Rep. John E. Bradley

Filed: 1/9/2011

 

 


 

 


 
09600SB1066ham003LRB096 07137 WGH 44883 a

1
AMENDMENT TO SENATE BILL 1066

2    AMENDMENT NO. ______. Amend Senate Bill 1066, AS AMENDED,
3by replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The Department of Central Management Services
6Law of the Civil Administrative Code of Illinois is amended by
7changing Section 405-411 as follows:
 
8    (20 ILCS 405/405-411)
9    Sec. 405-411. Consolidation of workers' compensation
10functions.
11    (a) Notwithstanding any other law to the contrary, the
12Director of Central Management Services, working in
13cooperation with the Director of any other agency, department,
14board, or commission directly responsible to the Governor, may
15direct the consolidation, within the Department of Central
16Management Services, of those workers' compensation functions

 

 

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1at that agency, department, board, or commission that are
2suitable for centralization.
3    Upon receipt of the written direction to transfer workers'
4compensation functions to the Department of Central Management
5Services, the personnel, equipment, and property (both real and
6personal) directly relating to the transferred functions shall
7be transferred to the Department of Central Management
8Services, and the relevant documents, records, and
9correspondence shall be transferred or copied, as the Director
10may prescribe.
11    (b) Upon receiving written direction from the Director of
12Central Management Services, the Comptroller and Treasurer are
13authorized to transfer the unexpended balance of any
14appropriations related to the workers' compensation functions
15transferred to the Department of Central Management Services
16and shall make the necessary fund transfers from the General
17Revenue Fund, any special fund in the State treasury, or any
18other federal or State trust fund held by the Treasurer to the
19Workers' Compensation Revolving Fund for use by the Department
20of Central Management Services in support of workers'
21compensation functions or any other related costs or expenses
22of the Department of Central Management Services.
23    (c) The rights of employees and the State and its agencies
24under the Personnel Code and applicable collective bargaining
25agreements or under any pension, retirement, or annuity plan
26shall not be affected by any transfer under this Section.

 

 

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1    (d) The functions transferred to the Department of Central
2Management Services by this Section shall be vested in and
3shall be exercised by the Department of Central Management
4Services. Each act done in the exercise of those functions
5shall have the same legal effect as if done by the agencies,
6offices, divisions, departments, bureaus, boards and
7commissions from which they were transferred.
8    Every person or other entity shall be subject to the same
9obligations and duties and any penalties, civil or criminal,
10arising therefrom, and shall have the same rights arising from
11the exercise of such rights, powers, and duties as had been
12exercised by the agencies, offices, divisions, departments,
13bureaus, boards, and commissions from which they were
14transferred.
15    Whenever reports or notices are now required to be made or
16given or papers or documents furnished or served by any person
17in regards to the functions transferred to or upon the
18agencies, offices, divisions, departments, bureaus, boards,
19and commissions from which the functions were transferred, the
20same shall be made, given, furnished or served in the same
21manner to or upon the Department of Central Management
22Services.
23    This Section does not affect any act done, ratified, or
24cancelled or any right occurring or established or any action
25or proceeding had or commenced in an administrative, civil, or
26criminal cause regarding the functions transferred, but those

 

 

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1proceedings may be continued by the Department of Central
2Management Services.
3    This Section does not affect the legality of any rules in
4the Illinois Administrative Code regarding the functions
5transferred in this Section that are in force on the effective
6date of this Section. If necessary, however, the affected
7agencies shall propose, adopt, or repeal rules, rule
8amendments, and rule recodifications as appropriate to
9effectuate this Section.
10    (e) There is hereby created within the Department of
11Central Management Services an advisory body to be known as the
12Workers' Compensation Advisory Board to review, assess, and
13provide recommendations to improve the State workers'
14compensation program and to ensure that the State manages the
15program in the interests of injured workers and taxpayers. The
16Governor, the Speaker of the House of Representatives, the
17Minority Leader of the House of Representatives, the President
18of the Senate, and the Minority Leader of the Senate shall each
19appoint one person to the Board. Each Board member initially
20appointed to the Board shall serve a term ending December 31,
212013. Each Board member appointed thereafter shall serve a
223-year term, and a Board member shall continue to serve on the
23Board until his or her successor is appointed. In addition, the
24Director of the Department of Central Management Services, the
25Attorney General, the Director of the Department of Insurance,
26the Director of the Department of Corrections, the Secretary of

 

 

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1the Department of Transportation, the Secretary of the
2Department of Human Services, the Director of the Department of
3Revenue, and the Commissioner of the Illinois Workers'
4Compensation Commission, or their designees, shall serve on the
5Board. The Board shall select one of its members to serve as
6Chairperson. Members of the Board shall not receive
7compensation but shall be reimbursed from the Workers'
8Compensation Revolving Fund for reasonable expenses incurred
9in the necessary performance of their duties, and the
10Department of Central Management Services shall provide
11administrative support to the Board. The Board shall meet at
12least 3 times per year, or more often if the Board deems it
13necessary or proper. By July 1, 2011, the Board shall issue a
14written report, to be delivered to the Governor, the Director
15of the Department of Central Management Services, and the
16General Assembly, with a recommended set of best practices for
17the State workers' compensation program. By July 1st of each
18year thereafter, the Board shall issue a written report, to be
19delivered to those same persons or entities, with
20recommendations on how to improve upon such practices.
21(Source: P.A. 93-839, eff. 7-30-04.)
 
22    Section 10. The Workers' Compensation Act is amended by
23changing Sections 4, 8, 8.2, 8.3, 8.7, 11, 14, and 25.5 and
24adding Sections 16b, 29.1, and 29.2 as follows:
 

 

 

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1    (820 ILCS 305/4)  (from Ch. 48, par. 138.4)
2    Sec. 4. (a) Any employer, including but not limited to
3general contractors and their subcontractors, who shall come
4within the provisions of Section 3 of this Act, and any other
5employer who shall elect to provide and pay the compensation
6provided for in this Act shall:
7        (1) File with the Commission annually an application
8    for approval as a self-insurer which shall include a
9    current financial statement, and annually, thereafter, an
10    application for renewal of self-insurance, which shall
11    include a current financial statement. Said application
12    and financial statement shall be signed and sworn to by the
13    president or vice president and secretary or assistant
14    secretary of the employer if it be a corporation, or by all
15    of the partners, if it be a copartnership, or by the owner
16    if it be neither a copartnership nor a corporation. All
17    initial applications and all applications for renewal of
18    self-insurance must be submitted at least 60 days prior to
19    the requested effective date of self-insurance. An
20    employer may elect to provide and pay compensation as
21    provided for in this Act as a member of a group workers'
22    compensation pool under Article V 3/4 of the Illinois
23    Insurance Code. If an employer becomes a member of a group
24    workers' compensation pool, the employer shall not be
25    relieved of any obligations imposed by this Act.
26        If the sworn application and financial statement of any

 

 

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1    such employer does not satisfy the Commission of the
2    financial ability of the employer who has filed it, the
3    Commission shall require such employer to,
4        (2) Furnish security, indemnity or a bond guaranteeing
5    the payment by the employer of the compensation provided
6    for in this Act, provided that any such employer whose
7    application and financial statement shall not have
8    satisfied the commission of his or her financial ability
9    and who shall have secured his liability in part by excess
10    liability insurance shall be required to furnish to the
11    Commission security, indemnity or bond guaranteeing his or
12    her payment up to the effective limits of the excess
13    coverage, or
14        (3) Insure his entire liability to pay such
15    compensation in some insurance carrier authorized,
16    licensed, or permitted to do such insurance business in
17    this State. Every policy of an insurance carrier, insuring
18    the payment of compensation under this Act shall cover all
19    the employees and the entire compensation liability of the
20    insured: Provided, however, that any employer may insure
21    his or her compensation liability with 2 or more insurance
22    carriers or may insure a part and qualify under subsection
23    1, 2, or 4 for the remainder of his or her liability to pay
24    such compensation, subject to the following two
25    provisions:
26            Firstly, the entire compensation liability of the

 

 

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1        employer to employees working at or from one location
2        shall be insured in one such insurance carrier or shall
3        be self-insured, and
4            Secondly, the employer shall submit evidence
5        satisfactorily to the Commission that his or her entire
6        liability for the compensation provided for in this Act
7        will be secured. Any provisions in any policy, or in
8        any endorsement attached thereto, attempting to limit
9        or modify in any way, the liability of the insurance
10        carriers issuing the same except as otherwise provided
11        herein shall be wholly void.
12        Nothing herein contained shall apply to policies of
13    excess liability carriage secured by employers who have
14    been approved by the Commission as self-insurers, or
15        (4) Make some other provision, satisfactory to the
16    Commission, for the securing of the payment of compensation
17    provided for in this Act, and
18        (5) Upon becoming subject to this Act and thereafter as
19    often as the Commission may in writing demand, file with
20    the Commission in form prescribed by it evidence of his or
21    her compliance with the provision of this Section.
22    (a-1) Regardless of its state of domicile or its principal
23place of business, an employer shall make payments to its
24insurance carrier or group self-insurance fund, where
25applicable, based upon the premium rates of the situs where the
26work or project is located in Illinois if:

 

 

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1        (A) the employer is engaged primarily in the building
2    and construction industry; and
3        (B) subdivision (a)(3) of this Section applies to the
4    employer or the employer is a member of a group
5    self-insurance plan as defined in subsection (1) of Section
6    4a.
7    The Illinois Workers' Compensation Commission shall impose
8a penalty upon an employer for violation of this subsection
9(a-1) if:
10        (i) the employer is given an opportunity at a hearing
11    to present evidence of its compliance with this subsection
12    (a-1); and
13        (ii) after the hearing, the Commission finds that the
14    employer failed to make payments upon the premium rates of
15    the situs where the work or project is located in Illinois.
16    The penalty shall not exceed $1,000 for each day of work
17for which the employer failed to make payments upon the premium
18rates of the situs where the work or project is located in
19Illinois, but the total penalty shall not exceed $50,000 for
20each project or each contract under which the work was
21performed.
22    Any penalty under this subsection (a-1) must be imposed not
23later than one year after the expiration of the applicable
24limitation period specified in subsection (d) of Section 6 of
25this Act. Penalties imposed under this subsection (a-1) shall
26be deposited into the Illinois Workers' Compensation

 

 

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1Commission Operations Fund, a special fund that is created in
2the State treasury. Subject to appropriation, moneys in the
3Fund shall be used solely for the operations of the Illinois
4Workers' Compensation Commission and by the Department of
5Financial and Professional Regulation for the purposes
6authorized in subsection (c) of Section 25.5 of this Act.
7    (a-2) For purposes of this subsection, "Professional
8Employer Organization" or "PEO" means an entity or group of
9entities that provides the services of its workers to its
10client or clients through an arrangement for a fee pursuant to
11an agreement, written or otherwise. "Professional Employer
12Organization" or "PEO" also includes an employee leasing
13company or other similarly administered arrangement. Any
14workers' compensation insurance policy issued to a PEO shall at
15a minimum provide the following information to the Commission
16or any entity designated by the Commission regarding each
17policy issued to the PEO:
18        (1) Each client company of the PEO listed as an
19    additional named insured.
20        (2) Information schedules attached to the master
21    policy to identify each individual company's name, FEIN,
22    and job location.
23        (3) A certificate of insurance coverage document
24    issued to each client company specifying its rights and
25    obligations under the master policy that clearly
26    establishes both the identity and status of the client, as

 

 

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1    well as the dates of inception and termination of coverage,
2    if applicable.
3    (b) The sworn application and financial statement, or
4security, indemnity or bond, or amount of insurance, or other
5provisions, filed, furnished, carried, or made by the employer,
6as the case may be, shall be subject to the approval of the
7Commission.
8    Deposits under escrow agreements shall be cash, negotiable
9United States government bonds or negotiable general
10obligation bonds of the State of Illinois. Such cash or bonds
11shall be deposited in escrow with any State or National Bank or
12Trust Company having trust authority in the State of Illinois.
13    Upon the approval of the sworn application and financial
14statement, security, indemnity or bond or amount of insurance,
15filed, furnished or carried, as the case may be, the Commission
16shall send to the employer written notice of its approval
17thereof. The certificate of compliance by the employer with the
18provisions of subparagraphs (2) and (3) of paragraph (a) of
19this Section shall be delivered by the insurance carrier to the
20Illinois Workers' Compensation Commission within five days
21after the effective date of the policy so certified. The
22insurance so certified shall cover all compensation liability
23occurring during the time that the insurance is in effect and
24no further certificate need be filed in case such insurance is
25renewed, extended or otherwise continued by such carrier. The
26insurance so certified shall not be cancelled or in the event

 

 

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1that such insurance is not renewed, extended or otherwise
2continued, such insurance shall not be terminated until at
3least 10 days after receipt by the Illinois Workers'
4Compensation Commission of notice of the cancellation or
5termination of said insurance; provided, however, that if the
6employer has secured insurance from another insurance carrier,
7or has otherwise secured the payment of compensation in
8accordance with this Section, and such insurance or other
9security becomes effective prior to the expiration of the 10
10days, cancellation or termination may, at the option of the
11insurance carrier indicated in such notice, be effective as of
12the effective date of such other insurance or security.
13    (c) Whenever the Commission shall find that any
14corporation, company, association, aggregation of individuals,
15reciprocal or interinsurers exchange, or other insurer
16effecting workers' compensation insurance in this State shall
17be insolvent, financially unsound, or unable to fully meet all
18payments and liabilities assumed or to be assumed for
19compensation insurance in this State, or shall practice a
20policy of delay or unfairness toward employees in the
21adjustment, settlement, or payment of benefits due such
22employees, the Commission may after reasonable notice and
23hearing order and direct that such corporation, company,
24association, aggregation of individuals, reciprocal or
25interinsurers exchange, or insurer, shall from and after a date
26fixed in such order discontinue the writing of any such

 

 

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1workers' compensation insurance in this State. Subject to such
2modification of the order as the Commission may later make on
3review of the order, as herein provided, it shall thereupon be
4unlawful for any such corporation, company, association,
5aggregation of individuals, reciprocal or interinsurers
6exchange, or insurer to effect any workers' compensation
7insurance in this State. A copy of the order shall be served
8upon the Director of Insurance by registered mail. Whenever the
9Commission finds that any service or adjustment company used or
10employed by a self-insured employer or by an insurance carrier
11to process, adjust, investigate, compromise or otherwise
12handle claims under this Act, has practiced or is practicing a
13policy of delay or unfairness toward employees in the
14adjustment, settlement or payment of benefits due such
15employees, the Commission may after reasonable notice and
16hearing order and direct that such service or adjustment
17company shall from and after a date fixed in such order be
18prohibited from processing, adjusting, investigating,
19compromising or otherwise handling claims under this Act.
20    Whenever the Commission finds that any self-insured
21employer has practiced or is practicing delay or unfairness
22toward employees in the adjustment, settlement or payment of
23benefits due such employees, the Commission may, after
24reasonable notice and hearing, order and direct that after a
25date fixed in the order such self-insured employer shall be
26disqualified to operate as a self-insurer and shall be required

 

 

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1to insure his entire liability to pay compensation in some
2insurance carrier authorized, licensed and permitted to do such
3insurance business in this State, as provided in subparagraph 3
4of paragraph (a) of this Section.
5    All orders made by the Commission under this Section shall
6be subject to review by the courts, said review to be taken in
7the same manner and within the same time as provided by Section
819 of this Act for review of awards and decisions of the
9Commission, upon the party seeking the review filing with the
10clerk of the court to which said review is taken a bond in an
11amount to be fixed and approved by the court to which the
12review is taken, conditioned upon the payment of all
13compensation awarded against the person taking said review
14pending a decision thereof and further conditioned upon such
15other obligations as the court may impose. Upon the review the
16Circuit Court shall have power to review all questions of fact
17as well as of law. The penalty hereinafter provided for in this
18paragraph shall not attach and shall not begin to run until the
19final determination of the order of the Commission.
20    (d) Whenever a panel of 3 Commissioners comprised of one
21member of the employing class, one member of the employee
22class, and one member not identified with either the employing
23or employee class, with due process and after a hearing,
24determines: (1) an employer has knowingly failed to provide
25coverage as required by paragraph (a) of this Section, and (2)
26that the failure is shall be deemed an immediate serious danger

 

 

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1to public health, safety, and welfare sufficient to justify
2service by the Commission of a work-stop order on such
3employer, then that panel of 3 Commissioners may enter a
4work-stop order requiring the cessation of all business
5operations of such employer at the place of employment or job
6site. Any law enforcement agency in the State shall, at the
7request of the Commission, render any assistance necessary to
8carry out the provisions of this Section, including, but not
9limited to, preventing any employee of such employer from
10remaining at a place of employment or job site after a
11work-stop order has taken effect. Any work-stop order shall be
12lifted immediately upon proof of insurance as required by this
13Act and payment of any applicable fines or penalties. Any
14orders under this Section are appealable under Section 19(f) to
15the Circuit Court.
16    Any individual employer, corporate officer or director of a
17corporate employer, partner of an employer partnership, or
18member of an employer limited liability company who knowingly
19fails to provide coverage as required by paragraph (a) of this
20Section is guilty of a Class 4 felony. This provision shall not
21apply to any corporate officer or director of any
22publicly-owned corporation. Each day's violation constitutes a
23separate offense. The State's Attorney of the county in which
24the violation occurred, or the Attorney General, shall bring
25such actions in the name of the People of the State of
26Illinois, or may, in addition to other remedies provided in

 

 

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1this Section, bring an action for an injunction to restrain the
2violation or to enjoin the operation of any such employer.
3    Any individual employer, corporate officer or director of a
4corporate employer, partner of an employer partnership, or
5member of an employer limited liability company who negligently
6fails to provide coverage as required by paragraph (a) of this
7Section is guilty of a Class A misdemeanor. This provision
8shall not apply to any corporate officer or director of any
9publicly-owned corporation. Each day's violation constitutes a
10separate offense. The State's Attorney of the county in which
11the violation occurred, or the Attorney General, shall bring
12such actions in the name of the People of the State of
13Illinois.
14    The criminal penalties in this subsection (d) shall not
15apply where there exists a good faith dispute as to the
16existence of an employment relationship. Evidence of good faith
17shall include, but not be limited to, compliance with the
18definition of employee as used by the Internal Revenue Service.
19    Employers who are subject to and who knowingly fail to
20comply with this Section shall not be entitled to the benefits
21of this Act during the period of noncompliance, but shall be
22liable in an action under any other applicable law of this
23State. In the action, such employer shall not avail himself or
24herself of the defenses of assumption of risk or negligence or
25that the injury was due to a co-employee. In the action, proof
26of the injury shall constitute prima facie evidence of

 

 

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1negligence on the part of such employer and the burden shall be
2on such employer to show freedom of negligence resulting in the
3injury. The employer shall not join any other defendant in any
4such civil action. Nothing in this amendatory Act of the 94th
5General Assembly shall affect the employee's rights under
6subdivision (a)3 of Section 1 of this Act. Any employer or
7carrier who makes payments under subdivision (a)3 of Section 1
8of this Act shall have a right of reimbursement from the
9proceeds of any recovery under this Section.
10    An employee of an uninsured employer, or the employee's
11dependents in case death ensued, may, instead of proceeding
12against the employer in a civil action in court, file an
13application for adjustment of claim with the Commission in
14accordance with the provisions of this Act and the Commission
15shall hear and determine the application for adjustment of
16claim in the manner in which other claims are heard and
17determined before the Commission.
18    All proceedings under this subsection (d) shall be reported
19on an annual basis to the Workers' Compensation Advisory Board.
20    An investigator with the Illinois Workers' Compensation
21Commission Insurance Compliance Division may issue a citation
22to any employer that is not in compliance with its obligation
23to have workers' compensation insurance under this Act. The
24amount of the fine shall be based on the period of time the
25employer was in non-compliance, but shall be no less than $500,
26and shall not exceed $2,500. An employer that has been issued a

 

 

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1citation shall pay the fine to the Commission and provide to
2the Commission proof that it obtained the required workers'
3compensation insurance within 10 days after the citation was
4issued. This Section does not affect any other obligations this
5Act imposes on employers.
6    Upon a finding by the Commission, after reasonable notice
7and hearing, of the knowing and wilful failure or refusal of an
8employer to comply with any of the provisions of paragraph (a)
9of this Section, or the failure or refusal of an employer,
10service or adjustment company, or an insurance carrier to
11comply with any order of the Illinois Workers' Compensation
12Commission pursuant to paragraph (c) of this Section
13disqualifying him or her to operate as a self insurer and
14requiring him or her to insure his or her liability, or the
15knowing and willful failure of an employer to comply with a
16citation issued by an investigator with the Illinois Workers'
17Compensation Commission Insurance Compliance Division, the
18Commission may assess a civil penalty of up to $500 per day for
19each day of such failure or refusal after the effective date of
20this amendatory Act of 1989. The minimum penalty under this
21Section shall be the sum of $10,000. Each day of such failure
22or refusal shall constitute a separate offense. The Commission
23may assess the civil penalty personally and individually
24against the corporate officers and directors of a corporate
25employer, the partners of an employer partnership, and the
26members of an employer limited liability company, after a

 

 

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1finding of a knowing and willful refusal or failure of each
2such named corporate officer, director, partner, or member to
3comply with this Section. The liability for the assessed
4penalty shall be against the named employer first, and if the
5named employer fails or refuses to pay the penalty to the
6Commission within 30 days after the final order of the
7Commission, then the named corporate officers, directors,
8partners, or members who have been found to have knowingly and
9willfully refused or failed to comply with this Section shall
10be liable for the unpaid penalty or any unpaid portion of the
11penalty. Upon investigation by the insurance non-compliance
12unit of the Commission, the Attorney General shall have the
13authority to prosecute all proceedings to enforce the civil and
14administrative provisions of this Section before the
15Commission. The Commission shall promulgate procedural rules
16for enforcing this Section.
17    Upon the failure or refusal of any employer, service or
18adjustment company or insurance carrier to comply with the
19provisions of this Section and with the orders of the
20Commission under this Section, or the order of the court on
21review after final adjudication, the Commission may bring a
22civil action to recover the amount of the penalty in Cook
23County or in Sangamon County in which litigation the Commission
24shall be represented by the Attorney General. The Commission
25shall send notice of its finding of non-compliance and
26assessment of the civil penalty to the Attorney General. It

 

 

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1shall be the duty of the Attorney General within 30 days after
2receipt of the notice, to institute prosecutions and promptly
3prosecute all reported violations of this Section.
4    Any individual employer, corporate officer or director of a
5corporate employer, partner of an employer partnership, or
6member of an employer limited liability company who, with the
7intent to avoid payment of compensation under this Act to an
8injured employee or the employee's dependents, knowingly
9transfers, sells, encumbers, assigns, or in any manner disposes
10of, conceals, secretes, or destroys any property belonging to
11the employer, officer, director, partner, or member is guilty
12of a Class 4 felony.
13    Penalties and fines collected pursuant to this paragraph
14(d) shall be deposited upon receipt into a special fund which
15shall be designated the Injured Workers' Benefit Fund, of which
16the State Treasurer is ex-officio custodian, such special fund
17to be held and disbursed in accordance with this paragraph (d)
18for the purposes hereinafter stated in this paragraph (d), upon
19the final order of the Commission. The Injured Workers' Benefit
20Fund shall be deposited the same as are State funds and any
21interest accruing thereon shall be added thereto every 6
22months. The Injured Workers' Benefit Fund is subject to audit
23the same as State funds and accounts and is protected by the
24general bond given by the State Treasurer. The Injured Workers'
25Benefit Fund is considered always appropriated for the purposes
26of disbursements as provided in this paragraph, and shall be

 

 

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1paid out and disbursed as herein provided and shall not at any
2time be appropriated or diverted to any other use or purpose.
3Moneys in the Injured Workers' Benefit Fund shall be used only
4for payment of workers' compensation benefits for injured
5employees when the employer has failed to provide coverage as
6determined under this paragraph (d) and has failed to pay the
7benefits due to the injured employee. The Commission shall have
8the right to obtain reimbursement from the employer for
9compensation obligations paid by the Injured Workers' Benefit
10Fund. Any such amounts obtained shall be deposited by the
11Commission into the Injured Workers' Benefit Fund. If an
12injured employee or his or her personal representative receives
13payment from the Injured Workers' Benefit Fund, the State of
14Illinois has the same rights under paragraph (b) of Section 5
15that the employer who failed to pay the benefits due to the
16injured employee would have had if the employer had paid those
17benefits, and any moneys recovered by the State as a result of
18the State's exercise of its rights under paragraph (b) of
19Section 5 shall be deposited into the Injured Workers' Benefit
20Fund. The custodian of the Injured Workers' Benefit Fund shall
21be joined with the employer as a party respondent in the
22application for adjustment of claim. After July 1, 2006, the
23Commission shall make disbursements from the Fund once each
24year to each eligible claimant. An eligible claimant is an
25injured worker who has within the previous fiscal year obtained
26a final award for benefits from the Commission against the

 

 

09600SB1066ham003- 22 -LRB096 07137 WGH 44883 a

1employer and the Injured Workers' Benefit Fund and has notified
2the Commission within 90 days of receipt of such award. Within
3a reasonable time after the end of each fiscal year, the
4Commission shall make a disbursement to each eligible claimant.
5At the time of disbursement, if there are insufficient moneys
6in the Fund to pay all claims, each eligible claimant shall
7receive a pro-rata share, as determined by the Commission, of
8the available moneys in the Fund for that year. Payment from
9the Injured Workers' Benefit Fund to an eligible claimant
10pursuant to this provision shall discharge the obligations of
11the Injured Workers' Benefit Fund regarding the award entered
12by the Commission.
13    (e) This Act shall not affect or disturb the continuance of
14any existing insurance, mutual aid, benefit, or relief
15association or department, whether maintained in whole or in
16part by the employer or whether maintained by the employees,
17the payment of benefits of such association or department being
18guaranteed by the employer or by some person, firm or
19corporation for him or her: Provided, the employer contributes
20to such association or department an amount not less than the
21full compensation herein provided, exclusive of the cost of the
22maintenance of such association or department and without any
23expense to the employee. This Act shall not prevent the
24organization and maintaining under the insurance laws of this
25State of any benefit or insurance company for the purpose of
26insuring against the compensation provided for in this Act, the

 

 

09600SB1066ham003- 23 -LRB096 07137 WGH 44883 a

1expense of which is maintained by the employer. This Act shall
2not prevent the organization or maintaining under the insurance
3laws of this State of any voluntary mutual aid, benefit or
4relief association among employees for the payment of
5additional accident or sick benefits.
6    (f) No existing insurance, mutual aid, benefit or relief
7association or department shall, by reason of anything herein
8contained, be authorized to discontinue its operation without
9first discharging its obligations to any and all persons
10carrying insurance in the same or entitled to relief or
11benefits therein.
12    (g) Any contract, oral, written or implied, of employment
13providing for relief benefit, or insurance or any other device
14whereby the employee is required to pay any premium or premiums
15for insurance against the compensation provided for in this Act
16shall be null and void. Any employer withholding from the wages
17of any employee any amount for the purpose of paying any such
18premium shall be guilty of a Class B misdemeanor.
19    In the event the employer does not pay the compensation for
20which he or she is liable, then an insurance company,
21association or insurer which may have insured such employer
22against such liability shall become primarily liable to pay to
23the employee, his or her personal representative or beneficiary
24the compensation required by the provisions of this Act to be
25paid by such employer. The insurance carrier may be made a
26party to the proceedings in which the employer is a party and

 

 

09600SB1066ham003- 24 -LRB096 07137 WGH 44883 a

1an award may be entered jointly against the employer and the
2insurance carrier.
3    (h) It shall be unlawful for any employer, insurance
4company or service or adjustment company to interfere with,
5restrain or coerce an employee in any manner whatsoever in the
6exercise of the rights or remedies granted to him or her by
7this Act or to discriminate, attempt to discriminate, or
8threaten to discriminate against an employee in any way because
9of his or her exercise of the rights or remedies granted to him
10or her by this Act.
11    It shall be unlawful for any employer, individually or
12through any insurance company or service or adjustment company,
13to discharge or to threaten to discharge, or to refuse to
14rehire or recall to active service in a suitable capacity an
15employee because of the exercise of his or her rights or
16remedies granted to him or her by this Act.
17    (i) If an employer elects to obtain a life insurance policy
18on his employees, he may also elect to apply such benefits in
19satisfaction of all or a portion of the death benefits payable
20under this Act, in which case, the employer's compensation
21premium shall be reduced accordingly.
22    (j) Within 45 days of receipt of an initial application or
23application to renew self-insurance privileges the
24Self-Insurers Advisory Board shall review and submit for
25approval by the Chairman of the Commission recommendations of
26disposition of all initial applications to self-insure and all

 

 

09600SB1066ham003- 25 -LRB096 07137 WGH 44883 a

1applications to renew self-insurance privileges filed by
2private self-insurers pursuant to the provisions of this
3Section and Section 4a-9 of this Act. Each private self-insurer
4shall submit with its initial and renewal applications the
5application fee required by Section 4a-4 of this Act.
6    The Chairman of the Commission shall promptly act upon all
7initial applications and applications for renewal in full
8accordance with the recommendations of the Board or, should the
9Chairman disagree with any recommendation of disposition of the
10Self-Insurer's Advisory Board, he shall within 30 days of
11receipt of such recommendation provide to the Board in writing
12the reasons supporting his decision. The Chairman shall also
13promptly notify the employer of his decision within 15 days of
14receipt of the recommendation of the Board.
15    If an employer is denied a renewal of self-insurance
16privileges pursuant to application it shall retain said
17privilege for 120 days after receipt of a notice of
18cancellation of the privilege from the Chairman of the
19Commission.
20    All orders made by the Chairman under this Section shall be
21subject to review by the courts, such review to be taken in the
22same manner and within the same time as provided by subsection
23(f) of Section 19 of this Act for review of awards and
24decisions of the Commission, upon the party seeking the review
25filing with the clerk of the court to which such review is
26taken a bond in an amount to be fixed and approved by the court

 

 

09600SB1066ham003- 26 -LRB096 07137 WGH 44883 a

1to which the review is taken, conditioned upon the payment of
2all compensation awarded against the person taking such review
3pending a decision thereof and further conditioned upon such
4other obligations as the court may impose. Upon the review the
5Circuit Court shall have power to review all questions of fact
6as well as of law.
7(Source: P.A. 93-721, eff. 1-1-05; 94-277, eff. 7-20-05;
894-839, eff. 6-6-06.)
 
9    (820 ILCS 305/8)  (from Ch. 48, par. 138.8)
10    Sec. 8. The amount of compensation which shall be paid to
11the employee for an accidental injury not resulting in death
12is:
13    (a) The employer shall provide and pay the employer's
14negotiated rate, if applicable, or the lesser of the health
15care provider's actual charges or according to a fee schedule,
16subject to Section 8.2, in effect at the time the service was
17rendered for all the necessary first aid, medical and surgical
18services, and all necessary medical, surgical and hospital
19services thereafter incurred, limited, however, to that which
20is reasonably required to cure or relieve from the effects of
21the accidental injury, even if a health care provider sells,
22transfers, or otherwise assigns an account receivable for
23procedures, treatments, or services covered under this Act. If
24the employer does not dispute payment of first aid, medical,
25surgical, and hospital services, the employer shall make such

 

 

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1payment to the provider on behalf of the employee. The employer
2shall also pay for treatment, instruction and training
3necessary for the physical, mental and vocational
4rehabilitation of the employee, including all maintenance
5costs and expenses incidental thereto. If as a result of the
6injury the employee is unable to be self-sufficient the
7employer shall further pay for such maintenance or
8institutional care as shall be required.
9    The employer shall select the employee's first physician,
10surgeon, or provider of hospital services at the employer's
11expense. However, in the event the employer fails to exercise
12his, her, or its right to select the first physician, surgeon,
13or provider of hospital services or where it is impracticable
14for the employer to exercise this right, the selection shall be
15made by the employee at the employer's expense. In the event
16the employee is dissatisfied with the first physician, surgeon,
17or provider of hospital services, the employee has an absolute
18right to select a second physician, surgeon, or provider of
19hospital services at the employer's expense. Emergency
20services and "chains-of-referral" shall not constitute a
21choice of physician, surgeon, or provider of hospital services
22by the employer or employee. The employee may at any time elect
23to secure his own physician, surgeon and hospital services at
24the employer's expense , or,
25    Notwithstanding the foregoing, upon Upon agreement between
26the employer and the employees, or the employees' exclusive

 

 

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1representative, and subject to the approval of the Illinois
2Workers' Compensation Commission, the employer shall maintain
3a list of physicians, to be known as a Panel of Physicians, who
4are accessible to the employees. The employer shall post this
5list in a place or places easily accessible to his employees.
6The employee shall have the right to make an alternative choice
7of physician from such Panel if he is not satisfied with the
8physician first selected. If, due to the nature of the injury
9or its occurrence away from the employer's place of business,
10the employee is unable to make a selection from the Panel, the
11selection process from the Panel shall not apply. The physician
12selected from the Panel may arrange for any consultation,
13referral or other specialized medical services outside the
14Panel at the employer's expense. Provided that, in the event
15the Commission shall find that a doctor selected by the
16employee is rendering improper or inadequate care, the
17Commission may order the employee to select another doctor
18certified or qualified in the medical field for which treatment
19is required. If the employee refuses to make such change the
20Commission may relieve the employer of his obligation to pay
21the doctor's charges from the date of refusal to the date of
22compliance.
23    Any vocational rehabilitation counselors who provide
24service under this Act shall have appropriate certifications
25which designate the counselor as qualified to render opinions
26relating to vocational rehabilitation. Vocational

 

 

09600SB1066ham003- 29 -LRB096 07137 WGH 44883 a

1rehabilitation may include, but is not limited to, counseling
2for job searches, supervising a job search program, and
3vocational retraining including education at an accredited
4learning institution. The employee or employer may petition to
5the Commission to decide disputes relating to vocational
6rehabilitation and the Commission shall resolve any such
7dispute, including payment of the vocational rehabilitation
8program by the employer.
9    The maintenance benefit shall not be less than the
10temporary total disability rate determined for the employee. In
11addition, maintenance shall include costs and expenses
12incidental to the vocational rehabilitation program.
13    When the employee is working light duty on a part-time
14basis or full-time basis and earns less than he or she would be
15earning if employed in the full capacity of the job or jobs,
16then the employee shall be entitled to temporary partial
17disability benefits. Temporary partial disability benefits
18shall be equal to two-thirds of the difference between the
19average amount that the employee would be able to earn in the
20full performance of his or her duties in the occupation in
21which he or she was engaged at the time of accident and the net
22amount which he or she is earning in the modified job provided
23to the employee by the employer or in any other job that the
24employee is working.
25    Every hospital, physician, surgeon or other person
26rendering treatment or services in accordance with the

 

 

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1provisions of this Section shall upon written request furnish
2full and complete reports thereof to, and permit their records
3to be copied by, the employer, the employee or his dependents,
4as the case may be, or any other party to any proceeding for
5compensation before the Commission, or their attorneys.
6    Notwithstanding the foregoing, the employer's liability to
7pay for such medical services selected by the employee shall be
8limited to:
9        (1) all first aid and emergency treatment; plus
10        (2) all medical, surgical and hospital services
11    provided by the first physician, surgeon or hospital
12    initially chosen by the employee or by any other physician,
13    consultant, expert, institution or other provider of
14    services recommended by said initial service provider or
15    any subsequent provider of medical services in the chain of
16    referrals from said initial service provider; plus
17        (3) all medical, surgical and hospital services
18    provided by any second physician, surgeon or hospital
19    subsequently chosen by the employee or by any other
20    physician, consultant, expert, institution or other
21    provider of services recommended by said second service
22    provider or any subsequent provider of medical services in
23    the chain of referrals from said second service provider.
24    Thereafter the employer shall select and pay for all
25    necessary medical, surgical and hospital treatment and the
26    employee may not select a provider of medical services at

 

 

09600SB1066ham003- 31 -LRB096 07137 WGH 44883 a

1    the employer's expense unless the employer agrees to such
2    selection.
3    At any time the employee may obtain any medical treatment
4he desires at his own expense. This paragraph shall not affect
5the duty to pay for rehabilitation referred to above.
6    When an employer and employee so agree in writing, nothing
7in this Act prevents an employee whose injury or disability has
8been established under this Act, from relying in good faith, on
9treatment by prayer or spiritual means alone, in accordance
10with the tenets and practice of a recognized church or
11religious denomination, by a duly accredited practitioner
12thereof, and having nursing services appropriate therewith,
13without suffering loss or diminution of the compensation
14benefits under this Act. However, the employee shall submit to
15all physical examinations required by this Act. The cost of
16such treatment and nursing care shall be paid by the employee
17unless the employer agrees to make such payment.
18    Where the accidental injury results in the amputation of an
19arm, hand, leg or foot, or the enucleation of an eye, or the
20loss of any of the natural teeth, the employer shall furnish an
21artificial of any such members lost or damaged in accidental
22injury arising out of and in the course of employment, and
23shall also furnish the necessary braces in all proper and
24necessary cases. In cases of the loss of a member or members by
25amputation, the employer shall, whenever necessary, maintain
26in good repair, refit or replace the artificial limbs during

 

 

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1the lifetime of the employee. Where the accidental injury
2accompanied by physical injury results in damage to a denture,
3eye glasses or contact eye lenses, or where the accidental
4injury results in damage to an artificial member, the employer
5shall replace or repair such denture, glasses, lenses, or
6artificial member.
7    The furnishing by the employer of any such services or
8appliances is not an admission of liability on the part of the
9employer to pay compensation.
10    The furnishing of any such services or appliances or the
11servicing thereof by the employer is not the payment of
12compensation.
13    (b) If the period of temporary total incapacity for work
14lasts more than 3 working days, weekly compensation as
15hereinafter provided shall be paid beginning on the 4th day of
16such temporary total incapacity and continuing as long as the
17total temporary incapacity lasts. In cases where the temporary
18total incapacity for work continues for a period of 14 days or
19more from the day of the accident compensation shall commence
20on the day after the accident.
21        1. The compensation rate for temporary total
22    incapacity under this paragraph (b) of this Section shall
23    be equal to 66 2/3% of the employee's average weekly wage
24    computed in accordance with Section 10, provided that it
25    shall be not less than 66 2/3% of the sum of the Federal
26    minimum wage under the Fair Labor Standards Act, or the

 

 

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1    Illinois minimum wage under the Minimum Wage Law, whichever
2    is more, multiplied by 40 hours. This percentage rate shall
3    be increased by 10% for each spouse and child, not to
4    exceed 100% of the total minimum wage calculation,
5    nor exceed the employee's average weekly wage computed in
6    accordance with the provisions of Section 10, whichever is
7    less.
8        2. The compensation rate in all cases other than for
9    temporary total disability under this paragraph (b), and
10    other than for serious and permanent disfigurement under
11    paragraph (c) and other than for permanent partial
12    disability under subparagraph (2) of paragraph (d) or under
13    paragraph (e), of this Section shall be equal to 66 2/3% of
14    the employee's average weekly wage computed in accordance
15    with the provisions of Section 10, provided that it shall
16    be not less than 66 2/3% of the sum of the Federal minimum
17    wage under the Fair Labor Standards Act, or the Illinois
18    minimum wage under the Minimum Wage Law, whichever is more,
19    multiplied by 40 hours. This percentage rate shall be
20    increased by 10% for each spouse and child, not to exceed
21    100% of the total minimum wage calculation,
22    nor exceed the employee's average weekly wage computed in
23    accordance with the provisions of Section 10, whichever is
24    less.
25        2.1. The compensation rate in all cases of serious and
26    permanent disfigurement under paragraph (c) and of

 

 

09600SB1066ham003- 34 -LRB096 07137 WGH 44883 a

1    permanent partial disability under subparagraph (2) of
2    paragraph (d) or under paragraph (e) of this Section shall
3    be equal to 60% of the employee's average weekly wage
4    computed in accordance with the provisions of Section 10,
5    provided that it shall be not less than 66 2/3% of the sum
6    of the Federal minimum wage under the Fair Labor Standards
7    Act, or the Illinois minimum wage under the Minimum Wage
8    Law, whichever is more, multiplied by 40 hours. This
9    percentage rate shall be increased by 10% for each spouse
10    and child, not to exceed 100% of the total minimum wage
11    calculation,
12    nor exceed the employee's average weekly wage computed in
13    accordance with the provisions of Section 10, whichever is
14    less.
15        3. As used in this Section the term "child" means a
16    child of the employee including any child legally adopted
17    before the accident or whom at the time of the accident the
18    employee was under legal obligation to support or to whom
19    the employee stood in loco parentis, and who at the time of
20    the accident was under 18 years of age and not emancipated.
21    The term "children" means the plural of "child".
22        4. All weekly compensation rates provided under
23    subparagraphs 1, 2 and 2.1 of this paragraph (b) of this
24    Section shall be subject to the following limitations:
25        The maximum weekly compensation rate from July 1, 1975,
26    except as hereinafter provided, shall be 100% of the

 

 

09600SB1066ham003- 35 -LRB096 07137 WGH 44883 a

1    State's average weekly wage in covered industries under the
2    Unemployment Insurance Act, that being the wage that most
3    closely approximates the State's average weekly wage.
4        The maximum weekly compensation rate, for the period
5    July 1, 1984, through June 30, 1987, except as hereinafter
6    provided, shall be $293.61. Effective July 1, 1987 and on
7    July 1 of each year thereafter the maximum weekly
8    compensation rate, except as hereinafter provided, shall
9    be determined as follows: if during the preceding 12 month
10    period there shall have been an increase in the State's
11    average weekly wage in covered industries under the
12    Unemployment Insurance Act, the weekly compensation rate
13    shall be proportionately increased by the same percentage
14    as the percentage of increase in the State's average weekly
15    wage in covered industries under the Unemployment
16    Insurance Act during such period.
17        The maximum weekly compensation rate, for the period
18    January 1, 1981 through December 31, 1983, except as
19    hereinafter provided, shall be 100% of the State's average
20    weekly wage in covered industries under the Unemployment
21    Insurance Act in effect on January 1, 1981. Effective
22    January 1, 1984 and on January 1, of each year thereafter
23    the maximum weekly compensation rate, except as
24    hereinafter provided, shall be determined as follows: if
25    during the preceding 12 month period there shall have been
26    an increase in the State's average weekly wage in covered

 

 

09600SB1066ham003- 36 -LRB096 07137 WGH 44883 a

1    industries under the Unemployment Insurance Act, the
2    weekly compensation rate shall be proportionately
3    increased by the same percentage as the percentage of
4    increase in the State's average weekly wage in covered
5    industries under the Unemployment Insurance Act during
6    such period.
7        From July 1, 1977 and thereafter such maximum weekly
8    compensation rate in death cases under Section 7, and
9    permanent total disability cases under paragraph (f) or
10    subparagraph 18 of paragraph (3) of this Section and for
11    temporary total disability under paragraph (b) of this
12    Section and for amputation of a member or enucleation of an
13    eye under paragraph (e) of this Section shall be increased
14    to 133-1/3% of the State's average weekly wage in covered
15    industries under the Unemployment Insurance Act.
16        For injuries occurring on or after February 1, 2006,
17    the maximum weekly benefit under paragraph (d)1 of this
18    Section shall be 100% of the State's average weekly wage in
19    covered industries under the Unemployment Insurance Act.
20        4.1. Any provision herein to the contrary
21    notwithstanding, the weekly compensation rate for
22    compensation payments under subparagraph 18 of paragraph
23    (e) of this Section and under paragraph (f) of this Section
24    and under paragraph (a) of Section 7 and for amputation of
25    a member or enucleation of an eye under paragraph (e) of
26    this Section, shall in no event be less than 50% of the

 

 

09600SB1066ham003- 37 -LRB096 07137 WGH 44883 a

1    State's average weekly wage in covered industries under the
2    Unemployment Insurance Act.
3        4.2. Any provision to the contrary notwithstanding,
4    the total compensation payable under Section 7 shall not
5    exceed the greater of $500,000 or 25 years.
6        5. For the purpose of this Section this State's average
7    weekly wage in covered industries under the Unemployment
8    Insurance Act on July 1, 1975 is hereby fixed at $228.16
9    per week and the computation of compensation rates shall be
10    based on the aforesaid average weekly wage until modified
11    as hereinafter provided.
12        6. The Department of Employment Security of the State
13    shall on or before the first day of December, 1977, and on
14    or before the first day of June, 1978, and on the first day
15    of each December and June of each year thereafter, publish
16    the State's average weekly wage in covered industries under
17    the Unemployment Insurance Act and the Illinois Workers'
18    Compensation Commission shall on the 15th day of January,
19    1978 and on the 15th day of July, 1978 and on the 15th day
20    of each January and July of each year thereafter, post and
21    publish the State's average weekly wage in covered
22    industries under the Unemployment Insurance Act as last
23    determined and published by the Department of Employment
24    Security. The amount when so posted and published shall be
25    conclusive and shall be applicable as the basis of
26    computation of compensation rates until the next posting

 

 

09600SB1066ham003- 38 -LRB096 07137 WGH 44883 a

1    and publication as aforesaid.
2        7. The payment of compensation by an employer or his
3    insurance carrier to an injured employee shall not
4    constitute an admission of the employer's liability to pay
5    compensation.
6    (c) For any serious and permanent disfigurement to the
7hand, head, face, neck, arm, leg below the knee or the chest
8above the axillary line, the employee is entitled to
9compensation for such disfigurement, the amount determined by
10agreement at any time or by arbitration under this Act, at a
11hearing not less than 6 months after the date of the accidental
12injury, which amount shall not exceed 150 weeks (if the
13accidental injury occurs on or after the effective date of this
14amendatory Act of the 94th General Assembly but before February
151, 2006) or 162 weeks (if the accidental injury occurs on or
16after February 1, 2006) at the applicable rate provided in
17subparagraph 2.1 of paragraph (b) of this Section.
18    No compensation is payable under this paragraph where
19compensation is payable under paragraphs (d), (e) or (f) of
20this Section.
21    A duly appointed member of a fire department in a city, the
22population of which exceeds 200,000 according to the last
23federal or State census, is eligible for compensation under
24this paragraph only where such serious and permanent
25disfigurement results from burns.
26    (d) 1. If, after the accidental injury has been sustained,

 

 

09600SB1066ham003- 39 -LRB096 07137 WGH 44883 a

1the employee as a result thereof becomes partially
2incapacitated from pursuing his usual and customary line of
3employment, he shall, except in cases compensated under the
4specific schedule set forth in paragraph (e) of this Section,
5receive compensation for the duration of his disability,
6subject to the limitations as to maximum amounts fixed in
7paragraph (b) of this Section, equal to 66-2/3% of the
8difference between the average amount which he would be able to
9earn in the full performance of his duties in the occupation in
10which he was engaged at the time of the accident and the
11average amount which he is earning or is able to earn in some
12suitable employment or business after the accident. An award
13for wage differential under this subsection shall be effective
14only until the employee reaches the age of 67 or 5 years from
15the date the award becomes final, whichever is later.
16    2. If, as a result of the accident, the employee sustains
17serious and permanent injuries not covered by paragraphs (c)
18and (e) of this Section or having sustained injuries covered by
19the aforesaid paragraphs (c) and (e), he shall have sustained
20in addition thereto other injuries which injuries do not
21incapacitate him from pursuing the duties of his employment but
22which would disable him from pursuing other suitable
23occupations, or which have otherwise resulted in physical
24impairment; or if such injuries partially incapacitate him from
25pursuing the duties of his usual and customary line of
26employment but do not result in an impairment of earning

 

 

09600SB1066ham003- 40 -LRB096 07137 WGH 44883 a

1capacity, or having resulted in an impairment of earning
2capacity, the employee elects to waive his right to recover
3under the foregoing subparagraph 1 of paragraph (d) of this
4Section then in any of the foregoing events, he shall receive
5in addition to compensation for temporary total disability
6under paragraph (b) of this Section, compensation at the rate
7provided in subparagraph 2.1 of paragraph (b) of this Section
8for that percentage of 500 weeks that the partial disability
9resulting from the injuries covered by this paragraph bears to
10total disability. If the employee shall have sustained a
11fracture of one or more vertebra or fracture of the skull, the
12amount of compensation allowed under this Section shall be not
13less than 6 weeks for a fractured skull and 6 weeks for each
14fractured vertebra, and in the event the employee shall have
15sustained a fracture of any of the following facial bones:
16nasal, lachrymal, vomer, zygoma, maxilla, palatine or
17mandible, the amount of compensation allowed under this Section
18shall be not less than 2 weeks for each such fractured bone,
19and for a fracture of each transverse process not less than 3
20weeks. In the event such injuries shall result in the loss of a
21kidney, spleen or lung, the amount of compensation allowed
22under this Section shall be not less than 10 weeks for each
23such organ. Compensation awarded under this subparagraph 2
24shall not take into consideration injuries covered under
25paragraphs (c) and (e) of this Section and the compensation
26provided in this paragraph shall not affect the employee's

 

 

09600SB1066ham003- 41 -LRB096 07137 WGH 44883 a

1right to compensation payable under paragraphs (b), (c) and (e)
2of this Section for the disabilities therein covered.
3    (e) For accidental injuries in the following schedule, the
4employee shall receive compensation for the period of temporary
5total incapacity for work resulting from such accidental
6injury, under subparagraph 1 of paragraph (b) of this Section,
7and shall receive in addition thereto compensation for a
8further period for the specific loss herein mentioned, but
9shall not receive any compensation under any other provisions
10of this Act. The following listed amounts apply to either the
11loss of or the permanent and complete loss of use of the member
12specified, such compensation for the length of time as follows:
13        1. Thumb-
14            70 weeks if the accidental injury occurs on or
15        after the effective date of this amendatory Act of the
16        94th General Assembly but before February 1, 2006.
17            76 weeks if the accidental injury occurs on or
18        after February 1, 2006.
19        2. First, or index finger-
20            40 weeks if the accidental injury occurs on or
21        after the effective date of this amendatory Act of the
22        94th General Assembly but before February 1, 2006.
23            43 weeks if the accidental injury occurs on or
24        after February 1, 2006.
25        3. Second, or middle finger-
26            35 weeks if the accidental injury occurs on or

 

 

09600SB1066ham003- 42 -LRB096 07137 WGH 44883 a

1        after the effective date of this amendatory Act of the
2        94th General Assembly but before February 1, 2006.
3            38 weeks if the accidental injury occurs on or
4        after February 1, 2006.
5        4. Third, or ring finger-
6            25 weeks if the accidental injury occurs on or
7        after the effective date of this amendatory Act of the
8        94th General Assembly but before February 1, 2006.
9            27 weeks if the accidental injury occurs on or
10        after February 1, 2006.
11        5. Fourth, or little finger-
12            20 weeks if the accidental injury occurs on or
13        after the effective date of this amendatory Act of the
14        94th General Assembly but before February 1, 2006.
15            22 weeks if the accidental injury occurs on or
16        after February 1, 2006.
17        6. Great toe-
18            35 weeks if the accidental injury occurs on or
19        after the effective date of this amendatory Act of the
20        94th General Assembly but before February 1, 2006.
21            38 weeks if the accidental injury occurs on or
22        after February 1, 2006.
23        7. Each toe other than great toe-
24            12 weeks if the accidental injury occurs on or
25        after the effective date of this amendatory Act of the
26        94th General Assembly but before February 1, 2006.

 

 

09600SB1066ham003- 43 -LRB096 07137 WGH 44883 a

1            13 weeks if the accidental injury occurs on or
2        after February 1, 2006.
3        8. The loss of the first or distal phalanx of the thumb
4    or of any finger or toe shall be considered to be equal to
5    the loss of one-half of such thumb, finger or toe and the
6    compensation payable shall be one-half of the amount above
7    specified. The loss of more than one phalanx shall be
8    considered as the loss of the entire thumb, finger or toe.
9    In no case shall the amount received for more than one
10    finger exceed the amount provided in this schedule for the
11    loss of a hand.
12        9. Hand-
13            190 weeks if the accidental injury occurs on or
14        after the effective date of this amendatory Act of the
15        94th General Assembly but before February 1, 2006.
16            205 weeks if the accidental injury occurs on or
17        after February 1, 2006.
18        The loss of 2 or more digits, or one or more phalanges
19    of 2 or more digits, of a hand may be compensated on the
20    basis of partial loss of use of a hand, provided, further,
21    that the loss of 4 digits, or the loss of use of 4 digits,
22    in the same hand shall constitute the complete loss of a
23    hand.
24        10. Arm-
25            235 weeks if the accidental injury occurs on or
26        after the effective date of this amendatory Act of the

 

 

09600SB1066ham003- 44 -LRB096 07137 WGH 44883 a

1        94th General Assembly but before February 1, 2006.
2            253 weeks if the accidental injury occurs on or
3        after February 1, 2006.
4        Where an accidental injury results in the amputation of
5    an arm below the elbow, such injury shall be compensated as
6    a loss of an arm. Where an accidental injury results in the
7    amputation of an arm above the elbow, compensation for an
8    additional 15 weeks (if the accidental injury occurs on or
9    after the effective date of this amendatory Act of the 94th
10    General Assembly but before February 1, 2006) or an
11    additional 17 weeks (if the accidental injury occurs on or
12    after February 1, 2006) shall be paid, except where the
13    accidental injury results in the amputation of an arm at
14    the shoulder joint, or so close to shoulder joint that an
15    artificial arm cannot be used, or results in the
16    disarticulation of an arm at the shoulder joint, in which
17    case compensation for an additional 65 weeks (if the
18    accidental injury occurs on or after the effective date of
19    this amendatory Act of the 94th General Assembly but before
20    February 1, 2006) or an additional 70 weeks (if the
21    accidental injury occurs on or after February 1, 2006)
22    shall be paid.
23        11. Foot-
24            155 weeks if the accidental injury occurs on or
25        after the effective date of this amendatory Act of the
26        94th General Assembly but before February 1, 2006.

 

 

09600SB1066ham003- 45 -LRB096 07137 WGH 44883 a

1            167 weeks if the accidental injury occurs on or
2        after February 1, 2006.
3        12. Leg-
4            200 weeks if the accidental injury occurs on or
5        after the effective date of this amendatory Act of the
6        94th General Assembly but before February 1, 2006.
7            215 weeks if the accidental injury occurs on or
8        after February 1, 2006.
9        Where an accidental injury results in the amputation of
10    a leg below the knee, such injury shall be compensated as
11    loss of a leg. Where an accidental injury results in the
12    amputation of a leg above the knee, compensation for an
13    additional 25 weeks (if the accidental injury occurs on or
14    after the effective date of this amendatory Act of the 94th
15    General Assembly but before February 1, 2006) or an
16    additional 27 weeks (if the accidental injury occurs on or
17    after February 1, 2006) shall be paid, except where the
18    accidental injury results in the amputation of a leg at the
19    hip joint, or so close to the hip joint that an artificial
20    leg cannot be used, or results in the disarticulation of a
21    leg at the hip joint, in which case compensation for an
22    additional 75 weeks (if the accidental injury occurs on or
23    after the effective date of this amendatory Act of the 94th
24    General Assembly but before February 1, 2006) or an
25    additional 81 weeks (if the accidental injury occurs on or
26    after February 1, 2006) shall be paid.

 

 

09600SB1066ham003- 46 -LRB096 07137 WGH 44883 a

1        13. Eye-
2            150 weeks if the accidental injury occurs on or
3        after the effective date of this amendatory Act of the
4        94th General Assembly but before February 1, 2006.
5            162 weeks if the accidental injury occurs on or
6        after February 1, 2006.
7        Where an accidental injury results in the enucleation
8    of an eye, compensation for an additional 10 weeks (if the
9    accidental injury occurs on or after the effective date of
10    this amendatory Act of the 94th General Assembly but before
11    February 1, 2006) or an additional 11 weeks (if the
12    accidental injury occurs on or after February 1, 2006)
13    shall be paid.
14        14. Loss of hearing of one ear-
15            50 weeks if the accidental injury occurs on or
16        after the effective date of this amendatory Act of the
17        94th General Assembly but before February 1, 2006.
18            54 weeks if the accidental injury occurs on or
19        after February 1, 2006.
20        Total and permanent loss of hearing of both ears-
21            200 weeks if the accidental injury occurs on or
22        after the effective date of this amendatory Act of the
23        94th General Assembly but before February 1, 2006.
24            215 weeks if the accidental injury occurs on or
25        after February 1, 2006.
26        15. Testicle-

 

 

09600SB1066ham003- 47 -LRB096 07137 WGH 44883 a

1            50 weeks if the accidental injury occurs on or
2        after the effective date of this amendatory Act of the
3        94th General Assembly but before February 1, 2006.
4            54 weeks if the accidental injury occurs on or
5        after February 1, 2006.
6        Both testicles-
7            150 weeks if the accidental injury occurs on or
8        after the effective date of this amendatory Act of the
9        94th General Assembly but before February 1, 2006.
10            162 weeks if the accidental injury occurs on or
11        after February 1, 2006.
12        16. For the permanent partial loss of use of a member
13    or sight of an eye, or hearing of an ear, compensation
14    during that proportion of the number of weeks in the
15    foregoing schedule provided for the loss of such member or
16    sight of an eye, or hearing of an ear, which the partial
17    loss of use thereof bears to the total loss of use of such
18    member, or sight of eye, or hearing of an ear.
19            (a) Loss of hearing for compensation purposes
20        shall be confined to the frequencies of 1,000, 2,000
21        and 3,000 cycles per second. Loss of hearing ability
22        for frequency tones above 3,000 cycles per second are
23        not to be considered as constituting disability for
24        hearing.
25            (b) The percent of hearing loss, for purposes of
26        the determination of compensation claims for

 

 

09600SB1066ham003- 48 -LRB096 07137 WGH 44883 a

1        occupational deafness, shall be calculated as the
2        average in decibels for the thresholds of hearing for
3        the frequencies of 1,000, 2,000 and 3,000 cycles per
4        second. Pure tone air conduction audiometric
5        instruments, approved by nationally recognized
6        authorities in this field, shall be used for measuring
7        hearing loss. If the losses of hearing average 30
8        decibels or less in the 3 frequencies, such losses of
9        hearing shall not then constitute any compensable
10        hearing disability. If the losses of hearing average 85
11        decibels or more in the 3 frequencies, then the same
12        shall constitute and be total or 100% compensable
13        hearing loss.
14            (c) In measuring hearing impairment, the lowest
15        measured losses in each of the 3 frequencies shall be
16        added together and divided by 3 to determine the
17        average decibel loss. For every decibel of loss
18        exceeding 30 decibels an allowance of 1.82% shall be
19        made up to the maximum of 100% which is reached at 85
20        decibels.
21            (d) If a hearing loss is established to have
22        existed on July 1, 1975 by audiometric testing the
23        employer shall not be liable for the previous loss so
24        established nor shall he be liable for any loss for
25        which compensation has been paid or awarded.
26            (e) No consideration shall be given to the question

 

 

09600SB1066ham003- 49 -LRB096 07137 WGH 44883 a

1        of whether or not the ability of an employee to
2        understand speech is improved by the use of a hearing
3        aid.
4            (f) No claim for loss of hearing due to industrial
5        noise shall be brought against an employer or allowed
6        unless the employee has been exposed for a period of
7        time sufficient to cause permanent impairment to noise
8        levels in excess of the following:
9Sound Level DBA
10Slow ResponseHours Per Day
11908
12926
13954
14973
151002
161021-1/2
171051
181101/2
191151/4
20        This subparagraph (f) shall not be applied in cases of
21    hearing loss resulting from trauma or explosion.
22        17. In computing the compensation to be paid to any
23    employee who, before the accident for which he claims
24    compensation, had before that time sustained an injury
25    resulting in the loss by amputation or partial loss by
26    amputation of any member, including hand, arm, thumb or

 

 

09600SB1066ham003- 50 -LRB096 07137 WGH 44883 a

1    fingers, leg, foot or any toes, such loss or partial loss
2    of any such member shall be deducted from any award made
3    for the subsequent injury. For the permanent loss of use or
4    the permanent partial loss of use of any such member or the
5    partial loss of sight of an eye, for which compensation has
6    been paid, then such loss shall be taken into consideration
7    and deducted from any award for the subsequent injury.
8        18. The specific case of loss of both hands, both arms,
9    or both feet, or both legs, or both eyes, or of any two
10    thereof, or the permanent and complete loss of the use
11    thereof, constitutes total and permanent disability, to be
12    compensated according to the compensation fixed by
13    paragraph (f) of this Section. These specific cases of
14    total and permanent disability do not exclude other cases.
15        Any employee who has previously suffered the loss or
16    permanent and complete loss of the use of any of such
17    members, and in a subsequent independent accident loses
18    another or suffers the permanent and complete loss of the
19    use of any one of such members the employer for whom the
20    injured employee is working at the time of the last
21    independent accident is liable to pay compensation only for
22    the loss or permanent and complete loss of the use of the
23    member occasioned by the last independent accident.
24        19. In a case of specific loss and the subsequent death
25    of such injured employee from other causes than such injury
26    leaving a widow, widower, or dependents surviving before

 

 

09600SB1066ham003- 51 -LRB096 07137 WGH 44883 a

1    payment or payment in full for such injury, then the amount
2    due for such injury is payable to the widow or widower and,
3    if there be no widow or widower, then to such dependents,
4    in the proportion which such dependency bears to total
5    dependency.
6    Beginning July 1, 1980, and every 6 months thereafter, the
7Commission shall examine the Second Injury Fund and when, after
8deducting all advances or loans made to such Fund, the amount
9therein is $500,000 then the amount required to be paid by
10employers pursuant to paragraph (f) of Section 7 shall be
11reduced by one-half. When the Second Injury Fund reaches the
12sum of $600,000 then the payments shall cease entirely.
13However, when the Second Injury Fund has been reduced to
14$400,000, payment of one-half of the amounts required by
15paragraph (f) of Section 7 shall be resumed, in the manner
16herein provided, and when the Second Injury Fund has been
17reduced to $300,000, payment of the full amounts required by
18paragraph (f) of Section 7 shall be resumed, in the manner
19herein provided. The Commission shall make the changes in
20payment effective by general order, and the changes in payment
21become immediately effective for all cases coming before the
22Commission thereafter either by settlement agreement or final
23order, irrespective of the date of the accidental injury.
24    On August 1, 1996 and on February 1 and August 1 of each
25subsequent year, the Commission shall examine the special fund
26designated as the "Rate Adjustment Fund" and when, after

 

 

09600SB1066ham003- 52 -LRB096 07137 WGH 44883 a

1deducting all advances or loans made to said fund, the amount
2therein is $4,000,000, the amount required to be paid by
3employers pursuant to paragraph (f) of Section 7 shall be
4reduced by one-half. When the Rate Adjustment Fund reaches the
5sum of $5,000,000 the payment therein shall cease entirely.
6However, when said Rate Adjustment Fund has been reduced to
7$3,000,000 the amounts required by paragraph (f) of Section 7
8shall be resumed in the manner herein provided.
9    (f) In case of complete disability, which renders the
10employee wholly and permanently incapable of work, or in the
11specific case of total and permanent disability as provided in
12subparagraph 18 of paragraph (e) of this Section, compensation
13shall be payable at the rate provided in subparagraph 2 of
14paragraph (b) of this Section for life.
15    An employee entitled to benefits under paragraph (f) of
16this Section shall also be entitled to receive from the Rate
17Adjustment Fund provided in paragraph (f) of Section 7 of the
18supplementary benefits provided in paragraph (g) of this
19Section 8.
20    If any employee who receives an award under this paragraph
21afterwards returns to work or is able to do so, and earns or is
22able to earn as much as before the accident, payments under
23such award shall cease. If such employee returns to work, or is
24able to do so, and earns or is able to earn part but not as much
25as before the accident, such award shall be modified so as to
26conform to an award under paragraph (d) of this Section. If

 

 

09600SB1066ham003- 53 -LRB096 07137 WGH 44883 a

1such award is terminated or reduced under the provisions of
2this paragraph, such employees have the right at any time
3within 30 months after the date of such termination or
4reduction to file petition with the Commission for the purpose
5of determining whether any disability exists as a result of the
6original accidental injury and the extent thereof.
7    Disability as enumerated in subdivision 18, paragraph (e)
8of this Section is considered complete disability.
9    If an employee who had previously incurred loss or the
10permanent and complete loss of use of one member, through the
11loss or the permanent and complete loss of the use of one hand,
12one arm, one foot, one leg, or one eye, incurs permanent and
13complete disability through the loss or the permanent and
14complete loss of the use of another member, he shall receive,
15in addition to the compensation payable by the employer and
16after such payments have ceased, an amount from the Second
17Injury Fund provided for in paragraph (f) of Section 7, which,
18together with the compensation payable from the employer in
19whose employ he was when the last accidental injury was
20incurred, will equal the amount payable for permanent and
21complete disability as provided in this paragraph of this
22Section.
23    The custodian of the Second Injury Fund provided for in
24paragraph (f) of Section 7 shall be joined with the employer as
25a party respondent in the application for adjustment of claim.
26The application for adjustment of claim shall state briefly and

 

 

09600SB1066ham003- 54 -LRB096 07137 WGH 44883 a

1in general terms the approximate time and place and manner of
2the loss of the first member.
3    In its award the Commission or the Arbitrator shall
4specifically find the amount the injured employee shall be
5weekly paid, the number of weeks compensation which shall be
6paid by the employer, the date upon which payments begin out of
7the Second Injury Fund provided for in paragraph (f) of Section
87 of this Act, the length of time the weekly payments continue,
9the date upon which the pension payments commence and the
10monthly amount of the payments. The Commission shall 30 days
11after the date upon which payments out of the Second Injury
12Fund have begun as provided in the award, and every month
13thereafter, prepare and submit to the State Comptroller a
14voucher for payment for all compensation accrued to that date
15at the rate fixed by the Commission. The State Comptroller
16shall draw a warrant to the injured employee along with a
17receipt to be executed by the injured employee and returned to
18the Commission. The endorsed warrant and receipt is a full and
19complete acquittance to the Commission for the payment out of
20the Second Injury Fund. No other appropriation or warrant is
21necessary for payment out of the Second Injury Fund. The Second
22Injury Fund is appropriated for the purpose of making payments
23according to the terms of the awards.
24    As of July 1, 1980 to July 1, 1982, all claims against and
25obligations of the Second Injury Fund shall become claims
26against and obligations of the Rate Adjustment Fund to the

 

 

09600SB1066ham003- 55 -LRB096 07137 WGH 44883 a

1extent there is insufficient money in the Second Injury Fund to
2pay such claims and obligations. In that case, all references
3to "Second Injury Fund" in this Section shall also include the
4Rate Adjustment Fund.
5    (g) Every award for permanent total disability entered by
6the Commission on and after July 1, 1965 under which
7compensation payments shall become due and payable after the
8effective date of this amendatory Act, and every award for
9death benefits or permanent total disability entered by the
10Commission on and after the effective date of this amendatory
11Act shall be subject to annual adjustments as to the amount of
12the compensation rate therein provided. Such adjustments shall
13first be made on July 15, 1977, and all awards made and entered
14prior to July 1, 1975 and on July 15 of each year thereafter.
15In all other cases such adjustment shall be made on July 15 of
16the second year next following the date of the entry of the
17award and shall further be made on July 15 annually thereafter.
18If during the intervening period from the date of the entry of
19the award, or the last periodic adjustment, there shall have
20been an increase in the State's average weekly wage in covered
21industries under the Unemployment Insurance Act, the weekly
22compensation rate shall be proportionately increased by the
23same percentage as the percentage of increase in the State's
24average weekly wage in covered industries under the
25Unemployment Insurance Act. The increase in the compensation
26rate under this paragraph shall in no event bring the total

 

 

09600SB1066ham003- 56 -LRB096 07137 WGH 44883 a

1compensation rate to an amount greater than the prevailing
2maximum rate at the time that the annual adjustment is made.
3Such increase shall be paid in the same manner as herein
4provided for payments under the Second Injury Fund to the
5injured employee, or his dependents, as the case may be, out of
6the Rate Adjustment Fund provided in paragraph (f) of Section 7
7of this Act. Payments shall be made at the same intervals as
8provided in the award or, at the option of the Commission, may
9be made in quarterly payment on the 15th day of January, April,
10July and October of each year. In the event of a decrease in
11such average weekly wage there shall be no change in the then
12existing compensation rate. The within paragraph shall not
13apply to cases where there is disputed liability and in which a
14compromise lump sum settlement between the employer and the
15injured employee, or his dependents, as the case may be, has
16been duly approved by the Illinois Workers' Compensation
17Commission.
18    Provided, that in cases of awards entered by the Commission
19for injuries occurring before July 1, 1975, the increases in
20the compensation rate adjusted under the foregoing provision of
21this paragraph (g) shall be limited to increases in the State's
22average weekly wage in covered industries under the
23Unemployment Insurance Act occurring after July 1, 1975.
24    For every accident occurring on or after July 20, 2005 but
25before the effective date of this amendatory Act of the 94th
26General Assembly (Senate Bill 1283 of the 94th General

 

 

09600SB1066ham003- 57 -LRB096 07137 WGH 44883 a

1Assembly), the annual adjustments to the compensation rate in
2awards for death benefits or permanent total disability, as
3provided in this Act, shall be paid by the employer. The
4adjustment shall be made by the employer on July 15 of the
5second year next following the date of the entry of the award
6and shall further be made on July 15 annually thereafter. If
7during the intervening period from the date of the entry of the
8award, or the last periodic adjustment, there shall have been
9an increase in the State's average weekly wage in covered
10industries under the Unemployment Insurance Act, the employer
11shall increase the weekly compensation rate proportionately by
12the same percentage as the percentage of increase in the
13State's average weekly wage in covered industries under the
14Unemployment Insurance Act. The increase in the compensation
15rate under this paragraph shall in no event bring the total
16compensation rate to an amount greater than the prevailing
17maximum rate at the time that the annual adjustment is made. In
18the event of a decrease in such average weekly wage there shall
19be no change in the then existing compensation rate. Such
20increase shall be paid by the employer in the same manner and
21at the same intervals as the payment of compensation in the
22award. This paragraph shall not apply to cases where there is
23disputed liability and in which a compromise lump sum
24settlement between the employer and the injured employee, or
25his or her dependents, as the case may be, has been duly
26approved by the Illinois Workers' Compensation Commission.

 

 

09600SB1066ham003- 58 -LRB096 07137 WGH 44883 a

1    The annual adjustments for every award of death benefits or
2permanent total disability involving accidents occurring
3before July 20, 2005 and accidents occurring on or after the
4effective date of this amendatory Act of the 94th General
5Assembly (Senate Bill 1283 of the 94th General Assembly) shall
6continue to be paid from the Rate Adjustment Fund pursuant to
7this paragraph and Section 7(f) of this Act.
8    (h) In case death occurs from any cause before the total
9compensation to which the employee would have been entitled has
10been paid, then in case the employee leaves any widow, widower,
11child, parent (or any grandchild, grandparent or other lineal
12heir or any collateral heir dependent at the time of the
13accident upon the earnings of the employee to the extent of 50%
14or more of total dependency) such compensation shall be paid to
15the beneficiaries of the deceased employee and distributed as
16provided in paragraph (g) of Section 7.
17    (h-1) In case an injured employee is under legal disability
18at the time when any right or privilege accrues to him or her
19under this Act, a guardian may be appointed pursuant to law,
20and may, on behalf of such person under legal disability, claim
21and exercise any such right or privilege with the same effect
22as if the employee himself or herself had claimed or exercised
23the right or privilege. No limitations of time provided by this
24Act run so long as the employee who is under legal disability
25is without a conservator or guardian.
26    (i) In case the injured employee is under 16 years of age

 

 

09600SB1066ham003- 59 -LRB096 07137 WGH 44883 a

1at the time of the accident and is illegally employed, the
2amount of compensation payable under paragraphs (b), (c), (d),
3(e) and (f) of this Section is increased 50%.
4    However, where an employer has on file an employment
5certificate issued pursuant to the Child Labor Law or work
6permit issued pursuant to the Federal Fair Labor Standards Act,
7as amended, or a birth certificate properly and duly issued,
8such certificate, permit or birth certificate is conclusive
9evidence as to the age of the injured minor employee for the
10purposes of this Section.
11    Nothing herein contained repeals or amends the provisions
12of the Child Labor Law relating to the employment of minors
13under the age of 16 years.
14    (j) 1. In the event the injured employee receives benefits,
15including medical, surgical or hospital benefits under any
16group plan covering non-occupational disabilities contributed
17to wholly or partially by the employer, which benefits should
18not have been payable if any rights of recovery existed under
19this Act, then such amounts so paid to the employee from any
20such group plan as shall be consistent with, and limited to,
21the provisions of paragraph 2 hereof, shall be credited to or
22against any compensation payment for temporary total
23incapacity for work or any medical, surgical or hospital
24benefits made or to be made under this Act. In such event, the
25period of time for giving notice of accidental injury and
26filing application for adjustment of claim does not commence to

 

 

09600SB1066ham003- 60 -LRB096 07137 WGH 44883 a

1run until the termination of such payments. This paragraph does
2not apply to payments made under any group plan which would
3have been payable irrespective of an accidental injury under
4this Act. Any employer receiving such credit shall keep such
5employee safe and harmless from any and all claims or
6liabilities that may be made against him by reason of having
7received such payments only to the extent of such credit.
8    Any excess benefits paid to or on behalf of a State
9employee by the State Employees' Retirement System under
10Article 14 of the Illinois Pension Code on a death claim or
11disputed disability claim shall be credited against any
12payments made or to be made by the State of Illinois to or on
13behalf of such employee under this Act, except for payments for
14medical expenses which have already been incurred at the time
15of the award. The State of Illinois shall directly reimburse
16the State Employees' Retirement System to the extent of such
17credit.
18    2. Nothing contained in this Act shall be construed to give
19the employer or the insurance carrier the right to credit for
20any benefits or payments received by the employee other than
21compensation payments provided by this Act, and where the
22employee receives payments other than compensation payments,
23whether as full or partial salary, group insurance benefits,
24bonuses, annuities or any other payments, the employer or
25insurance carrier shall receive credit for each such payment
26only to the extent of the compensation that would have been

 

 

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1payable during the period covered by such payment.
2    3. The extension of time for the filing of an Application
3for Adjustment of Claim as provided in paragraph 1 above shall
4not apply to those cases where the time for such filing had
5expired prior to the date on which payments or benefits
6enumerated herein have been initiated or resumed. Provided
7however that this paragraph 3 shall apply only to cases wherein
8the payments or benefits hereinabove enumerated shall be
9received after July 1, 1969.
10(Source: P.A. 93-721, eff. 1-1-05; 94-277, eff. 7-20-05;
1194-695, eff. 11-16-05.)
 
12    (820 ILCS 305/8.2)
13    Sec. 8.2. Fee schedule.
14    (a) Except as provided for in subsection (c), for
15procedures, treatments, or services covered under this Act and
16rendered or to be rendered on and after February 1, 2006, the
17maximum allowable payment shall be 90% of the 80th percentile
18of charges and fees as determined by the Commission utilizing
19information provided by employers' and insurers' national
20databases, with a minimum of 12,000,000 Illinois line item
21charges and fees comprised of health care provider and hospital
22charges and fees as of August 1, 2004 but not earlier than
23August 1, 2002. These charges and fees are provider billed
24amounts and shall not include discounted charges. The 80th
25percentile is the point on an ordered data set from low to high

 

 

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1such that 80% of the cases are below or equal to that point and
2at most 20% are above or equal to that point. The Commission
3shall adjust these historical charges and fees as of August 1,
42004 by the Consumer Price Index-U for the period August 1,
52004 through September 30, 2005. The Commission shall establish
6fee schedules for procedures, treatments, or services for
7hospital inpatient, hospital outpatient, emergency room and
8trauma, ambulatory surgical treatment centers, and
9professional services. These charges and fees shall be
10designated by geozip or any smaller geographic unit. The data
11shall in no way identify or tend to identify any patient,
12employer, or health care provider. As used in this Section,
13"geozip" means a three-digit zip code based on data
14similarities, geographical similarities, and frequencies. A
15geozip does not cross state boundaries. As used in this
16Section, "three-digit zip code" means a geographic area in
17which all zip codes have the same first 3 digits. If a geozip
18does not have the necessary number of charges and fees to
19calculate a valid percentile for a specific procedure,
20treatment, or service, the Commission may combine data from the
21geozip with up to 4 other geozips that are demographically and
22economically similar and exhibit similarities in data and
23frequencies until the Commission reaches 9 charges or fees for
24that specific procedure, treatment, or service. In cases where
25the compiled data contains less than 9 charges or fees for a
26procedure, treatment, or service, reimbursement shall occur at

 

 

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176% of charges and fees as determined by the Commission in a
2manner consistent with the provisions of this paragraph.
3Providers of out-of-state procedures, treatments, services,
4products, or supplies shall be reimbursed at the lesser of that
5state's fee schedule amount or the fee schedule amount that
6would apply to Cook County, Illinois. If no fee schedule exists
7in that state, the provider shall be reimbursed at the lesser
8of the actual charge or the fee schedule amount in Cook County,
9Illinois The Commission has the authority to set the maximum
10allowable payment to providers of out-of-state procedures,
11treatments, or services covered under this Act in a manner
12consistent with this Section. Not later than September 30 in
132006 and each year thereafter, the Commission shall
14automatically increase or decrease the maximum allowable
15payment for a procedure, treatment, or service established and
16in effect on January 1 of that year by the percentage change in
17the Consumer Price Index-U for the 12 month period ending
18August 31 of that year. The increase or decrease shall become
19effective on January 1 of the following year. As used in this
20Section, "Consumer Price Index-U" means the index published by
21the Bureau of Labor Statistics of the U.S. Department of Labor,
22that measures the average change in prices of all goods and
23services purchased by all urban consumers, U.S. city average,
24all items, 1982-84=100.
25    (a-1) Notwithstanding the provisions of subsection (a),
26the following provisions shall apply to the medical fee

 

 

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1schedule starting on April 1, 2011:
2        (1) The Commission shall establish and maintain fee
3    schedules for procedures, treatments, products, services,
4    or supplies for hospital inpatient, hospital outpatient,
5    emergency room, ambulatory surgical treatment centers,
6    accredited ambulatory treatment facilities, prescriptions
7    filled and dispensed outside of a licensed pharmacy, dental
8    services, and professional services. This fee schedule
9    shall be based on the fee schedule amounts already
10    established by the Commission pursuant to subsection (a) of
11    this Section. However, these fee schedule amounts shall be
12    grouped into regions consistent with nationally recognized
13    reimbursement zip codes in Illinois.
14        (2) In cases where the compiled data contains less than
15    9 charges or fees for a procedure, treatment, product,
16    supply, or service or where the fee schedule amount cannot
17    be determined by the non-discounted charge data,
18    non-Medicare relative values and conversion factors
19    derived from established fee schedule amounts, coding
20    crosswalks, or other data as determined by the Commission,
21    reimbursement shall occur at 76% of charges and fees until
22    April 1, 2011 and 64.6% of charges and fees thereafter as
23    determined by the Commission in a manner consistent with
24    the provisions of this paragraph. If a geozip, as defined
25    in subsection (a) of this Section, overlaps into one or
26    more of the regions set forth in paragraph (1) of this

 

 

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1    subsection (a-1), then the Commission shall average or
2    repeat the charges and fees in a geozip in order to
3    designate charges and fees for each region.
4        (3) To establish additional fee schedule amounts, the
5    Commission shall utilize provider non-discounted charge
6    data, non-Medicare relative values and conversion factors
7    derived from established fee schedule amounts, and coding
8    crosswalks. The Commission may establish additional fee
9    schedule amounts based on either the charge or cost of the
10    procedure, treatment, product, supply, or service.
11        (4) Implants shall be reimbursed at 25% above the net
12    manufacturer's invoice price less rebates, plus actual
13    reasonable and customary shipping charges whether or not
14    the implant charge is submitted by a provider in
15    conjunction with a bill for all other services associated
16    with the implant, submitted by a provider on a separate
17    claim form, submitted by a distributor, or submitted by the
18    manufacturer of the implant. "Implants" include the
19    following codes or any substantially similar updated code
20    as determined by the Commission: 0274
21    (prosthetics/orthotics); 0275 (pacemaker); 0276 (lens
22    implant); 0278 (implants); 0540 and 0545 (ambulance); 0624
23    (investigational devices); and 0636 (drugs requiring
24    detailed coding). Non-implantable devices or supplies
25    within these codes shall be reimbursed at 65% of actual
26    charge, which is the provider's normal rates under its

 

 

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1    standard chargemaster. A standard chargemaster is the
2    provider's list of charges for procedures, treatments,
3    products, supplies, or services used to bill payers in a
4    consistent manner.
5        (5) The Commission shall automatically update all
6    codes and associated rules with the version of the codes
7    and rules valid on January 1 of that year.
8    (a-2) For procedures, treatments, services, or supplies
9covered under this Act and rendered or to be rendered on or
10after April 1, 2011, the maximum allowable payment shall be 85%
11of the fee schedule amounts and any reimbursements for charges
12and fees pursuant to paragraph (2) of subsection (a-1) in
13effect on April 1, 2011 and thereafter be adjusted yearly by
14the Consumer Price Index-U, as described in subsection (a) of
15this Section.
16    (a-3) Prescriptions filled and dispensed outside of a
17licensed pharmacy shall be subject to a fee schedule that shall
18not exceed the Average Wholesale Price (AWP) plus a dispensing
19fee of $4.18. AWP or its equivalent as registered by the
20National Drug Code shall be set forth for that drug on that
21date as published in Medispan.
22    (b) Notwithstanding the provisions of subsection (a), if
23the Commission finds that there is a significant limitation on
24access to quality health care in either a specific field of
25health care services or a specific geographic limitation on
26access to health care, it may change the Consumer Price Index-U

 

 

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1increase or decrease for that specific field or specific
2geographic limitation on access to health care to address that
3limitation.
4    (c) The Commission shall establish by rule a process to
5review those medical cases or outliers that involve
6extra-ordinary treatment to determine whether to make an
7additional adjustment to the maximum payment within a fee
8schedule for a procedure, treatment, or service.
9    (d) When a patient notifies a provider that the treatment,
10procedure, or service being sought is for a work-related
11illness or injury and furnishes the provider the name and
12address of the responsible employer, the provider shall bill
13the employer directly. The employer shall make payment and
14providers shall submit bills and records in accordance with the
15provisions of this Section. All payments to providers for
16treatment provided pursuant to this Act shall be made within 60
17days of receipt of the bills as long as the claim contains
18substantially all the required data elements necessary to
19adjudicate the bills. In the case of nonpayment to a provider
20within 60 days of receipt of the bill which contained
21substantially all of the required data elements necessary to
22adjudicate the bill or nonpayment to a provider of a portion of
23such a bill up to the lesser of the actual charge or the
24payment level set by the Commission in the fee schedule
25established in this Section, the bill, or portion of the bill,
26shall incur interest at a rate of 1% per month payable to the

 

 

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1provider.
2    (e) Except as provided in subsections (e-5), (e-10), and
3(e-15), a provider shall not hold an employee liable for costs
4related to a non-disputed procedure, treatment, or service
5rendered in connection with a compensable injury. The
6provisions of subsections (e-5), (e-10), (e-15), and (e-20)
7shall not apply if an employee provides information to the
8provider regarding participation in a group health plan. If the
9employee participates in a group health plan, the provider may
10submit a claim for services to the group health plan. If the
11claim for service is covered by the group health plan, the
12employee's responsibility shall be limited to applicable
13deductibles, co-payments, or co-insurance. Except as provided
14under subsections (e-5), (e-10), (e-15), and (e-20), a provider
15shall not bill or otherwise attempt to recover from the
16employee the difference between the provider's charge and the
17amount paid by the employer or the insurer on a compensable
18injury, or for medical services or treatment determined by the
19Commission to be excessive or unnecessary.
20    (e-5) If an employer notifies a provider that the employer
21does not consider the illness or injury to be compensable under
22this Act, the provider may seek payment of the provider's
23actual charges from the employee for any procedure, treatment,
24or service rendered. Once an employee informs the provider that
25there is an application filed with the Commission to resolve a
26dispute over payment of such charges, the provider shall cease

 

 

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1any and all efforts to collect payment for the services that
2are the subject of the dispute. Any statute of limitations or
3statute of repose applicable to the provider's efforts to
4collect payment from the employee shall be tolled from the date
5that the employee files the application with the Commission
6until the date that the provider is permitted to resume
7collection efforts under the provisions of this Section.
8    (e-10) If an employer notifies a provider that the employer
9will pay only a portion of a bill for any procedure, treatment,
10or service rendered in connection with a compensable illness or
11disease, the provider may seek payment from the employee for
12the remainder of the amount of the bill up to the lesser of the
13actual charge, negotiated rate, if applicable, or the payment
14level set by the Commission in the fee schedule established in
15this Section. Once an employee informs the provider that there
16is an application filed with the Commission to resolve a
17dispute over payment of such charges, the provider shall cease
18any and all efforts to collect payment for the services that
19are the subject of the dispute. Any statute of limitations or
20statute of repose applicable to the provider's efforts to
21collect payment from the employee shall be tolled from the date
22that the employee files the application with the Commission
23until the date that the provider is permitted to resume
24collection efforts under the provisions of this Section.
25    (e-15) When there is a dispute over the compensability of
26or amount of payment for a procedure, treatment, or service,

 

 

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1and a case is pending or proceeding before an Arbitrator or the
2Commission, the provider may mail the employee reminders that
3the employee will be responsible for payment of any procedure,
4treatment or service rendered by the provider. The reminders
5must state that they are not bills, to the extent practicable
6include itemized information, and state that the employee need
7not pay until such time as the provider is permitted to resume
8collection efforts under this Section. The reminders shall not
9be provided to any credit rating agency. The reminders may
10request that the employee furnish the provider with information
11about the proceeding under this Act, such as the file number,
12names of parties, and status of the case. If an employee fails
13to respond to such request for information or fails to furnish
14the information requested within 90 days of the date of the
15reminder, the provider is entitled to resume any and all
16efforts to collect payment from the employee for the services
17rendered to the employee and the employee shall be responsible
18for payment of any outstanding bills for a procedure,
19treatment, or service rendered by a provider.
20    (e-20) Upon a final award or judgment by an Arbitrator or
21the Commission, or a settlement agreed to by the employer and
22the employee, a provider may resume any and all efforts to
23collect payment from the employee for the services rendered to
24the employee and the employee shall be responsible for payment
25of any outstanding bills for a procedure, treatment, or service
26rendered by a provider as well as the interest awarded under

 

 

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1subsection (d) of this Section. In the case of a procedure,
2treatment, or service deemed compensable, the provider shall
3not require a payment rate, excluding the interest provisions
4under subsection (d), greater than the lesser of the actual
5charge or the payment level set by the Commission in the fee
6schedule established in this Section. Payment for services
7deemed not covered or not compensable under this Act is the
8responsibility of the employee unless a provider and employee
9have agreed otherwise in writing. Services not covered or not
10compensable under this Act are not subject to the fee schedule
11in this Section.
12    (f) Nothing in this Act shall prohibit an employer or
13insurer from contracting with a health care provider or group
14of health care providers for reimbursement levels for benefits
15under this Act different from those provided in this Section.
16    (g) On or before January 1, 2010 the Commission shall
17provide to the Governor and General Assembly a report regarding
18the implementation of the medical fee schedule and the index
19used for annual adjustment to that schedule as described in
20this Section.
21(Source: P.A. 94-277, eff. 7-20-05; 94-695, eff. 11-16-05.)
 
22    (820 ILCS 305/8.3)
23    Sec. 8.3. Workers' Compensation Medical Fee Advisory
24Board. There is created a Workers' Compensation Medical Fee
25Advisory Board consisting of 9 members appointed by the

 

 

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1Governor with the advice and consent of the Senate. Three
2members of the Advisory Board shall be representative citizens
3chosen from the employee class, 3 members shall be
4representative citizens chosen from the employing class, and 3
5members shall be representative citizens chosen from the
6medical provider class. Each member shall serve a 4-year term
7and shall continue to serve until a successor is appointed. A
8vacancy on the Advisory Board shall be filled by the Governor
9for the unexpired term.
10    Members of the Advisory Board shall receive no compensation
11for their services but shall be reimbursed for expenses
12incurred in the performance of their duties by the Commission
13from appropriations made to the Commission for that purpose.
14    The Advisory Board shall advise the Commission on
15establishment of fees for medical services and accessibility of
16medical treatment. Additionally, by April 1, 2011, the Board
17shall issue a written report, to be delivered to the Chairman
18of the Commission and the General Assembly, containing (i)
19recommendations on how to streamline the process under which
20workers' compensation insurers process and issue payments and
21health care providers receive such payments and (ii) a
22recommended set of best practices for workers' compensation
23insurers to transition from a paper-based payment system to an
24electronic-based payment system.
25(Source: P.A. 94-277, eff. 7-20-05.)
 

 

 

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1    (820 ILCS 305/8.7)
2    Sec. 8.7. Utilization review programs.
3    (a) As used in this Section:
4    "Utilization review" means the evaluation of proposed or
5provided health care services to determine the appropriateness
6of both the level of health care services medically necessary
7and the quality of health care services provided to a patient,
8including evaluation of their efficiency, efficacy, and
9appropriateness of treatment, hospitalization, or office
10visits based on medically accepted standards. The evaluation
11must be accomplished by means of a system that identifies the
12utilization of health care services based on standards of care
13of or nationally recognized peer review guidelines as well as
14nationally recognized treatment guidelines and evidence-based
15medicine evidence based upon standards as provided in this Act.
16Utilization techniques may include prospective review, second
17opinions, concurrent review, discharge planning, peer review,
18independent medical examinations, and retrospective review
19(for purposes of this sentence, retrospective review shall be
20applicable to services rendered on or after July 20, 2005).
21Nothing in this Section applies to prospective review of
22necessary first aid or emergency treatment.
23    (b) No person may conduct a utilization review program for
24workers' compensation services in this State unless once every
252 years the person registers the utilization review program
26with the Department of Insurance Financial and Professional

 

 

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1Regulation and certifies compliance with the Workers'
2Compensation Utilization Management standards or Health
3Utilization Management Standards of URAC sufficient to achieve
4URAC accreditation or submits evidence of accreditation by URAC
5for its Workers' Compensation Utilization Management Standards
6or Health Utilization Management Standards. Nothing in this Act
7shall be construed to require an employer or insurer or its
8subcontractors to become URAC accredited.
9    (c) In addition, the Director Secretary of Insurance
10Financial and Professional Regulation may certify alternative
11utilization review standards of national accreditation
12organizations or entities in order for plans to comply with
13this Section. Any alternative utilization review standards
14shall meet or exceed those standards required under subsection
15(b).
16    (d) This registration shall include submission of all of
17the following information regarding utilization review program
18activities:
19        (1) The name, address, and telephone number of the
20    utilization review programs.
21        (2) The organization and governing structure of the
22    utilization review programs.
23        (3) The number of lives for which utilization review is
24    conducted by each utilization review program.
25        (4) Hours of operation of each utilization review
26    program.

 

 

09600SB1066ham003- 75 -LRB096 07137 WGH 44883 a

1        (5) Description of the grievance process for each
2    utilization review program.
3        (6) Number of covered lives for which utilization
4    review was conducted for the previous calendar year for
5    each utilization review program.
6        (7) Written policies and procedures for protecting
7    confidential information according to applicable State and
8    federal laws for each utilization review program.
9    (e) A utilization review program shall have written
10procedures to ensure that patient-specific information
11obtained during the process of utilization review will be:
12        (1) kept confidential in accordance with applicable
13    State and federal laws; and
14        (2) shared only with the employee, the employee's
15    designee, and the employee's health care provider, and
16    those who are authorized by law to receive the information.
17    Summary data shall not be considered confidential if it
18    does not provide information to allow identification of
19    individual patients or health care providers.
20    Only a health care professional may make determinations
21regarding the medical necessity of health care services during
22the course of utilization review.
23    When making retrospective reviews, utilization review
24programs shall base reviews solely on the medical information
25available to the attending physician or ordering provider at
26the time the health care services were provided.

 

 

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1    (f) If the Department of Insurance Financial and
2Professional Regulation finds that a utilization review
3program is not in compliance with this Section, the Department
4shall issue a corrective action plan and allow a reasonable
5amount of time for compliance with the plan. If the utilization
6review program does not come into compliance, the Department
7may issue a cease and desist order. Before issuing a cease and
8desist order under this Section, the Department shall provide
9the utilization review program with a written notice of the
10reasons for the order and allow a reasonable amount of time to
11supply additional information demonstrating compliance with
12the requirements of this Section and to request a hearing. The
13hearing notice shall be sent by certified mail, return receipt
14requested, and the hearing shall be conducted in accordance
15with the Illinois Administrative Procedure Act.
16    (g) A utilization review program subject to a corrective
17action may continue to conduct business until a final decision
18has been issued by the Department.
19    (h) The Department of Insurance Secretary of Financial and
20Professional Regulation may by rule establish a registration
21fee for each person conducting a utilization review program.
22    (i) Upon receipt of written notice that the employer or the
23employer's agent or insurer wishes to invoke the utilization
24review process, the provider of medical, surgical or hospital
25services shall submit to the utilization review, following URAC
26procedural guidelines and appeal process. If the provider fails

 

 

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1to submit to utilization review of proposed treatment or
2services, the charges for the treatment or service shall not be
3compensable or collectible against the employer, the
4employer's agent or insurer, or the employee. When an employer
5denies payment of or refuses to authorize payment of first aid,
6medical, surgical, or hospital services under Section 8(a) of
7this Act that complies with subsection (b) of this Section,
8that denial or refusal to authorize shall create a rebuttable
9presumption that the extent and scope of medical treatment is
10excessive and unnecessary. That presumption may be rebutted by
11establishing by a preponderance of the evidence that a variance
12from the standards of care or guidelines used pursuant to
13subsection (a) of this Section is reasonably required to cure
14or relieve the employee from the effects of his or her injury
15or that the utilization review did not comply with subsection
16(b) of this Section. A utilization review will be considered by
17the Commission, along with all other evidence and in the same
18manner as all other evidence, in the determination of the
19reasonableness and necessity of the medical bills or treatment.
20Nothing in this Section shall be construed to diminish the
21rights of employees to reasonable and necessary medical
22treatment or employee choice of health care provider under
23Section 8(a) or the rights of employers to medical examinations
24under Section 12.
25    (j) When an employer denies payment of or refuses to
26authorize payment of first aid, medical, surgical, or hospital

 

 

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1services under Section 8(a) of this Act, if that denial or
2refusal to authorize complies with a utilization review program
3registered under this Section and complies with all other
4requirements of this Section, then there shall be a rebuttable
5presumption that the employer shall not be responsible for
6payment of additional compensation pursuant to Section 19(k) of
7this Act and if that denial or refusal to authorize does not
8comply with a utilization review program registered under this
9Section and does not comply with all other requirements of this
10Section, then that will be considered by the Commission, along
11with all other evidence and in the same manner as all other
12evidence, in the determination of whether the employer may be
13responsible for the payment of additional compensation
14pursuant to Section 19(k) of this Act.
15(Source: P.A. 94-277, eff. 7-20-05; 94-695, eff. 11-16-05.)
 
16    (820 ILCS 305/11)  (from Ch. 48, par. 138.11)
17    Sec. 11. The compensation herein provided, together with
18the provisions of this Act, shall be the measure of the
19responsibility of any employer engaged in any of the
20enterprises or businesses enumerated in Section 3 of this Act,
21or of any employer who is not engaged in any such enterprises
22or businesses, but who has elected to provide and pay
23compensation for accidental injuries sustained by any employee
24arising out of and in the course of the employment according to
25the provisions of this Act, and whose election to continue

 

 

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1under this Act, has not been nullified by any action of his
2employees as provided for in this Act.
3    Accidental injuries incurred while participating in
4voluntary recreational programs including but not limited to
5athletic events, parties and picnics do not arise out of and in
6the course of the employment even though the employer pays some
7or all of the cost thereof. This exclusion shall not apply in
8the event that the injured employee was ordered or assigned by
9his employer to participate in the program.
10    Accidental injuries incurred while participating as a
11patient in a drug or alcohol rehabilitation program do not
12arise out of and in the course of employment even though the
13employer pays some or all of the costs thereof.
14    Any injury to or disease or death of an employee arising
15from the administration of a vaccine, including without
16limitation smallpox vaccine, to prepare for, or as a response
17to, a threatened or potential bioterrorist incident to the
18employee as part of a voluntary inoculation program in
19connection with the person's employment or in connection with
20any governmental program or recommendation for the inoculation
21of workers in the employee's occupation, geographical area, or
22other category that includes the employee is deemed to arise
23out of and in the course of the employment for all purposes
24under this Act. This paragraph added by this amendatory Act of
25the 93rd General Assembly is declarative of existing law and is
26not a new enactment.

 

 

09600SB1066ham003- 80 -LRB096 07137 WGH 44883 a

1    No compensation shall be payable if (i) the employee's
2intoxication is the proximate cause of the employee's
3accidental injury or (ii) at the time the employee incurred
4accidental injury, the employee was so intoxicated that the
5intoxication constituted a departure from the employment.
6Admissible evidence of the concentration of (1) alcohol, (2)
7cannabis as defined in the Cannabis Control Act, (3) a
8controlled substance listed in the Illinois Controlled
9Substances Act, or (4) an intoxicating compound listed in the
10Use of Intoxicating Compounds Act in the employee's blood,
11breath, or urine at the time the employee incurred the
12accidental injury shall be considered in any hearing under this
13Act to determine whether the employee was intoxicated at the
14time the employee incurred the accidental injuries. If at the
15time of the accidental injuries, there was 0.08% or more by
16weight of alcohol in the employee's blood, breath, or urine or
17if there is any evidence of impairment due to the unlawful or
18unauthorized use of (1) cannabis as defined in the Cannabis
19Control Act, (2) a controlled substance listed in the Illinois
20Controlled Substances Act, or (3) an intoxicating compound
21listed in the Use of Intoxicating Compounds Act or if the
22employee refuses to submit to testing of blood, breath, or
23urine, then there shall be a rebuttable presumption that the
24employee was intoxicated and that the intoxication was the
25proximate cause of the employee's injury. The employee may
26overcome the rebuttable presumption by the preponderance of the

 

 

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1admissible evidence that the intoxication was not the sole
2proximate cause or proximate cause of the accidental injuries.
3Percentage by weight of alcohol in the blood shall be based on
4grams of alcohol per 100 milliliters of blood. Percentage by
5weight of alcohol in the breath shall be based upon grams of
6alcohol per 210 liters of breath. Any testing that has not been
7performed by an accredited or certified testing laboratory
8shall not be admissible in any hearing under this Act to
9determine whether the employee was intoxicated at the time the
10employee incurred the accidental injury.
11    All sample collection and testing for alcohol and drugs
12under this Section shall be performed in accordance with rules
13to be adopted by the Commission. These rules shall ensure:
14        (1) compliance with the National Labor Relations Act
15    regarding collective bargaining agreements or regulations
16    promulgated by the United States Department of
17    Transportation;
18        (2) that samples are collected and tested in
19    conformance with national and State legal and regulatory
20    standards for the privacy of the individual being tested,
21    and in a manner reasonably calculated to prevent
22    substitutions or interference with the collection or
23    testing of reliable sample;
24        (3) that split testing procedures are utilized;
25        (4) sample collection is documented, and the
26    documentation procedures include:

 

 

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1            (A) the labeling of samples in a manner so as to
2        reasonably preclude the probability of erroneous
3        identification of test result; and
4            (B) an opportunity for the employee to provide
5        notification of any information which he or she
6        considers relevant to the test, including
7        identification of currently or recently used
8        prescription or nonprescription drugs and other
9        relevant medical information;
10        (5) that sample collection, storage, and
11    transportation to the place of testing is performed in a
12    manner so as to reasonably preclude the probability of
13    sample contamination or adulteration; and
14        (6) that chemical analyses of blood, urine, breath, or
15    other bodily substance are performed according to
16    nationally scientifically accepted analytical methods and
17    procedures.
18(Source: P.A. 93-829, eff. 7-28-04.)
 
19    (820 ILCS 305/14)  (from Ch. 48, par. 138.14)
20    Sec. 14. The Commission shall appoint a secretary, an
21assistant secretary, and arbitrators and shall employ such
22assistants and clerical help as may be necessary.
23    Each arbitrator appointed after November 22, 1977 shall be
24required to demonstrate in writing and in accordance with the
25rules and regulations of the Illinois Department of Central

 

 

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1Management Services his or her knowledge of and expertise in
2the law of and judicial processes of the Workers' Compensation
3Act and the Occupational Diseases Act.
4    A formal training program for newly-hired arbitrators
5shall be implemented. The training program shall include the
6following:
7        (a) substantive and procedural aspects of the
8    arbitrator position;
9        (b) current issues in workers' compensation law and
10    practice;
11        (c) medical lectures by specialists in areas such as
12    orthopedics, ophthalmology, psychiatry, rehabilitation
13    counseling;
14        (d) orientation to each operational unit of the
15    Illinois Workers' Compensation Commission;
16        (e) observation of experienced arbitrators conducting
17    hearings of cases, combined with the opportunity to discuss
18    evidence presented and rulings made;
19        (f) the use of hypothetical cases requiring the trainee
20    to issue judgments as a means to evaluating knowledge and
21    writing ability;
22        (g) writing skills.
23    A formal and ongoing professional development program
24including, but not limited to, the above-noted areas shall be
25implemented to keep arbitrators informed of recent
26developments and issues and to assist them in maintaining and

 

 

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1enhancing their professional competence.
2    Each arbitrator shall devote full time to his or her duties
3and shall serve when assigned as an acting Commissioner when a
4Commissioner is unavailable in accordance with the provisions
5of Section 13 of this Act. Any arbitrator who is an
6attorney-at-law shall not engage in the practice of law, nor
7shall any arbitrator hold any other office or position of
8profit under the United States or this State or any municipal
9corporation or political subdivision of this State.
10Notwithstanding any other provision of this Act to the
11contrary, an arbitrator who serves as an acting Commissioner in
12accordance with the provisions of Section 13 of this Act shall
13continue to serve in the capacity of Commissioner until a
14decision is reached in every case heard by that arbitrator
15while serving as an acting Commissioner.
16    Each arbitrator appointed after the effective date of this
17amendatory Act of 1989 shall be appointed for a term of 6
18years. Each arbitrator shall be appointed for a subsequent term
19unless the Chairman makes a recommendation to the Commission,
20no later than 60 days prior to the expiration of the term, not
21to reappoint the arbitrator. Notice of such a recommendation
22shall also be given to the arbitrator no later than 60 days
23prior to the expiration of the term. Upon such recommendation
24by the Chairman, the arbitrator shall be appointed for a
25subsequent term unless 8 of 10 members of the Commission,
26including the Chairman, vote not to reappoint the arbitrator.

 

 

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1    Each arbitrator appointed to a first term on or after the
2effective date of this amendatory Act of the 96th General
3Assembly shall be required to be authorized to practice law in
4this State by the Supreme Court.
5    All arbitrators shall be subject to the provisions of the
6Personnel Code, and the performance of all arbitrators shall be
7reviewed by the Chairman on an annual basis. The Chairman shall
8allow input from the Commissioners in all such reviews.
9    The Secretary and each arbitrator shall receive a per annum
10salary of $4,000 less than the per annum salary of members of
11The Illinois Workers' Compensation Commission as provided in
12Section 13 of this Act, payable in equal monthly installments.
13    The members of the Commission, Arbitrators and other
14employees whose duties require them to travel, shall have
15reimbursed to them their actual traveling expenses and
16disbursements made or incurred by them in the discharge of
17their official duties while away from their place of residence
18in the performance of their duties.
19    The Commission shall provide itself with a seal for the
20authentication of its orders, awards and proceedings upon which
21shall be inscribed the name of the Commission and the words
22"Illinois--Seal".
23    The Secretary or Assistant Secretary, under the direction
24of the Commission, shall have charge and custody of the seal of
25the Commission and also have charge and custody of all records,
26files, orders, proceedings, decisions, awards and other

 

 

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1documents on file with the Commission. He shall furnish
2certified copies, under the seal of the Commission, of any such
3records, files, orders, proceedings, decisions, awards and
4other documents on file with the Commission as may be required.
5Certified copies so furnished by the Secretary or Assistant
6Secretary shall be received in evidence before the Commission
7or any Arbitrator thereof, and in all courts, provided that the
8original of such certified copy is otherwise competent and
9admissible in evidence. The Secretary or Assistant Secretary
10shall perform such other duties as may be prescribed from time
11to time by the Commission.
12(Source: P.A. 93-721, eff. 1-1-05; 94-277, eff. 7-20-05.)
 
13    (820 ILCS 305/16b new)
14    Sec. 16b. Signature constitutes certification. The
15signature of a petitioner or respondent or his, her, or its
16attorney or group of attorneys on any petition, motion, or
17other paper filed with the Commission constitutes a
18certification by him, her, or it that he, she, or it has read
19the petition, motion, or other paper, and, that to the best of
20his, her, or its knowledge, information, and belief formed
21after reasonable inquiry that it is well grounded in fact, that
22it is warranted by existing law or a good faith argument for an
23extension, modification, or reversal of existing law, and that
24it is not interposed for any improper purpose, such as to
25harass or to cause unnecessary delay or needless increase in

 

 

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1the cost of litigation. If a petition, motion, or other paper
2is signed in violation of this Section, the Commission, upon
3motion or upon its own initiative, may impose upon the
4petitioner or respondent or his, her, or its attorney or group
5of attorneys an appropriate penalty or may order him, her, or
6it to pay the other party the amount of reasonable expenses
7incurred because of the filing of the petition, motion, or
8other paper, including reasonable attorneys' fees.
 
9    (820 ILCS 305/25.5)
10    Sec. 25.5. Unlawful acts; penalties.
11    (a) It is unlawful for any person, company, corporation,
12insurance carrier, healthcare provider, or other entity to:
13        (1) Intentionally present or cause to be presented any
14    false or fraudulent claim for the payment of any workers'
15    compensation benefit.
16        (2) Intentionally make or cause to be made any false or
17    fraudulent material statement or material representation
18    for the purpose of obtaining or denying any workers'
19    compensation benefit.
20        (3) Intentionally make or cause to be made any false or
21    fraudulent statements with regard to entitlement to
22    workers' compensation benefits with the intent to prevent
23    an injured worker from making a legitimate claim for any
24    workers' compensation benefits.
25        (4) Intentionally prepare or provide an invalid,

 

 

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1    false, or counterfeit certificate of insurance as proof of
2    workers' compensation insurance.
3        (5) Intentionally make or cause to be made any false or
4    fraudulent material statement or material representation
5    for the purpose of obtaining workers' compensation
6    insurance at less than the proper rate for that insurance.
7        (6) Intentionally make or cause to be made any false or
8    fraudulent material statement or material representation
9    on an initial or renewal self-insurance application or
10    accompanying financial statement for the purpose of
11    obtaining self-insurance status or reducing the amount of
12    security that may be required to be furnished pursuant to
13    Section 4 of this Act.
14        (7) Intentionally make or cause to be made any false or
15    fraudulent material statement to the Department Division
16    of Insurance's fraud and insurance non-compliance unit in
17    the course of an investigation of fraud or insurance
18    non-compliance.
19        (8) Intentionally assist, abet, solicit, or conspire
20    with any person, company, or other entity to commit any of
21    the acts in paragraph (1), (2), (3), (4), (5), (6), or (7)
22    of this subsection (a).
23    For the purposes of paragraphs (2), (3), (5), (6), and (7),
24the term "statement" includes any writing, notice, proof of
25injury, bill for services, hospital or doctor records and
26reports, or X-ray and test results.

 

 

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1    (b) Any person violating subsection (a) is guilty of a
2Class 4 felony. Any person or entity convicted of any violation
3of this Section shall be ordered to pay complete restitution to
4any person or entity so defrauded in addition to any fine or
5sentence imposed as a result of the conviction.
6    (c) The Department Division of Insurance of the Department
7of Financial and Professional Regulation shall establish a
8fraud and insurance non-compliance unit responsible for
9investigating incidences of fraud and insurance non-compliance
10pursuant to this Section. The size of the staff of the unit
11shall be subject to appropriation by the General Assembly. It
12shall be the duty of the fraud and insurance non-compliance
13unit to determine the identity of insurance carriers,
14employers, employees, or other persons or entities who have
15violated the fraud and insurance non-compliance provisions of
16this Section. The fraud and insurance non-compliance unit shall
17report violations of the fraud and insurance non-compliance
18provisions of this Section to the Special Prosecutions Bureau
19of the Criminal Division of the Office of the Attorney General
20or to the State's Attorney of the county in which the offense
21allegedly occurred, either of whom has the authority to
22prosecute violations under this Section.
23    With respect to the subject of any investigation being
24conducted, the fraud and insurance non-compliance unit shall
25have the general power of subpoena of the Department Division
26of Insurance.

 

 

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1    (d) Any person may report allegations of insurance
2non-compliance and fraud pursuant to this Section to the
3Department Division of Insurance's fraud and insurance
4non-compliance unit whose duty it shall be to investigate the
5report. The unit shall notify the Commission of reports of
6insurance non-compliance. Any person reporting an allegation
7of insurance non-compliance or fraud against either an employee
8or employer under this Section must identify himself. Except as
9provided in this subsection and in subsection (e), all reports
10shall remain confidential except to refer an investigation to
11the Attorney General or State's Attorney for prosecution or if
12the fraud and insurance non-compliance unit's investigation
13reveals that the conduct reported may be in violation of other
14laws or regulations of the State of Illinois, the unit may
15report such conduct to the appropriate governmental agency
16charged with administering such laws and regulations. Any
17person who intentionally makes a false report under this
18Section to the fraud and insurance non-compliance unit is
19guilty of a Class A misdemeanor.
20    (e) In order for the fraud and insurance non-compliance
21unit to investigate a report of fraud by an employee, (i) the
22employee must have filed with the Commission an Application for
23Adjustment of Claim and the employee must have either received
24or attempted to receive benefits under this Act that are
25related to the reported fraud or (ii) the employee must have
26made a written demand for the payment of benefits that are

 

 

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1related to the reported fraud. Upon receipt of a report of
2fraud, the employee or employer shall receive immediate notice
3of the reported conduct, including the verified name and
4address of the complainant if that complainant is connected to
5the case and the nature of the reported conduct. The fraud and
6insurance non-compliance unit shall resolve all reports of
7fraud against employees or employers within 120 days of receipt
8of the report. There shall be no immunity, under this Act or
9otherwise, for any person who files a false report or who files
10a report without good and just cause. Confidentiality of
11medical information shall be strictly maintained.
12Investigations that are not referred for prosecution shall be
13immediately expunged and shall not be disclosed except that the
14employee or employer who was the subject of the report and the
15person making the report shall be notified that the
16investigation is being closed, at which time the name of any
17complainant not connected to the case shall be disclosed to the
18employee or the employer. It is unlawful for any employer,
19insurance carrier, or service adjustment company to file or
20threaten to file a report of fraud against an employee because
21of the exercise by the employee of the rights and remedies
22granted to the employee by this Act.
23    For purposes of this subsection (e), "employer" means any
24employer, insurance carrier, third party administrator,
25self-insured, or similar entity.
26    For purposes of this subsection (e), "complainant" refers

 

 

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1to the person contacting the fraud and insurance non-compliance
2unit to initiate the complaint.
3    (e-5) The fraud and insurance non-compliance unit shall
4procure and implement a system utilizing advanced analytics
5inclusive of predictive modeling, data mining, social network
6analysis, and scoring algorithms for the detection and
7prevention of fraud, waste, and abuse on or before July 1,
82011. The fraud and insurance non-compliance unit shall procure
9this system using a request for proposals process governed by
10the Illinois Procurement Code and rules adopted under that
11Code. The fraud and insurance non-compliance unit shall provide
12a report to the President of the Senate, Speaker of the House
13of Representatives, Minority Leader of the House of
14Representatives, Minority Leader of the Senate, Governor, and
15Director of Insurance on or before July 1, 2012 and annually
16thereafter detailing its activities and providing
17recommendations regarding opportunities for additional fraud
18waste and abuse detection and prevention.
19    (f) Any person convicted of fraud related to workers'
20compensation pursuant to this Section shall be subject to the
21penalties prescribed in the Criminal Code of 1961 and shall be
22ineligible to receive or retain any compensation, disability,
23or medical benefits as defined in this Act if the compensation,
24disability, or medical benefits were owed or received as a
25result of fraud for which the recipient of the compensation,
26disability, or medical benefit was convicted. This subsection

 

 

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1applies to accidental injuries or diseases that occur on or
2after the effective date of this amendatory Act of the 94th
3General Assembly.
4    (g) Civil liability. Any person convicted of fraud who
5knowingly obtains, attempts to obtain, or causes to be obtained
6any benefits under this Act by the making of a false claim or
7who knowingly misrepresents any material fact shall be civilly
8liable to the payor of benefits or the insurer or the payor's
9or insurer's subrogee or assignee in an amount equal to 3 times
10the value of the benefits or insurance coverage wrongfully
11obtained or twice the value of the benefits or insurance
12coverage attempted to be obtained, plus reasonable attorney's
13fees and expenses incurred by the payor or the payor's subrogee
14or assignee who successfully brings a claim under this
15subsection. This subsection applies to accidental injuries or
16diseases that occur on or after the effective date of this
17amendatory Act of the 94th General Assembly.
18    (h) The All proceedings under this Section shall be
19reported by the fraud and insurance non-compliance unit shall
20submit a written report on an annual basis to the Workers'
21Compensation Advisory Board, the General Assembly, the
22Governor, and the Attorney General by January 1st and July 1st
23of each year. This report shall include, at the minimum, the
24following information:
25        (1) The number of allegations of insurance
26    non-compliance and fraud reported to the fraud and

 

 

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1    insurance non-compliance unit.
2        (2) The source of the reported allegations
3    (individual, employer, or other).
4        (3) The number of allegations investigated by the fraud
5    and insurance non-compliance unit.
6        (4) The number of criminal referrals made in accordance
7    with this Section and the entity to which the referral was
8    made.
9        (5) All proceedings under this Section.
10(Source: P.A. 94-277, eff. 7-20-05.)
 
11    (820 ILCS 305/29.1 new)
12    Sec. 29.1. Recalculation of premiums. On the effective date
13of this amendatory Act of the 96th General Assembly, the
14Director of Insurance shall immediately direct in writing any
15workers' compensation rate setting advisory organization to
16recalculate workers' compensation advisory premium rates and
17assigned risk pool premium rates so that those premiums
18incorporate the provisions of this amendatory Act of the 96th
19General Assembly.
 
20    (820 ILCS 305/29.2 new)
21    Sec. 29.2. Insurance oversight. The Department of
22Insurance shall annually submit to the Governor, the President
23of the Senate, the Speaker of the House of Representatives, the
24Minority Leader of the Senate, and the Minority Leader of the

 

 

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1House of Representatives a written report that details the
2state of the workers' compensation insurance market in
3Illinois. The report shall be completed by April 1 of each
4year, beginning in 2012, or later if necessary data or analyses
5are only available to the Department at a later date. The
6report shall be posted on the Department of Insurance's
7Internet website. Information to be included in the report
8shall be for the preceding calendar year. The report shall
9include, at a minimum, the following:
10        (1) Gross premiums collected by workers' compensation
11    carriers in Illinois and the national rank of Illinois
12    based on premium volume.
13        (2) The number of insurance companies actively engaged
14    in Illinois in the workers' compensation insurance market,
15    including both holding companies and subsidiaries or
16    affiliates, and the national rank of Illinois based on
17    number of competing insurers.
18        (3) The total number of insured participants in the
19    Illinois workers' compensation assigned risk insurance
20    pool, and the size of the assigned risk pool as a
21    proportion of the total Illinois workers' compensation
22    insurance market.
23        (4) The advisory organization premium rate for
24    workers' compensation insurance in Illinois for the
25    previous year.
26        (5) The advisory organization prescribed assigned risk

 

 

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1    pool premium rate.
2        (6) The total amount of indemnity payments made by
3    workers' compensation insurers in Illinois.
4        (7) The total amount of medical payments made by
5    workers' compensation insurers in Illinois, and the
6    national rank of Illinois based on average cost of medical
7    claims per injured worker.
8        (8) The gross profitability of workers' compensation
9    insurers in Illinois, and the national rank of Illinois
10    based on profitability of workers' compensation insurers.
11        (9) The loss ratio of workers' compensation insurers in
12    Illinois and the national rank of Illinois based on the
13    loss ratio of workers' compensation insurers. For purposes
14    of this loss ratio calculation, the denominator shall
15    include all premiums and other fees collected by workers'
16    compensation insurers and the numerator shall include the
17    total amount paid by the insurer for care or compensation
18    to injured workers.
 
19    Section 99. Effective date. This Act takes effect upon
20becoming law.".