disabled shall not exceed the cost for a TRS dependent 
25beneficiary who is
an unmarried child under age 19 and 
26participates in the same major medical or
managed care program.

 
 
09700SB0178sam001- 35 -LRB097 03971 JDS 56112 a


1 The cost of health benefits under the program shall be paid 
2as follows:


3  (1) For a TRS benefit recipient selecting a managed 
4 care program, up to
75% of the total insurance rate shall 
5 be paid from the Teacher Health Insurance
Security Fund. 
6 Effective with Fiscal Year 2007 and thereafter, for a TRS 
7 benefit recipient selecting a managed care program, 75% of 
8 the total insurance rate shall be paid from the Teacher 
9 Health Insurance
Security Fund.



10  (2) For a TRS benefit recipient selecting the major 
11 medical coverage
program, up to 50% of the total insurance 
12 rate shall be paid from the Teacher
Health Insurance 
13 Security Fund if a managed care program is accessible, as

14 determined by the Teachers' Retirement System. Effective 
15 with Fiscal Year 2007 and thereafter, for a TRS benefit 
16 recipient selecting the major medical coverage
program, 
17 50% of the total insurance rate shall be paid from the 
18 Teacher
Health Insurance Security Fund if a managed care 
19 program is accessible, as
determined by the Department of 
20 Central Management Services.



21  (3) For a TRS benefit recipient selecting the major 
22 medical coverage
program, up to 75% of the total insurance 
23 rate shall be paid from the Teacher
Health Insurance 
24 Security Fund if a managed care program is not accessible, 
25 as
determined by the Teachers' Retirement System. 
26 Effective with Fiscal Year 2007 and thereafter, for a TRS 
 
 
09700SB0178sam001- 36 -LRB097 03971 JDS 56112 a


1 benefit recipient selecting the major medical coverage

2 program, 75% of the total insurance rate shall be paid from 
3 the Teacher
Health Insurance Security Fund if a managed 
4 care program is not accessible, as
determined by the 
5 Department of Central Management Services.

6  (3.1) For a TRS dependent beneficiary who is Medicare 
7 primary and enrolled in a managed care plan, or the major 
8 medical coverage program if a managed care plan is not 
9 available, 25% of the total insurance rate shall be paid 
10 from the Teacher Health Security Fund as determined by the 
11 Department of Central Management Services. For the purpose 
12 of this item (3.1), the term "TRS dependent beneficiary who 
13 is Medicare primary" means a TRS dependent beneficiary who 
14 is participating in Medicare Parts A and B.


15  (4) Except as otherwise provided in item (3.1), the

16 balance of the rate of insurance, including the entire 
17 premium of
any coverage for TRS dependent beneficiaries 
18 that has been elected, shall be
paid
by deductions 
19 authorized by the TRS benefit recipient to be withheld from 
20 his
or her monthly annuity or benefit payment from the 
21 Teachers' Retirement System;
except that (i) if the balance 
22 of the cost of coverage exceeds the amount of
the monthly 
23 annuity or benefit payment, the difference shall be paid 
24 directly
to the Teachers' Retirement System by the TRS 
25 benefit recipient, and (ii) all
or part of the balance of 
26 the cost of coverage may, at the school board's
option, be 
 
 
09700SB0178sam001- 37 -LRB097 03971 JDS 56112 a


1 paid to the Teachers' Retirement System by the school board 
2 of the
school district from which the TRS benefit recipient 
3 retired, in accordance
with Section 10-22.3b of the School 
4 Code. The Teachers' Retirement System
shall promptly 
5 deposit all moneys withheld by or paid to it under this

6 subdivision (e)(4) into the Teacher Health Insurance 
7 Security Fund. These
moneys shall not be considered assets 
8 of the Retirement System.

9 (f) Financing. Beginning July 1, 1995, all revenues arising 
10from the
administration of the health benefit programs 
11established under Article 16 of
the Illinois Pension Code or 
12this Section shall be deposited into the
Teacher Health 
13Insurance Security Fund, which is hereby created as a

14nonappropriated trust fund to be held outside the State 
15Treasury, with the
State Treasurer as custodian. Any interest 
16earned on moneys in the Teacher
Health Insurance Security Fund 
17shall be deposited into the Fund.

18 Moneys in the Teacher Health Insurance Security
Fund shall 
19be used only to pay the costs of the health benefit program

20established under this Section, including associated 
21administrative costs, and
the costs associated with the health 
22benefit program established under Article
16 of the Illinois 
23Pension Code, as authorized in this Section. Beginning
July 1, 
241995, the Department of Central Management Services may make

25expenditures from the Teacher Health Insurance Security Fund 
26for those costs.

 
 
09700SB0178sam001- 38 -LRB097 03971 JDS 56112 a


1 After other funds authorized for the payment of the costs 
2of the health
benefit program established under Article 16 of 
3the Illinois Pension Code are
exhausted and until January 1, 
41996 (or such later date as may be agreed upon
by the Director 
5of Central Management Services and the Secretary of the

6Teachers' Retirement System), the Secretary of the Teachers' 
7Retirement System
may make expenditures from the Teacher Health 
8Insurance Security Fund as
necessary to pay up to 75% of the 
9cost of providing health coverage to eligible
benefit 
10recipients (as defined in Sections 16-153.1 and 16-153.3 of the

11Illinois Pension Code) who are enrolled in the Article 16 
12health benefit
program and to facilitate the transfer of 
13administration of the health benefit
program to the Department 
14of Central Management Services.

15 The Department of Central Management Healthcare and Family 
16Services, or any successor agency designated to procure 
17healthcare contracts pursuant to this Act, is authorized to 
18establish funds, separate accounts provided by any bank or 
19banks as defined by the Illinois Banking Act, or separate 
20accounts provided by any savings and loan association or 
21associations as defined by the Illinois Savings and Loan Act of 
221985 to be held by the Director, outside the State treasury, 
23for the purpose of receiving the transfer of moneys from the 
24Teacher Health Insurance Security Fund. The Department may 
25promulgate rules further defining the methodology for the 
26transfers. Any interest earned by moneys in the funds or 
 
 
09700SB0178sam001- 39 -LRB097 03971 JDS 56112 a


1accounts shall inure to the Teacher Health Insurance Security 
2Fund. The transferred moneys, and interest accrued thereon, 
3shall be used exclusively for transfers to administrative 
4service organizations or their financial institutions for 
5payments of claims to claimants and providers under the 
6self-insurance health plan. The transferred moneys, and 
7interest accrued thereon, shall not be used for any other 
8purpose including, but not limited to, reimbursement of 
9administration fees due the administrative service 
10organization pursuant to its contract or contracts with the 
11Department.

12 (g) Contract for benefits. The Director shall by contract, 
13self-insurance,
or otherwise make available the program of 
14health benefits for TRS benefit
recipients and their TRS 
15dependent beneficiaries that is provided for in this
Section. 
16The contract or other arrangement for the provision of these 
17health
benefits shall be on terms deemed by the Director to be 
18in the best interest of
the State of Illinois and the TRS 
19benefit recipients based on, but not limited
to, such criteria 
20as administrative cost, service capabilities of the carrier
or 
21other contractor, and the costs of the benefits.

22 (g-5) Committee. A Teacher Retirement Insurance Program 
23Committee shall be established, to consist of 10 persons 
24appointed by the Governor.

25 The Committee shall convene at least 4 times each year, and 
26shall consider and make recommendations on issues affecting the 
 
 
09700SB0178sam001- 40 -LRB097 03971 JDS 56112 a


1program of health benefits provided under this
Section. 
2Recommendations of the Committee shall be based on a consensus 
3of the members of the Committee.

4 If the Teacher
Health Insurance Security Fund experiences a 
5deficit balance based upon the contribution and subsidy rates 
6established in this Section and Section 6.6 for Fiscal Year 
72008 or thereafter, the Committee shall make recommendations 
8for adjustments to the funding sources established under these 
9Sections.
10 (h) Continuation of program. It is the intention of
the 
11General Assembly that the program of health benefits provided 
12under this
Section be maintained on an ongoing, affordable 
13basis.

14 The program of health benefits provided under this Section 
15may be amended by
the State and is not intended to be a pension 
16or retirement benefit subject to
protection under Article XIII, 
17Section 5 of the Illinois Constitution.

18 (i) Repeal. (Blank).

19(Source: P.A. 95-632, eff. 9-25-07; 96-1519, eff. 2-4-11.)





20 (5 ILCS 375/6.10)


21 Sec. 6.10. Contributions to the Community College Health 
22Insurance
Security Fund.

23 (a) Beginning January 1, 1999, every active contributor of 
24the State
Universities Retirement System (established under 
25Article 15 of the Illinois
Pension Code) who (1) is a full-time 
 
 
09700SB0178sam001- 41 -LRB097 03971 JDS 56112 a


1employee of a community college district
(other than a 
2community college district subject to Article VII of the Public

3Community College Act)
or an association of community college 
4boards and (2) is not an employee as
defined in Section 3 of 
5this Act shall make contributions toward the cost of
community 
6college annuitant and survivor health benefits at the rate of 
70.50%
of salary.

8 These contributions shall be deducted by the employer and 
9paid to the State
Universities Retirement System as service 
10agent for the Department of Central
Management Services. The 
11System may use the same processes for collecting the

12contributions required by this subsection that it uses to 
13collect the
contributions received from those employees under 
14Section 15-157 of the
Illinois Pension Code. An employer may 
15agree to pick up or pay the
contributions required under this 
16subsection on behalf of the employee;
such contributions shall 
17be deemed to have been paid by the employee.

18 The State Universities Retirement System shall promptly 
19deposit all moneys
collected under this subsection (a) into the 
20Community College Health Insurance
Security Fund created in 
21Section 6.9 of this Act. The moneys collected under
this 
22Section shall be used only for the purposes authorized in 
23Section 6.9 of
this Act and shall not be considered to be 
24assets of the State Universities
Retirement System. 
25Contributions made under this Section are not transferable
to 
26other pension funds or retirement systems and are not 
 
 
09700SB0178sam001- 42 -LRB097 03971 JDS 56112 a


1refundable upon
termination of service.

2 (b) Beginning January 1, 1999, every community college 
3district
(other than a community college district subject to 
4Article VII of the Public
Community College Act) or association

5of community college boards that is an employer under the State 
6Universities
Retirement System shall contribute toward the 
7cost of the community college
health benefits provided under 
8Section 6.9 of this Act an amount equal to 0.50%
of the salary 
9paid to its full-time employees who participate in the State

10Universities Retirement System and are not members as defined 
11in Section 3 of
this Act.

12 These contributions shall be paid by the employer to the 
13State Universities
Retirement System as service agent for the 
14Department of Central Management
Services. The System may use 
15the same processes for collecting the
contributions required by 
16this subsection that it uses to collect the
contributions 
17received from those employers under Section 15-155 of the

18Illinois Pension Code.

19 The State Universities Retirement System shall promptly 
20deposit all moneys
collected under this subsection (b) into the 
21Community College Health Insurance
Security Fund created in 
22Section 6.9 of this Act. The moneys collected under
this 
23Section shall be used only for the purposes authorized in 
24Section 6.9 of
this Act and shall not be considered to be 
25assets of the State Universities
Retirement System. 
26Contributions made under this Section are not transferable
to 
 
 
09700SB0178sam001- 43 -LRB097 03971 JDS 56112 a


1other pension funds or retirement systems and are not 
2refundable upon
termination of service.

3 The Department of Central Management Healthcare and Family 
4Services, or any successor agency designated to procure 
5healthcare contracts pursuant to this Act, is authorized to 
6establish funds, separate accounts provided by any bank or 
7banks as defined by the Illinois Banking Act, or separate 
8accounts provided by any savings and loan association or 
9associations as defined by the Illinois Savings and Loan Act of 
101985 to be held by the Director, outside the State treasury, 
11for the purpose of receiving the transfer of moneys from the 
12Community College Health Insurance Security Fund. The 
13Department may promulgate rules further defining the 
14methodology for the transfers. Any interest earned by moneys in 
15the funds or accounts shall inure to the Community College 
16Health Insurance Security Fund. The transferred moneys, and 
17interest accrued thereon, shall be used exclusively for 
18transfers to administrative service organizations or their 
19financial institutions for payments of claims to claimants and 
20providers under the self-insurance health plan. The 
21transferred moneys, and interest accrued thereon, shall not be 
22used for any other purpose including, but not limited to, 
23reimbursement of administration fees due the administrative 
24service organization pursuant to its contract or contracts with 
25the Department.

26 (c) On or before November 15 of each year, the Board of 
 
 
09700SB0178sam001- 44 -LRB097 03971 JDS 56112 a


1Trustees of the
State Universities Retirement System shall 
2certify to the Governor, the
Director of Central Management 
3Services, and the State
Comptroller its estimate of the total 
4amount of contributions to be paid under
subsection (a) of this 
5Section for the next fiscal year. Beginning in fiscal year 
62008, the amount certified shall be decreased or increased each 
7year by the amount that the actual active employee 
8contributions either fell short of or exceeded the estimate 
9used by the Board in making the certification for the previous 
10fiscal year. The State Universities Retirement System shall 
11calculate the amount of actual active employee contributions in 
12fiscal years 1999 through 2005. Based upon this calculation, 
13the fiscal year 2008 certification shall include an amount 
14equal to the cumulative amount that the actual active employee 
15contributions either fell short of or exceeded the estimate 
16used by the Board in making the certification for those fiscal 
17years. The certification
shall include a detailed explanation 
18of the methods and information that the
Board relied upon in 
19preparing its estimate. As soon as possible after the
effective 
20date of this Section, the Board shall submit its estimate for 
21fiscal
year 1999.

22 (d) Beginning in fiscal year 1999, on the first day of each 
23month, or as
soon thereafter as may be practical, the State 
24Treasurer and the State
Comptroller shall transfer from the 
25General Revenue Fund to the Community
College Health Insurance 
26Security Fund 1/12 of the annual amount appropriated
for that 
 
 
09700SB0178sam001- 45 -LRB097 03971 JDS 56112 a


1fiscal year to the State Comptroller for deposit into the 
2Community
College Health Insurance Security Fund under Section 
31.4 of the State Pension
Funds Continuing Appropriation Act.

4 (e) Except where otherwise specified in this Section, the 
5definitions
that apply to Article 15 of the Illinois Pension 
6Code apply to this Section.

7(Source: P.A. 94-839, eff. 6-6-06; 95-632, eff. 9-25-07.)





8 (5 ILCS 375/10) (from Ch. 127, par. 530)


9 Sec. 10. Payments by State; premiums. 

10 (a) The State shall pay the cost of basic non-contributory 
11group life
insurance and, subject to member paid contributions 
12set by the Department or
required by this Section, the basic 
13program of group health benefits on each
eligible member, 
14except a member, not otherwise
covered by this Act, who has 
15retired as a participating member under Article 2
of the 
16Illinois Pension Code but is ineligible for the retirement 
17annuity under
Section 2-119 of the Illinois Pension Code, and 
18part of each eligible member's
and retired member's premiums 
19for health insurance coverage for enrolled
dependents as 
20provided by Section 9. The State shall pay the cost of the 
21basic
program of group health benefits only after benefits are 
22reduced by the amount
of benefits covered by Medicare for all 
23members and dependents
who are eligible for benefits under 
24Social Security or
the Railroad Retirement system or who had 
25sufficient Medicare-covered
government employment, except that 
 
 
09700SB0178sam001- 46 -LRB097 03971 JDS 56112 a


1such reduction in benefits shall apply only
to those members 
2and dependents who (1) first become eligible
for such Medicare 
3coverage on or after July 1, 1992; or (2) are
Medicare-eligible 
4members or dependents of a local government unit which began

5participation in the program on or after July 1, 1992; or (3) 
6remain eligible
for, but no longer receive Medicare coverage 
7which they had been receiving on
or after July 1, 1992. The 
8Department may determine the aggregate level of the
State's 
9contribution on the basis of actual cost of medical services 
10adjusted
for age, sex or geographic or other demographic 
11characteristics which affect
the costs of such programs.

12 The cost of participation in the basic program of group 
13health benefits
for the dependent or survivor of a living or 
14deceased retired employee who was
formerly employed by the 
15University of Illinois in the Cooperative Extension
Service and 
16would be an annuitant but for the fact that he or she was made

17ineligible to participate in the State Universities Retirement 
18System by clause
(4) of subsection (a) of Section 15-107 of the 
19Illinois Pension Code shall not
be greater than the cost of 
20participation that would otherwise apply to that
dependent or 
21survivor if he or she were the dependent or survivor of an

22annuitant under the State Universities Retirement System.

23 (a-1) Beginning January 1, 1998, for each person who 
24becomes a new SERS
annuitant and participates in the basic 
25program of group health benefits, the
State shall contribute 
26toward the cost of the annuitant's
coverage under the basic 
 
 
09700SB0178sam001- 47 -LRB097 03971 JDS 56112 a


1program of group health benefits an amount equal
to 5% of that 
2cost for each full year of creditable service upon which the

3annuitant's retirement annuity is based, up to a maximum of 
4100% for an
annuitant with 20 or more years of creditable 
5service.
The remainder of the cost of a new SERS annuitant's 
6coverage under the basic
program of group health benefits shall 
7be the responsibility of the
annuitant. In the case of a new 
8SERS annuitant who has elected to receive an alternative 
9retirement cancellation payment under Section 14-108.5 of the 
10Illinois Pension Code in lieu of an annuity, for the purposes 
11of this subsection the annuitant shall be deemed to be 
12receiving a retirement annuity based on the number of years of 
13creditable service that the annuitant had established at the 
14time of his or her termination of service under SERS.


15 (a-2) Beginning January 1, 1998, for each person who 
16becomes a new SERS
survivor and participates in the basic 
17program of group health benefits, the
State shall contribute 
18toward the cost of the survivor's
coverage under the basic 
19program of group health benefits an amount equal
to 5% of that 
20cost for each full year of the deceased employee's or deceased

21annuitant's creditable service in the State Employees' 
22Retirement System of
Illinois on the date of death, up to a 
23maximum of 100% for a survivor of an
employee or annuitant with 
2420 or more years of creditable service. The
remainder of the 
25cost of the new SERS survivor's coverage under the basic

26program of group health benefits shall be the responsibility of 
 
 
09700SB0178sam001- 48 -LRB097 03971 JDS 56112 a


1the survivor. In the case of a new SERS survivor who was the 
2dependent of an annuitant who elected to receive an alternative 
3retirement cancellation payment under Section 14-108.5 of the 
4Illinois Pension Code in lieu of an annuity, for the purposes 
5of this subsection the deceased annuitant's creditable service 
6shall be determined as of the date of termination of service 
7rather than the date of death.

8 (a-3) Beginning January 1, 1998, for each person who 
9becomes a new SURS
annuitant and participates in the basic 
10program of group health benefits, the
State shall contribute 
11toward the cost of the annuitant's
coverage under the basic 
12program of group health benefits an amount equal
to 5% of that 
13cost for each full year of creditable service upon which the

14annuitant's retirement annuity is based, up to a maximum of 
15100% for an
annuitant with 20 or more years of creditable 
16service.
The remainder of the cost of a new SURS annuitant's 
17coverage under the basic
program of group health benefits shall 
18be the responsibility of the
annuitant.

19 (a-4) (Blank).

20 (a-5) Beginning January 1, 1998, for each person who 
21becomes a new SURS
survivor and participates in the basic 
22program of group health benefits, the
State shall contribute 
23toward the cost of the survivor's coverage under the
basic 
24program of group health benefits an amount equal to 5% of that 
25cost for
each full year of the deceased employee's or deceased 
26annuitant's creditable
service in the State Universities 
 
 
09700SB0178sam001- 49 -LRB097 03971 JDS 56112 a


1Retirement System on the date of death, up to
a maximum of 100% 
2for a survivor of an
employee or annuitant with 20 or more 
3years of creditable service. The
remainder of the cost of the 
4new SURS survivor's coverage under the basic
program of group 
5health benefits shall be the responsibility of the survivor.

6 (a-6) Beginning July 1, 1998, for each person who becomes a 
7new TRS
State annuitant and participates in the basic program 
8of group health benefits,
the State shall contribute toward the 
9cost of the annuitant's coverage under
the basic program of 
10group health benefits an amount equal to 5% of that cost
for 
11each full year of creditable service
as a teacher as defined in 
12paragraph (2), (3), or (5) of Section 16-106 of the
Illinois 
13Pension Code
upon which the annuitant's retirement annuity is 
14based, up to a maximum of
100%;
except that
the State 
15contribution shall be 12.5% per year (rather than 5%) for each 
16full
year of creditable service as a regional superintendent or 
17assistant regional
superintendent of schools. The
remainder of 
18the cost of a new TRS State annuitant's coverage under the 
19basic
program of group health benefits shall be the 
20responsibility of the
annuitant.

21 (a-7) Beginning July 1, 1998, for each person who becomes a 
22new TRS
State survivor and participates in the basic program of 
23group health benefits,
the State shall contribute toward the 
24cost of the survivor's coverage under the
basic program of 
25group health benefits an amount equal to 5% of that cost for

26each full year of the deceased employee's or deceased 
 
 
09700SB0178sam001- 50 -LRB097 03971 JDS 56112 a


1annuitant's creditable
service
as a teacher as defined in 
2paragraph (2), (3), or (5) of Section 16-106 of the
Illinois 
3Pension Code
on the date of death, up to a maximum of 100%;

4except that the State contribution shall be 12.5% per year 
5(rather than 5%) for
each full year of the deceased employee's 
6or deceased annuitant's creditable
service as a regional 
7superintendent or assistant regional superintendent of

8schools.
The remainder of
the cost of the new TRS State 
9survivor's coverage under the basic program of
group health 
10benefits shall be the responsibility of the survivor.

11 (a-8) A new SERS annuitant, new SERS survivor, new SURS

12annuitant, new SURS survivor, new TRS State
annuitant, or new 
13TRS State survivor may waive or terminate coverage in
the 
14program of group health benefits. Any such annuitant or 
15survivor
who has waived or terminated coverage may enroll or 
16re-enroll in the
program of group health benefits only during 
17the annual benefit choice period,
as determined by the 
18Director; except that in the event of termination of
coverage 
19due to nonpayment of premiums, the annuitant or survivor
may 
20not re-enroll in the program.

21 (a-9) No later than May 1 of each calendar year, the 
22Director
of Central Management Services shall certify in 
23writing to the Executive
Secretary of the State Employees' 
24Retirement System of Illinois the amounts
of the Medicare 
25supplement health care premiums and the amounts of the
health 
26care premiums for all other retirees who are not Medicare 
 
 
09700SB0178sam001- 51 -LRB097 03971 JDS 56112 a


1eligible.

2 A separate calculation of the premiums based upon the 
3actual cost of each
health care plan shall be so certified.

4 The Director of Central Management Services shall provide 
5to the
Executive Secretary of the State Employees' Retirement 
6System of
Illinois such information, statistics, and other data 
7as he or she
may require to review the premium amounts 
8certified by the Director
of Central Management Services.

9 The Department of Central Management Healthcare and Family 
10Services, or any successor agency designated to procure 
11healthcare contracts pursuant to this Act, is authorized to 
12establish funds, separate accounts provided by any bank or 
13banks as defined by the Illinois Banking Act, or separate 
14accounts provided by any savings and loan association or 
15associations as defined by the Illinois Savings and Loan Act of 
161985 to be held by the Director, outside the State treasury, 
17for the purpose of receiving the transfer of moneys from the 
18Local Government Health Insurance Reserve Fund. The Department 
19may promulgate rules further defining the methodology for the 
20transfers. Any interest earned by moneys in the funds or 
21accounts shall inure to the Local Government Health Insurance 
22Reserve Fund. The transferred moneys, and interest accrued 
23thereon, shall be used exclusively for transfers to 
24administrative service organizations or their financial 
25institutions for payments of claims to claimants and providers 
26under the self-insurance health plan. The transferred moneys, 
 
 
09700SB0178sam001- 52 -LRB097 03971 JDS 56112 a


1and interest accrued thereon, shall not be used for any other 
2purpose including, but not limited to, reimbursement of 
3administration fees due the administrative service 
4organization pursuant to its contract or contracts with the 
5Department.

6 (b) State employees who become eligible for this program on 
7or after January
1, 1980 in positions normally requiring actual 
8performance of duty not less
than 1/2 of a normal work period 
9but not equal to that of a normal work period,
shall be given 
10the option of participating in the available program. If the

11employee elects coverage, the State shall contribute on behalf 
12of such employee
to the cost of the employee's benefit and any 
13applicable dependent supplement,
that sum which bears the same 
14percentage as that percentage of time the
employee regularly 
15works when compared to normal work period.

16 (c) The basic non-contributory coverage from the basic 
17program of
group health benefits shall be continued for each 
18employee not in pay status or
on active service by reason of 
19(1) leave of absence due to illness or injury,
(2) authorized 
20educational leave of absence or sabbatical leave, or (3)

21military leave. This coverage shall continue until
expiration 
22of authorized leave and return to active service, but not to 
23exceed
24 months for leaves under item (1) or (2). This 
2424-month limitation and the
requirement of returning to active 
25service shall not apply to persons receiving
ordinary or 
26accidental disability benefits or retirement benefits through 
 
 
09700SB0178sam001- 53 -LRB097 03971 JDS 56112 a


1the
appropriate State retirement system or benefits under the 
2Workers' Compensation
or Occupational Disease Act.

3 (d) The basic group life insurance coverage shall continue, 
4with
full State contribution, where such person is (1) absent 
5from active
service by reason of disability arising from any 
6cause other than
self-inflicted, (2) on authorized educational 
7leave of absence or
sabbatical leave, or (3) on military leave.

8 (e) Where the person is in non-pay status for a period in 
9excess of
30 days or on leave of absence, other than by reason 
10of disability,
educational or sabbatical leave, or military 
11leave, such
person may continue coverage only by making 
12personal
payment equal to the amount normally contributed by 
13the State on such person's
behalf. Such payments and coverage 
14may be continued: (1) until such time as
the person returns to 
15a status eligible for coverage at State expense, but not
to 
16exceed 24 months or (2) until such person's employment or 
17annuitant status
with the State is terminated (exclusive of any 
18additional service imposed pursuant to law).

19 (f) The Department shall establish by rule the extent to 
20which other
employee benefits will continue for persons in 
21non-pay status or who are
not in active service.

22 (g) The State shall not pay the cost of the basic 
23non-contributory
group life insurance, program of health 
24benefits and other employee benefits
for members who are 
25survivors as defined by paragraphs (1) and (2) of
subsection 
26(q) of Section 3 of this Act. The costs of benefits for these

 
 
09700SB0178sam001- 54 -LRB097 03971 JDS 56112 a


1survivors shall be paid by the survivors or by the University 
2of Illinois
Cooperative Extension Service, or any combination 
3thereof.
However, the State shall pay the amount of the 
4reduction in the cost of
participation, if any, resulting from 
5the amendment to subsection (a) made
by this amendatory Act of 
6the 91st General Assembly.

7 (h) Those persons occupying positions with any department 
8as a result
of emergency appointments pursuant to Section 8b.8 
9of the Personnel Code
who are not considered employees under 
10this Act shall be given the option
of participating in the 
11programs of group life insurance, health benefits and
other 
12employee benefits. Such persons electing coverage may 
13participate only
by making payment equal to the amount normally 
14contributed by the State for
similarly situated employees. Such 
15amounts shall be determined by the
Director. Such payments and 
16coverage may be continued until such time as the
person becomes 
17an employee pursuant to this Act or such person's appointment 
18is
terminated.

19 (i) Any unit of local government within the State of 
20Illinois
may apply to the Director to have its employees, 
21annuitants, and their
dependents provided group health 
22coverage under this Act on a non-insured
basis. To participate, 
23a unit of local government must agree to enroll
all of its 
24employees, who may select coverage under either the State group

25health benefits plan or a health maintenance organization that 
26has
contracted with the State to be available as a health care 
 
 
09700SB0178sam001- 55 -LRB097 03971 JDS 56112 a


1provider for
employees as defined in this Act. A unit of local 
2government must remit the
entire cost of providing coverage 
3under the State group health benefits plan
or, for coverage 
4under a health maintenance organization, an amount determined

5by the Director based on an analysis of the sex, age, 
6geographic location, or
other relevant demographic variables 
7for its employees, except that the unit of
local government 
8shall not be required to enroll those of its employees who are

9covered spouses or dependents under this plan or another group 
10policy or plan
providing health benefits as long as (1) an 
11appropriate official from the unit
of local government attests 
12that each employee not enrolled is a covered spouse
or 
13dependent under this plan or another group policy or plan, and 
14(2) at least
50% of the employees are enrolled and the unit of 
15local government remits
the entire cost of providing coverage 
16to those employees, except that a
participating school district 
17must have enrolled at least 50% of its full-time
employees who 
18have not waived coverage under the district's group health
plan 
19by participating in a component of the district's cafeteria 
20plan. A
participating school district is not required to enroll 
21a full-time employee
who has waived coverage under the 
22district's health plan, provided that an
appropriate official 
23from the participating school district attests that the

24full-time employee has waived coverage by participating in a 
25component of the
district's cafeteria plan. For the purposes of 
26this subsection, "participating
school district" includes a 
 
 
09700SB0178sam001- 56 -LRB097 03971 JDS 56112 a


1unit of local government whose primary purpose is
education as 
2defined by the Department's rules.

3 Employees of a participating unit of local government who 
4are not enrolled
due to coverage under another group health 
5policy or plan may enroll in
the event of a qualifying change 
6in status, special enrollment, special
circumstance as defined 
7by the Director, or during the annual Benefit Choice
Period. A 
8participating unit of local government may also elect to cover 
9its
annuitants. Dependent coverage shall be offered on an 
10optional basis, with the
costs paid by the unit of local 
11government, its employees, or some combination
of the two as 
12determined by the unit of local government. The unit of local

13government shall be responsible for timely collection and 
14transmission of
dependent premiums.

15 The Director shall annually determine monthly rates of 
16payment, subject
to the following constraints:


17  (1) In the first year of coverage, the rates shall be 
18 equal to the
amount normally charged to State employees for 
19 elected optional coverages
or for enrolled dependents 
20 coverages or other contributory coverages, or
contributed 
21 by the State for basic insurance coverages on behalf of its

22 employees, adjusted for differences between State 
23 employees and employees
of the local government in age, 
24 sex, geographic location or other relevant
demographic 
25 variables, plus an amount sufficient to pay for the 
26 additional
administrative costs of providing coverage to 
 
 
09700SB0178sam001- 57 -LRB097 03971 JDS 56112 a


1 employees of the unit of
local government and their 
2 dependents.


3  (2) In subsequent years, a further adjustment shall be 
4 made to reflect
the actual prior years' claims experience 
5 of the employees of the unit of
local government.

6 In the case of coverage of local government employees under 
7a health
maintenance organization, the Director shall annually 
8determine for each
participating unit of local government the 
9maximum monthly amount the unit
may contribute toward that 
10coverage, based on an analysis of (i) the age,
sex, geographic 
11location, and other relevant demographic variables of the

12unit's employees and (ii) the cost to cover those employees 
13under the State
group health benefits plan. The Director may 
14similarly determine the
maximum monthly amount each unit of 
15local government may contribute toward
coverage of its 
16employees' dependents under a health maintenance organization.

17 Monthly payments by the unit of local government or its 
18employees for
group health benefits plan or health maintenance 
19organization coverage shall
be deposited in the Local 
20Government Health Insurance Reserve Fund.

21 The Local Government Health Insurance Reserve Fund is 
22hereby created as a nonappropriated trust fund to be held 
23outside the State Treasury, with the State Treasurer as 
24custodian. The Local Government Health Insurance Reserve Fund 
25shall be a continuing
fund not subject to fiscal year 
26limitations. The Local Government Health Insurance Reserve 
 
 
09700SB0178sam001- 58 -LRB097 03971 JDS 56112 a


1Fund is not subject to administrative charges or charge-backs, 
2including but not limited to those authorized under Section 8h 
3of the State Finance Act. All revenues arising from the 
4administration of the health benefits program established 
5under this Section shall be deposited into the Local Government 
6Health Insurance Reserve Fund. Any interest earned on moneys in 
7the Local Government Health Insurance Reserve Fund shall be 
8deposited into the Fund. All expenditures from this Fund
shall 
9be used for payments for health care benefits for local 
10government and rehabilitation facility
employees, annuitants, 
11and dependents, and to reimburse the Department or
its 
12administrative service organization for all expenses incurred 
13in the
administration of benefits. No other State funds may be 
14used for these
purposes.

15 A local government employer's participation or desire to 
16participate
in a program created under this subsection shall 
17not limit that employer's
duty to bargain with the 
18representative of any collective bargaining unit
of its 
19employees.

20 (j) Any rehabilitation facility within the State of 
21Illinois may apply
to the Director to have its employees, 
22annuitants, and their eligible
dependents provided group 
23health coverage under this Act on a non-insured
basis. To 
24participate, a rehabilitation facility must agree to enroll all

25of its employees and remit the entire cost of providing such 
26coverage for
its employees, except that the rehabilitation 
 
 
09700SB0178sam001- 59 -LRB097 03971 JDS 56112 a


1facility shall not be
required to enroll those of its employees 
2who are covered spouses or
dependents under this plan or 
3another group policy or plan providing health
benefits as long 
4as (1) an appropriate official from the rehabilitation
facility 
5attests that each employee not enrolled is a covered spouse or

6dependent under this plan or another group policy or plan, and 
7(2) at least
50% of the employees are enrolled and the 
8rehabilitation facility remits
the entire cost of providing 
9coverage to those employees. Employees of a
participating 
10rehabilitation facility who are not enrolled due to coverage

11under another group health policy or plan may enroll
in the 
12event of a qualifying change in status, special enrollment, 
13special
circumstance as defined by the Director, or during the 
14annual Benefit Choice
Period. A participating rehabilitation 
15facility may also elect
to cover its annuitants. Dependent 
16coverage shall be offered on an optional
basis, with the costs 
17paid by the rehabilitation facility, its employees, or
some 
18combination of the 2 as determined by the rehabilitation 
19facility. The
rehabilitation facility shall be responsible for 
20timely collection and
transmission of dependent premiums.

21 The Director shall annually determine quarterly rates of 
22payment, subject
to the following constraints:


23  (1) In the first year of coverage, the rates shall be 
24 equal to the amount
normally charged to State employees for 
25 elected optional coverages or for
enrolled dependents 
26 coverages or other contributory coverages on behalf of
its 
 
 
09700SB0178sam001- 60 -LRB097 03971 JDS 56112 a


1 employees, adjusted for differences between State 
2 employees and
employees of the rehabilitation facility in 
3 age, sex, geographic location
or other relevant 
4 demographic variables, plus an amount sufficient to pay
for 
5 the additional administrative costs of providing coverage 
6 to employees
of the rehabilitation facility and their 
7 dependents.


8  (2) In subsequent years, a further adjustment shall be 
9 made to reflect
the actual prior years' claims experience 
10 of the employees of the
rehabilitation facility.

11 Monthly payments by the rehabilitation facility or its 
12employees for
group health benefits shall be deposited in the 
13Local Government Health
Insurance Reserve Fund.

14 (k) Any domestic violence shelter or service within the 
15State of Illinois
may apply to the Director to have its 
16employees, annuitants, and their
dependents provided group 
17health coverage under this Act on a non-insured
basis. To 
18participate, a domestic violence shelter or service must agree 
19to
enroll all of its employees and pay the entire cost of 
20providing such coverage
for its employees. The domestic 
21violence shelter shall not be required to enroll those of its 
22employees who are covered spouses or dependents under this plan 
23or another group policy or plan providing health benefits as 
24long as (1) an appropriate official from the domestic violence 
25shelter attests that each employee not enrolled is a covered 
26spouse or dependent under this plan or another group policy or 
 
 
09700SB0178sam001- 61 -LRB097 03971 JDS 56112 a


1plan and (2) at least 50% of the employees are enrolled and the 
2domestic violence shelter remits the entire cost of providing 
3coverage to those employees. Employees of a participating 
4domestic violence shelter who are not enrolled due to coverage 
5under another group health policy or plan may enroll in the 
6event of a qualifying change in status, special enrollment, or 
7special circumstance as defined by the Director or during the 
8annual Benefit Choice Period. A participating domestic 
9violence shelter may also elect
to cover its annuitants. 
10Dependent coverage shall be offered on an optional
basis, with

11employees, or some combination of the 2 as determined by the 
12domestic violence
shelter or service. The domestic violence 
13shelter or service shall be
responsible for timely collection 
14and transmission of dependent premiums.

15 The Director shall annually determine rates of payment,

16subject to the following constraints:


17  (1) In the first year of coverage, the rates shall be 
18 equal to the
amount normally charged to State employees for 
19 elected optional coverages
or for enrolled dependents 
20 coverages or other contributory coverages on
behalf of its 
21 employees, adjusted for differences between State 
22 employees and
employees of the domestic violence shelter or 
23 service in age, sex, geographic
location or other relevant 
24 demographic variables, plus an amount sufficient
to pay for 
25 the additional administrative costs of providing coverage 
26 to
employees of the domestic violence shelter or service 
 
 
09700SB0178sam001- 62 -LRB097 03971 JDS 56112 a


1 and their dependents.


2  (2) In subsequent years, a further adjustment shall be 
3 made to reflect
the actual prior years' claims experience 
4 of the employees of the domestic
violence shelter or 
5 service.

6 Monthly payments by the domestic violence shelter or 
7service or its employees
for group health insurance shall be 
8deposited in the Local Government Health
Insurance Reserve 
9Fund.

10 (l) A public community college or entity organized pursuant 
11to the
Public Community College Act may apply to the Director 
12initially to have
only annuitants not covered prior to July 1, 
131992 by the district's health
plan provided health coverage 
14under this Act on a non-insured basis. The
community college 
15must execute a 2-year contract to participate in the
Local 
16Government Health Plan.
Any annuitant may enroll in the event 
17of a qualifying change in status, special
enrollment, special 
18circumstance as defined by the Director, or during the
annual 
19Benefit Choice Period.

20 The Director shall annually determine monthly rates of 
21payment subject to
the following constraints: for those 
22community colleges with annuitants
only enrolled, first year 
23rates shall be equal to the average cost to cover
claims for a 
24State member adjusted for demographics, Medicare

25participation, and other factors; and in the second year, a 
26further adjustment
of rates shall be made to reflect the actual 
 
 
09700SB0178sam001- 63 -LRB097 03971 JDS 56112 a


1first year's claims experience
of the covered annuitants.

2 (l-5) The provisions of subsection (l) become inoperative 
3on July 1, 1999.

4 (m) The Director shall adopt any rules deemed necessary for

5implementation of this amendatory Act of 1989 (Public Act 
686-978).

7 (n) Any child advocacy center within the State of Illinois 
8may apply to the Director to have its employees, annuitants, 
9and their dependents provided group health coverage under this 
10Act on a non-insured basis. To participate, a child advocacy 
11center must agree to enroll all of its employees and pay the 
12entire cost of providing coverage for its employees. The child

13advocacy center shall not be required to enroll those of its

14employees who are covered spouses or dependents under this plan

15or another group policy or plan providing health benefits as

16long as (1) an appropriate official from the child advocacy

17center attests that each employee not enrolled is a covered

18spouse or dependent under this plan or another group policy or

19plan and (2) at least 50% of the employees are enrolled and the 
20child advocacy center remits the entire cost of providing 
21coverage to those employees. Employees of a participating child 
22advocacy center who are not enrolled due to coverage under 
23another group health policy or plan may enroll in the event of 
24a qualifying change in status, special enrollment, or special 
25circumstance as defined by the Director or during the annual 
26Benefit Choice Period. A participating child advocacy center 
 
 
09700SB0178sam001- 64 -LRB097 03971 JDS 56112 a


1may also elect to cover its annuitants. Dependent coverage 
2shall be offered on an optional basis, with the costs paid by 
3the child advocacy center, its employees, or some combination 
4of the 2 as determined by the child advocacy center. The child 
5advocacy center shall be responsible for timely collection and 
6transmission of dependent premiums.
7 The Director shall annually determine rates of payment, 
8subject to the following constraints:
9  (1) In the first year of coverage, the rates shall be 
10 equal to the amount normally charged to State employees for 
11 elected optional coverages or for enrolled dependents 
12 coverages or other contributory coverages on behalf of its 
13 employees, adjusted for differences between State 
14 employees and employees of the child advocacy center in 
15 age, sex, geographic location, or other relevant 
16 demographic variables, plus an amount sufficient to pay for 
17 the additional administrative costs of providing coverage 
18 to employees of the child advocacy center and their 
19 dependents.
20  (2) In subsequent years, a further adjustment shall be 
21 made to reflect the actual prior years' claims experience 
22 of the employees of the child advocacy center.
23 Monthly payments by the child advocacy center or its 
24employees for group health insurance shall be deposited into 
25the Local Government Health Insurance Reserve Fund.
26(Source: P.A. 95-331, eff. 8-21-07; 95-632, eff. 9-25-07; 
 
 
09700SB0178sam001- 65 -LRB097 03971 JDS 56112 a


195-707, eff. 1-11-08; 96-756, eff. 1-1-10; 96-1232, eff. 
27-23-10; 96-1519, eff. 2-4-11.)





3 (5 ILCS 375/13.1) (from Ch. 127, par. 533.1)


4 Sec. 13.1. (a) All contributions, appropriations, 
5interest, and dividend
payments to fund the program of health 
6benefits and other employee benefits, and all other revenues 
7arising from the administration of any employee health benefits 
8program,
shall be deposited in a trust fund outside the State 
9Treasury, with the State
Treasurer as ex-officio custodian, to 
10be known as the Health Insurance Reserve
Fund.

11 (b) Upon the adoption of a self-insurance health plan, any 
12monies
attributable to the group health insurance program shall 
13be deposited in or
transferred to the Health Insurance Reserve 
14Fund for use by the Department.
As of the effective date of 
15this amendatory Act of 1986, the Department
shall certify to 
16the Comptroller the amount of money in the Group Insurance

17Premium Fund attributable to the State group health insurance 
18program and the
Comptroller shall transfer such money from the 
19Group Insurance Premium Fund
to the Health Insurance Reserve 
20Fund. Contributions by the State to the
Health Insurance 
21Reserve Fund to meet the requirements of this Act, as

22established by the Director, from the General Revenue Fund and 
23the Road
Fund to the Health Insurance Reserve Fund shall be by 
24annual
appropriations, and all other contributions to meet the 
25requirements of the
programs of health benefits or other 
 
 
09700SB0178sam001- 66 -LRB097 03971 JDS 56112 a


1employee benefits shall be deposited
in the Health Insurance 
2Reserve Fund. The Department shall draw the
appropriation from 
3the General Revenue Fund and the Road Fund from time to
time as 
4necessary to make expenditures authorized under this Act.

5 The Director may employ such assistance and services and 
6may purchase
such goods as may be necessary for the proper 
7development and
administration of any of the benefit programs 
8authorized by this Act. The
Director may promulgate rules and 
9regulations in regard to the
administration of these programs.

10 All monies received by the Department for deposit in or 
11transfer to the
Health Insurance Reserve Fund, through 
12appropriation or otherwise, shall be
used to provide for the 
13making of payments to claimants and providers and
to reimburse 
14the Department for all expenses directly incurred relating to

15Department development and administration of the program of 
16health benefits
and other employee benefits.

17 Any administrative service organization administering any 
18self-insurance
health plan and paying claims and benefits under 
19authority of this Act may
receive, pursuant to written 
20authorization and direction of the Director,
an initial 
21transfer and periodic transfers of funds from the Health

22Insurance Reserve Fund in amounts determined by the Director 
23who may
consider the amount recommended by the administrative 
24service organization.
Notwithstanding any other statute, such 
25transferred funds shall be
retained by the administrative 
26service organization in a separate
account provided by any bank 
 
 
09700SB0178sam001- 67 -LRB097 03971 JDS 56112 a


1as defined by the Illinois Banking
Act. The Department may 
2promulgate regulations further defining the banks
authorized 
3to accept such funds and all methodology for transfer of such

4funds. Any interest earned by monies in such
account shall 
5inure to the Health Insurance Reserve Fund, shall remain
in 
6such account and shall be used exclusively to pay claims and 
7benefits
under this Act. Such transferred funds shall be used 
8exclusively for
administrative service organization payment of 
9claims to claimants and
providers under the self-insurance 
10health plan by the drawing of checks
against such account. The 
11administrative service organization may not use
such 
12transferred funds, or interest accrued thereon, for any other 
13purpose
including, but not limited to, reimbursement of 
14administrative expenses or
payments of administration fees due 
15the organization pursuant to its
contract or contracts with the 
16Department of Central Management Services.

17 The account of the administrative service organization 
18established under
this Section, any transfers from the Health 
19Insurance Reserve Fund to
such account and the use of such 
20account and funds shall be subject
to (1) audit by the 
21Department or private contractor authorized by the
Department 
22to conduct audits, and (2) post audit pursuant to the
Illinois 
23State Auditing Act.

24 The Department of Central Management Healthcare and Family 
25Services, or any successor agency designated to procure 
26healthcare contracts pursuant to this Act, is authorized to 
 
 
09700SB0178sam001- 68 -LRB097 03971 JDS 56112 a


1establish funds, separate accounts provided by any bank or 
2banks as defined by the Illinois Banking Act, or separate 
3accounts provided by any savings and loan association or 
4associations as defined by the Illinois Savings and Loan Act of 
51985 to be held by the Director, outside the State treasury, 
6for the purpose of receiving the transfer of moneys from the 
7Health Insurance Reserve Fund. The Department may promulgate 
8rules further defining the methodology for the transfers. Any 
9interest earned by monies in the funds or accounts shall inure 
10to the Health Insurance Reserve Fund. The transferred moneys, 
11and interest accrued thereon, shall be used exclusively for 
12transfers to administrative service organizations or their 
13financial institutions for payments of claims to claimants and 
14providers under the self-insurance health plan. The 
15transferred moneys, and interest accrued thereon, shall not be 
16used for any other purpose including, but not limited to, 
17reimbursement of administration fees due the administrative 
18service organization pursuant to its contract or contracts with 
19the Department.

20 (c) The Director, with the advice and consent of the 
21Commission, shall
establish premiums for optional coverage for 
22dependents of eligible members
for the health plans. The 
23eligible members
shall be responsible for their portion of such 
24optional
premium. The State shall
contribute an amount per 
25month for each eligible member who has
enrolled one or more 
26dependents under the health plans. Such contribution
shall be 
 
 
09700SB0178sam001- 69 -LRB097 03971 JDS 56112 a


1made directly to the Health Insurance
Reserve Fund. Those 
2employees described in subsection (b) of Section 9 of this
Act 
3shall be allowed to continue in the health plan by
making 
4personal payments with the premiums to be deposited
in the 
5Health Insurance Reserve Fund.

6 (d) The Health Insurance Reserve Fund shall be a continuing 
7fund not subject
to fiscal year limitations. All expenditures 
8from that fund shall be at
the direction of the Director and 
9shall be only for the purpose of:


10  (1) the payment of administrative expenses incurred by 
11 the Department
for the program of health benefits or other 
12 employee benefit programs,
including but not limited to the 
13 costs of audits or actuarial
consultations, professional 
14 and contractual services, electronic data
processing 
15 systems and services, and expenses in connection with the

16 development and administration of such programs;


17  (2) the payment of administrative expenses incurred by 
18 the Administrative
Service Organization;


19  (3) the payment of health benefits;

20  (3.5) the payment of medical expenses incurred by the 
21 Department for the treatment of employees who suffer 
22 accidental injury or death within the scope of their 
23 employment; 

24  (4) refunds to employees for erroneous payments of 
25 their selected
dependent coverage;


26  (5) payment of premium for stop-loss or re-insurance;


 
 
09700SB0178sam001- 70 -LRB097 03971 JDS 56112 a


1  (6) payment of premium to health maintenance 
2 organizations pursuant to
Section 6.1 of this Act;


3  (7) payment of adoption program benefits; and


4  (8) payment of other benefits offered to members and 
5 dependents under
this Act.

6(Source: P.A. 94-839, eff. 6-6-06; 95-632, eff. 9-25-07; 
795-744, eff. 7-18-08.)


8 Section 905. The Department of Central Management Services 
9Law of the
Civil Administrative Code of Illinois is amended by 
10adding Section 405-520 as follows:

11 (20 ILCS 405/405-520 new)
12 Sec. 405-520. State healthcare purchasing. On and after 
13January 1, 2012, as provided in the State Healthcare Purchasing 
14Reorganization Act, all of the powers, duties, rights, and 
15responsibilities related to State healthcare purchasing under 
16this Code that were transferred from the Department to the 
17Department of Healthcare and Family Services by Executive Order 
183 (2005) are transferred back to the Department.

19 Section 910. The Department of Human Services Act is 
20amended by changing Section 1-20 as follows:




21 (20 ILCS 1305/1-20)



22 Sec. 1-20. General powers and duties. 

 
 
09700SB0178sam001- 71 -LRB097 03971 JDS 56112 a


1 (a) The Department shall exercise the rights, powers, 
2duties, and functions
provided by law, including (but not 
3limited to) the rights, powers, duties, and
functions 
4transferred to the Department under Article 80 and Article 90 
5of this
Act.

6 (b) The Department may employ personnel (in accordance with 
7the Personnel
Code), provide facilities, contract for goods and 
8services, and adopt rules as
necessary to carry out its 
9functions and purposes, all in accordance with
applicable State 
10and federal law.

11 (c) On and after January 1, 2012, as provided in the State 
12Healthcare Purchasing Reorganization Act, all of the powers, 
13duties, rights, and responsibilities related to State 
14healthcare purchasing under this Act that were transferred from 
15the Department to the Department of Healthcare and Family 
16Services by Executive Order 3 (2005) are transferred back to 
17the Department. 
18(Source: P.A. 89-507, eff. 7-3-96.)


19 Section 915. The Department of Healthcare and Family 
20Services Law of the
Civil Administrative Code of Illinois is 
21amended by adding Section 2205-20 as follows:

22 (20 ILCS 2205/2205-20 new)
23 Sec. 2205-20. State healthcare purchasing. On and after 
24January 1, 2012, as provided in the State Healthcare Purchasing 
 
 
09700SB0178sam001- 72 -LRB097 03971 JDS 56112 a


1Reorganization Act, all of the powers, duties, rights, and 
2responsibilities related to State healthcare purchasing under 
3this Code that were transferred to the Department of Healthcare 
4and Family Services by Executive Order 3 (2005) are transferred 
5back to the Departments from which those powers, duties, 
6rights, and responsibilities were transferred; however, 
7powers, duties, rights, and responsibilities related to State 
8healthcare purchasing under this Code that were exercised by 
9the Department of Corrections before Executive Order 3 (2005) 
10but that pertain to individuals resident in facilities operated 
11by Department of Juvenile Justice shall be transferred to the 
12Department of Juvenile Justice.

13 Section 920. The Department of Veterans Affairs Act is 
14amended by adding Section 2.08 as follows:

15 (20 ILCS 2805/2.08 new)
16 Sec. 2.08. State Healthcare purchasing. On and after 
17January 1, 2012, as provided in the State Healthcare Purchasing 
18Reorganization Act, all of the powers, duties, rights, and 
19responsibilities related to State healthcare purchasing under 
20this Act that were transferred from the Department to the 
21Department of Healthcare and Family Services by Executive Order 
223 (2005) are transferred back to the Department.

23 Section 925. The Commission on Government Forecasting and 
 
 
09700SB0178sam001- 73 -LRB097 03971 JDS 56112 a


1Accountability Act is amended by changing Section 3 as follows:

2 (25 ILCS 155/3) (from Ch. 63, par. 343)
3 Sec. 3. The Commission shall:


4  (1) Study from time to time and report to the General 
5 Assembly on
economic development and trends in the State.


6  (2) Make such special economic and fiscal studies as it 
7 deems
appropriate or desirable or as the General Assembly 
8 may request.


9  (3) Based on its studies, recommend such State fiscal 
10 and economic
policies as it deems appropriate or desirable 
11 to improve the functioning
of State government and the 
12 economy of the various regions within the
State.


13  (4) Prepare annually a State economic report.


14  (5) Provide information for all appropriate 
15 legislative
organizations and personnel on economic trends 
16 in relation to long range
planning and budgeting.


17  (6) Study and make such recommendations as it deems 
18 appropriate to
the General Assembly on local and regional 
19 economic and fiscal policy
and on federal fiscal policy as 
20 it may affect Illinois.


21  (7) Review capital expenditures, appropriations and 
22 authorizations
for both the State's general obligation and 
23 revenue bonding authorities.
At the direction of the 
24 Commission, specific reviews may include
economic 
25 feasibility reviews of existing or proposed revenue bond

 
 
09700SB0178sam001- 74 -LRB097 03971 JDS 56112 a


1 projects to determine the accuracy of the original estimate 
2 of useful
life of the projects, maintenance requirements 
3 and ability to meet debt
service requirements through their 
4 operating expenses.


5  (8) Receive and review all executive agency and revenue 
6 bonding
authority annual and 3 year plans. The Commission 
7 shall prepare a
consolidated review of these plans, an 
8 updated assessment of current
State agency capital plans, a 
9 report on the outstanding and unissued
bond 
10 authorizations, an evaluation of the State's ability to 
11 market
further bond issues and shall submit them as the 
12 "Legislative Capital
Plan Analysis" to the House and Senate 
13 Appropriations Committees at
least once a year. The 
14 Commission shall annually submit to the General
Assembly on 
15 the first Wednesday of April a report on the State's 
16 long-term
capital needs, with particular emphasis upon and 
17 detail of the 5-year
period in the immediate future.


18  (9) Study and make recommendations it deems 
19 appropriate to the
General Assembly on State bond 
20 financing, bondability guidelines, and
debt management. At 
21 the direction of the Commission, specific studies
and 
22 reviews may take into consideration short and long-run 
23 implications
of State bonding and debt management policy.


24  (10) Comply with the provisions of the "State Debt

25 Impact Note Act" as now or hereafter amended.


26  (11) Comply with the provisions of the Pension Impact 
 
 
09700SB0178sam001- 75 -LRB097 03971 JDS 56112 a


1 Note Act, as now
or hereafter amended.


2  (12) By August 1st of each year, the Commission must 
3 prepare and cause to
be published a summary report of State 
4 appropriations for the State fiscal year
beginning the 
5 previous July 1st. The summary report must discuss major

6 categories of appropriations, the issues the General 
7 Assembly faced in
allocating appropriations, comparisons 
8 with appropriations for previous
State fiscal years, and 
9 other matters helpful in providing the citizens of
Illinois 
10 with an overall understanding of appropriations for that 
11 fiscal year.
The summary report must be written in plain 
12 language and designed for
readability. Publication must be 
13 in newspapers of general circulation in the
various areas 
14 of the State to ensure distribution statewide. The summary

15 report must also be published on the General Assembly's web 
16 site.


17  (13) Comply with the provisions of the State Facilities 
18 Closure Act.

19  (14) For fiscal year 2012 and thereafter, develop a 
20 3-year budget forecast for the State, including 
21 opportunities and threats concerning anticipated revenues 
22 and expenditures, with an appropriate level of detail. 
23  (15) Exercise the powers and duties granted to it under 
24 Section 5.5 of the State Employees Group Insurance Act. 
25 The requirement for reporting to the General Assembly shall 
26be satisfied
by filing copies of the report with the Speaker, 
 
 
09700SB0178sam001- 76 -LRB097 03971 JDS 56112 a


1the Minority Leader and
the Clerk of the House of 
2Representatives and the President, the Minority
Leader and the 
3Secretary of the Senate and the Legislative
Research
Unit, as 
4required by Section 3.1 of the General Assembly
Organization 
5Act, and
filing such additional copies with the State 
6Government Report Distribution
Center for the General Assembly 
7as is required under paragraph (t) of
Section 7 of the State 
8Library Act.


9(Source: P.A. 96-958, eff. 7-1-10.)


10 Section 927. The Illinois Procurement Code is amended by 
11changing Section 20-60 as follows:

12 (30 ILCS 500/20-60)
13 Sec. 20-60. Duration of contracts. 
14 (a) Maximum duration. A contract, other than a contract 
15entered into pursuant to the State University Certificates of 
16Participation Act, may be entered into for
any period of time 
17deemed
to be in the best interests of the State but not

18exceeding 10 years inclusive, beginning January 1, 2010, of 
19proposed contract renewals. The length of
a lease for real 
20property or capital improvements shall be in
accordance with 
21the provisions of
Section 40-25. A contract for bond or 
22mortgage insurance awarded by the Illinois Housing Development 
23Authority, however, may be entered into for any period of time 
24less than or equal to the maximum period of time that the 
 
 
09700SB0178sam001- 77 -LRB097 03971 JDS 56112 a


1subject bond or mortgage may remain outstanding.
 
2 (b) Subject to appropriation. All contracts made or entered

3into shall recite that they are
subject to termination and 
4cancellation in any year for which the
General Assembly fails 
5to make
an appropriation to make payments under the terms of 
6the contract.
7 (c) The chief procurement officer shall file a proposed 
8extension or renewal of a contract with the Procurement Policy 
9Board prior to entering into any extension or renewal if the 
10cost associated with the extension or renewal exceeds $249,999. 
11The Procurement Policy Board may object to the proposed 
12extension or renewal within 30 calendar days and require a 
13hearing before the Board prior to entering into the extension 
14or renewal. If the Procurement Policy Board does not object 
15within 30 calendar days or takes affirmative action to 
16recommend the extension or renewal, the chief procurement 
17officer may enter into the extension or renewal of a contract. 
18This subsection does not apply to any emergency procurement, 
19any procurement under Article 40, or any procurement exempted 
20by Section 1-10(b) of this Code. If any State agency contract 
21is paid for in whole or in part with federal-aid funds, grants, 
22or loans and the provisions of this subsection would result in 
23the loss of those federal-aid funds, grants, or loans, then the 
24contract is exempt from the provisions of this subsection in 
25order to remain eligible for those federal-aid funds, grants, 
26or loans, and the State agency shall file notice of this 
 
 
09700SB0178sam001- 78 -LRB097 03971 JDS 56112 a


1exemption with the Procurement Policy Board prior to entering 
2into the proposed extension or renewal. Nothing in this 
3subsection permits a chief procurement officer to enter into an 
4extension or renewal in violation of subsection (a). By August 
51 each year, the Procurement Policy Board shall file a report 
6with the General Assembly identifying for the previous fiscal 
7year (i) the proposed extensions or renewals that were filed 
8with the Board and whether the Board objected and (ii) the 
9contracts exempt from this subsection. 
10 (d) If there is a conflict between the provisions of this 
11Section and Section 5.5 of the State Employees Group Insurance 
12Act of 1971, the provisions of Section 5.5 of the State 
13Employees Group Insurance Act of 1971 control. 
14(Source: P.A. 95-344, eff. 8-21-07; 96-15, eff. 6-22-09; 
1596-795, eff. 7-1-10 (see Section 5 of P.A. 96-793 for the 
16effective date of changes made by P.A. 96-795); 96-920, eff. 
177-1-10; 96-1478, eff. 8-23-10.)

18 Section 930. The School Employee Benefit Act is amended by 
19adding Section 7 as follows:

20 (105 ILCS 55/7 new)
21 Sec. 7. State healthcare purchasing. On and after January 
221, 2012, as provided in the State Healthcare Purchasing 
23Reorganization Act, all of the powers, duties, rights, and 
24responsibilities related to State healthcare purchasing under 
 
 
09700SB0178sam001- 79 -LRB097 03971 JDS 56112 a


1this Act that were transferred from the Department to the 
2Department of Healthcare and Family Services by Executive Order 
33 (2005) are transferred back to the Department.

4 Section 935. The Unified Code of Corrections is amended by 
5changing Sections 3-2-2 and 3-2.5-20 as follows:



6 (730 ILCS 5/3-2-2) (from Ch. 38, par. 1003-2-2)


7 Sec. 3-2-2. Powers and Duties of the Department. 

8 (1) In addition to the powers, duties and responsibilities 
9which are
otherwise provided by law, the Department shall have 
10the following powers:


11  (a) To accept persons committed to it by the courts of 
12 this State for
care, custody, treatment and 
13 rehabilitation, and to accept federal prisoners and aliens 
14 over whom the Office of the Federal Detention Trustee is 
15 authorized to exercise the federal detention function for 
16 limited purposes and periods of time.


17  (b) To develop and maintain reception and evaluation 
18 units for purposes
of analyzing the custody and 
19 rehabilitation needs of persons committed to
it and to 
20 assign such persons to institutions and programs under its 
21 control
or transfer them to other appropriate agencies. In 
22 consultation with the
Department of Alcoholism and 
23 Substance Abuse (now the Department of Human
Services), the 
24 Department of Corrections
shall develop a master plan for 
 
 
09700SB0178sam001- 80 -LRB097 03971 JDS 56112 a


1 the screening and evaluation of persons
committed to its 
2 custody who have alcohol or drug abuse problems, and for

3 making appropriate treatment available to such persons; 
4 the Department
shall report to the General Assembly on such 
5 plan not later than April 1,
1987. The maintenance and 
6 implementation of such plan shall be contingent
upon the 
7 availability of funds.


8  (b-1) To create and implement, on January 1, 2002, a 
9 pilot
program to
establish the effectiveness of 
10 pupillometer technology (the measurement of the
pupil's

11 reaction to light) as an alternative to a urine test for 
12 purposes of screening
and evaluating
persons committed to 
13 its custody who have alcohol or drug problems. The
pilot 
14 program shall require the pupillometer technology to be 
15 used in at
least one Department of
Corrections facility. 
16 The Director may expand the pilot program to include an

17 additional facility or
facilities as he or she deems 
18 appropriate.
A minimum of 4,000 tests shall be included in 
19 the pilot program.
The
Department must report to the

20 General Assembly on the
effectiveness of the program by 
21 January 1, 2003.


22  (b-5) To develop, in consultation with the Department 
23 of State Police, a
program for tracking and evaluating each 
24 inmate from commitment through release
for recording his or 
25 her gang affiliations, activities, or ranks.


26  (c) To maintain and administer all State correctional 
 
 
09700SB0178sam001- 81 -LRB097 03971 JDS 56112 a


1 institutions and
facilities under its control and to 
2 establish new ones as needed. Pursuant
to its power to 
3 establish new institutions and facilities, the Department

4 may, with the written approval of the Governor, authorize 
5 the Department of
Central Management Services to enter into 
6 an agreement of the type
described in subsection (d) of 
7 Section 405-300 of the
Department
of Central Management 
8 Services Law (20 ILCS 405/405-300). The Department shall

9 designate those institutions which
shall constitute the 
10 State Penitentiary System.


11  Pursuant to its power to establish new institutions and 
12 facilities, the
Department may authorize the Department of 
13 Central Management Services to
accept bids from counties 
14 and municipalities for the construction,
remodeling or 
15 conversion of a structure to be leased to the Department of

16 Corrections for the purposes of its serving as a 
17 correctional institution
or facility. Such construction, 
18 remodeling or conversion may be financed
with revenue bonds 
19 issued pursuant to the Industrial Building Revenue Bond
Act 
20 by the municipality or county. The lease specified in a bid 
21 shall be
for a term of not less than the time needed to 
22 retire any revenue bonds
used to finance the project, but 
23 not to exceed 40 years. The lease may
grant to the State 
24 the option to purchase the structure outright.


25  Upon receipt of the bids, the Department may certify 
26 one or more of the
bids and shall submit any such bids to 
 
 
09700SB0178sam001- 82 -LRB097 03971 JDS 56112 a


1 the General Assembly for approval.
Upon approval of a bid 
2 by a constitutional majority of both houses of the
General 
3 Assembly, pursuant to joint resolution, the Department of 
4 Central
Management Services may enter into an agreement 
5 with the county or
municipality pursuant to such bid.


6  (c-5) To build and maintain regional juvenile 
7 detention centers and to
charge a per diem to the counties 
8 as established by the Department to defray
the costs of 
9 housing each minor in a center. In this subsection (c-5),

10 "juvenile
detention center" means a facility to house 
11 minors during pendency of trial who
have been transferred 
12 from proceedings under the Juvenile Court Act of 1987 to

13 prosecutions under the criminal laws of this State in 
14 accordance with Section
5-805 of the Juvenile Court Act of 
15 1987, whether the transfer was by operation
of
law or 
16 permissive under that Section. The Department shall 
17 designate the
counties to be served by each regional 
18 juvenile detention center.


19  (d) To develop and maintain programs of control, 
20 rehabilitation and
employment of committed persons within 
21 its institutions.

22  (d-5) To provide a pre-release job preparation program 
23 for inmates at Illinois adult correctional centers.


24  (e) To establish a system of supervision and guidance 
25 of committed persons
in the community.


26  (f) To establish in cooperation with the Department of 
 
 
09700SB0178sam001- 83 -LRB097 03971 JDS 56112 a


1 Transportation
to supply a sufficient number of prisoners 
2 for use by the Department of
Transportation to clean up the 
3 trash and garbage along State, county,
township, or 
4 municipal highways as designated by the Department of

5 Transportation. The Department of Corrections, at the 
6 request of the
Department of Transportation, shall furnish 
7 such prisoners at least
annually for a period to be agreed 
8 upon between the Director of
Corrections and the Director 
9 of Transportation. The prisoners used on this
program shall 
10 be selected by the Director of Corrections on whatever 
11 basis
he deems proper in consideration of their term, 
12 behavior and earned eligibility
to participate in such 
13 program - where they will be outside of the prison
facility 
14 but still in the custody of the Department of Corrections. 
15 Prisoners
convicted of first degree murder, or a Class X 
16 felony, or armed violence, or
aggravated kidnapping, or 
17 criminal sexual assault, aggravated criminal sexual
abuse 
18 or a subsequent conviction for criminal sexual abuse, or 
19 forcible
detention, or arson, or a prisoner adjudged a 
20 Habitual Criminal shall not be
eligible for selection to 
21 participate in such program. The prisoners shall
remain as 
22 prisoners in the custody of the Department of Corrections 
23 and such
Department shall furnish whatever security is 
24 necessary. The Department of
Transportation shall furnish 
25 trucks and equipment for the highway cleanup
program and 
26 personnel to supervise and direct the program. Neither the

 
 
09700SB0178sam001- 84 -LRB097 03971 JDS 56112 a


1 Department of Corrections nor the Department of 
2 Transportation shall replace
any regular employee with a 
3 prisoner.


4  (g) To maintain records of persons committed to it and 
5 to establish
programs of research, statistics and 
6 planning.


7  (h) To investigate the grievances of any person 
8 committed to the
Department, to inquire into any alleged 
9 misconduct by employees
or committed persons, and to 
10 investigate the assets
of committed persons to implement 
11 Section 3-7-6 of this Code; and for
these purposes it may 
12 issue subpoenas and compel the attendance of witnesses
and 
13 the production of writings and papers, and may examine 
14 under oath any
witnesses who may appear before it; to also 
15 investigate alleged violations
of a parolee's or 
16 releasee's conditions of parole or release; and for this

17 purpose it may issue subpoenas and compel the attendance of 
18 witnesses and
the production of documents only if there is 
19 reason to believe that such
procedures would provide 
20 evidence that such violations have occurred.


21  If any person fails to obey a subpoena issued under 
22 this subsection,
the Director may apply to any circuit 
23 court to secure compliance with the
subpoena. The failure 
24 to comply with the order of the court issued in
response 
25 thereto shall be punishable as contempt of court.


26  (i) To appoint and remove the chief administrative 
 
 
09700SB0178sam001- 85 -LRB097 03971 JDS 56112 a


1 officers, and
administer
programs of training and 
2 development of personnel of the Department. Personnel

3 assigned by the Department to be responsible for the

4 custody and control of committed persons or to investigate 
5 the alleged
misconduct of committed persons or employees or 
6 alleged violations of a
parolee's or releasee's conditions 
7 of parole shall be conservators of the peace
for those 
8 purposes, and shall have the full power of peace officers 
9 outside
of the facilities of the Department in the 
10 protection, arrest, retaking
and reconfining of committed 
11 persons or where the exercise of such power
is necessary to 
12 the investigation of such misconduct or violations.


13  (j) To cooperate with other departments and agencies 
14 and with local
communities for the development of standards 
15 and programs for better
correctional services in this 
16 State.


17  (k) To administer all moneys and properties of the 
18 Department.


19  (l) To report annually to the Governor on the committed

20 persons, institutions and programs of the Department.


21  (l-5) In a confidential annual report to the Governor, 
22 the Department
shall
identify all inmate gangs by 
23 specifying each current gang's name, population
and allied 
24 gangs. The Department shall further specify the number of 
25 top
leaders identified by the Department for each gang 
26 during the past year, and
the measures taken by the 
 
 
09700SB0178sam001- 86 -LRB097 03971 JDS 56112 a


1 Department to segregate each leader from his or her
gang 
2 and allied gangs. The Department shall further report the 
3 current status
of leaders identified and segregated in 
4 previous years. All leaders described
in the report shall 
5 be identified by inmate number or other designation to

6 enable tracking, auditing, and verification without 
7 revealing the names of the
leaders. Because this report 
8 contains law enforcement intelligence information

9 collected by the Department, the report is confidential and 
10 not subject to
public disclosure.


11  (m) To make all rules and regulations and exercise all 
12 powers and duties
vested by law in the Department.


13  (n) To establish rules and regulations for 
14 administering a system of
good conduct credits, 
15 established in accordance with Section 3-6-3, subject
to 
16 review by the Prisoner Review Board.


17  (o) To administer the distribution of funds
from the 
18 State Treasury to reimburse counties where State penal

19 institutions are located for the payment of assistant 
20 state's attorneys'
salaries under Section 4-2001 of the 
21 Counties Code.


22  (p) To exchange information with the Department of 
23 Human Services and the
Department of Healthcare and Family 
24 Services
for the purpose of verifying living arrangements 
25 and for other purposes
directly connected with the 
26 administration of this Code and the Illinois
Public Aid 
 
 
09700SB0178sam001- 87 -LRB097 03971 JDS 56112 a


1 Code.


2  (q) To establish a diversion program.


3  The program shall provide a structured environment for 
4 selected
technical parole or mandatory supervised release 
5 violators and committed
persons who have violated the rules 
6 governing their conduct while in work
release. This program 
7 shall not apply to those persons who have committed
a new 
8 offense while serving on parole or mandatory supervised 
9 release or
while committed to work release.


10  Elements of the program shall include, but shall not be 
11 limited to, the
following:


12   (1) The staff of a diversion facility shall provide 
13 supervision in
accordance with required objectives set 
14 by the facility.


15   (2) Participants shall be required to maintain 
16 employment.


17   (3) Each participant shall pay for room and board 
18 at the facility on a
sliding-scale basis according to 
19 the participant's income.


20   (4) Each participant shall:


21    (A) provide restitution to victims in 
22 accordance with any court order;


23    (B) provide financial support to his 
24 dependents; and


25    (C) make appropriate payments toward any other 
26 court-ordered
obligations.


 
 
09700SB0178sam001- 88 -LRB097 03971 JDS 56112 a


1   (5) Each participant shall complete community 
2 service in addition to
employment.


3   (6) Participants shall take part in such 
4 counseling, educational and
other programs as the 
5 Department may deem appropriate.


6   (7) Participants shall submit to drug and alcohol 
7 screening.


8   (8) The Department shall promulgate rules 
9 governing the administration
of the program.


10  (r) To enter into intergovernmental cooperation 
11 agreements under which
persons in the custody of the 
12 Department may participate in a county impact

13 incarceration program established under Section 3-6038 or 
14 3-15003.5 of the
Counties Code.


15  (r-5) (Blank).


16  (r-10) To systematically and routinely identify with 
17 respect to each
streetgang active within the correctional 
18 system: (1) each active gang; (2)
every existing inter-gang 
19 affiliation or alliance; and (3) the current leaders
in 
20 each gang. The Department shall promptly segregate leaders 
21 from inmates who
belong to their gangs and allied gangs. 
22 "Segregate" means no physical contact
and, to the extent 
23 possible under the conditions and space available at the

24 correctional facility, prohibition of visual and sound 
25 communication. For the
purposes of this paragraph (r-10), 
26 "leaders" means persons who:


 
 
09700SB0178sam001- 89 -LRB097 03971 JDS 56112 a


1   (i) are members of a criminal streetgang;


2   (ii) with respect to other individuals within the 
3 streetgang, occupy a
position of organizer, 
4 supervisor, or other position of management or

5 leadership; and


6   (iii) are actively and personally engaged in 
7 directing, ordering,
authorizing, or requesting 
8 commission of criminal acts by others, which are

9 punishable as a felony, in furtherance of streetgang 
10 related activity both
within and outside of the 
11 Department of Corrections.


12 "Streetgang", "gang", and "streetgang related" have the 
13 meanings ascribed to
them in Section 10 of the Illinois 
14 Streetgang Terrorism Omnibus Prevention
Act.


15  (s) To operate a super-maximum security institution, 
16 in order to
manage and
supervise inmates who are disruptive 
17 or dangerous and provide for the safety
and security of the 
18 staff and the other inmates.


19  (t) To monitor any unprivileged conversation or any 
20 unprivileged
communication, whether in person or by mail, 
21 telephone, or other means,
between an inmate who, before 
22 commitment to the Department, was a member of an
organized 
23 gang and any other person without the need to show cause or 
24 satisfy
any other requirement of law before beginning the 
25 monitoring, except as
constitutionally required. The 
26 monitoring may be by video, voice, or other
method of 
 
 
09700SB0178sam001- 90 -LRB097 03971 JDS 56112 a


1 recording or by any other means. As used in this 
2 subdivision (1)(t),
"organized gang" has the meaning 
3 ascribed to it in Section 10 of the Illinois
Streetgang 
4 Terrorism Omnibus Prevention Act.


5  As used in this subdivision (1)(t), "unprivileged 
6 conversation" or
"unprivileged communication" means a 
7 conversation or communication that is not
protected by any 
8 privilege recognized by law or by decision, rule, or order 
9 of
the Illinois Supreme Court.


10  (u) To establish a Women's and Children's Pre-release 
11 Community
Supervision
Program for the purpose of providing 
12 housing and services to eligible female
inmates, as 
13 determined by the Department, and their newborn and young

14 children.

15  (u-5) To issue an order, whenever a person committed to 
16 the Department absconds or absents himself or herself, 
17 without authority to do so, from any facility or program to 
18 which he or she is assigned. The order shall be certified 
19 by the Director, the Supervisor of the Apprehension Unit, 
20 or any person duly designated by the Director, with the 
21 seal of the Department affixed. The order shall be directed 
22 to all sheriffs, coroners, and police officers, or to any 
23 particular person named in the order. Any order issued 
24 pursuant to this subdivision (1) (u-5) shall be sufficient 
25 warrant for the officer or person named in the order to 
26 arrest and deliver the committed person to the proper 
 
 
09700SB0178sam001- 91 -LRB097 03971 JDS 56112 a


1 correctional officials and shall be executed the same as 
2 criminal process. 

3  (v) To do all other acts necessary to carry out the 
4 provisions
of this Chapter.

5 (2) The Department of Corrections shall by January 1, 1998, 
6consider
building and operating a correctional facility within 
7100 miles of a county of
over 2,000,000 inhabitants, especially 
8a facility designed to house juvenile
participants in the 
9impact incarceration program.

10 (3) When the Department lets bids for contracts for medical

11services to be provided to persons committed to Department 
12facilities by
a health maintenance organization, medical 
13service corporation, or other
health care provider, the bid may 
14only be let to a health care provider
that has obtained an 
15irrevocable letter of credit or performance bond
issued by a 
16company whose bonds are rated AAA by a bond rating

17organization.

18 (4) When the Department lets bids for
contracts for food or 
19commissary services to be provided to
Department facilities, 
20the bid may only be let to a food or commissary
services 
21provider that has obtained an irrevocable letter of
credit or 
22performance bond issued by a company whose bonds are rated
AAA 
23by a bond rating organization.

24 (5) On and after January 1, 2012, as provided in the State 
25Healthcare Purchasing Reorganization Act, all of the powers, 
26duties, rights, and responsibilities related to State 
 
 
09700SB0178sam001- 92 -LRB097 03971 JDS 56112 a


1healthcare purchasing under this Code that were transferred 
2from the Department of Corrections to the Department of 
3Healthcare and Family Services by Executive Order 3 (2005) are 
4transferred back to the Department of Corrections; however, 
5powers, duties, rights, and responsibilities related to State 
6healthcare purchasing under this Code that were exercised by 
7the Department of Corrections before Executive Order 3 (2005) 
8but that pertain to individuals resident in facilities operated 
9by Department of Juvenile Justice are transferred to the 
10Department of Juvenile Justice. 
11(Source: P.A. 96-1265, eff. 7-26-10.)


12 (730 ILCS 5/3-2.5-20)

13 Sec. 3-2.5-20. General powers and duties.
14 (a) In addition to the powers, duties, and responsibilities 
15which are otherwise provided by law or transferred to the 
16Department as a result of this Article, the Department, as 
17determined by the Director, shall have, but are not limited to, 
18the following rights, powers, functions and duties:
19  (1) To accept juveniles committed to it by the courts 
20 of this State for care, custody, treatment, and 
21 rehabilitation.
22  (2) To maintain and administer all State juvenile 
23 correctional institutions previously under the control of 
24 the Juvenile and Women's & Children Divisions of the 
25 Department of Corrections, and to establish and maintain 
 
 
09700SB0178sam001- 93 -LRB097 03971 JDS 56112 a


1 institutions as needed to meet the needs of the youth 
2 committed to its care.
3  (3) To identify the need for and recommend the funding 
4 and implementation of an appropriate mix of programs and 
5 services within the juvenile justice continuum, including 
6 but not limited to prevention, nonresidential and 
7 residential commitment programs, day treatment, and 
8 conditional release programs and services, with the 
9 support of educational, vocational, alcohol, drug abuse, 
10 and mental health services where appropriate.
11  (4) To establish and provide transitional and 
12 post-release treatment programs for juveniles committed to 
13 the Department. Services shall include but are not limited 
14 to:
15   (i) family and individual counseling and treatment 
16 placement;
17   (ii) referral services to any other State or local 
18 agencies;
19   (iii) mental health services;
20   (iv) educational services;
21   (v) family counseling services; and
22   (vi) substance abuse services.
23  (5) To access vital records of juveniles for the 
24 purposes of providing necessary documentation for 
25 transitional services such as obtaining identification, 
26 educational enrollment, employment, and housing.
 
 
09700SB0178sam001- 94 -LRB097 03971 JDS 56112 a


1  (6) To develop staffing and workload standards and 
2 coordinate staff development and training appropriate for 
3 juvenile populations.
4  (7) To develop, with the approval of the Office of the 
5 Governor and the Governor's Office of Management and 
6 Budget, annual budget requests.

7  (8) To administer the Interstate Compact for 
8 Juveniles, with respect to all juveniles under its 
9 jurisdiction, and to cooperate with the Department of Human 
10 Services with regard to all non-offender juveniles subject 
11 to the Interstate Compact for Juveniles.

12 (b) The Department may employ personnel in accordance with 
13the Personnel Code and Section 3-2.5-15 of this Code, provide 
14facilities, contract for goods and services, and adopt rules as 
15necessary to carry out its functions and purposes, all in 
16accordance with applicable State and federal law.


17 (c) On and after January 1, 2012, as provided in the State 
18Healthcare Purchasing Reorganization Act, all of the powers, 
19duties, rights, and responsibilities related to State 
20healthcare purchasing under this Code that were transferred 
21from the Department of Corrections to the Department of 
22Healthcare and Family Services by Executive Order 3 (2005) are 
23transferred back to the Department of Corrections; however, 
24powers, duties, rights, and responsibilities related to State 
25healthcare purchasing under this Code that were exercised by 
26the Department of Corrections before Executive Order 3 (2005) 
 
 
09700SB0178sam001- 95 -LRB097 03971 JDS 56112 a


1but that pertain to individuals resident in facilities operated 
2by Department of Juvenile Justice are transferred to the 
3Department of Juvenile Justice. 
4(Source: P.A. 94-696, eff. 6-1-06; 95-937, eff. 8-26-08.)

5 Section 997. Severability. The provisions of this Act are 
6severable under Section 1.31 of the Statute on Statutes.



7 Section 999. Effective date. This Act takes effect upon 
8becoming law.".