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Illinois House Bill HB2089

Illinois 2023-2024 Regular Session

Illinois House Bill HB2089 Compare Versions

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1-Public Act 103-0426
21 HB2089 EnrolledLRB103 05055 BMS 51381 b HB2089 Enrolled LRB103 05055 BMS 51381 b
32 HB2089 Enrolled LRB103 05055 BMS 51381 b
4-AN ACT concerning regulation.
5-Be it enacted by the People of the State of Illinois,
6-represented in the General Assembly:
7-Section 5. The Illinois Pension Code is amended by
8-changing Sections 1-110.6, 1-110.10, 1-110.15, 1-113.4,
9-1-113.4a, 1-113.5, 1-113.18, 2-162, 3-110, 4-108, 4-109.3,
10-18-169, and 22-1004 as follows:
11-(40 ILCS 5/1-110.6)
12-Sec. 1-110.6. Transactions prohibited by retirement
13-systems; Republic of the Sudan.
14-(a) The Government of the United States has determined
15-that Sudan is a nation that sponsors terrorism and genocide.
16-The General Assembly finds that acts of terrorism have caused
17-injury and death to Illinois and United States residents who
18-serve in the United States military, and pose a significant
19-threat to safety and health in Illinois. The General Assembly
20-finds that public employees and their families, including
21-police officers and firefighters, are more likely than others
22-to be affected by acts of terrorism. The General Assembly
23-finds that Sudan continues to solicit investment and
24-commercial activities by forbidden entities, including private
25-market funds. The General Assembly finds that investments in
26-forbidden entities are inherently and unduly risky, not in the
3+1 AN ACT concerning regulation.
4+2 Be it enacted by the People of the State of Illinois,
5+3 represented in the General Assembly:
6+4 Section 5. The Illinois Pension Code is amended by
7+5 changing Sections 1-110.6, 1-110.10, 1-110.15, 1-113.4,
8+6 1-113.4a, 1-113.5, 1-113.18, 2-162, 3-110, 4-108, 4-109.3,
9+7 18-169, and 22-1004 as follows:
10+8 (40 ILCS 5/1-110.6)
11+9 Sec. 1-110.6. Transactions prohibited by retirement
12+10 systems; Republic of the Sudan.
13+11 (a) The Government of the United States has determined
14+12 that Sudan is a nation that sponsors terrorism and genocide.
15+13 The General Assembly finds that acts of terrorism have caused
16+14 injury and death to Illinois and United States residents who
17+15 serve in the United States military, and pose a significant
18+16 threat to safety and health in Illinois. The General Assembly
19+17 finds that public employees and their families, including
20+18 police officers and firefighters, are more likely than others
21+19 to be affected by acts of terrorism. The General Assembly
22+20 finds that Sudan continues to solicit investment and
23+21 commercial activities by forbidden entities, including private
24+22 market funds. The General Assembly finds that investments in
25+23 forbidden entities are inherently and unduly risky, not in the
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33-interests of public pensioners and Illinois taxpayers, and
34-against public policy. The General Assembly finds that Sudan's
35-capacity to sponsor terrorism and genocide depends on or is
36-supported by the activities of forbidden entities. The General
37-Assembly further finds and re-affirms that the people of the
38-State, acting through their representatives, do not want to be
39-associated with forbidden entities, genocide, and terrorism.
40-(b) For purposes of this Section:
41-"Business operations" means maintaining, selling, or
42-leasing equipment, facilities, personnel, or any other
43-apparatus of business or commerce in the Republic of the
44-Sudan, including the ownership or possession of real or
45-personal property located in the Republic of the Sudan.
46-"Certifying company" means a company that (1) directly
47-provides asset management services or advice to a retirement
48-system or (2) as directly authorized or requested by a
49-retirement system (A) identifies particular investment options
50-for consideration or approval; (B) chooses particular
51-investment options; or (C) allocates particular amounts to be
52-invested. If no company meets the criteria set forth in this
53-paragraph, then "certifying company" shall mean the retirement
54-system officer who, as designated by the board, executes the
55-investment decisions made by the board, or, in the
56-alternative, the company that the board authorizes to complete
57-the certification as the agent of that officer.
58-"Company" is any entity capable of affecting commerce,
59-
60-
61-including but not limited to (i) a government, government
62-agency, natural person, legal person, sole proprietorship,
63-partnership, firm, corporation, subsidiary, affiliate,
64-franchisor, franchisee, joint venture, trade association,
65-financial institution, utility, public franchise, provider of
66-financial services, trust, or enterprise; and (ii) any
67-association thereof.
68-"Division Department" means the Public Pension Division of
69-the Department of Insurance Financial and Professional
70-Regulation.
71-"Forbidden entity" means any of the following:
72-(1) The government of the Republic of the Sudan and
73-any of its agencies, including but not limited to
74-political units and subdivisions;
75-(2) Any company that is wholly or partially managed or
76-controlled by the government of the Republic of the Sudan
77-and any of its agencies, including but not limited to
78-political units and subdivisions;
79-(3) Any company (i) that is established or organized
80-under the laws of the Republic of the Sudan or (ii) whose
81-principal place of business is in the Republic of the
82-Sudan;
83-(4) Any company (i) identified by the Office of
84-Foreign Assets Control in the United States Department of
85-the Treasury as sponsoring terrorist activities in the
86-Republic of the Sudan; or (ii) fined, penalized, or
87-
88-
89-sanctioned by the Office of Foreign Assets Control in the
90-United States Department of the Treasury for any violation
91-of any United States rules and restrictions relating to
92-the Republic of the Sudan that occurred at any time
93-following the effective date of this Act;
94-(5) Any publicly traded company that is individually
95-identified by an independent researching firm that
96-specializes in global security risk and that has been
97-retained by a certifying company as provided in subsection
98-(c) of this Section as being a company that owns or
99-controls property or assets located in, has employees or
100-facilities located in, provides goods or services to,
101-obtains goods or services from, has distribution
102-agreements with, issues credits or loans to, purchases
103-bonds or commercial paper issued by, or invests in (A) the
104-Republic of the Sudan; or (B) any company domiciled in the
105-Republic of the Sudan; and
106-(6) Any private market fund that fails to satisfy the
107-requirements set forth in subsections (d) and (e) of this
108-Section.
109-Notwithstanding the foregoing, the term "forbidden entity"
110-shall exclude (A) mutual funds that meet the requirements of
111-item (iii) of paragraph (13) of Section 1-113.2 and (B)
112-companies that transact business in the Republic of the Sudan
113-under the law, license, or permit of the United States,
114-including a license from the United States Department of the
115-
116-
117-Treasury, and companies, except agencies of the Republic of
118-the Sudan, who are certified as Non-Government Organizations
119-by the United Nations, or who engage solely in (i) the
120-provision of goods and services intended to relieve human
121-suffering or to promote welfare, health, religious and
122-spiritual activities, and education or humanitarian purposes;
123-or (ii) journalistic activities.
124-"Private market fund" means any private equity fund,
125-private equity fund of funds, venture capital fund, hedge
126-fund, hedge fund of funds, real estate fund, or other
127-investment vehicle that is not publicly traded.
128-"Republic of the Sudan" means those geographic areas of
129-the Republic of Sudan that are subject to sanction or other
130-restrictions placed on commercial activity imposed by the
131-United States Government due to an executive or congressional
132-declaration of genocide.
133-"Retirement system" means the State Employees' Retirement
134-System of Illinois, the Judges Retirement System of Illinois,
135-the General Assembly Retirement System, the State Universities
136-Retirement System, and the Teachers' Retirement System of the
137-State of Illinois.
138-(c) A retirement system shall not transfer or disburse
139-funds to, deposit into, acquire any bonds or commercial paper
140-from, or otherwise loan to or invest in any entity unless, as
141-provided in this Section, a certifying company certifies to
142-the retirement system that, (1) with respect to investments in
143-
144-
145-a publicly traded company, the certifying company has relied
146-on information provided by an independent researching firm
147-that specializes in global security risk and (2) 100% of the
148-retirement system's assets for which the certifying company
149-provides services or advice are not and have not been invested
150-or reinvested in any forbidden entity at any time after 4
151-months after the effective date of this Section.
152-The certifying company shall make the certification
153-required under this subsection (c) to a retirement system 6
154-months after the effective date of this Section and annually
155-thereafter. A retirement system shall submit the
156-certifications to the Division Department, and the Division
157-Department shall notify the Director of Insurance Secretary of
158-Financial and Professional Regulation if a retirement system
159-fails to do so.
160-(d) With respect to a commitment or investment made
161-pursuant to a written agreement executed prior to the
162-effective date of this Section, each private market fund shall
163-submit to the appropriate certifying company, at no additional
164-cost to the retirement system:
165-(1) an affidavit sworn under oath in which an
166-expressly authorized officer of the private market fund
167-avers that the private market fund (A) does not own or
168-control any property or asset located in the Republic of
169-the Sudan and (B) does not conduct business operations in
170-the Republic of the Sudan; or
171-
172-
173-(2) a certificate in which an expressly authorized
174-officer of the private market fund certifies that the
175-private market fund, based on reasonable due diligence,
176-has determined that, other than direct or indirect
177-investments in companies certified as Non-Government
178-Organizations by the United Nations, the private market
179-fund has no direct or indirect investment in any company
180-(A) organized under the laws of the Republic of the Sudan;
181-(B) whose principal place of business is in the Republic
182-of the Sudan; or (C) that conducts business operations in
183-the Republic of the Sudan. Such certificate shall be based
184-upon the periodic reports received by the private market
185-fund, and the private market fund shall agree that the
186-certifying company, directly or through an agent, or the
187-retirement system, as the case may be, may from time to
188-time review the private market fund's certification
189-process.
190-(e) With respect to a commitment or investment made
191-pursuant to a written agreement executed after the effective
192-date of this Section, each private market fund shall, at no
193-additional cost to the retirement system:
194-(1) submit to the appropriate certifying company an
195-affidavit or certificate consistent with the requirements
196-pursuant to subsection (d) of this Section; or
197-(2) enter into an enforceable written agreement with
198-the retirement system that provides for remedies
199-
200-
201-consistent with those set forth in subsection (g) of this
202-Section if any of the assets of the retirement system
203-shall be transferred, loaned, or otherwise invested in any
204-company that directly or indirectly (A) has facilities or
205-employees in the Republic of the Sudan or (B) conducts
206-business operations in the Republic of the Sudan.
207-(f) In addition to any other penalties and remedies
208-available under the law of Illinois and the United States, any
209-transaction, other than a transaction with a private market
210-fund that is governed by subsections (g) and (h) of this
211-Section, that violates the provisions of this Act shall be
212-against public policy and voidable, at the sole discretion of
213-the retirement system.
214-(g) If a private market fund fails to provide the
215-affidavit or certification required in subsections (d) and (e)
216-of this Section, then the retirement system shall, within 90
217-days, divest, or attempt in good faith to divest, the
218-retirement system's interest in the private market fund,
219-provided that the Board of the retirement system confirms
220-through resolution that the divestment does not have a
221-material and adverse impact on the retirement system. The
222-retirement system shall immediately notify the Division
223-Department, and the Division Department shall notify all other
224-retirement systems, as soon as practicable, by posting the
225-name of the private market fund on the Division's Department's
226-Internet website or through e-mail communications. No other
227-
228-
229-retirement system may enter into any agreement under which the
230-retirement system directly or indirectly invests in the
231-private market fund unless the private market fund provides
232-that retirement system with the affidavit or certification
233-required in subsections (d) and (e) of this Section and
234-complies with all other provisions of this Section.
235-(h) If a private market fund fails to fulfill its
236-obligations under any agreement provided for in paragraph (2)
237-of subsection (e) of this Section, the retirement system shall
238-immediately take legal and other action to obtain satisfaction
239-through all remedies and penalties available under the law and
240-the agreement itself. The retirement system shall immediately
241-notify the Division Department, and the Division Department
242-shall notify all other retirement systems, as soon as
243-practicable, by posting the name of the private market fund on
244-the Division's Department's Internet website or through e-mail
245-communications, and no other retirement system may enter into
246-any agreement under which the retirement system directly or
247-indirectly invests in the private market fund.
248-(i) This Section shall have full force and effect during
249-any period in which the Republic of the Sudan, or the officials
250-of the government of that Republic, are subject to sanctions
251-authorized under any statute or executive order of the United
252-States or until such time as the State Department of the United
253-States confirms in the federal register or through other means
254-that the Republic of the Sudan is no longer subject to
255-
256-
257-sanctions by the government of the United States.
258-(j) If any provision of this Section or its application to
259-any person or circumstance is held invalid, the invalidity of
260-that provision or application does not affect other provisions
261-or applications of this Section that can be given effect
262-without the invalid provision or application.
263-(Source: P.A. 95-521, eff. 8-28-07.)
264-(40 ILCS 5/1-110.10)
265-Sec. 1-110.10. Servicer certification.
266-(a) For the purposes of this Section:
267-"Illinois finance entity" means any entity chartered under
268-the Illinois Banking Act, the Savings Bank Act, the Illinois
269-Credit Union Act, or the Illinois Savings and Loan Act of 1985
270-and any person or entity licensed under the Residential
271-Mortgage License Act of 1987, the Consumer Installment Loan
272-Act, or the Sales Finance Agency Act.
273-"Retirement system or pension fund" means a retirement
274-system or pension fund established under this Code.
275-(b) In order for an Illinois finance entity to be eligible
276-for investment or deposit of retirement system or pension fund
277-assets, the Illinois finance entity must annually certify that
278-it complies with the requirements of the High Risk Home Loan
279-Act and the rules adopted pursuant to that Act that are
280-applicable to that Illinois finance entity. For Illinois
281-finance entities with whom the retirement system or pension
282-
283-
284-fund is investing or depositing assets on the effective date
285-of this Section, the initial certification required under this
286-Section shall be completed within 6 months after the effective
287-date of this Section. For Illinois finance entities with whom
288-the retirement system or pension fund is not investing or
289-depositing assets on the effective date of this Section, the
290-initial certification required under this Section must be
291-completed before the retirement system or pension fund may
292-invest or deposit assets with the Illinois finance entity.
293-(c) A retirement system or pension fund shall submit the
294-certifications to the Public Pension Division of the
295-Department of Insurance Financial and Professional Regulation,
296-and the Division shall notify the Director of Insurance
297-Secretary of Financial and Professional Regulation if a
298-retirement system or pension fund fails to do so.
299-(d) If an Illinois finance entity fails to provide an
300-initial certification within 6 months after the effective date
301-of this Section or fails to submit an annual certification,
302-then the retirement system or pension fund shall notify the
303-Illinois finance entity. The Illinois finance entity shall,
304-within 30 days after the date of notification, either (i)
305-notify the retirement system or pension fund of its intention
306-to certify and complete certification or (ii) notify the
307-retirement system or pension fund of its intention to not
308-complete certification. If an Illinois finance entity fails to
309-provide certification, then the retirement system or pension
310-
311-
312-fund shall, within 90 days, divest, or attempt in good faith to
313-divest, the retirement system's or pension fund's assets with
314-that Illinois finance entity. The retirement system or pension
315-fund shall immediately notify the Public Pension Division of
316-the Department of Insurance Department of the Illinois finance
317-entity's failure to provide certification.
318-(e) If any provision of this Section or its application to
319-any person or circumstance is held invalid, the invalidity of
320-that provision or application does not affect other provisions
321-or applications of this Section that can be given effect
322-without the invalid provision or application.
323-(Source: P.A. 95-521, eff. 8-28-07; 95-876, eff. 8-21-08.)
324-(40 ILCS 5/1-110.15)
325-Sec. 1-110.15. Transactions prohibited by retirement
326-systems; Iran.
327-(a) As used in this Section:
328-"Active business operations" means all business operations
329-that are not inactive business operations.
330-"Business operations" means engaging in commerce in any
331-form in Iran, including, but not limited to, acquiring,
332-developing, maintaining, owning, selling, possessing, leasing,
333-or operating equipment, facilities, personnel, products,
334-services, personal property, real property, or any other
335-apparatus of business or commerce.
336-"Company" means any sole proprietorship, organization,
337-
338-
339-association, corporation, partnership, joint venture, limited
340-partnership, limited liability partnership, limited liability
341-company, or other entity or business association, including
342-all wholly owned subsidiaries, majority-owned subsidiaries,
343-parent companies, or affiliates of those entities or business
344-associations, that exists for the purpose of making profit.
345-"Direct holdings" in a company means all securities of
346-that company that are held directly by the retirement system
347-or in an account or fund in which the retirement system owns
348-all shares or interests.
349-"Inactive business operations" means the mere continued
350-holding or renewal of rights to property previously operated
351-for the purpose of generating revenues but not presently
352-deployed for that purpose.
353-"Indirect holdings" in a company means all securities of
354-that company which are held in an account or fund, such as a
355-mutual fund, managed by one or more persons not employed by the
356-retirement system, in which the retirement system owns shares
357-or interests together with other investors not subject to the
358-provisions of this Section.
359-"Mineral-extraction activities" include exploring,
360-extracting, processing, transporting, or wholesale selling or
361-trading of elemental minerals or associated metal alloys or
362-oxides (ore), including gold, copper, chromium, chromite,
363-diamonds, iron, iron ore, silver, tungsten, uranium, and zinc.
364-"Oil-related activities" include, but are not limited to,
365-
366-
367-owning rights to oil blocks; exporting, extracting, producing,
368-refining, processing, exploring for, transporting, selling, or
369-trading of oil; and constructing, maintaining, or operating a
370-pipeline, refinery, or other oil-field infrastructure. The
371-mere retail sale of gasoline and related consumer products is
372-not considered an oil-related activity.
373-"Petroleum resources" means petroleum, petroleum
374-byproducts, or natural gas.
375-"Private market fund" means any private equity fund,
376-private equity fund of funds, venture capital fund, hedge
377-fund, hedge fund of funds, real estate fund, or other
378-investment vehicle that is not publicly traded.
379-"Retirement system" means the State Employees' Retirement
380-System of Illinois, the Judges Retirement System of Illinois,
381-the General Assembly Retirement System, the State Universities
382-Retirement System, and the Teachers' Retirement System of the
383-State of Illinois.
384-"Scrutinized business operations" means business
385-operations that have caused a company to become a scrutinized
386-company.
387-"Scrutinized company" means the company has business
388-operations that involve contracts with or provision of
389-supplies or services to the Government of Iran, companies in
390-which the Government of Iran has any direct or indirect equity
391-share, consortiums or projects commissioned by the Government
392-of Iran, or companies involved in consortiums or projects
393-
394-
395-commissioned by the Government of Iran and:
396-(1) more than 10% of the company's revenues produced
397-in or assets located in Iran involve oil-related
398-activities or mineral-extraction activities; less than 75%
399-of the company's revenues produced in or assets located in
400-Iran involve contracts with or provision of oil-related or
401-mineral-extraction products or services to the Government
402-of Iran or a project or consortium created exclusively by
403-that government; and the company has failed to take
404-substantial action; or
405-(2) the company has, on or after August 5, 1996, made
406-an investment of $20 million or more, or any combination
407-of investments of at least $10 million each that in the
408-aggregate equals or exceeds $20 million in any 12-month
409-period, that directly or significantly contributes to the
410-enhancement of Iran's ability to develop petroleum
411-resources of Iran.
412-"Substantial action" means adopting, publicizing, and
413-implementing a formal plan to cease scrutinized business
414-operations within one year and to refrain from any such new
415-business operations.
416-(b) Within 90 days after the effective date of this
417-Section, a retirement system shall make its best efforts to
418-identify all scrutinized companies in which the retirement
419-system has direct or indirect holdings.
420-These efforts shall include the following, as appropriate
421-
422-
423-in the retirement system's judgment:
424-(1) reviewing and relying on publicly available
425-information regarding companies having business operations
426-in Iran, including information provided by nonprofit
427-organizations, research firms, international
428-organizations, and government entities;
429-(2) contacting asset managers contracted by the
430-retirement system that invest in companies having business
431-operations in Iran; and
432-(3) Contacting other institutional investors that have
433-divested from or engaged with companies that have business
434-operations in Iran.
435-The retirement system may retain an independent research
436-firm to identify scrutinized companies in which the retirement
437-system has direct or indirect holdings. By the first meeting
438-of the retirement system following the 90-day period described
439-in this subsection (b), the retirement system shall assemble
440-all scrutinized companies identified into a scrutinized
441-companies list.
442-The retirement system shall update the scrutinized
443-companies list annually based on evolving information from,
444-among other sources, those listed in this subsection (b).
445-(c) The retirement system shall adhere to the following
446-procedures for companies on the scrutinized companies list:
447-(1) The retirement system shall determine the
448-companies on the scrutinized companies list in which the
449-
450-
451-retirement system owns direct or indirect holdings.
452-(2) For each company identified in item (1) of this
453-subsection (c) that has only inactive business operations,
454-the retirement system shall send a written notice
455-informing the company of this Section and encouraging it
456-to continue to refrain from initiating active business
457-operations in Iran until it is able to avoid scrutinized
458-business operations. The retirement system shall continue
459-such correspondence semiannually.
460-(3) For each company newly identified in item (1) of
461-this subsection (c) that has active business operations,
462-the retirement system shall send a written notice
463-informing the company of its scrutinized company status
464-and that it may become subject to divestment by the
465-retirement system. The notice must inform the company of
466-the opportunity to clarify its Iran-related activities and
467-encourage the company, within 90 days, to cease its
468-scrutinized business operations or convert such operations
469-to inactive business operations in order to avoid
470-qualifying for divestment by the retirement system.
471-(4) If, within 90 days after the retirement system's
472-first engagement with a company pursuant to this
473-subsection (c), that company ceases scrutinized business
474-operations, the company shall be removed from the
475-scrutinized companies list and the provisions of this
476-Section shall cease to apply to it unless it resumes
477-
478-
479-scrutinized business operations. If, within 90 days after
480-the retirement system's first engagement, the company
481-converts its scrutinized active business operations to
482-inactive business operations, the company is subject to
483-all provisions relating thereto.
484-(d) If, after 90 days following the retirement system's
485-first engagement with a company pursuant to subsection (c),
486-the company continues to have scrutinized active business
487-operations, and only while such company continues to have
488-scrutinized active business operations, the retirement system
489-shall sell, redeem, divest, or withdraw all publicly traded
490-securities of the company, except as provided in paragraph
491-(f), from the retirement system's assets under management
492-within 12 months after the company's most recent appearance on
493-the scrutinized companies list.
494-If a company that ceased scrutinized active business
495-operations following engagement pursuant to subsection (c)
496-resumes such operations, this subsection (d) immediately
497-applies, and the retirement system shall send a written notice
498-to the company. The company shall also be immediately
499-reintroduced onto the scrutinized companies list.
500-(e) The retirement system may not acquire securities of
501-companies on the scrutinized companies list that have active
502-business operations, except as provided in subsection (f).
503-(f) A company that the United States Government
504-affirmatively declares to be excluded from its present or any
505-
506-
507-future federal sanctions regime relating to Iran is not
508-subject to divestment or the investment prohibition pursuant
509-to subsections (d) and (e).
510-(g) Notwithstanding the provisions of this Section,
511-paragraphs (d) and (e) do not apply to indirect holdings in a
512-private market fund. However, the retirement system shall
513-submit letters to the managers of those investment funds
514-containing companies that have scrutinized active business
515-operations requesting that they consider removing the
516-companies from the fund or create a similar actively managed
517-fund having indirect holdings devoid of the companies. If the
518-manager creates a similar fund, the retirement system shall
519-replace all applicable investments with investments in the
520-similar fund in an expedited timeframe consistent with prudent
521-investing standards.
522-(h) The retirement system shall file a report with the
523-Public Pension Division of the Department of Insurance
524-Financial and Professional Regulation that includes the
525-scrutinized companies list within 30 days after the list is
526-created. This report shall be made available to the public.
527-The retirement system shall file an annual report with the
528-Public Pension Division, which shall be made available to the
529-public, that includes all of the following:
530-(1) A summary of correspondence with companies engaged
531-by the retirement system under items (2) and (3) of
532-subsection (c).
533-
534-
535-(2) All investments sold, redeemed, divested, or
536-withdrawn in compliance with subsection (d).
537-(3) All prohibited investments under subsection (e).
538-(4) A summary of correspondence with private market
539-funds notified under subsection (g).
540-(i) This Section expires upon the occurrence of any of the
541-following:
542-(1) The United States revokes all sanctions imposed
543-against the Government of Iran.
544-(2) The Congress or President of the United States
545-declares that the Government of Iran has ceased to acquire
546-weapons of mass destruction and to support international
547-terrorism.
548-(3) The Congress or President of the United States,
549-through legislation or executive order, declares that
550-mandatory divestment of the type provided for in this
551-Section interferes with the conduct of United States
552-foreign policy.
553-(j) With respect to actions taken in compliance with this
554-Act, including all good-faith determinations regarding
555-companies as required by this Act, the retirement system is
556-exempt from any conflicting statutory or common law
557-obligations, including any fiduciary duties under this Article
558-and any obligations with respect to choice of asset managers,
559-investment funds, or investments for the retirement system's
560-securities portfolios.
561-
562-
563-(k) Notwithstanding any other provision of this Section to
564-the contrary, the retirement system may cease divesting from
565-scrutinized companies pursuant to subsection (d) or reinvest
566-in scrutinized companies from which it divested pursuant to
567-subsection (d) if clear and convincing evidence shows that the
568-value of investments in scrutinized companies with active
569-scrutinized business operations becomes equal to or less than
570-0.5% of the market value of all assets under management by the
571-retirement system. Cessation of divestment, reinvestment, or
572-any subsequent ongoing investment authorized by this Section
573-is limited to the minimum steps necessary to avoid the
574-contingency set forth in this subsection (k). For any
575-cessation of divestment, reinvestment, or subsequent ongoing
576-investment authorized by this Section, the retirement system
577-shall provide a written report to the Public Pension Division
578-in advance of initial reinvestment, updated semiannually
579-thereafter as applicable, setting forth the reasons and
580-justification, supported by clear and convincing evidence, for
581-its decisions to cease divestment, reinvest, or remain
582-invested in companies having scrutinized active business
583-operations. This Section does not apply to reinvestment in
584-companies on the grounds that they have ceased to have
585-scrutinized active business operations.
586-(l) If any provision of this Section or its application to
587-any person or circumstance is held invalid, the invalidity
588-does not affect other provisions or applications of the Act
589-
590-
591-which can be given effect without the invalid provision or
592-application, and to this end the provisions of this Section
593-are severable.
594-(Source: P.A. 95-616, eff. 1-1-08; 95-876, eff. 8-21-08.)
595-(40 ILCS 5/1-113.4)
596-Sec. 1-113.4. List of additional permitted investments for
597-pension funds with net assets of $5,000,000 or more.
598-(a) In addition to the items in Sections 1-113.2 and
599-1-113.3, a pension fund established under Article 3 or 4 that
600-has net assets of at least $5,000,000 and has appointed an
601-investment adviser under Section 1-113.5 may, through that
602-investment adviser, invest a portion of its assets in common
603-and preferred stocks authorized for investments of trust funds
604-under the laws of the State of Illinois. The stocks must meet
605-all of the following requirements:
606-(1) The common stocks are listed on a national
607-securities exchange or board of trade (as defined in the
608-federal Securities Exchange Act of 1934 and set forth in
609-subdivision G of Section 3 of the Illinois Securities Law
610-of 1953) or quoted in the National Association of
611-Securities Dealers Automated Quotation System National
612-Market System (NASDAQ NMS).
613-(2) The securities are of a corporation created or
614-existing under the laws of the United States or any state,
615-district, or territory thereof and the corporation has
616-
617-
618-been in existence for at least 5 years.
619-(3) The corporation has not been in arrears on payment
620-of dividends on its preferred stock during the preceding 5
621-years.
622-(4) The market value of stock in any one corporation
623-does not exceed 5% of the cash and invested assets of the
624-pension fund, and the investments in the stock of any one
625-corporation do not exceed 5% of the total outstanding
626-stock of that corporation.
627-(5) The straight preferred stocks or convertible
628-preferred stocks are issued or guaranteed by a corporation
629-whose common stock qualifies for investment by the board.
630-(6) The issuer of the stocks has been subject to the
631-requirements of Section 12 of the federal Securities
632-Exchange Act of 1934 and has been current with the filing
633-requirements of Sections 13 and 14 of that Act during the
634-preceding 3 years.
635-(b) A pension fund's total investment in the items
636-authorized under this Section and Section 1-113.3 shall not
637-exceed 35% of the market value of the pension fund's net
638-present assets stated in its most recent annual report on file
639-with the Public Pension Division of the Illinois Department of
640-Insurance.
641-(c) A pension fund that invests funds under this Section
642-shall electronically file with the Public Pension Division of
643-the Department of Insurance any reports of its investment
644-
645-
646-activities that the Division may require, at the times and in
647-the format required by the Division.
648-(Source: P.A. 100-201, eff. 8-18-17.)
649-(40 ILCS 5/1-113.4a)
650-Sec. 1-113.4a. List of additional permitted investments
651-for Article 3 and 4 pension funds with net assets of
652-$10,000,000 or more.
653-(a) In addition to the items in Sections 1-113.2 and
654-1-113.3, a pension fund established under Article 3 or 4 that
655-has net assets of at least $10,000,000 and has appointed an
656-investment adviser, as defined under Sections 1-101.4 and
657-1-113.5, may, through that investment adviser, invest an
658-additional portion of its assets in common and preferred
659-stocks and mutual funds.
660-(b) The stocks must meet all of the following
661-requirements:
662-(1) The common stocks must be listed on a national
663-securities exchange or board of trade (as defined in the
664-Federal Securities Exchange Act of 1934 and set forth in
665-paragraph G of Section 3 of the Illinois Securities Law of
666-1953) or quoted in the National Association of Securities
667-Dealers Automated Quotation System National Market System.
668-(2) The securities must be of a corporation in
669-existence for at least 5 years.
670-(3) The market value of stock in any one corporation
671-
672-
673-may not exceed 5% of the cash and invested assets of the
674-pension fund, and the investments in the stock of any one
675-corporation may not exceed 5% of the total outstanding
676-stock of that corporation.
677-(4) The straight preferred stocks or convertible
678-preferred stocks must be issued or guaranteed by a
679-corporation whose common stock qualifies for investment by
680-the board.
681-(c) The mutual funds must meet the following requirements:
682-(1) The mutual fund must be managed by an investment
683-company registered under the Federal Investment Company
684-Act of 1940 and registered under the Illinois Securities
685-Law of 1953.
686-(2) The mutual fund must have been in operation for at
687-least 5 years.
688-(3) The mutual fund must have total net assets of
689-$250,000,000 or more.
690-(4) The mutual fund must be comprised of a diversified
691-portfolio of common or preferred stocks, bonds, or money
692-market instruments.
693-(d) A pension fund's total investment in the items
694-authorized under this Section and Section 1-113.3 shall not
695-exceed 50% effective July 1, 2011 and 55% effective July 1,
696-2012 of the market value of the pension fund's net present
697-assets stated in its most recent annual report on file with the
698-Public Pension Division of the Department of Insurance.
699-
700-
701-(e) A pension fund that invests funds under this Section
702-shall electronically file with the Public Pension Division of
703-the Department of Insurance any reports of its investment
704-activities that the Division may require, at the time and in
705-the format required by the Division.
706-(Source: P.A. 96-1495, eff. 1-1-11.)
707-(40 ILCS 5/1-113.5)
708-Sec. 1-113.5. Investment advisers and investment services
709-for all Article 3 or 4 pension funds.
710-(a) The board of trustees of a pension fund may appoint
711-investment advisers as defined in Section 1-101.4. The board
712-of any pension fund investing in common or preferred stock
713-under Section 1-113.4 shall appoint an investment adviser
714-before making such investments.
715-The investment adviser shall be a fiduciary, as defined in
716-Section 1-101.2, with respect to the pension fund and shall be
717-one of the following:
718-(1) an investment adviser registered under the federal
719-Investment Advisers Act of 1940 and the Illinois
720-Securities Law of 1953;
721-(2) a bank or trust company authorized to conduct a
722-trust business in Illinois;
723-(3) a life insurance company authorized to transact
724-business in Illinois; or
725-(4) an investment company as defined and registered
726-
727-
728-under the federal Investment Company Act of 1940 and
729-registered under the Illinois Securities Law of 1953.
730-(a-5) Notwithstanding any other provision of law, a person
731-or entity that provides consulting services (referred to as a
732-"consultant" in this Section) to a pension fund with respect
733-to the selection of fiduciaries may not be awarded a contract
734-to provide those consulting services that is more than 5 years
735-in duration. No contract to provide such consulting services
736-may be renewed or extended. At the end of the term of a
737-contract, however, the contractor is eligible to compete for a
738-new contract. No person shall attempt to avoid or contravene
739-the restrictions of this subsection by any means. All offers
740-from responsive offerors shall be accompanied by disclosure of
741-the names and addresses of the following:
742-(1) The offeror.
743-(2) Any entity that is a parent of, or owns a
744-controlling interest in, the offeror.
745-(3) Any entity that is a subsidiary of, or in which a
746-controlling interest is owned by, the offeror.
747-Beginning on July 1, 2008, a person, other than a trustee
748-or an employee of a pension fund or retirement system, may not
749-act as a consultant under this Section unless that person is at
750-least one of the following: (i) registered as an investment
751-adviser under the federal Investment Advisers Act of 1940 (15
752-U.S.C. 80b-1, et seq.); (ii) registered as an investment
753-adviser under the Illinois Securities Law of 1953; (iii) a
754-
755-
756-bank, as defined in the Investment Advisers Act of 1940; or
757-(iv) an insurance company authorized to transact business in
758-this State.
759-(b) All investment advice and services provided by an
760-investment adviser or a consultant appointed under this
761-Section shall be rendered pursuant to a written contract
762-between the investment adviser and the board, and in
763-accordance with the board's investment policy.
764-The contract shall include all of the following:
765-(1) acknowledgement in writing by the investment
766-adviser that he or she is a fiduciary with respect to the
767-pension fund;
768-(2) the board's investment policy;
769-(3) full disclosure of direct and indirect fees,
770-commissions, penalties, and any other compensation that
771-may be received by the investment adviser, including
772-reimbursement for expenses; and
773-(4) a requirement that the investment adviser submit
774-periodic written reports, on at least a quarterly basis,
775-for the board's review at its regularly scheduled
776-meetings. All returns on investment shall be reported as
777-net returns after payment of all fees, commissions, and
778-any other compensation.
779-(b-5) Each contract described in subsection (b) shall also
780-include (i) full disclosure of direct and indirect fees,
781-commissions, penalties, and other compensation, including
782-
783-
784-reimbursement for expenses, that may be paid by or on behalf of
785-the investment adviser or consultant in connection with the
786-provision of services to the pension fund and (ii) a
787-requirement that the investment adviser or consultant update
788-the disclosure promptly after a modification of those payments
789-or an additional payment.
790-Within 30 days after the effective date of this amendatory
791-Act of the 95th General Assembly, each investment adviser and
792-consultant providing services on the effective date or subject
793-to an existing contract for the provision of services must
794-disclose to the board of trustees all direct and indirect
795-fees, commissions, penalties, and other compensation paid by
796-or on behalf of the investment adviser or consultant in
797-connection with the provision of those services and shall
798-update that disclosure promptly after a modification of those
799-payments or an additional payment.
800-A person required to make a disclosure under subsection
801-(d) is also required to disclose direct and indirect fees,
802-commissions, penalties, or other compensation that shall or
803-may be paid by or on behalf of the person in connection with
804-the rendering of those services. The person shall update the
805-disclosure promptly after a modification of those payments or
806-an additional payment.
807-The disclosures required by this subsection shall be in
808-writing and shall include the date and amount of each payment
809-and the name and address of each recipient of a payment.
810-
811-
812-(c) Within 30 days after appointing an investment adviser
813-or consultant, the board shall submit a copy of the contract to
814-the Public Pension Division of the Department of Insurance of
815-the Department of Financial and Professional Regulation.
816-(d) Investment services provided by a person other than an
817-investment adviser appointed under this Section, including but
818-not limited to services provided by the kinds of persons
819-listed in items (1) through (4) of subsection (a), shall be
820-rendered only after full written disclosure of direct and
821-indirect fees, commissions, penalties, and any other
822-compensation that shall or may be received by the person
823-rendering those services.
824-(e) The board of trustees of each pension fund shall
825-retain records of investment transactions in accordance with
826-the rules of the Public Pension Division of the Department of
827-Insurance Financial and Professional Regulation.
828-(Source: P.A. 95-950, eff. 8-29-08; 96-6, eff. 4-3-09.)
829-(40 ILCS 5/1-113.18)
830-Sec. 1-113.18. Ethics training. All board members of a
831-retirement system, pension fund, or investment board created
832-under this Code must attend ethics training of at least 8 hours
833-per year. The training required under this Section shall
834-include training on ethics, fiduciary duty, and investment
835-issues and any other curriculum that the board of the
836-retirement system, pension fund, or investment board
837-
838-
839-establishes as being important for the administration of the
840-retirement system, pension fund, or investment board. The
841-Supreme Court of Illinois shall be responsible for ethics
842-training and curriculum for judges designated by the Court to
843-serve as members of a retirement system, pension fund, or
844-investment board. Each board shall annually certify its
845-members' compliance with this Section and submit an annual
846-certification to the Public Pension Division of the Department
847-of Insurance of the Department of Financial and Professional
848-Regulation. Judges shall annually certify compliance with the
849-ethics training requirement and shall submit an annual
850-certification to the Chief Justice of the Supreme Court of
851-Illinois. For an elected or appointed trustee under Article 3
852-or 4 of this Code, fulfillment of the requirements of Section
853-1-109.3 satisfies the requirements of this Section.
854-(Source: P.A. 100-904, eff. 8-17-18.)
855-(40 ILCS 5/2-162)
856-(Text of Section WITHOUT the changes made by P.A. 98-599,
857-which has been held unconstitutional)
858-Sec. 2-162. Application and expiration of new benefit
859-increases.
860-(a) As used in this Section, "new benefit increase" means
861-an increase in the amount of any benefit provided under this
862-Article, or an expansion of the conditions of eligibility for
863-any benefit under this Article, that results from an amendment
864-
865-
866-to this Code that takes effect after the effective date of this
867-amendatory Act of the 94th General Assembly.
868-(b) Notwithstanding any other provision of this Code or
869-any subsequent amendment to this Code, every new benefit
870-increase is subject to this Section and shall be deemed to be
871-granted only in conformance with and contingent upon
872-compliance with the provisions of this Section.
873-(c) The Public Act enacting a new benefit increase must
874-identify and provide for payment to the System of additional
875-funding at least sufficient to fund the resulting annual
876-increase in cost to the System as it accrues.
877-Every new benefit increase is contingent upon the General
878-Assembly providing the additional funding required under this
879-subsection. The Commission on Government Forecasting and
880-Accountability shall analyze whether adequate additional
881-funding has been provided for the new benefit increase and
882-shall report its analysis to the Public Pension Division of
883-the Department of Insurance Financial and Professional
884-Regulation. A new benefit increase created by a Public Act
885-that does not include the additional funding required under
886-this subsection is null and void. If the Public Pension
887-Division determines that the additional funding provided for a
888-new benefit increase under this subsection is or has become
889-inadequate, it may so certify to the Governor and the State
890-Comptroller and, in the absence of corrective action by the
891-General Assembly, the new benefit increase shall expire at the
892-
893-
894-end of the fiscal year in which the certification is made.
895-(d) Every new benefit increase shall expire 5 years after
896-its effective date or on such earlier date as may be specified
897-in the language enacting the new benefit increase or provided
898-under subsection (c). This does not prevent the General
899-Assembly from extending or re-creating a new benefit increase
900-by law.
901-(e) Except as otherwise provided in the language creating
902-the new benefit increase, a new benefit increase that expires
903-under this Section continues to apply to persons who applied
904-and qualified for the affected benefit while the new benefit
905-increase was in effect and to the affected beneficiaries and
906-alternate payees of such persons, but does not apply to any
907-other person, including without limitation a person who
908-continues in service after the expiration date and did not
909-apply and qualify for the affected benefit while the new
910-benefit increase was in effect.
911-(Source: P.A. 94-4, eff. 6-1-05.)
912-(40 ILCS 5/3-110) (from Ch. 108 1/2, par. 3-110)
913-Sec. 3-110. Creditable service.
914-(a) "Creditable service" is the time served by a police
915-officer as a member of a regularly constituted police force of
916-a municipality. In computing creditable service furloughs
917-without pay exceeding 30 days shall not be counted, but all
918-leaves of absence for illness or accident, regardless of
919-
920-
921-length, and all periods of disability retirement for which a
922-police officer has received no disability pension payments
923-under this Article shall be counted.
924-(a-5) Up to 3 years of time during which the police officer
925-receives a disability pension under Section 3-114.1, 3-114.2,
926-3-114.3, or 3-114.6 shall be counted as creditable service,
927-provided that (i) the police officer returns to active service
928-after the disability for a period at least equal to the period
929-for which credit is to be established and (ii) the police
930-officer makes contributions to the fund based on the rates
931-specified in Section 3-125.1 and the salary upon which the
932-disability pension is based. These contributions may be paid
933-at any time prior to the commencement of a retirement pension.
934-The police officer may, but need not, elect to have the
935-contributions deducted from the disability pension or to pay
936-them in installments on a schedule approved by the board. If
937-not deducted from the disability pension, the contributions
938-shall include interest at the rate of 6% per year, compounded
939-annually, from the date for which service credit is being
940-established to the date of payment. If contributions are paid
941-under this subsection (a-5) in excess of those needed to
942-establish the credit, the excess shall be refunded. This
943-subsection (a-5) applies to persons receiving a disability
944-pension under Section 3-114.1, 3-114.2, 3-114.3, or 3-114.6 on
945-the effective date of this amendatory Act of the 91st General
946-Assembly, as well as persons who begin to receive such a
947-
948-
949-disability pension after that date.
950-(b) Creditable service includes all periods of service in
951-the military, naval or air forces of the United States entered
952-upon while an active police officer of a municipality,
953-provided that upon applying for a permanent pension, and in
954-accordance with the rules of the board, the police officer
955-pays into the fund the amount the officer would have
956-contributed if he or she had been a regular contributor during
957-such period, to the extent that the municipality which the
958-police officer served has not made such contributions in the
959-officer's behalf. The total amount of such creditable service
960-shall not exceed 5 years, except that any police officer who on
961-July 1, 1973 had more than 5 years of such creditable service
962-shall receive the total amount thereof.
963-(b-5) Creditable service includes all periods of service
964-in the military, naval, or air forces of the United States
965-entered upon before beginning service as an active police
966-officer of a municipality, provided that, in accordance with
967-the rules of the board, the police officer pays into the fund
968-the amount the police officer would have contributed if he or
969-she had been a regular contributor during such period, plus an
970-amount determined by the Board to be equal to the
971-municipality's normal cost of the benefit, plus interest at
972-the actuarially assumed rate calculated from the date the
973-employee last became a police officer under this Article. The
974-total amount of such creditable service shall not exceed 2
975-
976-
977-years.
978-(c) Creditable service also includes service rendered by a
979-police officer while on leave of absence from a police
980-department to serve as an executive of an organization whose
981-membership consists of members of a police department, subject
982-to the following conditions: (i) the police officer is a
983-participant of a fund established under this Article with at
984-least 10 years of service as a police officer; (ii) the police
985-officer received no credit for such service under any other
986-retirement system, pension fund, or annuity and benefit fund
987-included in this Code; (iii) pursuant to the rules of the board
988-the police officer pays to the fund the amount he or she would
989-have contributed had the officer been an active member of the
990-police department; (iv) the organization pays a contribution
991-equal to the municipality's normal cost for that period of
992-service; and (v) for all leaves of absence under this
993-subsection (c), including those beginning before the effective
994-date of this amendatory Act of the 97th General Assembly, the
995-police officer continues to remain in sworn status, subject to
996-the professional standards of the public employer or those
997-terms established in statute.
998-(d)(1) Creditable service also includes periods of
999-service originally established in another police pension
1000-fund under this Article or in the Fund established under
1001-Article 7 of this Code for which (i) the contributions
1002-have been transferred under Section 3-110.7 or Section
1003-
1004-
1005-7-139.9 and (ii) any additional contribution required
1006-under paragraph (2) of this subsection has been paid in
1007-full in accordance with the requirements of this
1008-subsection (d).
1009-(2) If the board of the pension fund to which
1010-creditable service and related contributions are
1011-transferred under Section 7-139.9 determines that the
1012-amount transferred is less than the true cost to the
1013-pension fund of allowing that creditable service to be
1014-established, then in order to establish that creditable
1015-service the police officer must pay to the pension fund,
1016-within the payment period specified in paragraph (3) of
1017-this subsection, an additional contribution equal to the
1018-difference, as determined by the board in accordance with
1019-the rules and procedures adopted under paragraph (6) of
1020-this subsection. If the board of the pension fund to which
1021-creditable service and related contributions are
1022-transferred under Section 3-110.7 determines that the
1023-amount transferred is less than the true cost to the
1024-pension fund of allowing that creditable service to be
1025-established, then the police officer may elect (A) to
1026-establish that creditable service by paying to the pension
1027-fund, within the payment period specified in paragraph (3)
1028-of this subsection (d), an additional contribution equal
1029-to the difference, as determined by the board in
1030-accordance with the rules and procedures adopted under
1031-
1032-
1033-paragraph (6) of this subsection (d) or (B) to have his or
1034-her creditable service reduced by an amount equal to the
1035-difference between the amount transferred under Section
1036-3-110.7 and the true cost to the pension fund of allowing
1037-that creditable service to be established, as determined
1038-by the board in accordance with the rules and procedures
1039-adopted under paragraph (6) of this subsection (d).
1040-(3) Except as provided in paragraph (4), the
1041-additional contribution that is required or elected under
1042-paragraph (2) of this subsection (d) must be paid to the
1043-board (i) within 5 years from the date of the transfer of
1044-contributions under Section 3-110.7 or 7-139.9 and (ii)
1045-before the police officer terminates service with the
1046-fund. The additional contribution may be paid in a lump
1047-sum or in accordance with a schedule of installment
1048-payments authorized by the board.
1049-(4) If the police officer dies in service before
1050-payment in full has been made and before the expiration of
1051-the 5-year payment period, the surviving spouse of the
1052-officer may elect to pay the unpaid amount on the
1053-officer's behalf within 6 months after the date of death,
1054-in which case the creditable service shall be granted as
1055-though the deceased police officer had paid the remaining
1056-balance on the day before the date of death.
1057-(5) If the additional contribution that is required or
1058-elected under paragraph (2) of this subsection (d) is not
1059-
1060-
1061-paid in full within the required time, the creditable
1062-service shall not be granted and the police officer (or
1063-the officer's surviving spouse or estate) shall be
1064-entitled to receive a refund of (i) any partial payment of
1065-the additional contribution that has been made by the
1066-police officer and (ii) those portions of the amounts
1067-transferred under subdivision (a)(1) of Section 3-110.7 or
1068-subdivisions (a)(1) and (a)(3) of Section 7-139.9 that
1069-represent employee contributions paid by the police
1070-officer (but not the accumulated interest on those
1071-contributions) and interest paid by the police officer to
1072-the prior pension fund in order to reinstate service
1073-terminated by acceptance of a refund.
1074-At the time of paying a refund under this item (5), the
1075-pension fund shall also repay to the pension fund from
1076-which the contributions were transferred under Section
1077-3-110.7 or 7-139.9 the amount originally transferred under
1078-subdivision (a)(2) of that Section, plus interest at the
1079-rate of 6% per year, compounded annually, from the date of
1080-the original transfer to the date of repayment. Amounts
1081-repaid to the Article 7 fund under this provision shall be
1082-credited to the appropriate municipality.
1083-Transferred credit that is not granted due to failure
1084-to pay the additional contribution within the required
1085-time is lost; it may not be transferred to another pension
1086-fund and may not be reinstated in the pension fund from
1087-
1088-
1089-which it was transferred.
1090-(6) The Public Employee Pension Fund Division of the
1091-Department of Insurance shall establish by rule the manner
1092-of making the calculation required under paragraph (2) of
1093-this subsection, taking into account the appropriate
1094-actuarial assumptions; the police officer's service, age,
1095-and salary history; the level of funding of the pension
1096-fund to which the credits are being transferred; and any
1097-other factors that the Division determines to be relevant.
1098-The rules may require that all calculations made under
1099-paragraph (2) be reported to the Division by the board
1100-performing the calculation, together with documentation of
1101-the creditable service to be transferred, the amounts of
1102-contributions and interest to be transferred, the manner
1103-in which the calculation was performed, the numbers relied
1104-upon in making the calculation, the results of the
1105-calculation, and any other information the Division may
1106-deem useful.
1107-(e)(1) Creditable service also includes periods of
1108-service originally established in the Fund established
1109-under Article 7 of this Code for which the contributions
1110-have been transferred under Section 7-139.11.
1111-(2) If the board of the pension fund to which
1112-creditable service and related contributions are
1113-transferred under Section 7-139.11 determines that the
1114-amount transferred is less than the true cost to the
1115-
1116-
1117-pension fund of allowing that creditable service to be
1118-established, then the amount of creditable service the
1119-police officer may establish under this subsection (e)
1120-shall be reduced by an amount equal to the difference, as
1121-determined by the board in accordance with the rules and
1122-procedures adopted under paragraph (3) of this subsection.
1123-(3) The Public Pension Division of the Department of
1124-Insurance Financial and Professional Regulation shall
1125-establish by rule the manner of making the calculation
1126-required under paragraph (2) of this subsection, taking
1127-into account the appropriate actuarial assumptions; the
1128-police officer's service, age, and salary history; the
1129-level of funding of the pension fund to which the credits
1130-are being transferred; and any other factors that the
1131-Division determines to be relevant. The rules may require
1132-that all calculations made under paragraph (2) be reported
1133-to the Division by the board performing the calculation,
1134-together with documentation of the creditable service to
1135-be transferred, the amounts of contributions and interest
1136-to be transferred, the manner in which the calculation was
1137-performed, the numbers relied upon in making the
1138-calculation, the results of the calculation, and any other
1139-information the Division may deem useful.
1140-(4) Until January 1, 2010, a police officer who
1141-transferred service from the Fund established under
1142-Article 7 of this Code under the provisions of Public Act
1143-
1144-
1145-94-356 may establish additional credit, but only for the
1146-amount of the service credit reduction in that transfer,
1147-as calculated under paragraph (3) of this subsection (e).
1148-This credit may be established upon payment by the police
1149-officer of an amount to be determined by the board, equal
1150-to (1) the amount that would have been contributed as
1151-employee and employer contributions had all of the service
1152-been as an employee under this Article, plus interest
1153-thereon at the rate of 6% per year, compounded annually
1154-from the date of service to the date of transfer, less (2)
1155-the total amount transferred from the Article 7 Fund, plus
1156-(3) interest on the difference at the rate of 6% per year,
1157-compounded annually, from the date of the transfer to the
1158-date of payment. The additional service credit is allowed
1159-under this amendatory Act of the 95th General Assembly
1160-notwithstanding the provisions of Article 7 terminating
1161-all transferred credits on the date of transfer.
1162-(Source: P.A. 96-297, eff. 8-11-09; 96-1260, eff. 7-23-10;
1163-97-651, eff. 1-5-12.)
1164-(40 ILCS 5/4-108) (from Ch. 108 1/2, par. 4-108)
1165-Sec. 4-108. Creditable service.
1166-(a) Creditable service is the time served as a firefighter
1167-of a municipality. In computing creditable service, furloughs
1168-and leaves of absence without pay exceeding 30 days in any one
1169-year shall not be counted, but leaves of absence for illness or
1170-
1171-
1172-accident regardless of length, and periods of disability for
1173-which a firefighter received no disability pension payments
1174-under this Article, shall be counted.
1175-(b) Furloughs and leaves of absence of 30 days or less in
1176-any one year may be counted as creditable service, if the
1177-firefighter makes the contribution to the fund that would have
1178-been required had he or she not been on furlough or leave of
1179-absence. To qualify for this creditable service, the
1180-firefighter must pay the required contributions to the fund
1181-not more than 90 days subsequent to the termination of the
1182-furlough or leave of absence, to the extent that the
1183-municipality has not made such contribution on his or her
1184-behalf.
1185-(c) Creditable service includes:
1186-(1) Service in the military, naval or air forces of
1187-the United States entered upon when the person was an
1188-active firefighter, provided that, upon applying for a
1189-permanent pension, and in accordance with the rules of the
1190-board the firefighter pays into the fund the amount that
1191-would have been contributed had he or she been a regular
1192-contributor during such period of service, if and to the
1193-extent that the municipality which the firefighter served
1194-made no such contributions in his or her behalf. The total
1195-amount of such creditable service shall not exceed 5
1196-years, except that any firefighter who on July 1, 1973 had
1197-more than 5 years of such creditable service shall receive
1198-
1199-
1200-the total amount thereof as of that date.
1201-(1.5) Up to 24 months of service in the military,
1202-naval, or air forces of the United States that was served
1203-prior to employment by a municipality or fire protection
1204-district as a firefighter. To receive the credit for the
1205-military service prior to the employment as a firefighter,
1206-the firefighter must apply in writing to the fund and must
1207-make contributions to the fund equal to (i) the employee
1208-contributions that would have been required had the
1209-service been rendered as a member, plus (ii) an amount
1210-determined by the fund to be equal to the employer's
1211-normal cost of the benefits accrued for that military
1212-service, plus (iii) interest at the actuarially assumed
1213-rate provided by the Public Pension Division of the
1214-Department of Insurance Financial and Professional
1215-Regulation, compounded annually from the first date of
1216-membership in the fund to the date of payment on items (i)
1217-and (ii). The changes to this paragraph (1.5) by this
1218-amendatory Act of the 95th General Assembly apply only to
1219-participating employees in service on or after its
1220-effective date.
1221-(2) Service prior to July 1, 1976 by a firefighter
1222-initially excluded from participation by reason of age who
1223-elected to participate and paid the required contributions
1224-for such service.
1225-(3) Up to 8 years of service by a firefighter as an
1226-
1227-
1228-officer in a statewide firefighters' association when he
1229-is on a leave of absence from a municipality's payroll,
1230-provided that (i) the firefighter has at least 10 years of
1231-creditable service as an active firefighter, (ii) the
1232-firefighter contributes to the fund the amount that he
1233-would have contributed had he remained an active member of
1234-the fund, (iii) the employee or statewide firefighter
1235-association contributes to the fund an amount equal to the
1236-employer's required contribution as determined by the
1237-board, and (iv) for all leaves of absence under this
1238-subdivision (3), including those beginning before the
1239-effective date of this amendatory Act of the 97th General
1240-Assembly, the firefighter continues to remain in sworn
1241-status, subject to the professional standards of the
1242-public employer or those terms established in statute.
1243-(4) Time spent as an on-call fireman for a
1244-municipality, calculated at the rate of one year of
1245-creditable service for each 5 years of time spent as an
1246-on-call fireman, provided that (i) the firefighter has at
1247-least 18 years of creditable service as an active
1248-firefighter, (ii) the firefighter spent at least 14 years
1249-as an on-call firefighter for the municipality, (iii) the
1250-firefighter applies for such creditable service within 30
1251-days after the effective date of this amendatory Act of
1252-1989, (iv) the firefighter contributes to the Fund an
1253-amount representing employee contributions for the number
1254-
1255-
1256-of years of creditable service granted under this
1257-subdivision (4), based on the salary and contribution rate
1258-in effect for the firefighter at the date of entry into the
1259-Fund, to be determined by the board, and (v) not more than
1260-3 years of creditable service may be granted under this
1261-subdivision (4).
1262-Except as provided in Section 4-108.5, creditable
1263-service shall not include time spent as a volunteer
1264-firefighter, whether or not any compensation was received
1265-therefor. The change made in this Section by Public Act
1266-83-0463 is intended to be a restatement and clarification
1267-of existing law, and does not imply that creditable
1268-service was previously allowed under this Article for time
1269-spent as a volunteer firefighter.
1270-(5) Time served between July 1, 1976 and July 1, 1988
1271-in the position of protective inspection officer or
1272-administrative assistant for fire services, for a
1273-municipality with a population under 10,000 that is
1274-located in a county with a population over 3,000,000 and
1275-that maintains a firefighters' pension fund under this
1276-Article, if the position included firefighting duties,
1277-notwithstanding that the person may not have held an
1278-appointment as a firefighter, provided that application is
1279-made to the pension fund within 30 days after the
1280-effective date of this amendatory Act of 1991, and the
1281-corresponding contributions are paid for the number of
1282-
1283-
1284-years of service granted, based upon the salary and
1285-contribution rate in effect for the firefighter at the
1286-date of entry into the pension fund, as determined by the
1287-Board.
1288-(6) Service before becoming a participant by a
1289-firefighter initially excluded from participation by
1290-reason of age who becomes a participant under the
1291-amendment to Section 4-107 made by this amendatory Act of
1292-1993 and pays the required contributions for such service.
1293-(7) Up to 3 years of time during which the firefighter
1294-receives a disability pension under Section 4-110,
1295-4-110.1, or 4-111, provided that (i) the firefighter
1296-returns to active service after the disability for a
1297-period at least equal to the period for which credit is to
1298-be established and (ii) the firefighter makes
1299-contributions to the fund based on the rates specified in
1300-Section 4-118.1 and the salary upon which the disability
1301-pension is based. These contributions may be paid at any
1302-time prior to the commencement of a retirement pension.
1303-The firefighter may, but need not, elect to have the
1304-contributions deducted from the disability pension or to
1305-pay them in installments on a schedule approved by the
1306-board. If not deducted from the disability pension, the
1307-contributions shall include interest at the rate of 6% per
1308-year, compounded annually, from the date for which service
1309-credit is being established to the date of payment. If
1310-
1311-
1312-contributions are paid under this subdivision (c)(7) in
1313-excess of those needed to establish the credit, the excess
1314-shall be refunded. This subdivision (c)(7) applies to
1315-persons receiving a disability pension under Section
1316-4-110, 4-110.1, or 4-111 on the effective date of this
1317-amendatory Act of the 91st General Assembly, as well as
1318-persons who begin to receive such a disability pension
1319-after that date.
1320-(8) Up to 6 years of service as a police officer and
1321-participant in an Article 3 police pension fund
1322-administered by the unit of local government that employs
1323-the firefighter under this Article, provided that the
1324-service has been transferred to, and the required payment
1325-received by, the Article 4 fund in accordance with
1326-subsection (a) of Section 3-110.12 of this Code.
1327-(9) Up to 8 years of service as a police officer and
1328-participant in an Article 3 police pension fund
1329-administered by a unit of local government, provided that
1330-the service has been transferred to, and the required
1331-payment received by, the Article 4 fund in accordance with
1332-subsection (a-5) of Section 3-110.12 of this Code.
1333-(Source: P.A. 102-63, eff. 7-9-21.)
1334-(40 ILCS 5/4-109.3)
1335-Sec. 4-109.3. Employee creditable service.
1336-(a) As used in this Section:
1337-
1338-
1339-"Final monthly salary" means the monthly salary attached
1340-to the rank held by the firefighter at the time of his or her
1341-last withdrawal from service under a particular pension fund.
1342-"Last pension fund" means the pension fund in which the
1343-firefighter was participating at the time of his or her last
1344-withdrawal from service.
1345-(b) The benefits provided under this Section are available
1346-only to a firefighter who:
1347-(1) is a firefighter at the time of withdrawal from
1348-the last pension fund and for at least the final 3 years of
1349-employment prior to that withdrawal;
1350-(2) has established service credit with at least one
1351-pension fund established under this Article other than the
1352-last pension fund;
1353-(3) has a total of at least 20 years of service under
1354-the various pension funds established under this Article
1355-and has attained age 50; and
1356-(4) is in service on or after the effective date of
1357-this amendatory Act of the 93rd General Assembly.
1358-(c) A firefighter who is eligible for benefits under this
1359-Section may elect to receive a retirement pension from each
1360-pension fund under this Article in which the firefighter has
1361-at least one year of service credit but has not received a
1362-refund under Section 4-116 (unless the firefighter repays that
1363-refund under subsection (g)) or subsection (c) of Section
1364-4-118.1, by applying in writing and paying the contribution
1365-
1366-
1367-required under subsection (i).
1368-(d) From each such pension fund other than the last
1369-pension fund, in lieu of any retirement pension otherwise
1370-payable under this Article, a firefighter to whom this Section
1371-applies may elect to receive a monthly pension of 1/12th of
1372-2.5% of his or her final monthly salary under that fund for
1373-each month of service in that fund, subject to a maximum of 75%
1374-of that final monthly salary.
1375-(e) From the last pension fund, in lieu of any retirement
1376-pension otherwise payable under this Article, a firefighter to
1377-whom this Section applies may elect to receive a monthly
1378-pension calculated as follows:
1379-The last pension fund shall calculate the retirement
1380-pension that would be payable to the firefighter under Section
1381-4-109 as if he or she had participated in that last pension
1382-fund during his or her entire period of service under all
1383-pension funds established under this Article (excluding any
1384-period of service for which the firefighter has received a
1385-refund under Section 4-116, unless the firefighter repays that
1386-refund under subsection (g), or for which the firefighter has
1387-received a refund under subsection (c) of Section 4-118.1).
1388-From this hypothetical pension there shall be subtracted the
1389-original amounts of the retirement pensions payable to the
1390-firefighter by all other pension funds under subsection (d).
1391-The remainder is the retirement pension payable to the
1392-firefighter by the last pension fund under this subsection
1393-
1394-
1395-(e).
1396-(f) Pensions elected under this Section shall be subject
1397-to increases as provided in Section 4-109.1.
1398-(g) A current firefighter may reinstate creditable service
1399-in a pension fund established under this Article that was
1400-terminated upon receipt of a refund, by payment to that
1401-pension fund of the amount of the refund together with
1402-interest thereon at the rate of 6% per year, compounded
1403-annually, from the date of the refund to the date of payment. A
1404-repayment of a refund under this Section may be made in equal
1405-installments over a period of up to 10 years, but must be paid
1406-in full prior to retirement.
1407-(h) As a condition of being eligible for the benefits
1408-provided in this Section, a person who is hired to a position
1409-as a firefighter on or after July 1, 2004 must, within 21
1410-months after being hired, notify the new employer, all of his
1411-or her previous employers under this Article, and the Public
1412-Pension Division of the Department Division of Insurance of
1413-the Department of Financial and Professional Regulation of his
1414-or her intent to receive the benefits provided under this
1415-Section.
1416-As a condition of being eligible for the benefits provided
1417-in this Section, a person who first becomes a firefighter
1418-under this Article after December 31, 2010 must (1) within 21
1419-months after being hired or within 21 months after the
1420-effective date of this amendatory Act of the 102nd General
1421-
1422-
1423-Assembly, whichever is later, notify the new employer, all of
1424-his or her previous employers under this Article, and the
1425-Public Pension Division of the Department of Insurance of his
1426-or her intent to receive the benefits provided under this
1427-Section; and (2) make the required contributions with
1428-applicable interest. A person who first becomes a firefighter
1429-under this Article after December 31, 2010 and who, before the
1430-effective date of this amendatory Act of the 102nd General
1431-Assembly, notified the new employer, all of his or her
1432-previous employers under this Article, and the Public Pension
1433-Division of the Department of Insurance of his or her intent to
1434-receive the benefits provided under this Section shall be
1435-deemed to have met the notice requirement under item (1) of the
1436-preceding sentence. The changes made to this Section by this
1437-amendatory Act of the 102nd General Assembly apply
1438-retroactively, notwithstanding Section 1-103.1.
1439-(i) In order to receive a pension under this Section or an
1440-occupational disease disability pension for which he or she
1441-becomes eligible due to the application of subsection (m) of
1442-this Section, a firefighter must pay to each pension fund from
1443-which he or she has elected to receive a pension under this
1444-Section a contribution equal to 1% of monthly salary for each
1445-month of service credit that the firefighter has in that fund
1446-(other than service credit for which the firefighter has
1447-already paid the additional contribution required under
1448-subsection (c) of Section 4-118.1), together with interest
1449-
1450-
1451-thereon at the rate of 6% per annum, compounded annually, from
1452-the firefighter's first day of employment with that fund or
1453-the first day of the fiscal year of that fund that immediately
1454-precedes the firefighter's first day of employment with that
1455-fund, whichever is earlier.
1456-In order for a firefighter who, as of the effective date of
1457-this amendatory Act of the 93rd General Assembly, has not
1458-begun to receive a pension under this Section or an
1459-occupational disease disability pension under subsection (m)
1460-of this Section and who has contributed 1/12th of 1% of monthly
1461-salary for each month of service credit that the firefighter
1462-has in that fund (other than service credit for which the
1463-firefighter has already paid the additional contribution
1464-required under subsection (c) of Section 4-118.1), together
1465-with the required interest thereon, to receive a pension under
1466-this Section or an occupational disease disability pension for
1467-which he or she becomes eligible due to the application of
1468-subsection (m) of this Section, the firefighter must, within
1469-one year after the effective date of this amendatory Act of the
1470-93rd General Assembly, make an additional contribution equal
1471-to 11/12ths of 1% of monthly salary for each month of service
1472-credit that the firefighter has in that fund (other than
1473-service credit for which the firefighter has already paid the
1474-additional contribution required under subsection (c) of
1475-Section 4-118.1), together with interest thereon at the rate
1476-of 6% per annum, compounded annually, from the firefighter's
1477-
1478-
1479-first day of employment with that fund or the first day of the
1480-fiscal year of that fund that immediately precedes the
1481-firefighter's first day of employment with the fund, whichever
1482-is earlier. A firefighter who, as of the effective date of this
1483-amendatory Act of the 93rd General Assembly, has not begun to
1484-receive a pension under this Section or an occupational
1485-disease disability pension under subsection (m) of this
1486-Section and who has contributed 1/12th of 1% of monthly salary
1487-for each month of service credit that the firefighter has in
1488-that fund (other than service credit for which the firefighter
1489-has already paid the additional contribution required under
1490-subsection (c) of Section 4-118.1), together with the required
1491-interest thereon, in order to receive a pension under this
1492-Section or an occupational disease disability pension under
1493-subsection (m) of this Section, may elect, within one year
1494-after the effective date of this amendatory Act of the 93rd
1495-General Assembly to forfeit the benefits provided under this
1496-Section and receive a refund of that contribution.
1497-(j) A retired firefighter who is receiving pension
1498-payments under Section 4-109 may reenter active service under
1499-this Article. Subject to the provisions of Section 4-117, the
1500-firefighter may receive credit for service performed after the
1501-reentry if the firefighter (1) applies to receive credit for
1502-that service, (2) suspends his or her pensions under this
1503-Section, and (3) makes the contributions required under
1504-subsection (i).
1505-
1506-
1507-(k) A firefighter who is newly hired or promoted to a
1508-position as a firefighter shall not be denied participation in
1509-a fund under this Article based on his or her age.
1510-(l) If a firefighter who elects to make contributions
1511-under subsection (c) of Section 4-118.1 for the pension
1512-benefits provided under this Section becomes entitled to a
1513-disability pension under Section 4-110, the last pension fund
1514-is responsible to pay that disability pension and the amount
1515-of that disability pension shall be based only on the
1516-firefighter's service with the last pension fund.
1517-(m) Notwithstanding any provision in Section 4-110.1 to
1518-the contrary, if a firefighter who elects to make
1519-contributions under subsection (c) of Section 4-118.1 for the
1520-pension benefits provided under this Section becomes entitled
1521-to an occupational disease disability pension under Section
1522-4-110.1, each pension fund to which the firefighter has made
1523-contributions under subsection (c) of Section 4-118.1 must pay
1524-a portion of that occupational disease disability pension
1525-equal to the proportion that the firefighter's service credit
1526-with that pension fund for which the contributions under
1527-subsection (c) of Section 4-118.1 have been made bears to the
1528-firefighter's total service credit with all of the pension
1529-funds for which the contributions under subsection (c) of
1530-Section 4-118.1 have been made. A firefighter who has made
1531-contributions under subsection (c) of Section 4-118.1 for at
1532-least 5 years of creditable service shall be deemed to have met
1533-
1534-
1535-the 5-year creditable service requirement under Section
1536-4-110.1, regardless of whether the firefighter has 5 years of
1537-creditable service with the last pension fund.
1538-(n) If a firefighter who elects to make contributions
1539-under subsection (c) of Section 4-118.1 for the pension
1540-benefits provided under this Section becomes entitled to a
1541-disability pension under Section 4-111, the last pension fund
1542-is responsible to pay that disability pension, provided that
1543-the firefighter has at least 7 years of creditable service
1544-with the last pension fund. In the event a firefighter began
1545-employment with a new employer as a result of an
1546-intergovernmental agreement that resulted in the elimination
1547-of the previous employer's fire department, the firefighter
1548-shall not be required to have 7 years of creditable service
1549-with the last pension fund to qualify for a disability pension
1550-under Section 4-111. Under this circumstance, a firefighter
1551-shall be required to have 7 years of total combined creditable
1552-service time to qualify for a disability pension under Section
1553-4-111. The disability pension received pursuant to this
1554-Section shall be paid by the previous employer and new
1555-employer in proportion to the firefighter's years of service
1556-with each employer.
1557-(Source: P.A. 102-81, eff. 7-9-21.)
1558-(40 ILCS 5/18-169)
1559-Sec. 18-169. Application and expiration of new benefit
1560-
1561-
1562-increases.
1563-(a) As used in this Section, "new benefit increase" means
1564-an increase in the amount of any benefit provided under this
1565-Article, or an expansion of the conditions of eligibility for
1566-any benefit under this Article, that results from an amendment
1567-to this Code that takes effect after the effective date of this
1568-amendatory Act of the 94th General Assembly.
1569-(b) Notwithstanding any other provision of this Code or
1570-any subsequent amendment to this Code, every new benefit
1571-increase is subject to this Section and shall be deemed to be
1572-granted only in conformance with and contingent upon
1573-compliance with the provisions of this Section.
1574-(c) The Public Act enacting a new benefit increase must
1575-identify and provide for payment to the System of additional
1576-funding at least sufficient to fund the resulting annual
1577-increase in cost to the System as it accrues.
1578-Every new benefit increase is contingent upon the General
1579-Assembly providing the additional funding required under this
1580-subsection. The Commission on Government Forecasting and
1581-Accountability shall analyze whether adequate additional
1582-funding has been provided for the new benefit increase and
1583-shall report its analysis to the Public Pension Division of
1584-the Department of Insurance Financial and Professional
1585-Regulation. A new benefit increase created by a Public Act
1586-that does not include the additional funding required under
1587-this subsection is null and void. If the Public Pension
1588-
1589-
1590-Division determines that the additional funding provided for a
1591-new benefit increase under this subsection is or has become
1592-inadequate, it may so certify to the Governor and the State
1593-Comptroller and, in the absence of corrective action by the
1594-General Assembly, the new benefit increase shall expire at the
1595-end of the fiscal year in which the certification is made.
1596-(d) Every new benefit increase shall expire 5 years after
1597-its effective date or on such earlier date as may be specified
1598-in the language enacting the new benefit increase or provided
1599-under subsection (c). This does not prevent the General
1600-Assembly from extending or re-creating a new benefit increase
1601-by law.
1602-(e) Except as otherwise provided in the language creating
1603-the new benefit increase, a new benefit increase that expires
1604-under this Section continues to apply to persons who applied
1605-and qualified for the affected benefit while the new benefit
1606-increase was in effect and to the affected beneficiaries and
1607-alternate payees of such persons, but does not apply to any
1608-other person, including without limitation a person who
1609-continues in service after the expiration date and did not
1610-apply and qualify for the affected benefit while the new
1611-benefit increase was in effect.
1612-(Source: P.A. 94-4, eff. 6-1-05.)
1613-(40 ILCS 5/22-1004)
1614-Sec. 22-1004. Commission on Government Forecasting and
1615-
1616-
1617-Accountability report on Articles 3 and 4 funds. Each odd
1618-numbered year, the Commission on Government Forecasting and
1619-Accountability shall analyze data submitted by the Public
1620-Pension Division of the Illinois Department of Insurance
1621-Financial and Professional Regulation pertaining to the
1622-pension systems established under Article 3 and Article 4 of
1623-this Code. The Commission shall issue a formal report during
1624-such years, the content of which is, to the extent
1625-practicable, to be similar in nature to that required under
1626-Section 22-1003. In addition to providing aggregate analyses
1627-of both systems, the report shall analyze the fiscal status
1628-and provide forecasting projections for selected individual
1629-funds in each system. To the fullest extent practicable, the
1630-report shall analyze factors that affect each selected
1631-individual fund's unfunded liability and any actuarial gains
1632-and losses caused by salary increases, investment returns,
1633-employer contributions, benefit increases, change in
1634-assumptions, the difference in employer contributions and the
1635-normal cost plus interest, and any other applicable factors.
1636-In analyzing net investment returns, the report shall analyze
1637-the assumed investment return compared to the actual
1638-investment return over the preceding 10 fiscal years. The
1639-Public Pension Division of the Department of Insurance
1640-Financial and Professional Regulation shall provide to the
1641-Commission any assistance that the Commission may request with
1642-respect to its report under this Section.
1643-
1644-
1645-(Source: P.A. 95-950, eff. 8-29-08.)
1646-Section 10. The Illinois Insurance Code is amended by
1647-changing Sections 143.20a, 155.18, 155.19, 155.36, 155.49,
1648-370c, 412, 500-140, and 1204 as follows:
1649-(215 ILCS 5/143.20a) (from Ch. 73, par. 755.20a)
1650-Sec. 143.20a. Cancellation of Fire and Marine Policies.
1651-(1) Policies covering property, except policies described in
1652-subsection (b) of Section 143.13 143.13b, of this Code, issued
1653-for the kinds of business enumerated in Class 3 of Section 4 of
1654-this Code may be cancelled 10 days following receipt of
1655-written notice by the named insureds if the insured property
1656-is found to consist of one or more of the following:
1657-(a) Buildings to which, following a fire loss, permanent
1658-repairs have not commenced within 60 days after satisfactory
1659-adjustment of loss, unless such delay is a direct result of a
1660-labor dispute or weather conditions.
1661-(b) Buildings which have been unoccupied 60 consecutive
1662-days, except buildings which have a seasonal occupancy and
1663-buildings which are undergoing construction, repair or
1664-reconstruction and are properly secured against unauthorized
1665-entry.
1666-(c) Buildings on which, because of their physical
1667-condition, there is an outstanding order to vacate, an
1668-outstanding demolition order, or which have been declared
1669-
1670-
1671-unsafe in accordance with applicable law.
1672-(d) Buildings on which heat, water, sewer service or
1673-public lighting have not been connected for 30 consecutive
1674-days or more.
1675-(2) All notices of cancellation under this Section shall
1676-be sent by certified mail and regular mail to the address of
1677-record of the named insureds.
1678-(3) All cancellations made pursuant to this Section shall
1679-be on a pro rata basis.
1680-(Source: P.A. 86-437.)
1681-(215 ILCS 5/155.18) (from Ch. 73, par. 767.18)
1682-(Text of Section WITHOUT the changes made by P.A. 94-677,
1683-which has been held unconstitutional)
1684-Sec. 155.18. (a) This Section shall apply to insurance on
1685-risks based upon negligence by a physician, hospital or other
1686-health care provider, referred to herein as medical liability
1687-insurance. This Section shall not apply to contracts of
1688-reinsurance, nor to any farm, county, district or township
1689-mutual insurance company transacting business under an Act
1690-entitled "An Act relating to local mutual district, county and
1691-township insurance companies", approved March 13, 1936, as now
1692-or hereafter amended, nor to any such company operating under
1693-a special charter.
1694-(b) The following standards shall apply to the making and
1695-use of rates pertaining to all classes of medical liability
1696-
1697-
1698-insurance:
1699-(1) Rates shall not be excessive or inadequate, as
1700-herein defined, nor shall they be unfairly discriminatory.
1701-No rate shall be held to be excessive unless such rate is
1702-unreasonably high for the insurance provided, and a
1703-reasonable degree of competition does not exist in the
1704-area with respect to the classification to which such rate
1705-is applicable.
1706-No rate shall be held inadequate unless it is
1707-unreasonably low for the insurance provided and continued
1708-use of it would endanger solvency of the company.
1709-(2) Consideration shall be given, to the extent
1710-applicable, to past and prospective loss experience within
1711-and outside this State, to a reasonable margin for
1712-underwriting profit and contingencies, to past and
1713-prospective expenses both countrywide and those especially
1714-applicable to this State, and to all other factors,
1715-including judgment factors, deemed relevant within and
1716-outside this State.
1717-Consideration may also be given in the making and use
1718-of rates to dividends, savings or unabsorbed premium
1719-deposits allowed or returned by companies to their
1720-policyholders, members or subscribers.
1721-(3) The systems of expense provisions included in the
1722-rates for use by any company or group of companies may
1723-differ from those of other companies or groups of
1724-
1725-
1726-companies to reflect the operating methods of any such
1727-company or group with respect to any kind of insurance, or
1728-with respect to any subdivision or combination thereof.
1729-(4) Risks may be grouped by classifications for the
1730-establishment of rates and minimum premiums.
1731-Classification rates may be modified to produce rates for
1732-individual risks in accordance with rating plans which
1733-establish standards for measuring variations in hazards or
1734-expense provisions, or both. Such standards may measure
1735-any difference among risks that have a probable effect
1736-upon losses or expenses. Such classifications or
1737-modifications of classifications of risks may be
1738-established based upon size, expense, management,
1739-individual experience, location or dispersion of hazard,
1740-or any other reasonable considerations and shall apply to
1741-all risks under the same or substantially the same
1742-circumstances or conditions. The rate for an established
1743-classification should be related generally to the
1744-anticipated loss and expense factors of the class.
1745-(c) Every company writing medical liability insurance
1746-shall file with the Director of Insurance the rates and rating
1747-schedules it uses for medical liability insurance.
1748-(1) This filing shall occur at least annually and as
1749-often as the rates are changed or amended.
1750-(2) For the purposes of this Section any change in
1751-premium to the company's insureds as a result of a change
1752-
1753-
1754-in the company's base rates or a change in its increased
1755-limits factors shall constitute a change in rates and
1756-shall require a filing with the Director.
1757-(3) It shall be certified in such filing by an officer of
1758-the company and a qualified actuary that the company's rates
1759-are based on sound actuarial principles and are not
1760-inconsistent with the company's experience.
1761-(d) If after a hearing the Director finds:
1762-(1) that any rate, rating plan or rating system
1763-violates the provisions of this Section applicable to it,
1764-he may issue an order to the company which has been the
1765-subject of the hearing specifying in what respects such
1766-violation exists and stating when, within a reasonable
1767-period of time, the further use of such rate or rating
1768-system by such company in contracts of insurance made
1769-thereafter shall be prohibited;
1770-(2) that the violation of any of the provisions of
1771-this Section applicable to it by any company which has
1772-been the subject of hearing was wilful, he may suspend or
1773-revoke, in whole or in part, the certificate of authority
1774-of such company with respect to the class of insurance
1775-which has been the subject of the hearing.
1776-(Source: P.A. 79-1434.)
1777-(215 ILCS 5/155.19) (from Ch. 73, par. 767.19)
1778-(Text of Section WITHOUT the changes made by P.A. 94-677,
1779-
1780-
1781-which has been held unconstitutional)
1782-Sec. 155.19. All claims filed after December 31, 1976 with
1783-any insurer and all suits filed after December 31, 1976 in any
1784-court in this State, alleging liability on the part of any
1785-physician, hospital or other health care provider for
1786-medically related injuries, shall be reported to the Director
1787-of Insurance in such form and under such terms and conditions
1788-as may be prescribed by the Director. The Director shall
1789-maintain complete and accurate records of all such claims and
1790-suits including their nature, amount, disposition and other
1791-information as he may deem useful or desirable in observing
1792-and reporting on health care provider liability trends in this
1793-State. The Director shall release to appropriate disciplinary
1794-and licensing agencies any such data or information which may
1795-assist such agencies in improving the quality of health care
1796-or which may be useful to such agencies for the purpose of
1797-professional discipline.
1798-With due regard for appropriate maintenance of the
1799-confidentiality thereof, the Director may release from time to
1800-time to the Governor, the General Assembly and the general
1801-public statistical reports based on such data and information.
1802-The Director may promulgate such rules and regulations as
1803-may be necessary to carry out the provisions of this Section.
1804-(Source: P.A. 79-1434.)
1805-(215 ILCS 5/155.36)
1806-
1807-
1808-Sec. 155.36. Managed Care Reform and Patient Rights Act.
1809-Insurance companies that transact the kinds of insurance
1810-authorized under Class 1(b) or Class 2(a) of Section 4 of this
1811-Code shall comply with Sections 25, 45, 45.1, 45.2, 45.3, 65,
1812-70, and 85, subsection (d) of Section 30, and the definition of
1813-the term "emergency medical condition" in Section 10 of the
1814-Managed Care Reform and Patient Rights Act.
1815-(Source: P.A. 101-608, eff. 1-1-20; 102-409, eff. 1-1-22.)
1816-(215 ILCS 5/155.49 new)
1817-Sec. 155.49. Insurance company supplier diversity report.
1818-(a) Every company authorized to do business in this State
1819-or accredited by this State with assets of at least
1820-$50,000,000 shall submit a 2-page report on its voluntary
1821-supplier diversity program, or the company's procurement
1822-program if there is no supplier diversity program, to the
1823-Department. The report shall set forth all of the following:
1824-(1) The name, address, phone number, and email address
1825-of the point of contact for the supplier diversity program
1826-for vendors to register with the program.
1827-(2) Local and State certifications the company accepts
1828-or recognizes for minority-owned, women-owned, LGBT-owned,
1829-or veteran-owned business status.
1830-(3) On the second page, a narrative explaining the
1831-results of the program and the tactics to be employed to
1832-achieve the goals of its voluntary supplier diversity
1833-
1834-
1835-program.
1836-(4) The voluntary goals for the calendar year for
1837-which the report is made in each category for the entire
1838-budget of the company and the commodity codes or a
1839-description of particular goods and services for the area
1840-of procurement in which the company expects most of those
1841-goals to focus on in that year.
1842-Each company is required to submit a searchable report, in
1843-Portable Document Format (PDF), to the Department on or before
1844-April 1, 2024 and on or before April 1 every year thereafter.
1845-(b) For each report submitted under subsection (a), the
1846-Department shall publish the results on its Internet website
1847-for 5 years after submission. The Department is not
1848-responsible for collecting the reports or for the content of
1849-the reports.
1850-(c) The Department shall hold an annual insurance company
1851-supplier diversity workshop in July of 2024 and every July
1852-thereafter to discuss the reports with representatives of the
1853-companies and vendors.
1854-(d) The Department shall prepare a one-page template, not
1855-including the narrative section, for the voluntary supplier
1856-diversity reports.
1857-(e) The Department may adopt such rules as it deems
1858-necessary to implement this Section.
1859-(215 ILCS 5/370c) (from Ch. 73, par. 982c)
1860-
1861-
1862-Sec. 370c. Mental and emotional disorders.
1863-(a)(1) On and after January 1, 2022 (the effective date of
1864-Public Act 102-579), every insurer that amends, delivers,
1865-issues, or renews group accident and health policies providing
1866-coverage for hospital or medical treatment or services for
1867-illness on an expense-incurred basis shall provide coverage
1868-for the medically necessary treatment of mental, emotional,
1869-nervous, or substance use disorders or conditions consistent
1870-with the parity requirements of Section 370c.1 of this Code.
1871-(2) Each insured that is covered for mental, emotional,
1872-nervous, or substance use disorders or conditions shall be
1873-free to select the physician licensed to practice medicine in
1874-all its branches, licensed clinical psychologist, licensed
1875-clinical social worker, licensed clinical professional
1876-counselor, licensed marriage and family therapist, licensed
1877-speech-language pathologist, or other licensed or certified
1878-professional at a program licensed pursuant to the Substance
1879-Use Disorder Act of his or her choice to treat such disorders,
1880-and the insurer shall pay the covered charges of such
1881-physician licensed to practice medicine in all its branches,
1882-licensed clinical psychologist, licensed clinical social
1883-worker, licensed clinical professional counselor, licensed
1884-marriage and family therapist, licensed speech-language
1885-pathologist, or other licensed or certified professional at a
1886-program licensed pursuant to the Substance Use Disorder Act up
1887-to the limits of coverage, provided (i) the disorder or
1888-
1889-
1890-condition treated is covered by the policy, and (ii) the
1891-physician, licensed psychologist, licensed clinical social
1892-worker, licensed clinical professional counselor, licensed
1893-marriage and family therapist, licensed speech-language
1894-pathologist, or other licensed or certified professional at a
1895-program licensed pursuant to the Substance Use Disorder Act is
1896-authorized to provide said services under the statutes of this
1897-State and in accordance with accepted principles of his or her
1898-profession.
1899-(3) Insofar as this Section applies solely to licensed
1900-clinical social workers, licensed clinical professional
1901-counselors, licensed marriage and family therapists, licensed
1902-speech-language pathologists, and other licensed or certified
1903-professionals at programs licensed pursuant to the Substance
1904-Use Disorder Act, those persons who may provide services to
1905-individuals shall do so after the licensed clinical social
1906-worker, licensed clinical professional counselor, licensed
1907-marriage and family therapist, licensed speech-language
1908-pathologist, or other licensed or certified professional at a
1909-program licensed pursuant to the Substance Use Disorder Act
1910-has informed the patient of the desirability of the patient
1911-conferring with the patient's primary care physician.
1912-(4) "Mental, emotional, nervous, or substance use disorder
1913-or condition" means a condition or disorder that involves a
1914-mental health condition or substance use disorder that falls
1915-under any of the diagnostic categories listed in the mental
1916-
1917-
1918-and behavioral disorders chapter of the current edition of the
1919-World Health Organization's International Classification of
1920-Disease or that is listed in the most recent version of the
1921-American Psychiatric Association's Diagnostic and Statistical
1922-Manual of Mental Disorders. "Mental, emotional, nervous, or
1923-substance use disorder or condition" includes any mental
1924-health condition that occurs during pregnancy or during the
1925-postpartum period and includes, but is not limited to,
1926-postpartum depression.
1927-(5) Medically necessary treatment and medical necessity
1928-determinations shall be interpreted and made in a manner that
1929-is consistent with and pursuant to subsections (h) through
1930-(t).
1931-(b)(1) (Blank).
1932-(2) (Blank).
1933-(2.5) (Blank).
1934-(3) Unless otherwise prohibited by federal law and
1935-consistent with the parity requirements of Section 370c.1 of
1936-this Code, the reimbursing insurer that amends, delivers,
1937-issues, or renews a group or individual policy of accident and
1938-health insurance, a qualified health plan offered through the
1939-health insurance marketplace, or a provider of treatment of
1940-mental, emotional, nervous, or substance use disorders or
1941-conditions shall furnish medical records or other necessary
1942-data that substantiate that initial or continued treatment is
1943-at all times medically necessary. An insurer shall provide a
1944-
1945-
1946-mechanism for the timely review by a provider holding the same
1947-license and practicing in the same specialty as the patient's
1948-provider, who is unaffiliated with the insurer, jointly
1949-selected by the patient (or the patient's next of kin or legal
1950-representative if the patient is unable to act for himself or
1951-herself), the patient's provider, and the insurer in the event
1952-of a dispute between the insurer and patient's provider
1953-regarding the medical necessity of a treatment proposed by a
1954-patient's provider. If the reviewing provider determines the
1955-treatment to be medically necessary, the insurer shall provide
1956-reimbursement for the treatment. Future contractual or
1957-employment actions by the insurer regarding the patient's
1958-provider may not be based on the provider's participation in
1959-this procedure. Nothing prevents the insured from agreeing in
1960-writing to continue treatment at his or her expense. When
1961-making a determination of the medical necessity for a
1962-treatment modality for mental, emotional, nervous, or
1963-substance use disorders or conditions, an insurer must make
1964-the determination in a manner that is consistent with the
1965-manner used to make that determination with respect to other
1966-diseases or illnesses covered under the policy, including an
1967-appeals process. Medical necessity determinations for
1968-substance use disorders shall be made in accordance with
1969-appropriate patient placement criteria established by the
1970-American Society of Addiction Medicine. No additional criteria
1971-may be used to make medical necessity determinations for
1972-
1973-
1974-substance use disorders.
1975-(4) A group health benefit plan amended, delivered,
1976-issued, or renewed on or after January 1, 2019 (the effective
1977-date of Public Act 100-1024) or an individual policy of
1978-accident and health insurance or a qualified health plan
1979-offered through the health insurance marketplace amended,
1980-delivered, issued, or renewed on or after January 1, 2019 (the
1981-effective date of Public Act 100-1024):
1982-(A) shall provide coverage based upon medical
1983-necessity for the treatment of a mental, emotional,
1984-nervous, or substance use disorder or condition consistent
1985-with the parity requirements of Section 370c.1 of this
1986-Code; provided, however, that in each calendar year
1987-coverage shall not be less than the following:
1988-(i) 45 days of inpatient treatment; and
1989-(ii) beginning on June 26, 2006 (the effective
1990-date of Public Act 94-921), 60 visits for outpatient
1991-treatment including group and individual outpatient
1992-treatment; and
1993-(iii) for plans or policies delivered, issued for
1994-delivery, renewed, or modified after January 1, 2007
1995-(the effective date of Public Act 94-906), 20
1996-additional outpatient visits for speech therapy for
1997-treatment of pervasive developmental disorders that
1998-will be in addition to speech therapy provided
1999-pursuant to item (ii) of this subparagraph (A); and
2000-
2001-
2002-(B) may not include a lifetime limit on the number of
2003-days of inpatient treatment or the number of outpatient
2004-visits covered under the plan.
2005-(C) (Blank).
2006-(5) An issuer of a group health benefit plan or an
2007-individual policy of accident and health insurance or a
2008-qualified health plan offered through the health insurance
2009-marketplace may not count toward the number of outpatient
2010-visits required to be covered under this Section an outpatient
2011-visit for the purpose of medication management and shall cover
2012-the outpatient visits under the same terms and conditions as
2013-it covers outpatient visits for the treatment of physical
2014-illness.
2015-(5.5) An individual or group health benefit plan amended,
2016-delivered, issued, or renewed on or after September 9, 2015
2017-(the effective date of Public Act 99-480) shall offer coverage
2018-for medically necessary acute treatment services and medically
2019-necessary clinical stabilization services. The treating
2020-provider shall base all treatment recommendations and the
2021-health benefit plan shall base all medical necessity
2022-determinations for substance use disorders in accordance with
2023-the most current edition of the Treatment Criteria for
2024-Addictive, Substance-Related, and Co-Occurring Conditions
2025-established by the American Society of Addiction Medicine. The
2026-treating provider shall base all treatment recommendations and
2027-the health benefit plan shall base all medical necessity
2028-
2029-
2030-determinations for medication-assisted treatment in accordance
2031-with the most current Treatment Criteria for Addictive,
2032-Substance-Related, and Co-Occurring Conditions established by
2033-the American Society of Addiction Medicine.
2034-As used in this subsection:
2035-"Acute treatment services" means 24-hour medically
2036-supervised addiction treatment that provides evaluation and
2037-withdrawal management and may include biopsychosocial
2038-assessment, individual and group counseling, psychoeducational
2039-groups, and discharge planning.
2040-"Clinical stabilization services" means 24-hour treatment,
2041-usually following acute treatment services for substance
2042-abuse, which may include intensive education and counseling
2043-regarding the nature of addiction and its consequences,
2044-relapse prevention, outreach to families and significant
2045-others, and aftercare planning for individuals beginning to
2046-engage in recovery from addiction.
2047-(6) An issuer of a group health benefit plan may provide or
2048-offer coverage required under this Section through a managed
2049-care plan.
2050-(6.5) An individual or group health benefit plan amended,
2051-delivered, issued, or renewed on or after January 1, 2019 (the
2052-effective date of Public Act 100-1024):
2053-(A) shall not impose prior authorization requirements,
2054-other than those established under the Treatment Criteria
2055-for Addictive, Substance-Related, and Co-Occurring
2056-
2057-
2058-Conditions established by the American Society of
2059-Addiction Medicine, on a prescription medication approved
2060-by the United States Food and Drug Administration that is
2061-prescribed or administered for the treatment of substance
2062-use disorders;
2063-(B) shall not impose any step therapy requirements,
2064-other than those established under the Treatment Criteria
2065-for Addictive, Substance-Related, and Co-Occurring
2066-Conditions established by the American Society of
2067-Addiction Medicine, before authorizing coverage for a
2068-prescription medication approved by the United States Food
2069-and Drug Administration that is prescribed or administered
2070-for the treatment of substance use disorders;
2071-(C) shall place all prescription medications approved
2072-by the United States Food and Drug Administration
2073-prescribed or administered for the treatment of substance
2074-use disorders on, for brand medications, the lowest tier
2075-of the drug formulary developed and maintained by the
2076-individual or group health benefit plan that covers brand
2077-medications and, for generic medications, the lowest tier
2078-of the drug formulary developed and maintained by the
2079-individual or group health benefit plan that covers
2080-generic medications; and
2081-(D) shall not exclude coverage for a prescription
2082-medication approved by the United States Food and Drug
2083-Administration for the treatment of substance use
2084-
2085-
2086-disorders and any associated counseling or wraparound
2087-services on the grounds that such medications and services
2088-were court ordered.
2089-(7) (Blank).
2090-(8) (Blank).
2091-(9) With respect to all mental, emotional, nervous, or
2092-substance use disorders or conditions, coverage for inpatient
2093-treatment shall include coverage for treatment in a
2094-residential treatment center certified or licensed by the
2095-Department of Public Health or the Department of Human
2096-Services.
2097-(c) This Section shall not be interpreted to require
2098-coverage for speech therapy or other habilitative services for
2099-those individuals covered under Section 356z.15 of this Code.
2100-(d) With respect to a group or individual policy of
2101-accident and health insurance or a qualified health plan
2102-offered through the health insurance marketplace, the
2103-Department and, with respect to medical assistance, the
2104-Department of Healthcare and Family Services shall each
2105-enforce the requirements of this Section and Sections 356z.23
2106-and 370c.1 of this Code, the Paul Wellstone and Pete Domenici
2107-Mental Health Parity and Addiction Equity Act of 2008, 42
2108-U.S.C. 18031(j), and any amendments to, and federal guidance
2109-or regulations issued under, those Acts, including, but not
2110-limited to, final regulations issued under the Paul Wellstone
2111-and Pete Domenici Mental Health Parity and Addiction Equity
2112-
2113-
2114-Act of 2008 and final regulations applying the Paul Wellstone
2115-and Pete Domenici Mental Health Parity and Addiction Equity
2116-Act of 2008 to Medicaid managed care organizations, the
2117-Children's Health Insurance Program, and alternative benefit
2118-plans. Specifically, the Department and the Department of
2119-Healthcare and Family Services shall take action:
2120-(1) proactively ensuring compliance by individual and
2121-group policies, including by requiring that insurers
2122-submit comparative analyses, as set forth in paragraph (6)
2123-of subsection (k) of Section 370c.1, demonstrating how
2124-they design and apply nonquantitative treatment
2125-limitations, both as written and in operation, for mental,
2126-emotional, nervous, or substance use disorder or condition
2127-benefits as compared to how they design and apply
2128-nonquantitative treatment limitations, as written and in
2129-operation, for medical and surgical benefits;
2130-(2) evaluating all consumer or provider complaints
2131-regarding mental, emotional, nervous, or substance use
2132-disorder or condition coverage for possible parity
2133-violations;
2134-(3) performing parity compliance market conduct
2135-examinations or, in the case of the Department of
2136-Healthcare and Family Services, parity compliance audits
2137-of individual and group plans and policies, including, but
2138-not limited to, reviews of:
2139-(A) nonquantitative treatment limitations,
2140-
2141-
2142-including, but not limited to, prior authorization
2143-requirements, concurrent review, retrospective review,
2144-step therapy, network admission standards,
2145-reimbursement rates, and geographic restrictions;
2146-(B) denials of authorization, payment, and
2147-coverage; and
2148-(C) other specific criteria as may be determined
2149-by the Department.
2150-The findings and the conclusions of the parity compliance
2151-market conduct examinations and audits shall be made public.
2152-The Director may adopt rules to effectuate any provisions
2153-of the Paul Wellstone and Pete Domenici Mental Health Parity
2154-and Addiction Equity Act of 2008 that relate to the business of
2155-insurance.
2156-(e) Availability of plan information.
2157-(1) The criteria for medical necessity determinations
2158-made under a group health plan, an individual policy of
2159-accident and health insurance, or a qualified health plan
2160-offered through the health insurance marketplace with
2161-respect to mental health or substance use disorder
2162-benefits (or health insurance coverage offered in
2163-connection with the plan with respect to such benefits)
2164-must be made available by the plan administrator (or the
2165-health insurance issuer offering such coverage) to any
2166-current or potential participant, beneficiary, or
2167-contracting provider upon request.
2168-
2169-
2170-(2) The reason for any denial under a group health
2171-benefit plan, an individual policy of accident and health
2172-insurance, or a qualified health plan offered through the
2173-health insurance marketplace (or health insurance coverage
2174-offered in connection with such plan or policy) of
2175-reimbursement or payment for services with respect to
2176-mental, emotional, nervous, or substance use disorders or
2177-conditions benefits in the case of any participant or
2178-beneficiary must be made available within a reasonable
2179-time and in a reasonable manner and in readily
2180-understandable language by the plan administrator (or the
2181-health insurance issuer offering such coverage) to the
2182-participant or beneficiary upon request.
2183-(f) As used in this Section, "group policy of accident and
2184-health insurance" and "group health benefit plan" includes (1)
2185-State-regulated employer-sponsored group health insurance
2186-plans written in Illinois or which purport to provide coverage
2187-for a resident of this State; and (2) State employee health
2188-plans.
2189-(g) (1) As used in this subsection:
2190-"Benefits", with respect to insurers, means the benefits
2191-provided for treatment services for inpatient and outpatient
2192-treatment of substance use disorders or conditions at American
2193-Society of Addiction Medicine levels of treatment 2.1
2194-(Intensive Outpatient), 2.5 (Partial Hospitalization), 3.1
2195-(Clinically Managed Low-Intensity Residential), 3.3
2196-
2197-
2198-(Clinically Managed Population-Specific High-Intensity
2199-Residential), 3.5 (Clinically Managed High-Intensity
2200-Residential), and 3.7 (Medically Monitored Intensive
2201-Inpatient) and OMT (Opioid Maintenance Therapy) services.
2202-"Benefits", with respect to managed care organizations,
2203-means the benefits provided for treatment services for
2204-inpatient and outpatient treatment of substance use disorders
2205-or conditions at American Society of Addiction Medicine levels
2206-of treatment 2.1 (Intensive Outpatient), 2.5 (Partial
2207-Hospitalization), 3.5 (Clinically Managed High-Intensity
2208-Residential), and 3.7 (Medically Monitored Intensive
2209-Inpatient) and OMT (Opioid Maintenance Therapy) services.
2210-"Substance use disorder treatment provider or facility"
2211-means a licensed physician, licensed psychologist, licensed
2212-psychiatrist, licensed advanced practice registered nurse, or
2213-licensed, certified, or otherwise State-approved facility or
2214-provider of substance use disorder treatment.
2215-(2) A group health insurance policy, an individual health
2216-benefit plan, or qualified health plan that is offered through
2217-the health insurance marketplace, small employer group health
2218-plan, and large employer group health plan that is amended,
2219-delivered, issued, executed, or renewed in this State, or
2220-approved for issuance or renewal in this State, on or after
2221-January 1, 2019 (the effective date of Public Act 100-1023)
2222-shall comply with the requirements of this Section and Section
2223-370c.1. The services for the treatment and the ongoing
2224-
2225-
2226-assessment of the patient's progress in treatment shall follow
2227-the requirements of 77 Ill. Adm. Code 2060.
2228-(3) Prior authorization shall not be utilized for the
2229-benefits under this subsection. The substance use disorder
2230-treatment provider or facility shall notify the insurer of the
2231-initiation of treatment. For an insurer that is not a managed
2232-care organization, the substance use disorder treatment
2233-provider or facility notification shall occur for the
2234-initiation of treatment of the covered person within 2
2235-business days. For managed care organizations, the substance
2236-use disorder treatment provider or facility notification shall
2237-occur in accordance with the protocol set forth in the
2238-provider agreement for initiation of treatment within 24
2239-hours. If the managed care organization is not capable of
2240-accepting the notification in accordance with the contractual
2241-protocol during the 24-hour period following admission, the
2242-substance use disorder treatment provider or facility shall
2243-have one additional business day to provide the notification
2244-to the appropriate managed care organization. Treatment plans
2245-shall be developed in accordance with the requirements and
2246-timeframes established in 77 Ill. Adm. Code 2060. If the
2247-substance use disorder treatment provider or facility fails to
2248-notify the insurer of the initiation of treatment in
2249-accordance with these provisions, the insurer may follow its
2250-normal prior authorization processes.
2251-(4) For an insurer that is not a managed care
2252-
2253-
2254-organization, if an insurer determines that benefits are no
2255-longer medically necessary, the insurer shall notify the
2256-covered person, the covered person's authorized
2257-representative, if any, and the covered person's health care
2258-provider in writing of the covered person's right to request
2259-an external review pursuant to the Health Carrier External
2260-Review Act. The notification shall occur within 24 hours
2261-following the adverse determination.
2262-Pursuant to the requirements of the Health Carrier
2263-External Review Act, the covered person or the covered
2264-person's authorized representative may request an expedited
2265-external review. An expedited external review may not occur if
2266-the substance use disorder treatment provider or facility
2267-determines that continued treatment is no longer medically
2268-necessary. Under this subsection, a request for expedited
2269-external review must be initiated within 24 hours following
2270-the adverse determination notification by the insurer. Failure
2271-to request an expedited external review within 24 hours shall
2272-preclude a covered person or a covered person's authorized
2273-representative from requesting an expedited external review.
2274-If an expedited external review request meets the criteria
2275-of the Health Carrier External Review Act, an independent
2276-review organization shall make a final determination of
2277-medical necessity within 72 hours. If an independent review
2278-organization upholds an adverse determination, an insurer
2279-shall remain responsible to provide coverage of benefits
2280-
2281-
2282-through the day following the determination of the independent
2283-review organization. A decision to reverse an adverse
2284-determination shall comply with the Health Carrier External
2285-Review Act.
2286-(5) The substance use disorder treatment provider or
2287-facility shall provide the insurer with 7 business days'
2288-advance notice of the planned discharge of the patient from
2289-the substance use disorder treatment provider or facility and
2290-notice on the day that the patient is discharged from the
2291-substance use disorder treatment provider or facility.
2292-(6) The benefits required by this subsection shall be
2293-provided to all covered persons with a diagnosis of substance
2294-use disorder or conditions. The presence of additional related
2295-or unrelated diagnoses shall not be a basis to reduce or deny
2296-the benefits required by this subsection.
2297-(7) Nothing in this subsection shall be construed to
2298-require an insurer to provide coverage for any of the benefits
2299-in this subsection.
2300-(h) As used in this Section:
2301-"Generally accepted standards of mental, emotional,
2302-nervous, or substance use disorder or condition care" means
2303-standards of care and clinical practice that are generally
2304-recognized by health care providers practicing in relevant
2305-clinical specialties such as psychiatry, psychology, clinical
2306-sociology, social work, addiction medicine and counseling, and
2307-behavioral health treatment. Valid, evidence-based sources
2308-
2309-
2310-reflecting generally accepted standards of mental, emotional,
2311-nervous, or substance use disorder or condition care include
2312-peer-reviewed scientific studies and medical literature,
2313-recommendations of nonprofit health care provider professional
2314-associations and specialty societies, including, but not
2315-limited to, patient placement criteria and clinical practice
2316-guidelines, recommendations of federal government agencies,
2317-and drug labeling approved by the United States Food and Drug
2318-Administration.
2319-"Medically necessary treatment of mental, emotional,
2320-nervous, or substance use disorders or conditions" means a
2321-service or product addressing the specific needs of that
2322-patient, for the purpose of screening, preventing, diagnosing,
2323-managing, or treating an illness, injury, or condition or its
2324-symptoms and comorbidities, including minimizing the
2325-progression of an illness, injury, or condition or its
2326-symptoms and comorbidities in a manner that is all of the
2327-following:
2328-(1) in accordance with the generally accepted
2329-standards of mental, emotional, nervous, or substance use
2330-disorder or condition care;
2331-(2) clinically appropriate in terms of type,
2332-frequency, extent, site, and duration; and
2333-(3) not primarily for the economic benefit of the
2334-insurer, purchaser, or for the convenience of the patient,
2335-treating physician, or other health care provider.
2336-
2337-
2338-"Utilization review" means either of the following:
2339-(1) prospectively, retrospectively, or concurrently
2340-reviewing and approving, modifying, delaying, or denying,
2341-based in whole or in part on medical necessity, requests
2342-by health care providers, insureds, or their authorized
2343-representatives for coverage of health care services
2344-before, retrospectively, or concurrently with the
2345-provision of health care services to insureds.
2346-(2) evaluating the medical necessity, appropriateness,
2347-level of care, service intensity, efficacy, or efficiency
2348-of health care services, benefits, procedures, or
2349-settings, under any circumstances, to determine whether a
2350-health care service or benefit subject to a medical
2351-necessity coverage requirement in an insurance policy is
2352-covered as medically necessary for an insured.
2353-"Utilization review criteria" means patient placement
2354-criteria or any criteria, standards, protocols, or guidelines
2355-used by an insurer to conduct utilization review.
2356-(i)(1) Every insurer that amends, delivers, issues, or
2357-renews a group or individual policy of accident and health
2358-insurance or a qualified health plan offered through the
2359-health insurance marketplace in this State and Medicaid
2360-managed care organizations providing coverage for hospital or
2361-medical treatment on or after January 1, 2023 shall, pursuant
2362-to subsections (h) through (s), provide coverage for medically
2363-necessary treatment of mental, emotional, nervous, or
2364-
2365-
2366-substance use disorders or conditions.
2367-(2) An insurer shall not set a specific limit on the
2368-duration of benefits or coverage of medically necessary
2369-treatment of mental, emotional, nervous, or substance use
2370-disorders or conditions or limit coverage only to alleviation
2371-of the insured's current symptoms.
2372-(3) All medical necessity determinations made by the
2373-insurer concerning service intensity, level of care placement,
2374-continued stay, and transfer or discharge of insureds
2375-diagnosed with mental, emotional, nervous, or substance use
2376-disorders or conditions shall be conducted in accordance with
2377-the requirements of subsections (k) through (u).
2378-(4) An insurer that authorizes a specific type of
2379-treatment by a provider pursuant to this Section shall not
2380-rescind or modify the authorization after that provider
2381-renders the health care service in good faith and pursuant to
2382-this authorization for any reason, including, but not limited
2383-to, the insurer's subsequent cancellation or modification of
2384-the insured's or policyholder's contract, or the insured's or
2385-policyholder's eligibility. Nothing in this Section shall
2386-require the insurer to cover a treatment when the
2387-authorization was granted based on a material
2388-misrepresentation by the insured, the policyholder, or the
2389-provider. Nothing in this Section shall require Medicaid
2390-managed care organizations to pay for services if the
2391-individual was not eligible for Medicaid at the time the
2392-
2393-
2394-service was rendered. Nothing in this Section shall require an
2395-insurer to pay for services if the individual was not the
2396-insurer's enrollee at the time services were rendered. As used
2397-in this paragraph, "material" means a fact or situation that
2398-is not merely technical in nature and results in or could
2399-result in a substantial change in the situation.
2400-(j) An insurer shall not limit benefits or coverage for
2401-medically necessary services on the basis that those services
2402-should be or could be covered by a public entitlement program,
2403-including, but not limited to, special education or an
2404-individualized education program, Medicaid, Medicare,
2405-Supplemental Security Income, or Social Security Disability
2406-Insurance, and shall not include or enforce a contract term
2407-that excludes otherwise covered benefits on the basis that
2408-those services should be or could be covered by a public
2409-entitlement program. Nothing in this subsection shall be
2410-construed to require an insurer to cover benefits that have
2411-been authorized and provided for a covered person by a public
2412-entitlement program. Medicaid managed care organizations are
2413-not subject to this subsection.
2414-(k) An insurer shall base any medical necessity
2415-determination or the utilization review criteria that the
2416-insurer, and any entity acting on the insurer's behalf,
2417-applies to determine the medical necessity of health care
2418-services and benefits for the diagnosis, prevention, and
2419-treatment of mental, emotional, nervous, or substance use
2420-
2421-
2422-disorders or conditions on current generally accepted
2423-standards of mental, emotional, nervous, or substance use
2424-disorder or condition care. All denials and appeals shall be
2425-reviewed by a professional with experience or expertise
2426-comparable to the provider requesting the authorization.
2427-(l) For medical necessity determinations relating to level
2428-of care placement, continued stay, and transfer or discharge
2429-of insureds diagnosed with mental, emotional, and nervous
2430-disorders or conditions, an insurer shall apply the patient
2431-placement criteria set forth in the most recent version of the
2432-treatment criteria developed by an unaffiliated nonprofit
2433-professional association for the relevant clinical specialty
2434-or, for Medicaid managed care organizations, patient placement
2435-criteria determined by the Department of Healthcare and Family
2436-Services that are consistent with generally accepted standards
2437-of mental, emotional, nervous or substance use disorder or
2438-condition care. Pursuant to subsection (b), in conducting
2439-utilization review of all covered services and benefits for
2440-the diagnosis, prevention, and treatment of substance use
2441-disorders an insurer shall use the most recent edition of the
2442-patient placement criteria established by the American Society
2443-of Addiction Medicine.
2444-(m) For medical necessity determinations relating to level
2445-of care placement, continued stay, and transfer or discharge
2446-that are within the scope of the sources specified in
2447-subsection (l), an insurer shall not apply different,
2448-
2449-
2450-additional, conflicting, or more restrictive utilization
2451-review criteria than the criteria set forth in those sources.
2452-For all level of care placement decisions, the insurer shall
2453-authorize placement at the level of care consistent with the
2454-assessment of the insured using the relevant patient placement
2455-criteria as specified in subsection (l). If that level of
2456-placement is not available, the insurer shall authorize the
2457-next higher level of care. In the event of disagreement, the
2458-insurer shall provide full detail of its assessment using the
2459-relevant criteria as specified in subsection (l) to the
2460-provider of the service and the patient.
2461-Nothing in this subsection or subsection (l) prohibits an
2462-insurer from applying utilization review criteria that were
2463-developed in accordance with subsection (k) to health care
2464-services and benefits for mental, emotional, and nervous
2465-disorders or conditions that are not related to medical
2466-necessity determinations for level of care placement,
2467-continued stay, and transfer or discharge. If an insurer
2468-purchases or licenses utilization review criteria pursuant to
2469-this subsection, the insurer shall verify and document before
2470-use that the criteria were developed in accordance with
2471-subsection (k).
2472-(n) In conducting utilization review that is outside the
2473-scope of the criteria as specified in subsection (l) or
2474-relates to the advancements in technology or in the types or
2475-levels of care that are not addressed in the most recent
2476-
2477-
2478-versions of the sources specified in subsection (l), an
2479-insurer shall conduct utilization review in accordance with
2480-subsection (k).
2481-(o) This Section does not in any way limit the rights of a
2482-patient under the Medical Patient Rights Act.
2483-(p) This Section does not in any way limit early and
2484-periodic screening, diagnostic, and treatment benefits as
2485-defined under 42 U.S.C. 1396d(r).
2486-(q) To ensure the proper use of the criteria described in
2487-subsection (l), every insurer shall do all of the following:
2488-(1) Educate the insurer's staff, including any third
2489-parties contracted with the insurer to review claims,
2490-conduct utilization reviews, or make medical necessity
2491-determinations about the utilization review criteria.
2492-(2) Make the educational program available to other
2493-stakeholders, including the insurer's participating or
2494-contracted providers and potential participants,
2495-beneficiaries, or covered lives. The education program
2496-must be provided at least once a year, in-person or
2497-digitally, or recordings of the education program must be
2498-made available to the aforementioned stakeholders.
2499-(3) Provide, at no cost, the utilization review
2500-criteria and any training material or resources to
2501-providers and insured patients upon request. For
2502-utilization review criteria not concerning level of care
2503-placement, continued stay, and transfer or discharge used
2504-
2505-
2506-by the insurer pursuant to subsection (m), the insurer may
2507-place the criteria on a secure, password-protected website
2508-so long as the access requirements of the website do not
2509-unreasonably restrict access to insureds or their
2510-providers. No restrictions shall be placed upon the
2511-insured's or treating provider's access right to
2512-utilization review criteria obtained under this paragraph
2513-at any point in time, including before an initial request
2514-for authorization.
2515-(4) Track, identify, and analyze how the utilization
2516-review criteria are used to certify care, deny care, and
2517-support the appeals process.
2518-(5) Conduct interrater reliability testing to ensure
2519-consistency in utilization review decision making that
2520-covers how medical necessity decisions are made; this
2521-assessment shall cover all aspects of utilization review
2522-as defined in subsection (h).
2523-(6) Run interrater reliability reports about how the
2524-clinical guidelines are used in conjunction with the
2525-utilization review process and parity compliance
2526-activities.
2527-(7) Achieve interrater reliability pass rates of at
2528-least 90% and, if this threshold is not met, immediately
2529-provide for the remediation of poor interrater reliability
2530-and interrater reliability testing for all new staff
2531-before they can conduct utilization review without
2532-
2533-
2534-supervision.
2535-(8) Maintain documentation of interrater reliability
2536-testing and the remediation actions taken for those with
2537-pass rates lower than 90% and submit to the Department of
2538-Insurance or, in the case of Medicaid managed care
2539-organizations, the Department of Healthcare and Family
2540-Services the testing results and a summary of remedial
2541-actions as part of parity compliance reporting set forth
2542-in subsection (k) of Section 370c.1.
2543-(r) This Section applies to all health care services and
2544-benefits for the diagnosis, prevention, and treatment of
2545-mental, emotional, nervous, or substance use disorders or
2546-conditions covered by an insurance policy, including
2547-prescription drugs.
2548-(s) This Section applies to an insurer that amends,
2549-delivers, issues, or renews a group or individual policy of
2550-accident and health insurance or a qualified health plan
2551-offered through the health insurance marketplace in this State
2552-providing coverage for hospital or medical treatment and
2553-conducts utilization review as defined in this Section,
2554-including Medicaid managed care organizations, and any entity
2555-or contracting provider that performs utilization review or
2556-utilization management functions on an insurer's behalf.
2557-(t) If the Director determines that an insurer has
2558-violated this Section, the Director may, after appropriate
2559-notice and opportunity for hearing, by order, assess a civil
2560-
2561-
2562-penalty between $1,000 and $5,000 for each violation. Moneys
2563-collected from penalties shall be deposited into the Parity
2564-Advancement Fund established in subsection (i) of Section
2565-370c.1.
2566-(u) An insurer shall not adopt, impose, or enforce terms
2567-in its policies or provider agreements, in writing or in
2568-operation, that undermine, alter, or conflict with the
2569-requirements of this Section.
2570-(v) The provisions of this Section are severable. If any
2571-provision of this Section or its application is held invalid,
2572-that invalidity shall not affect other provisions or
2573-applications that can be given effect without the invalid
2574-provision or application.
2575-(Source: P.A. 101-81, eff. 7-12-19; 101-386, eff. 8-16-19;
2576-102-558, eff. 8-20-21; 102-579, eff. 1-1-22; 102-813, eff.
2577-5-13-22.)
2578-(215 ILCS 5/412) (from Ch. 73, par. 1024)
2579-Sec. 412. Refunds; penalties; collection.
2580-(1)(a) Whenever it appears to the satisfaction of the
2581-Director that because of some mistake of fact, error in
2582-calculation, or erroneous interpretation of a statute of this
2583-or any other state, any authorized company, surplus line
2584-producer, or industrial insured has paid to him, pursuant to
2585-any provision of law, taxes, fees, or other charges in excess
2586-of the amount legally chargeable against it, during the 6 year
2587-
2588-
2589-period immediately preceding the discovery of such
2590-overpayment, he shall have power to refund to such company,
2591-surplus line producer, or industrial insured the amount of the
2592-excess or excesses by applying the amount or amounts thereof
2593-toward the payment of taxes, fees, or other charges already
2594-due, or which may thereafter become due from that company
2595-until such excess or excesses have been fully refunded, or
2596-upon a written request from the authorized company, surplus
2597-line producer, or industrial insured, the Director shall
2598-provide a cash refund within 120 days after receipt of the
2599-written request if all necessary information has been filed
2600-with the Department in order for it to perform an audit of the
2601-tax report for the transaction or period or annual return for
2602-the year in which the overpayment occurred or within 120 days
2603-after the date the Department receives all the necessary
2604-information to perform such audit. The Director shall not
2605-provide a cash refund if there are insufficient funds in the
2606-Insurance Premium Tax Refund Fund to provide a cash refund, if
2607-the amount of the overpayment is less than $100, or if the
2608-amount of the overpayment can be fully offset against the
2609-taxpayer's estimated liability for the year following the year
2610-of the cash refund request. Any cash refund shall be paid from
2611-the Insurance Premium Tax Refund Fund, a special fund hereby
2612-created in the State treasury.
2613-(b) As determined by the Director pursuant to paragraph
2614-(a) of this subsection, the Department shall deposit an amount
2615-
2616-
2617-of cash refunds approved by the Director for payment as a
2618-result of overpayment of tax liability collected under
2619-Sections 121-2.08, 409, 444, 444.1, and 445 of this Code into
2620-the Insurance Premium Tax Refund Fund.
2621-(c) Beginning July 1, 1999, moneys in the Insurance
2622-Premium Tax Refund Fund shall be expended exclusively for the
2623-purpose of paying cash refunds resulting from overpayment of
2624-tax liability under Sections 121-2.08, 409, 444, 444.1, and
2625-445 of this Code as determined by the Director pursuant to
2626-subsection 1(a) of this Section. Cash refunds made in
2627-accordance with this Section may be made from the Insurance
2628-Premium Tax Refund Fund only to the extent that amounts have
2629-been deposited and retained in the Insurance Premium Tax
2630-Refund Fund.
2631-(d) This Section shall constitute an irrevocable and
2632-continuing appropriation from the Insurance Premium Tax Refund
2633-Fund for the purpose of paying cash refunds pursuant to the
2634-provisions of this Section.
2635-(2)(a) When any insurance company fails to file any tax
2636-return required under Sections 408.1, 409, 444, and 444.1 of
2637-this Code or Section 12 of the Fire Investigation Act on the
2638-date prescribed, including any extensions, there shall be
2639-added as a penalty $400 or 10% of the amount of such tax,
2640-whichever is greater, for each month or part of a month of
2641-failure to file, the entire penalty not to exceed $2,000 or 50%
2642-of the tax due, whichever is greater.
2643-
2644-
2645-(b) When any industrial insured or surplus line producer
2646-fails to file any tax return or report required under Sections
2647-121-2.08 and 445 of this Code or Section 12 of the Fire
2648-Investigation Act on the date prescribed, including any
2649-extensions, there shall be added:
2650-(i) as a late fee, if the return or report is received
2651-at least one day but not more than 15 7 days after the
2652-prescribed due date, $50 $400 or 5% 10% of the tax due,
2653-whichever is greater, the entire fee not to exceed $1,000;
2654-(ii) as a late fee, if the return or report is received
2655-at least 8 days but not more than 14 days after the
2656-prescribed due date, $400 or 10% of the tax due, whichever
2657-is greater, the entire fee not to exceed $1,500;
2658-(ii) (iii) as a late fee, if the return or report is
2659-received at least 16 15 days but not more than 30 21 days
2660-after the prescribed due date, $100 $400 or 5% 10% of the
2661-tax due, whichever is greater, the entire fee not to
2662-exceed $2,000; or
2663-(iii) (iv) as a penalty, if the return or report is
2664-received more than 30 21 days after the prescribed due
2665-date, $100 $400 or 5% 10% of the tax due, whichever is
2666-greater, for each month or part of a month of failure to
2667-file, the entire penalty not to exceed $500 $2,000 or 30%
2668-50% of the tax due, whichever is greater.
2669-A tax return or report shall be deemed received as of the
2670-date mailed as evidenced by a postmark, proof of mailing on a
2671-
2672-
2673-recognized United States Postal Service form or a form
2674-acceptable to the United States Postal Service or other
2675-commercial mail delivery service, or other evidence acceptable
2676-to the Director.
2677-(3)(a) When any insurance company fails to pay the full
2678-amount due under the provisions of this Section, Sections
2679-408.1, 409, 444, or 444.1 of this Code, or Section 12 of the
2680-Fire Investigation Act, there shall be added to the amount due
2681-as a penalty an amount equal to 10% of the deficiency.
2682-(a-5) When any industrial insured or surplus line producer
2683-fails to pay the full amount due under the provisions of this
2684-Section, Sections 121-2.08 or 445 of this Code, or Section 12
2685-of the Fire Investigation Act on the date prescribed, there
2686-shall be added:
2687-(i) as a late fee, if the payment is received at least
2688-one day but not more than 7 days after the prescribed due
2689-date, 10% of the tax due, the entire fee not to exceed
2690-$1,000;
2691-(ii) as a late fee, if the payment is received at least
2692-8 days but not more than 14 days after the prescribed due
2693-date, 10% of the tax due, the entire fee not to exceed
2694-$1,500;
2695-(iii) as a late fee, if the payment is received at
2696-least 15 days but not more than 21 days after the
2697-prescribed due date, 10% of the tax due, the entire fee not
2698-to exceed $2,000; or
2699-
2700-
2701-(iv) as a penalty, if the return or report is received
2702-more than 21 days after the prescribed due date, 10% of the
2703-tax due.
2704-A tax payment shall be deemed received as of the date
2705-mailed as evidenced by a postmark, proof of mailing on a
2706-recognized United States Postal Service form or a form
2707-acceptable to the United States Postal Service or other
2708-commercial mail delivery service, or other evidence acceptable
2709-to the Director.
2710-(b) If such failure to pay is determined by the Director to
2711-be wilful, after a hearing under Sections 402 and 403, there
2712-shall be added to the tax as a penalty an amount equal to the
2713-greater of 50% of the deficiency or 10% of the amount due and
2714-unpaid for each month or part of a month that the deficiency
2715-remains unpaid commencing with the date that the amount
2716-becomes due. Such amount shall be in lieu of any determined
2717-under paragraph (a) or (a-5).
2718-(4) Any insurance company, industrial insured, or surplus
2719-line producer that fails to pay the full amount due under this
2720-Section or Sections 121-2.08, 408.1, 409, 444, 444.1, or 445
2721-of this Code, or Section 12 of the Fire Investigation Act is
2722-liable, in addition to the tax and any late fees and penalties,
2723-for interest on such deficiency at the rate of 12% per annum,
2724-or at such higher adjusted rates as are or may be established
2725-under subsection (b) of Section 6621 of the Internal Revenue
2726-Code, from the date that payment of any such tax was due,
2727-
2728-
2729-determined without regard to any extensions, to the date of
2730-payment of such amount.
2731-(5) The Director, through the Attorney General, may
2732-institute an action in the name of the People of the State of
2733-Illinois, in any court of competent jurisdiction, for the
2734-recovery of the amount of such taxes, fees, and penalties due,
2735-and prosecute the same to final judgment, and take such steps
2736-as are necessary to collect the same.
2737-(6) In the event that the certificate of authority of a
2738-foreign or alien company is revoked for any cause or the
2739-company withdraws from this State prior to the renewal date of
2740-the certificate of authority as provided in Section 114, the
2741-company may recover the amount of any such tax paid in advance.
2742-Except as provided in this subsection, no revocation or
2743-withdrawal excuses payment of or constitutes grounds for the
2744-recovery of any taxes or penalties imposed by this Code.
2745-(7) When an insurance company or domestic affiliated group
2746-fails to pay the full amount of any fee of $200 or more due
2747-under Section 408 of this Code, there shall be added to the
2748-amount due as a penalty the greater of $100 or an amount equal
2749-to 10% of the deficiency for each month or part of a month that
2750-the deficiency remains unpaid.
2751-(8) The Department shall have a lien for the taxes, fees,
2752-charges, fines, penalties, interest, other charges, or any
2753-portion thereof, imposed or assessed pursuant to this Code,
2754-upon all the real and personal property of any company or
2755-
2756-
2757-person to whom the assessment or final order has been issued or
2758-whenever a tax return is filed without payment of the tax or
2759-penalty shown therein to be due, including all such property
2760-of the company or person acquired after receipt of the
2761-assessment, issuance of the order, or filing of the return.
2762-The company or person is liable for the filing fee incurred by
2763-the Department for filing the lien and the filing fee incurred
2764-by the Department to file the release of that lien. The filing
2765-fees shall be paid to the Department in addition to payment of
2766-the tax, fee, charge, fine, penalty, interest, other charges,
2767-or any portion thereof, included in the amount of the lien.
2768-However, where the lien arises because of the issuance of a
2769-final order of the Director or tax assessment by the
2770-Department, the lien shall not attach and the notice referred
2771-to in this Section shall not be filed until all administrative
2772-proceedings or proceedings in court for review of the final
2773-order or assessment have terminated or the time for the taking
2774-thereof has expired without such proceedings being instituted.
2775-Upon the granting of Department review after a lien has
2776-attached, the lien shall remain in full force except to the
2777-extent to which the final assessment may be reduced by a
2778-revised final assessment following the rehearing or review.
2779-The lien created by the issuance of a final assessment shall
2780-terminate, unless a notice of lien is filed, within 3 years
2781-after the date all proceedings in court for the review of the
2782-final assessment have terminated or the time for the taking
2783-
2784-
2785-thereof has expired without such proceedings being instituted,
2786-or (in the case of a revised final assessment issued pursuant
2787-to a rehearing or review by the Department) within 3 years
2788-after the date all proceedings in court for the review of such
2789-revised final assessment have terminated or the time for the
2790-taking thereof has expired without such proceedings being
2791-instituted. Where the lien results from the filing of a tax
2792-return without payment of the tax or penalty shown therein to
2793-be due, the lien shall terminate, unless a notice of lien is
2794-filed, within 3 years after the date when the return is filed
2795-with the Department.
2796-The time limitation period on the Department's right to
2797-file a notice of lien shall not run during any period of time
2798-in which the order of any court has the effect of enjoining or
2799-restraining the Department from filing such notice of lien. If
2800-the Department finds that a company or person is about to
2801-depart from the State, to conceal himself or his property, or
2802-to do any other act tending to prejudice or to render wholly or
2803-partly ineffectual proceedings to collect the amount due and
2804-owing to the Department unless such proceedings are brought
2805-without delay, or if the Department finds that the collection
2806-of the amount due from any company or person will be
2807-jeopardized by delay, the Department shall give the company or
2808-person notice of such findings and shall make demand for
2809-immediate return and payment of the amount, whereupon the
2810-amount shall become immediately due and payable. If the
2811-
2812-
2813-company or person, within 5 days after the notice (or within
2814-such extension of time as the Department may grant), does not
2815-comply with the notice or show to the Department that the
2816-findings in the notice are erroneous, the Department may file
2817-a notice of jeopardy assessment lien in the office of the
2818-recorder of the county in which any property of the company or
2819-person may be located and shall notify the company or person of
2820-the filing. The jeopardy assessment lien shall have the same
2821-scope and effect as the statutory lien provided for in this
2822-Section. If the company or person believes that the company or
2823-person does not owe some or all of the tax for which the
2824-jeopardy assessment lien against the company or person has
2825-been filed, or that no jeopardy to the revenue in fact exists,
2826-the company or person may protest within 20 days after being
2827-notified by the Department of the filing of the jeopardy
2828-assessment lien and request a hearing, whereupon the
2829-Department shall hold a hearing in conformity with the
2830-provisions of this Code and, pursuant thereto, shall notify
2831-the company or person of its findings as to whether or not the
2832-jeopardy assessment lien will be released. If not, and if the
2833-company or person is aggrieved by this decision, the company
2834-or person may file an action for judicial review of the final
2835-determination of the Department in accordance with the
2836-Administrative Review Law. If, pursuant to such hearing (or
2837-after an independent determination of the facts by the
2838-Department without a hearing), the Department determines that
2839-
2840-
2841-some or all of the amount due covered by the jeopardy
2842-assessment lien is not owed by the company or person, or that
2843-no jeopardy to the revenue exists, or if on judicial review the
2844-final judgment of the court is that the company or person does
2845-not owe some or all of the amount due covered by the jeopardy
2846-assessment lien against them, or that no jeopardy to the
2847-revenue exists, the Department shall release its jeopardy
2848-assessment lien to the extent of such finding of nonliability
2849-for the amount, or to the extent of such finding of no jeopardy
2850-to the revenue. The Department shall also release its jeopardy
2851-assessment lien against the company or person whenever the
2852-amount due and owing covered by the lien, plus any interest
2853-which may be due, are paid and the company or person has paid
2854-the Department in cash or by guaranteed remittance an amount
2855-representing the filing fee for the lien and the filing fee for
2856-the release of that lien. The Department shall file that
2857-release of lien with the recorder of the county where that lien
2858-was filed.
2859-Nothing in this Section shall be construed to give the
2860-Department a preference over the rights of any bona fide
2861-purchaser, holder of a security interest, mechanics
2862-lienholder, mortgagee, or judgment lien creditor arising prior
2863-to the filing of a regular notice of lien or a notice of
2864-jeopardy assessment lien in the office of the recorder in the
2865-county in which the property subject to the lien is located.
2866-For purposes of this Section, "bona fide" shall not include
2867-
2868-
2869-any mortgage of real or personal property or any other credit
2870-transaction that results in the mortgagee or the holder of the
2871-security acting as trustee for unsecured creditors of the
2872-company or person mentioned in the notice of lien who executed
2873-such chattel or real property mortgage or the document
2874-evidencing such credit transaction. The lien shall be inferior
2875-to the lien of general taxes, special assessments, and special
2876-taxes levied by any political subdivision of this State. In
2877-case title to land to be affected by the notice of lien or
2878-notice of jeopardy assessment lien is registered under the
2879-provisions of the Registered Titles (Torrens) Act, such notice
2880-shall be filed in the office of the Registrar of Titles of the
2881-county within which the property subject to the lien is
2882-situated and shall be entered upon the register of titles as a
2883-memorial or charge upon each folium of the register of titles
2884-affected by such notice, and the Department shall not have a
2885-preference over the rights of any bona fide purchaser,
2886-mortgagee, judgment creditor, or other lienholder arising
2887-prior to the registration of such notice. The regular lien or
2888-jeopardy assessment lien shall not be effective against any
2889-purchaser with respect to any item in a retailer's stock in
2890-trade purchased from the retailer in the usual course of the
2891-retailer's business.
2892-(Source: P.A. 102-775, eff. 5-13-22.)
2893-(215 ILCS 5/500-140)
2894-
2895-
2896-(Section scheduled to be repealed on January 1, 2027)
2897-Sec. 500-140. Injunctive relief. A person required to be
2898-licensed under this Article but failing to obtain a valid and
2899-current license under this Article constitutes a public
2900-nuisance. The Director may report the failure to obtain a
2901-license to the Attorney General, whose duty it is to apply
2902-forthwith by complaint on relation of the Director in the name
2903-of the people of the State of Illinois, for injunctive relief
2904-in the circuit court of the county where the failure to obtain
2905-a license occurred to enjoin that person from acting in any
2906-capacity that requires such a license failing to obtain a
2907-license. Upon the filing of a verified petition in the court,
2908-the court, if satisfied by affidavit or otherwise that the
2909-person is required to have a license and does not have a valid
2910-and current license, may enter a temporary restraining order
2911-without notice or bond, enjoining the defendant from acting in
2912-any capacity that requires such license. A copy of the
2913-verified complaint shall be served upon the defendant, and the
2914-proceedings shall thereafter be conducted as in other civil
2915-cases. If it is established that the defendant has been, or is
2916-engaged in any unlawful practice, the court may enter an order
2917-or judgment perpetually enjoining the defendant from further
2918-engaging in such practice. In all proceedings brought under
2919-this Section, the court, in its discretion, may apportion the
2920-costs among the parties, including the cost of filing the
2921-complaint, service of process, witness fees and expenses,
2922-
2923-
2924-court reporter charges, and reasonable attorney fees. In case
2925-of the violation of any injunctive order entered under the
2926-provisions of this Section, the court may summarily try and
2927-punish the offender for contempt of court. The injunctive
2928-relief available under this Section is in addition to and not
2929-in lieu of all other penalties and remedies provided in this
2930-Code.
2931-(Source: P.A. 92-386, eff. 1-1-02.)
2932-(215 ILCS 5/1204) (from Ch. 73, par. 1065.904)
2933-(Text of Section WITHOUT the changes made by P.A. 94-677,
2934-which has been held unconstitutional)
2935-Sec. 1204. (A) The Director shall promulgate rules and
2936-regulations which shall require each insurer licensed to write
2937-property or casualty insurance in the State and each syndicate
2938-doing business on the Illinois Insurance Exchange to record
2939-and report its loss and expense experience and other data as
2940-may be necessary to assess the relationship of insurance
2941-premiums and related income as compared to insurance costs and
2942-expenses. The Director may designate one or more rate service
2943-organizations or advisory organizations to gather and compile
2944-such experience and data. The Director shall require each
2945-insurer licensed to write property or casualty insurance in
2946-this State and each syndicate doing business on the Illinois
2947-Insurance Exchange to submit a report, on a form furnished by
2948-the Director, showing its direct writings in this State and
2949-
2950-
2951-companywide.
2952-(B) Such report required by subsection (A) of this Section
2953-may include, but not be limited to, the following specific
2954-types of insurance written by such insurer:
2955-(1) Political subdivision liability insurance reported
2956-separately in the following categories:
2957-(a) municipalities;
2958-(b) school districts;
2959-(c) other political subdivisions;
2960-(2) Public official liability insurance;
2961-(3) Dram shop liability insurance;
2962-(4) Day care center liability insurance;
2963-(5) Labor, fraternal or religious organizations
2964-liability insurance;
2965-(6) Errors and omissions liability insurance;
2966-(7) Officers and directors liability insurance
2967-reported separately as follows:
2968-(a) non-profit entities;
2969-(b) for-profit entities;
2970-(8) Products liability insurance;
2971-(9) Medical malpractice insurance;
2972-(10) Attorney malpractice insurance;
2973-(11) Architects and engineers malpractice insurance;
2974-and
2975-(12) Motor vehicle insurance reported separately for
2976-commercial and private passenger vehicles as follows:
2977-
2978-
2979-(a) motor vehicle physical damage insurance;
2980-(b) motor vehicle liability insurance.
2981-(C) Such report may include, but need not be limited to the
2982-following data, both specific to this State and companywide,
2983-in the aggregate or by type of insurance for the previous year
2984-on a calendar year basis:
2985-(1) Direct premiums written;
2986-(2) Direct premiums earned;
2987-(3) Number of policies;
2988-(4) Net investment income, using appropriate estimates
2989-where necessary;
2990-(5) Losses paid;
2991-(6) Losses incurred;
2992-(7) Loss reserves:
2993-(a) Losses unpaid on reported claims;
2994-(b) Losses unpaid on incurred but not reported
2995-claims;
2996-(8) Number of claims:
2997-(a) Paid claims;
2998-(b) Arising claims;
2999-(9) Loss adjustment expenses:
3000-(a) Allocated loss adjustment expenses;
3001-(b) Unallocated loss adjustment expenses;
3002-(10) Net underwriting gain or loss;
3003-(11) Net operation gain or loss, including net
3004-investment income;
3005-
3006-
3007-(12) Any other information requested by the Director.
3008-(C-3) Additional information by an advisory organization
3009-as defined in Section 463 of this Code.
3010-(1) An advisory organization as defined in Section 463
3011-of this Code shall report annually the following
3012-information in such format as may be prescribed by the
3013-Secretary:
3014-(a) paid and incurred losses for each of the past
3015-10 years;
3016-(b) medical payments and medical charges, if
3017-collected, for each of the past 10 years;
3018-(c) the following indemnity payment information:
3019-cumulative payments by accident year by calendar year
3020-of development. This array will show payments made and
3021-frequency of claims in the following categories:
3022-medical only, permanent partial disability (PPD),
3023-permanent total disability (PTD), temporary total
3024-disability (TTD), and fatalities;
3025-(d) injuries by frequency and severity;
3026-(e) by class of employee.
3027-(2) The report filed with the Secretary of Financial
3028-and Professional Regulation under paragraph (1) of this
3029-subsection (C-3) shall be made available, on an aggregate
3030-basis, to the General Assembly and to the general public.
3031-The identity of the petitioner, the respondent, the
3032-attorneys, and the insurers shall not be disclosed.
3033-
3034-
3035-(3) Reports required under this subsection (C-3) shall
3036-be filed with the Secretary no later than September 1 in
3037-2006 and no later than September 1 of each year
3038-thereafter.
3039-(D) In addition to the information which may be requested
3040-under subsection (C), the Director may also request on a
3041-companywide, aggregate basis, Federal Income Tax recoverable,
3042-net realized capital gain or loss, net unrealized capital gain
3043-or loss, and all other expenses not requested in subsection
3044-(C) above.
3045-(E) Violations - Suspensions - Revocations.
3046-(1) Any company or person subject to this Article, who
3047-willfully or repeatedly fails to observe or who otherwise
3048-violates any of the provisions of this Article or any rule
3049-or regulation promulgated by the Director under authority
3050-of this Article or any final order of the Director entered
3051-under the authority of this Article shall by civil penalty
3052-forfeit to the State of Illinois a sum not to exceed
3053-$2,000. Each day during which a violation occurs
3054-constitutes a separate offense.
3055-(2) No forfeiture liability under paragraph (1) of
3056-this subsection may attach unless a written notice of
3057-apparent liability has been issued by the Director and
3058-received by the respondent, or the Director sends written
3059-notice of apparent liability by registered or certified
3060-mail, return receipt requested, to the last known address
3061-
3062-
3063-of the respondent. Any respondent so notified must be
3064-granted an opportunity to request a hearing within 10 days
3065-from receipt of notice, or to show in writing, why he
3066-should not be held liable. A notice issued under this
3067-Section must set forth the date, facts and nature of the
3068-act or omission with which the respondent is charged and
3069-must specifically identify the particular provision of
3070-this Article, rule, regulation or order of which a
3071-violation is charged.
3072-(3) No forfeiture liability under paragraph (1) of
3073-this subsection may attach for any violation occurring
3074-more than 2 years prior to the date of issuance of the
3075-notice of apparent liability and in no event may the total
3076-civil penalty forfeiture imposed for the acts or omissions
3077-set forth in any one notice of apparent liability exceed
3078-$100,000.
3079-(4) All administrative hearings conducted pursuant to
3080-this Article are subject to 50 Ill. Adm. Code 2402 and all
3081-administrative hearings are subject to the Administrative
3082-Review Law.
3083-(5) The civil penalty forfeitures provided for in this
3084-Section are payable to the General Revenue Fund of the
3085-State of Illinois, and may be recovered in a civil suit in
3086-the name of the State of Illinois brought in the Circuit
3087-Court in Sangamon County or in the Circuit Court of the
3088-county where the respondent is domiciled or has its
3089-
3090-
3091-principal operating office.
3092-(6) In any case where the Director issues a notice of
3093-apparent liability looking toward the imposition of a
3094-civil penalty forfeiture under this Section that fact may
3095-not be used in any other proceeding before the Director to
3096-the prejudice of the respondent to whom the notice was
3097-issued, unless (a) the civil penalty forfeiture has been
3098-paid, or (b) a court has ordered payment of the civil
3099-penalty forfeiture and that order has become final.
3100-(7) When any person or company has a license or
3101-certificate of authority under this Code and knowingly
3102-fails or refuses to comply with a lawful order of the
3103-Director requiring compliance with this Article, entered
3104-after notice and hearing, within the period of time
3105-specified in the order, the Director may, in addition to
3106-any other penalty or authority provided, revoke or refuse
3107-to renew the license or certificate of authority of such
3108-person or company, or may suspend the license or
3109-certificate of authority of such person or company until
3110-compliance with such order has been obtained.
3111-(8) When any person or company has a license or
3112-certificate of authority under this Code and knowingly
3113-fails or refuses to comply with any provisions of this
3114-Article, the Director may, after notice and hearing, in
3115-addition to any other penalty provided, revoke or refuse
3116-to renew the license or certificate of authority of such
3117-
3118-
3119-person or company, or may suspend the license or
3120-certificate of authority of such person or company, until
3121-compliance with such provision of this Article has been
3122-obtained.
3123-(9) No suspension or revocation under this Section may
3124-become effective until 5 days from the date that the
3125-notice of suspension or revocation has been personally
3126-delivered or delivered by registered or certified mail to
3127-the company or person. A suspension or revocation under
3128-this Section is stayed upon the filing, by the company or
3129-person, of a petition for judicial review under the
3130-Administrative Review Law.
3131-(Source: P.A. 94-277, eff. 7-20-05; 95-331, eff. 8-21-07.)
3132-(215 ILCS 5/155.18a rep.)
3133-Section 15. The Illinois Insurance Code is amended by
3134-repealing Section 155.18a.
3135-Section 20. The Small Employer Health Insurance Rating Act
3136-is amended by changing Section 15 as follows:
3137-(215 ILCS 93/15)
3138-Sec. 15. Applicability and scope.
3139-(a) This Act shall apply to each health benefit plan for a
3140-small employer that is delivered, issued for delivery,
3141-renewed, or continued in this State after July 1, 2000. For
3142-
3143-
3144-purposes of this Section, the date a plan is continued shall be
3145-the first rating period which commences after July 1, 2000.
3146-The Act shall apply to any such health benefit plan which
3147-provides coverage to employees of a small employer, except
3148-that the Act shall not apply to individual health insurance
3149-policies.
3150-(b) This Act shall not apply to any health benefit plan for
3151-a small employer that is delivered, issued, renewed, or
3152-continued in this State on or after January 1, 2022. However,
3153-if 42 U.S.C. 18032(c)(2) or any successor law is repealed,
3154-then this Act shall apply to each health benefit plan for a
3155-small employer that is delivered, issued, renewed, or
3156-continued in this State on or after the date that law ceases to
3157-apply to such plans.
3158-(Source: P.A. 91-510, eff. 1-1-00; 92-16, eff. 6-28-01.)
3159-Section 22. The Dental Service Plan Act is amended by
3160-changing Section 25 as follows:
3161-(215 ILCS 110/25) (from Ch. 32, par. 690.25)
3162-Sec. 25. Application of Insurance Code provisions. Dental
3163-service plan corporations and all persons interested therein
3164-or dealing therewith shall be subject to the provisions of
3165-Articles IIA, XI, and XII 1/2 and Sections 3.1, 133, 136, 139,
3166-140, 143, 143c, 149, 155.49, 355.2, 355.3, 367.2, 401, 401.1,
3167-402, 403, 403A, 408, 408.2, and 412, and subsection (15) of
3168-
3169-
3170-Section 367 of the Illinois Insurance Code.
3171-(Source: P.A. 99-151, eff. 7-28-15.)
3172-Section 25. The Health Maintenance Organization Act is
3173-amended by changing Section 5-3 as follows:
3174-(215 ILCS 125/5-3) (from Ch. 111 1/2, par. 1411.2)
3175-Sec. 5-3. Insurance Code provisions.
3176-(a) Health Maintenance Organizations shall be subject to
3177-the provisions of Sections 133, 134, 136, 137, 139, 140,
3178-141.1, 141.2, 141.3, 143, 143c, 147, 148, 149, 151, 152, 153,
3179-154, 154.5, 154.6, 154.7, 154.8, 155.04, 155.22a, 155.49,
3180-355.2, 355.3, 355b, 355c, 356f, 356g.5-1, 356m, 356q, 356v,
3181-356w, 356x, 356y, 356z.2, 356z.3a, 356z.4, 356z.4a, 356z.5,
3182-356z.6, 356z.8, 356z.9, 356z.10, 356z.11, 356z.12, 356z.13,
3183-356z.14, 356z.15, 356z.17, 356z.18, 356z.19, 356z.20, 356z.21,
3184-356z.22, 356z.23, 356z.24, 356z.25, 356z.26, 356z.28, 356z.29,
3185-356z.30, 356z.30a, 356z.31, 356z.32, 356z.33, 356z.34,
3186-356z.35, 356z.36, 356z.37, 356z.38, 356z.39, 356z.40, 356z.41,
3187-356z.44, 356z.45, 356z.46, 356z.47, 356z.48, 356z.49, 356z.50,
3188-356z.51, 356z.53 256z.53, 356z.54, 356z.55, 356z.56, 356z.57,
3189-356z.58, 356z.59, 356z.60, 364, 364.01, 364.3, 367.2, 367.2-5,
3190-367i, 368a, 368b, 368c, 368d, 368e, 370c, 370c.1, 401, 401.1,
3191-402, 403, 403A, 408, 408.2, 409, 412, 444, and 444.1,
3192-paragraph (c) of subsection (2) of Section 367, and Articles
3193-IIA, VIII 1/2, XII, XII 1/2, XIII, XIII 1/2, XXV, XXVI, and
3194-
3195-
3196-XXXIIB of the Illinois Insurance Code.
3197-(b) For purposes of the Illinois Insurance Code, except
3198-for Sections 444 and 444.1 and Articles XIII and XIII 1/2,
3199-Health Maintenance Organizations in the following categories
3200-are deemed to be "domestic companies":
3201-(1) a corporation authorized under the Dental Service
3202-Plan Act or the Voluntary Health Services Plans Act;
3203-(2) a corporation organized under the laws of this
3204-State; or
3205-(3) a corporation organized under the laws of another
3206-state, 30% or more of the enrollees of which are residents
3207-of this State, except a corporation subject to
3208-substantially the same requirements in its state of
3209-organization as is a "domestic company" under Article VIII
3210-1/2 of the Illinois Insurance Code.
3211-(c) In considering the merger, consolidation, or other
3212-acquisition of control of a Health Maintenance Organization
3213-pursuant to Article VIII 1/2 of the Illinois Insurance Code,
3214-(1) the Director shall give primary consideration to
3215-the continuation of benefits to enrollees and the
3216-financial conditions of the acquired Health Maintenance
3217-Organization after the merger, consolidation, or other
3218-acquisition of control takes effect;
3219-(2)(i) the criteria specified in subsection (1)(b) of
3220-Section 131.8 of the Illinois Insurance Code shall not
3221-apply and (ii) the Director, in making his determination
3222-
3223-
3224-with respect to the merger, consolidation, or other
3225-acquisition of control, need not take into account the
3226-effect on competition of the merger, consolidation, or
3227-other acquisition of control;
3228-(3) the Director shall have the power to require the
3229-following information:
3230-(A) certification by an independent actuary of the
3231-adequacy of the reserves of the Health Maintenance
3232-Organization sought to be acquired;
3233-(B) pro forma financial statements reflecting the
3234-combined balance sheets of the acquiring company and
3235-the Health Maintenance Organization sought to be
3236-acquired as of the end of the preceding year and as of
3237-a date 90 days prior to the acquisition, as well as pro
3238-forma financial statements reflecting projected
3239-combined operation for a period of 2 years;
3240-(C) a pro forma business plan detailing an
3241-acquiring party's plans with respect to the operation
3242-of the Health Maintenance Organization sought to be
3243-acquired for a period of not less than 3 years; and
3244-(D) such other information as the Director shall
3245-require.
3246-(d) The provisions of Article VIII 1/2 of the Illinois
3247-Insurance Code and this Section 5-3 shall apply to the sale by
3248-any health maintenance organization of greater than 10% of its
3249-enrollee population (including without limitation the health
3250-
3251-
3252-maintenance organization's right, title, and interest in and
3253-to its health care certificates).
3254-(e) In considering any management contract or service
3255-agreement subject to Section 141.1 of the Illinois Insurance
3256-Code, the Director (i) shall, in addition to the criteria
3257-specified in Section 141.2 of the Illinois Insurance Code,
3258-take into account the effect of the management contract or
3259-service agreement on the continuation of benefits to enrollees
3260-and the financial condition of the health maintenance
3261-organization to be managed or serviced, and (ii) need not take
3262-into account the effect of the management contract or service
3263-agreement on competition.
3264-(f) Except for small employer groups as defined in the
3265-Small Employer Rating, Renewability and Portability Health
3266-Insurance Act and except for medicare supplement policies as
3267-defined in Section 363 of the Illinois Insurance Code, a
3268-Health Maintenance Organization may by contract agree with a
3269-group or other enrollment unit to effect refunds or charge
3270-additional premiums under the following terms and conditions:
3271-(i) the amount of, and other terms and conditions with
3272-respect to, the refund or additional premium are set forth
3273-in the group or enrollment unit contract agreed in advance
3274-of the period for which a refund is to be paid or
3275-additional premium is to be charged (which period shall
3276-not be less than one year); and
3277-(ii) the amount of the refund or additional premium
3278-
3279-
3280-shall not exceed 20% of the Health Maintenance
3281-Organization's profitable or unprofitable experience with
3282-respect to the group or other enrollment unit for the
3283-period (and, for purposes of a refund or additional
3284-premium, the profitable or unprofitable experience shall
3285-be calculated taking into account a pro rata share of the
3286-Health Maintenance Organization's administrative and
3287-marketing expenses, but shall not include any refund to be
3288-made or additional premium to be paid pursuant to this
3289-subsection (f)). The Health Maintenance Organization and
3290-the group or enrollment unit may agree that the profitable
3291-or unprofitable experience may be calculated taking into
3292-account the refund period and the immediately preceding 2
3293-plan years.
3294-The Health Maintenance Organization shall include a
3295-statement in the evidence of coverage issued to each enrollee
3296-describing the possibility of a refund or additional premium,
3297-and upon request of any group or enrollment unit, provide to
3298-the group or enrollment unit a description of the method used
3299-to calculate (1) the Health Maintenance Organization's
3300-profitable experience with respect to the group or enrollment
3301-unit and the resulting refund to the group or enrollment unit
3302-or (2) the Health Maintenance Organization's unprofitable
3303-experience with respect to the group or enrollment unit and
3304-the resulting additional premium to be paid by the group or
3305-enrollment unit.
3306-
3307-
3308-In no event shall the Illinois Health Maintenance
3309-Organization Guaranty Association be liable to pay any
3310-contractual obligation of an insolvent organization to pay any
3311-refund authorized under this Section.
3312-(g) Rulemaking authority to implement Public Act 95-1045,
3313-if any, is conditioned on the rules being adopted in
3314-accordance with all provisions of the Illinois Administrative
3315-Procedure Act and all rules and procedures of the Joint
3316-Committee on Administrative Rules; any purported rule not so
3317-adopted, for whatever reason, is unauthorized.
3318-(Source: P.A. 101-13, eff. 6-12-19; 101-81, eff. 7-12-19;
3319-101-281, eff. 1-1-20; 101-371, eff. 1-1-20; 101-393, eff.
3320-1-1-20; 101-452, eff. 1-1-20; 101-461, eff. 1-1-20; 101-625,
3321-eff. 1-1-21; 102-30, eff. 1-1-22; 102-34, eff. 6-25-21;
3322-102-203, eff. 1-1-22; 102-306, eff. 1-1-22; 102-443, eff.
3323-1-1-22; 102-589, eff. 1-1-22; 102-642, eff. 1-1-22; 102-665,
3324-eff. 10-8-21; 102-731, eff. 1-1-23; 102-775, eff. 5-13-22;
3325-102-804, eff. 1-1-23; 102-813, eff. 5-13-22; 102-816, eff.
3326-1-1-23; 102-860, eff. 1-1-23; 102-901, eff. 7-1-22; 102-1093,
3327-eff. 1-1-23; 102-1117, eff. 1-13-23; revised 1-22-23.)
3328-Section 27. The Limited Health Service Organization Act is
3329-amended by changing Section 4003 as follows:
3330-(215 ILCS 130/4003) (from Ch. 73, par. 1504-3)
3331-Sec. 4003. Illinois Insurance Code provisions. Limited
3332-
3333-
3334-health service organizations shall be subject to the
3335-provisions of Sections 133, 134, 136, 137, 139, 140, 141.1,
3336-141.2, 141.3, 143, 143c, 147, 148, 149, 151, 152, 153, 154,
3337-154.5, 154.6, 154.7, 154.8, 155.04, 155.37, 155.49, 355.2,
3338-355.3, 355b, 356q, 356v, 356z.10, 356z.21, 356z.22, 356z.25,
3339-356z.26, 356z.29, 356z.30a, 356z.32, 356z.33, 356z.41,
3340-356z.46, 356z.47, 356z.51, 356z.53, 356z.54, 356z.57, 356z.59,
3341-364.3, 368a, 401, 401.1, 402, 403, 403A, 408, 408.2, 409, 412,
3342-444, and 444.1 and Articles IIA, VIII 1/2, XII, XII 1/2, XIII,
3343-XIII 1/2, XXV, and XXVI of the Illinois Insurance Code. For
3344-purposes of the Illinois Insurance Code, except for Sections
3345-444 and 444.1 and Articles XIII and XIII 1/2, limited health
3346-service organizations in the following categories are deemed
3347-to be domestic companies:
3348-(1) a corporation under the laws of this State; or
3349-(2) a corporation organized under the laws of another
3350-state, 30% or more of the enrollees of which are residents
3351-of this State, except a corporation subject to
3352-substantially the same requirements in its state of
3353-organization as is a domestic company under Article VIII
3354-1/2 of the Illinois Insurance Code.
3355-(Source: P.A. 101-81, eff. 7-12-19; 101-281, eff. 1-1-20;
3356-101-393, eff. 1-1-20; 101-625, eff. 1-1-21; 102-30, eff.
3357-1-1-22; 102-203, eff. 1-1-22; 102-306, eff. 1-1-22; 102-642,
3358-eff. 1-1-22; 102-731, eff. 1-1-23; 102-775, eff. 5-13-22;
3359-102-813, eff. 5-13-22; 102-816, eff. 1-1-23; 102-860, eff.
3360-
3361-
3362-1-1-23; 102-1093, eff. 1-1-23; revised 12-13-22.)
3363-Section 30. The Managed Care Reform and Patient Rights Act
3364-is amended by changing Section 10 as follows:
3365-(215 ILCS 134/10)
3366-Sec. 10. Definitions.
3367-"Adverse determination" means a determination by a health
3368-care plan under Section 45 or by a utilization review program
3369-under Section 85 that a health care service is not medically
3370-necessary.
3371-"Clinical peer" means a health care professional who is in
3372-the same profession and the same or similar specialty as the
3373-health care provider who typically manages the medical
3374-condition, procedures, or treatment under review.
3375-"Department" means the Department of Insurance.
3376-"Emergency medical condition" means a medical condition
3377-manifesting itself by acute symptoms of sufficient severity,
3378-regardless of the final diagnosis given, such that a prudent
3379-layperson, who possesses an average knowledge of health and
3380-medicine, could reasonably expect the absence of immediate
3381-medical attention to result in:
3382-(1) placing the health of the individual (or, with
3383-respect to a pregnant woman, the health of the woman or her
3384-unborn child) in serious jeopardy;
3385-(2) serious impairment to bodily functions;
3386-
3387-
3388-(3) serious dysfunction of any bodily organ or part;
3389-(4) inadequately controlled pain; or
3390-(5) with respect to a pregnant woman who is having
3391-contractions:
3392-(A) inadequate time to complete a safe transfer to
3393-another hospital before delivery; or
3394-(B) a transfer to another hospital may pose a
3395-threat to the health or safety of the woman or unborn
3396-child.
3397-"Emergency medical screening examination" means a medical
3398-screening examination and evaluation by a physician licensed
3399-to practice medicine in all its branches, or to the extent
3400-permitted by applicable laws, by other appropriately licensed
3401-personnel under the supervision of or in collaboration with a
3402-physician licensed to practice medicine in all its branches to
3403-determine whether the need for emergency services exists.
3404-"Emergency services" means, with respect to an enrollee of
3405-a health care plan, transportation services, including but not
3406-limited to ambulance services, and covered inpatient and
3407-outpatient hospital services furnished by a provider qualified
3408-to furnish those services that are needed to evaluate or
3409-stabilize an emergency medical condition. "Emergency services"
3410-does not refer to post-stabilization medical services.
3411-"Enrollee" means any person and his or her dependents
3412-enrolled in or covered by a health care plan.
3413-"Health care plan" means a plan, including, but not
3414-
3415-
3416-limited to, a health maintenance organization, a managed care
3417-community network as defined in the Illinois Public Aid Code,
3418-or an accountable care entity as defined in the Illinois
3419-Public Aid Code that receives capitated payments to cover
3420-medical services from the Department of Healthcare and Family
3421-Services, that establishes, operates, or maintains a network
3422-of health care providers that has entered into an agreement
3423-with the plan to provide health care services to enrollees to
3424-whom the plan has the ultimate obligation to arrange for the
3425-provision of or payment for services through organizational
3426-arrangements for ongoing quality assurance, utilization review
3427-programs, or dispute resolution. Nothing in this definition
3428-shall be construed to mean that an independent practice
3429-association or a physician hospital organization that
3430-subcontracts with a health care plan is, for purposes of that
3431-subcontract, a health care plan.
3432-For purposes of this definition, "health care plan" shall
3433-not include the following:
3434-(1) indemnity health insurance policies including
3435-those using a contracted provider network;
3436-(2) health care plans that offer only dental or only
3437-vision coverage;
3438-(3) preferred provider administrators, as defined in
3439-Section 370g(g) of the Illinois Insurance Code;
3440-(4) employee or employer self-insured health benefit
3441-plans under the federal Employee Retirement Income
3442-
3443-
3444-Security Act of 1974;
3445-(5) health care provided pursuant to the Workers'
3446-Compensation Act or the Workers' Occupational Diseases
3447-Act; and
3448-(6) except with respect to subsections (a) and (b) of
3449-Section 65 and subsection (a-5) of Section 70,
3450-not-for-profit voluntary health services plans with health
3451-maintenance organization authority in existence as of
3452-January 1, 1999 that are affiliated with a union and that
3453-only extend coverage to union members and their
3454-dependents.
3455-"Health care professional" means a physician, a registered
3456-professional nurse, or other individual appropriately licensed
3457-or registered to provide health care services.
3458-"Health care provider" means any physician, hospital
3459-facility, facility licensed under the Nursing Home Care Act,
3460-long-term care facility as defined in Section 1-113 of the
3461-Nursing Home Care Act, or other person that is licensed or
3462-otherwise authorized to deliver health care services. Nothing
3463-in this Act shall be construed to define Independent Practice
3464-Associations or Physician-Hospital Organizations as health
3465-care providers.
3466-"Health care services" means any services included in the
3467-furnishing to any individual of medical care, or the
3468-hospitalization incident to the furnishing of such care, as
3469-well as the furnishing to any person of any and all other
3470-
3471-
3472-services for the purpose of preventing, alleviating, curing,
3473-or healing human illness or injury including behavioral
3474-health, mental health, home health, and pharmaceutical
3475-services and products.
3476-"Medical director" means a physician licensed in any state
3477-to practice medicine in all its branches appointed by a health
3478-care plan.
3479-"Person" means a corporation, association, partnership,
3480-limited liability company, sole proprietorship, or any other
3481-legal entity.
3482-"Physician" means a person licensed under the Medical
3483-Practice Act of 1987.
3484-"Post-stabilization medical services" means health care
3485-services provided to an enrollee that are furnished in a
3486-licensed hospital by a provider that is qualified to furnish
3487-such services, and determined to be medically necessary and
3488-directly related to the emergency medical condition following
3489-stabilization.
3490-"Stabilization" means, with respect to an emergency
3491-medical condition, to provide such medical treatment of the
3492-condition as may be necessary to assure, within reasonable
3493-medical probability, that no material deterioration of the
3494-condition is likely to result.
3495-"Utilization review" means the evaluation of the medical
3496-necessity, appropriateness, and efficiency of the use of
3497-health care services, procedures, and facilities.
3498-
3499-
3500-"Utilization review program" means a program established
3501-by a person to perform utilization review.
3502-(Source: P.A. 101-452, eff. 1-1-20; 102-409, eff. 1-1-22.)
3503-Section 99. Effective date. This Act takes effect July 1,
3504-2023.
3505-INDEX Statutes amended in order of appearance INDEX Statutes amended in order of appearance
3506-INDEX
3507-Statutes amended in order of appearance
3508-
3509-
3510-
3511-INDEX
3512-Statutes amended in order of appearance
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34+1 interests of public pensioners and Illinois taxpayers, and
35+2 against public policy. The General Assembly finds that Sudan's
36+3 capacity to sponsor terrorism and genocide depends on or is
37+4 supported by the activities of forbidden entities. The General
38+5 Assembly further finds and re-affirms that the people of the
39+6 State, acting through their representatives, do not want to be
40+7 associated with forbidden entities, genocide, and terrorism.
41+8 (b) For purposes of this Section:
42+9 "Business operations" means maintaining, selling, or
43+10 leasing equipment, facilities, personnel, or any other
44+11 apparatus of business or commerce in the Republic of the
45+12 Sudan, including the ownership or possession of real or
46+13 personal property located in the Republic of the Sudan.
47+14 "Certifying company" means a company that (1) directly
48+15 provides asset management services or advice to a retirement
49+16 system or (2) as directly authorized or requested by a
50+17 retirement system (A) identifies particular investment options
51+18 for consideration or approval; (B) chooses particular
52+19 investment options; or (C) allocates particular amounts to be
53+20 invested. If no company meets the criteria set forth in this
54+21 paragraph, then "certifying company" shall mean the retirement
55+22 system officer who, as designated by the board, executes the
56+23 investment decisions made by the board, or, in the
57+24 alternative, the company that the board authorizes to complete
58+25 the certification as the agent of that officer.
59+26 "Company" is any entity capable of affecting commerce,
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70+1 including but not limited to (i) a government, government
71+2 agency, natural person, legal person, sole proprietorship,
72+3 partnership, firm, corporation, subsidiary, affiliate,
73+4 franchisor, franchisee, joint venture, trade association,
74+5 financial institution, utility, public franchise, provider of
75+6 financial services, trust, or enterprise; and (ii) any
76+7 association thereof.
77+8 "Division Department" means the Public Pension Division of
78+9 the Department of Insurance Financial and Professional
79+10 Regulation.
80+11 "Forbidden entity" means any of the following:
81+12 (1) The government of the Republic of the Sudan and
82+13 any of its agencies, including but not limited to
83+14 political units and subdivisions;
84+15 (2) Any company that is wholly or partially managed or
85+16 controlled by the government of the Republic of the Sudan
86+17 and any of its agencies, including but not limited to
87+18 political units and subdivisions;
88+19 (3) Any company (i) that is established or organized
89+20 under the laws of the Republic of the Sudan or (ii) whose
90+21 principal place of business is in the Republic of the
91+22 Sudan;
92+23 (4) Any company (i) identified by the Office of
93+24 Foreign Assets Control in the United States Department of
94+25 the Treasury as sponsoring terrorist activities in the
95+26 Republic of the Sudan; or (ii) fined, penalized, or
96+
97+
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106+1 sanctioned by the Office of Foreign Assets Control in the
107+2 United States Department of the Treasury for any violation
108+3 of any United States rules and restrictions relating to
109+4 the Republic of the Sudan that occurred at any time
110+5 following the effective date of this Act;
111+6 (5) Any publicly traded company that is individually
112+7 identified by an independent researching firm that
113+8 specializes in global security risk and that has been
114+9 retained by a certifying company as provided in subsection
115+10 (c) of this Section as being a company that owns or
116+11 controls property or assets located in, has employees or
117+12 facilities located in, provides goods or services to,
118+13 obtains goods or services from, has distribution
119+14 agreements with, issues credits or loans to, purchases
120+15 bonds or commercial paper issued by, or invests in (A) the
121+16 Republic of the Sudan; or (B) any company domiciled in the
122+17 Republic of the Sudan; and
123+18 (6) Any private market fund that fails to satisfy the
124+19 requirements set forth in subsections (d) and (e) of this
125+20 Section.
126+21 Notwithstanding the foregoing, the term "forbidden entity"
127+22 shall exclude (A) mutual funds that meet the requirements of
128+23 item (iii) of paragraph (13) of Section 1-113.2 and (B)
129+24 companies that transact business in the Republic of the Sudan
130+25 under the law, license, or permit of the United States,
131+26 including a license from the United States Department of the
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142+1 Treasury, and companies, except agencies of the Republic of
143+2 the Sudan, who are certified as Non-Government Organizations
144+3 by the United Nations, or who engage solely in (i) the
145+4 provision of goods and services intended to relieve human
146+5 suffering or to promote welfare, health, religious and
147+6 spiritual activities, and education or humanitarian purposes;
148+7 or (ii) journalistic activities.
149+8 "Private market fund" means any private equity fund,
150+9 private equity fund of funds, venture capital fund, hedge
151+10 fund, hedge fund of funds, real estate fund, or other
152+11 investment vehicle that is not publicly traded.
153+12 "Republic of the Sudan" means those geographic areas of
154+13 the Republic of Sudan that are subject to sanction or other
155+14 restrictions placed on commercial activity imposed by the
156+15 United States Government due to an executive or congressional
157+16 declaration of genocide.
158+17 "Retirement system" means the State Employees' Retirement
159+18 System of Illinois, the Judges Retirement System of Illinois,
160+19 the General Assembly Retirement System, the State Universities
161+20 Retirement System, and the Teachers' Retirement System of the
162+21 State of Illinois.
163+22 (c) A retirement system shall not transfer or disburse
164+23 funds to, deposit into, acquire any bonds or commercial paper
165+24 from, or otherwise loan to or invest in any entity unless, as
166+25 provided in this Section, a certifying company certifies to
167+26 the retirement system that, (1) with respect to investments in
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178+1 a publicly traded company, the certifying company has relied
179+2 on information provided by an independent researching firm
180+3 that specializes in global security risk and (2) 100% of the
181+4 retirement system's assets for which the certifying company
182+5 provides services or advice are not and have not been invested
183+6 or reinvested in any forbidden entity at any time after 4
184+7 months after the effective date of this Section.
185+8 The certifying company shall make the certification
186+9 required under this subsection (c) to a retirement system 6
187+10 months after the effective date of this Section and annually
188+11 thereafter. A retirement system shall submit the
189+12 certifications to the Division Department, and the Division
190+13 Department shall notify the Director of Insurance Secretary of
191+14 Financial and Professional Regulation if a retirement system
192+15 fails to do so.
193+16 (d) With respect to a commitment or investment made
194+17 pursuant to a written agreement executed prior to the
195+18 effective date of this Section, each private market fund shall
196+19 submit to the appropriate certifying company, at no additional
197+20 cost to the retirement system:
198+21 (1) an affidavit sworn under oath in which an
199+22 expressly authorized officer of the private market fund
200+23 avers that the private market fund (A) does not own or
201+24 control any property or asset located in the Republic of
202+25 the Sudan and (B) does not conduct business operations in
203+26 the Republic of the Sudan; or
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214+1 (2) a certificate in which an expressly authorized
215+2 officer of the private market fund certifies that the
216+3 private market fund, based on reasonable due diligence,
217+4 has determined that, other than direct or indirect
218+5 investments in companies certified as Non-Government
219+6 Organizations by the United Nations, the private market
220+7 fund has no direct or indirect investment in any company
221+8 (A) organized under the laws of the Republic of the Sudan;
222+9 (B) whose principal place of business is in the Republic
223+10 of the Sudan; or (C) that conducts business operations in
224+11 the Republic of the Sudan. Such certificate shall be based
225+12 upon the periodic reports received by the private market
226+13 fund, and the private market fund shall agree that the
227+14 certifying company, directly or through an agent, or the
228+15 retirement system, as the case may be, may from time to
229+16 time review the private market fund's certification
230+17 process.
231+18 (e) With respect to a commitment or investment made
232+19 pursuant to a written agreement executed after the effective
233+20 date of this Section, each private market fund shall, at no
234+21 additional cost to the retirement system:
235+22 (1) submit to the appropriate certifying company an
236+23 affidavit or certificate consistent with the requirements
237+24 pursuant to subsection (d) of this Section; or
238+25 (2) enter into an enforceable written agreement with
239+26 the retirement system that provides for remedies
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250+1 consistent with those set forth in subsection (g) of this
251+2 Section if any of the assets of the retirement system
252+3 shall be transferred, loaned, or otherwise invested in any
253+4 company that directly or indirectly (A) has facilities or
254+5 employees in the Republic of the Sudan or (B) conducts
255+6 business operations in the Republic of the Sudan.
256+7 (f) In addition to any other penalties and remedies
257+8 available under the law of Illinois and the United States, any
258+9 transaction, other than a transaction with a private market
259+10 fund that is governed by subsections (g) and (h) of this
260+11 Section, that violates the provisions of this Act shall be
261+12 against public policy and voidable, at the sole discretion of
262+13 the retirement system.
263+14 (g) If a private market fund fails to provide the
264+15 affidavit or certification required in subsections (d) and (e)
265+16 of this Section, then the retirement system shall, within 90
266+17 days, divest, or attempt in good faith to divest, the
267+18 retirement system's interest in the private market fund,
268+19 provided that the Board of the retirement system confirms
269+20 through resolution that the divestment does not have a
270+21 material and adverse impact on the retirement system. The
271+22 retirement system shall immediately notify the Division
272+23 Department, and the Division Department shall notify all other
273+24 retirement systems, as soon as practicable, by posting the
274+25 name of the private market fund on the Division's Department's
275+26 Internet website or through e-mail communications. No other
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286+1 retirement system may enter into any agreement under which the
287+2 retirement system directly or indirectly invests in the
288+3 private market fund unless the private market fund provides
289+4 that retirement system with the affidavit or certification
290+5 required in subsections (d) and (e) of this Section and
291+6 complies with all other provisions of this Section.
292+7 (h) If a private market fund fails to fulfill its
293+8 obligations under any agreement provided for in paragraph (2)
294+9 of subsection (e) of this Section, the retirement system shall
295+10 immediately take legal and other action to obtain satisfaction
296+11 through all remedies and penalties available under the law and
297+12 the agreement itself. The retirement system shall immediately
298+13 notify the Division Department, and the Division Department
299+14 shall notify all other retirement systems, as soon as
300+15 practicable, by posting the name of the private market fund on
301+16 the Division's Department's Internet website or through e-mail
302+17 communications, and no other retirement system may enter into
303+18 any agreement under which the retirement system directly or
304+19 indirectly invests in the private market fund.
305+20 (i) This Section shall have full force and effect during
306+21 any period in which the Republic of the Sudan, or the officials
307+22 of the government of that Republic, are subject to sanctions
308+23 authorized under any statute or executive order of the United
309+24 States or until such time as the State Department of the United
310+25 States confirms in the federal register or through other means
311+26 that the Republic of the Sudan is no longer subject to
312+
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322+1 sanctions by the government of the United States.
323+2 (j) If any provision of this Section or its application to
324+3 any person or circumstance is held invalid, the invalidity of
325+4 that provision or application does not affect other provisions
326+5 or applications of this Section that can be given effect
327+6 without the invalid provision or application.
328+7 (Source: P.A. 95-521, eff. 8-28-07.)
329+8 (40 ILCS 5/1-110.10)
330+9 Sec. 1-110.10. Servicer certification.
331+10 (a) For the purposes of this Section:
332+11 "Illinois finance entity" means any entity chartered under
333+12 the Illinois Banking Act, the Savings Bank Act, the Illinois
334+13 Credit Union Act, or the Illinois Savings and Loan Act of 1985
335+14 and any person or entity licensed under the Residential
336+15 Mortgage License Act of 1987, the Consumer Installment Loan
337+16 Act, or the Sales Finance Agency Act.
338+17 "Retirement system or pension fund" means a retirement
339+18 system or pension fund established under this Code.
340+19 (b) In order for an Illinois finance entity to be eligible
341+20 for investment or deposit of retirement system or pension fund
342+21 assets, the Illinois finance entity must annually certify that
343+22 it complies with the requirements of the High Risk Home Loan
344+23 Act and the rules adopted pursuant to that Act that are
345+24 applicable to that Illinois finance entity. For Illinois
346+25 finance entities with whom the retirement system or pension
347+
348+
349+
350+
351+
352+ HB2089 Enrolled - 10 - LRB103 05055 BMS 51381 b
353+
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355+HB2089 Enrolled- 11 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 11 - LRB103 05055 BMS 51381 b
356+ HB2089 Enrolled - 11 - LRB103 05055 BMS 51381 b
357+1 fund is investing or depositing assets on the effective date
358+2 of this Section, the initial certification required under this
359+3 Section shall be completed within 6 months after the effective
360+4 date of this Section. For Illinois finance entities with whom
361+5 the retirement system or pension fund is not investing or
362+6 depositing assets on the effective date of this Section, the
363+7 initial certification required under this Section must be
364+8 completed before the retirement system or pension fund may
365+9 invest or deposit assets with the Illinois finance entity.
366+10 (c) A retirement system or pension fund shall submit the
367+11 certifications to the Public Pension Division of the
368+12 Department of Insurance Financial and Professional Regulation,
369+13 and the Division shall notify the Director of Insurance
370+14 Secretary of Financial and Professional Regulation if a
371+15 retirement system or pension fund fails to do so.
372+16 (d) If an Illinois finance entity fails to provide an
373+17 initial certification within 6 months after the effective date
374+18 of this Section or fails to submit an annual certification,
375+19 then the retirement system or pension fund shall notify the
376+20 Illinois finance entity. The Illinois finance entity shall,
377+21 within 30 days after the date of notification, either (i)
378+22 notify the retirement system or pension fund of its intention
379+23 to certify and complete certification or (ii) notify the
380+24 retirement system or pension fund of its intention to not
381+25 complete certification. If an Illinois finance entity fails to
382+26 provide certification, then the retirement system or pension
383+
384+
385+
386+
387+
388+ HB2089 Enrolled - 11 - LRB103 05055 BMS 51381 b
389+
390+
391+HB2089 Enrolled- 12 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 12 - LRB103 05055 BMS 51381 b
392+ HB2089 Enrolled - 12 - LRB103 05055 BMS 51381 b
393+1 fund shall, within 90 days, divest, or attempt in good faith to
394+2 divest, the retirement system's or pension fund's assets with
395+3 that Illinois finance entity. The retirement system or pension
396+4 fund shall immediately notify the Public Pension Division of
397+5 the Department of Insurance Department of the Illinois finance
398+6 entity's failure to provide certification.
399+7 (e) If any provision of this Section or its application to
400+8 any person or circumstance is held invalid, the invalidity of
401+9 that provision or application does not affect other provisions
402+10 or applications of this Section that can be given effect
403+11 without the invalid provision or application.
404+12 (Source: P.A. 95-521, eff. 8-28-07; 95-876, eff. 8-21-08.)
405+13 (40 ILCS 5/1-110.15)
406+14 Sec. 1-110.15. Transactions prohibited by retirement
407+15 systems; Iran.
408+16 (a) As used in this Section:
409+17 "Active business operations" means all business operations
410+18 that are not inactive business operations.
411+19 "Business operations" means engaging in commerce in any
412+20 form in Iran, including, but not limited to, acquiring,
413+21 developing, maintaining, owning, selling, possessing, leasing,
414+22 or operating equipment, facilities, personnel, products,
415+23 services, personal property, real property, or any other
416+24 apparatus of business or commerce.
417+25 "Company" means any sole proprietorship, organization,
418+
419+
420+
421+
422+
423+ HB2089 Enrolled - 12 - LRB103 05055 BMS 51381 b
424+
425+
426+HB2089 Enrolled- 13 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 13 - LRB103 05055 BMS 51381 b
427+ HB2089 Enrolled - 13 - LRB103 05055 BMS 51381 b
428+1 association, corporation, partnership, joint venture, limited
429+2 partnership, limited liability partnership, limited liability
430+3 company, or other entity or business association, including
431+4 all wholly owned subsidiaries, majority-owned subsidiaries,
432+5 parent companies, or affiliates of those entities or business
433+6 associations, that exists for the purpose of making profit.
434+7 "Direct holdings" in a company means all securities of
435+8 that company that are held directly by the retirement system
436+9 or in an account or fund in which the retirement system owns
437+10 all shares or interests.
438+11 "Inactive business operations" means the mere continued
439+12 holding or renewal of rights to property previously operated
440+13 for the purpose of generating revenues but not presently
441+14 deployed for that purpose.
442+15 "Indirect holdings" in a company means all securities of
443+16 that company which are held in an account or fund, such as a
444+17 mutual fund, managed by one or more persons not employed by the
445+18 retirement system, in which the retirement system owns shares
446+19 or interests together with other investors not subject to the
447+20 provisions of this Section.
448+21 "Mineral-extraction activities" include exploring,
449+22 extracting, processing, transporting, or wholesale selling or
450+23 trading of elemental minerals or associated metal alloys or
451+24 oxides (ore), including gold, copper, chromium, chromite,
452+25 diamonds, iron, iron ore, silver, tungsten, uranium, and zinc.
453+26 "Oil-related activities" include, but are not limited to,
454+
455+
456+
457+
458+
459+ HB2089 Enrolled - 13 - LRB103 05055 BMS 51381 b
460+
461+
462+HB2089 Enrolled- 14 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 14 - LRB103 05055 BMS 51381 b
463+ HB2089 Enrolled - 14 - LRB103 05055 BMS 51381 b
464+1 owning rights to oil blocks; exporting, extracting, producing,
465+2 refining, processing, exploring for, transporting, selling, or
466+3 trading of oil; and constructing, maintaining, or operating a
467+4 pipeline, refinery, or other oil-field infrastructure. The
468+5 mere retail sale of gasoline and related consumer products is
469+6 not considered an oil-related activity.
470+7 "Petroleum resources" means petroleum, petroleum
471+8 byproducts, or natural gas.
472+9 "Private market fund" means any private equity fund,
473+10 private equity fund of funds, venture capital fund, hedge
474+11 fund, hedge fund of funds, real estate fund, or other
475+12 investment vehicle that is not publicly traded.
476+13 "Retirement system" means the State Employees' Retirement
477+14 System of Illinois, the Judges Retirement System of Illinois,
478+15 the General Assembly Retirement System, the State Universities
479+16 Retirement System, and the Teachers' Retirement System of the
480+17 State of Illinois.
481+18 "Scrutinized business operations" means business
482+19 operations that have caused a company to become a scrutinized
483+20 company.
484+21 "Scrutinized company" means the company has business
485+22 operations that involve contracts with or provision of
486+23 supplies or services to the Government of Iran, companies in
487+24 which the Government of Iran has any direct or indirect equity
488+25 share, consortiums or projects commissioned by the Government
489+26 of Iran, or companies involved in consortiums or projects
490+
491+
492+
493+
494+
495+ HB2089 Enrolled - 14 - LRB103 05055 BMS 51381 b
496+
497+
498+HB2089 Enrolled- 15 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 15 - LRB103 05055 BMS 51381 b
499+ HB2089 Enrolled - 15 - LRB103 05055 BMS 51381 b
500+1 commissioned by the Government of Iran and:
501+2 (1) more than 10% of the company's revenues produced
502+3 in or assets located in Iran involve oil-related
503+4 activities or mineral-extraction activities; less than 75%
504+5 of the company's revenues produced in or assets located in
505+6 Iran involve contracts with or provision of oil-related or
506+7 mineral-extraction products or services to the Government
507+8 of Iran or a project or consortium created exclusively by
508+9 that government; and the company has failed to take
509+10 substantial action; or
510+11 (2) the company has, on or after August 5, 1996, made
511+12 an investment of $20 million or more, or any combination
512+13 of investments of at least $10 million each that in the
513+14 aggregate equals or exceeds $20 million in any 12-month
514+15 period, that directly or significantly contributes to the
515+16 enhancement of Iran's ability to develop petroleum
516+17 resources of Iran.
517+18 "Substantial action" means adopting, publicizing, and
518+19 implementing a formal plan to cease scrutinized business
519+20 operations within one year and to refrain from any such new
520+21 business operations.
521+22 (b) Within 90 days after the effective date of this
522+23 Section, a retirement system shall make its best efforts to
523+24 identify all scrutinized companies in which the retirement
524+25 system has direct or indirect holdings.
525+26 These efforts shall include the following, as appropriate
526+
527+
528+
529+
530+
531+ HB2089 Enrolled - 15 - LRB103 05055 BMS 51381 b
532+
533+
534+HB2089 Enrolled- 16 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 16 - LRB103 05055 BMS 51381 b
535+ HB2089 Enrolled - 16 - LRB103 05055 BMS 51381 b
536+1 in the retirement system's judgment:
537+2 (1) reviewing and relying on publicly available
538+3 information regarding companies having business operations
539+4 in Iran, including information provided by nonprofit
540+5 organizations, research firms, international
541+6 organizations, and government entities;
542+7 (2) contacting asset managers contracted by the
543+8 retirement system that invest in companies having business
544+9 operations in Iran; and
545+10 (3) Contacting other institutional investors that have
546+11 divested from or engaged with companies that have business
547+12 operations in Iran.
548+13 The retirement system may retain an independent research
549+14 firm to identify scrutinized companies in which the retirement
550+15 system has direct or indirect holdings. By the first meeting
551+16 of the retirement system following the 90-day period described
552+17 in this subsection (b), the retirement system shall assemble
553+18 all scrutinized companies identified into a scrutinized
554+19 companies list.
555+20 The retirement system shall update the scrutinized
556+21 companies list annually based on evolving information from,
557+22 among other sources, those listed in this subsection (b).
558+23 (c) The retirement system shall adhere to the following
559+24 procedures for companies on the scrutinized companies list:
560+25 (1) The retirement system shall determine the
561+26 companies on the scrutinized companies list in which the
562+
563+
564+
565+
566+
567+ HB2089 Enrolled - 16 - LRB103 05055 BMS 51381 b
568+
569+
570+HB2089 Enrolled- 17 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 17 - LRB103 05055 BMS 51381 b
571+ HB2089 Enrolled - 17 - LRB103 05055 BMS 51381 b
572+1 retirement system owns direct or indirect holdings.
573+2 (2) For each company identified in item (1) of this
574+3 subsection (c) that has only inactive business operations,
575+4 the retirement system shall send a written notice
576+5 informing the company of this Section and encouraging it
577+6 to continue to refrain from initiating active business
578+7 operations in Iran until it is able to avoid scrutinized
579+8 business operations. The retirement system shall continue
580+9 such correspondence semiannually.
581+10 (3) For each company newly identified in item (1) of
582+11 this subsection (c) that has active business operations,
583+12 the retirement system shall send a written notice
584+13 informing the company of its scrutinized company status
585+14 and that it may become subject to divestment by the
586+15 retirement system. The notice must inform the company of
587+16 the opportunity to clarify its Iran-related activities and
588+17 encourage the company, within 90 days, to cease its
589+18 scrutinized business operations or convert such operations
590+19 to inactive business operations in order to avoid
591+20 qualifying for divestment by the retirement system.
592+21 (4) If, within 90 days after the retirement system's
593+22 first engagement with a company pursuant to this
594+23 subsection (c), that company ceases scrutinized business
595+24 operations, the company shall be removed from the
596+25 scrutinized companies list and the provisions of this
597+26 Section shall cease to apply to it unless it resumes
598+
599+
600+
601+
602+
603+ HB2089 Enrolled - 17 - LRB103 05055 BMS 51381 b
604+
605+
606+HB2089 Enrolled- 18 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 18 - LRB103 05055 BMS 51381 b
607+ HB2089 Enrolled - 18 - LRB103 05055 BMS 51381 b
608+1 scrutinized business operations. If, within 90 days after
609+2 the retirement system's first engagement, the company
610+3 converts its scrutinized active business operations to
611+4 inactive business operations, the company is subject to
612+5 all provisions relating thereto.
613+6 (d) If, after 90 days following the retirement system's
614+7 first engagement with a company pursuant to subsection (c),
615+8 the company continues to have scrutinized active business
616+9 operations, and only while such company continues to have
617+10 scrutinized active business operations, the retirement system
618+11 shall sell, redeem, divest, or withdraw all publicly traded
619+12 securities of the company, except as provided in paragraph
620+13 (f), from the retirement system's assets under management
621+14 within 12 months after the company's most recent appearance on
622+15 the scrutinized companies list.
623+16 If a company that ceased scrutinized active business
624+17 operations following engagement pursuant to subsection (c)
625+18 resumes such operations, this subsection (d) immediately
626+19 applies, and the retirement system shall send a written notice
627+20 to the company. The company shall also be immediately
628+21 reintroduced onto the scrutinized companies list.
629+22 (e) The retirement system may not acquire securities of
630+23 companies on the scrutinized companies list that have active
631+24 business operations, except as provided in subsection (f).
632+25 (f) A company that the United States Government
633+26 affirmatively declares to be excluded from its present or any
634+
635+
636+
637+
638+
639+ HB2089 Enrolled - 18 - LRB103 05055 BMS 51381 b
640+
641+
642+HB2089 Enrolled- 19 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 19 - LRB103 05055 BMS 51381 b
643+ HB2089 Enrolled - 19 - LRB103 05055 BMS 51381 b
644+1 future federal sanctions regime relating to Iran is not
645+2 subject to divestment or the investment prohibition pursuant
646+3 to subsections (d) and (e).
647+4 (g) Notwithstanding the provisions of this Section,
648+5 paragraphs (d) and (e) do not apply to indirect holdings in a
649+6 private market fund. However, the retirement system shall
650+7 submit letters to the managers of those investment funds
651+8 containing companies that have scrutinized active business
652+9 operations requesting that they consider removing the
653+10 companies from the fund or create a similar actively managed
654+11 fund having indirect holdings devoid of the companies. If the
655+12 manager creates a similar fund, the retirement system shall
656+13 replace all applicable investments with investments in the
657+14 similar fund in an expedited timeframe consistent with prudent
658+15 investing standards.
659+16 (h) The retirement system shall file a report with the
660+17 Public Pension Division of the Department of Insurance
661+18 Financial and Professional Regulation that includes the
662+19 scrutinized companies list within 30 days after the list is
663+20 created. This report shall be made available to the public.
664+21 The retirement system shall file an annual report with the
665+22 Public Pension Division, which shall be made available to the
666+23 public, that includes all of the following:
667+24 (1) A summary of correspondence with companies engaged
668+25 by the retirement system under items (2) and (3) of
669+26 subsection (c).
670+
671+
672+
673+
674+
675+ HB2089 Enrolled - 19 - LRB103 05055 BMS 51381 b
676+
677+
678+HB2089 Enrolled- 20 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 20 - LRB103 05055 BMS 51381 b
679+ HB2089 Enrolled - 20 - LRB103 05055 BMS 51381 b
680+1 (2) All investments sold, redeemed, divested, or
681+2 withdrawn in compliance with subsection (d).
682+3 (3) All prohibited investments under subsection (e).
683+4 (4) A summary of correspondence with private market
684+5 funds notified under subsection (g).
685+6 (i) This Section expires upon the occurrence of any of the
686+7 following:
687+8 (1) The United States revokes all sanctions imposed
688+9 against the Government of Iran.
689+10 (2) The Congress or President of the United States
690+11 declares that the Government of Iran has ceased to acquire
691+12 weapons of mass destruction and to support international
692+13 terrorism.
693+14 (3) The Congress or President of the United States,
694+15 through legislation or executive order, declares that
695+16 mandatory divestment of the type provided for in this
696+17 Section interferes with the conduct of United States
697+18 foreign policy.
698+19 (j) With respect to actions taken in compliance with this
699+20 Act, including all good-faith determinations regarding
700+21 companies as required by this Act, the retirement system is
701+22 exempt from any conflicting statutory or common law
702+23 obligations, including any fiduciary duties under this Article
703+24 and any obligations with respect to choice of asset managers,
704+25 investment funds, or investments for the retirement system's
705+26 securities portfolios.
706+
707+
708+
709+
710+
711+ HB2089 Enrolled - 20 - LRB103 05055 BMS 51381 b
712+
713+
714+HB2089 Enrolled- 21 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 21 - LRB103 05055 BMS 51381 b
715+ HB2089 Enrolled - 21 - LRB103 05055 BMS 51381 b
716+1 (k) Notwithstanding any other provision of this Section to
717+2 the contrary, the retirement system may cease divesting from
718+3 scrutinized companies pursuant to subsection (d) or reinvest
719+4 in scrutinized companies from which it divested pursuant to
720+5 subsection (d) if clear and convincing evidence shows that the
721+6 value of investments in scrutinized companies with active
722+7 scrutinized business operations becomes equal to or less than
723+8 0.5% of the market value of all assets under management by the
724+9 retirement system. Cessation of divestment, reinvestment, or
725+10 any subsequent ongoing investment authorized by this Section
726+11 is limited to the minimum steps necessary to avoid the
727+12 contingency set forth in this subsection (k). For any
728+13 cessation of divestment, reinvestment, or subsequent ongoing
729+14 investment authorized by this Section, the retirement system
730+15 shall provide a written report to the Public Pension Division
731+16 in advance of initial reinvestment, updated semiannually
732+17 thereafter as applicable, setting forth the reasons and
733+18 justification, supported by clear and convincing evidence, for
734+19 its decisions to cease divestment, reinvest, or remain
735+20 invested in companies having scrutinized active business
736+21 operations. This Section does not apply to reinvestment in
737+22 companies on the grounds that they have ceased to have
738+23 scrutinized active business operations.
739+24 (l) If any provision of this Section or its application to
740+25 any person or circumstance is held invalid, the invalidity
741+26 does not affect other provisions or applications of the Act
742+
743+
744+
745+
746+
747+ HB2089 Enrolled - 21 - LRB103 05055 BMS 51381 b
748+
749+
750+HB2089 Enrolled- 22 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 22 - LRB103 05055 BMS 51381 b
751+ HB2089 Enrolled - 22 - LRB103 05055 BMS 51381 b
752+1 which can be given effect without the invalid provision or
753+2 application, and to this end the provisions of this Section
754+3 are severable.
755+4 (Source: P.A. 95-616, eff. 1-1-08; 95-876, eff. 8-21-08.)
756+5 (40 ILCS 5/1-113.4)
757+6 Sec. 1-113.4. List of additional permitted investments for
758+7 pension funds with net assets of $5,000,000 or more.
759+8 (a) In addition to the items in Sections 1-113.2 and
760+9 1-113.3, a pension fund established under Article 3 or 4 that
761+10 has net assets of at least $5,000,000 and has appointed an
762+11 investment adviser under Section 1-113.5 may, through that
763+12 investment adviser, invest a portion of its assets in common
764+13 and preferred stocks authorized for investments of trust funds
765+14 under the laws of the State of Illinois. The stocks must meet
766+15 all of the following requirements:
767+16 (1) The common stocks are listed on a national
768+17 securities exchange or board of trade (as defined in the
769+18 federal Securities Exchange Act of 1934 and set forth in
770+19 subdivision G of Section 3 of the Illinois Securities Law
771+20 of 1953) or quoted in the National Association of
772+21 Securities Dealers Automated Quotation System National
773+22 Market System (NASDAQ NMS).
774+23 (2) The securities are of a corporation created or
775+24 existing under the laws of the United States or any state,
776+25 district, or territory thereof and the corporation has
777+
778+
779+
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781+
782+ HB2089 Enrolled - 22 - LRB103 05055 BMS 51381 b
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784+
785+HB2089 Enrolled- 23 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 23 - LRB103 05055 BMS 51381 b
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787+1 been in existence for at least 5 years.
788+2 (3) The corporation has not been in arrears on payment
789+3 of dividends on its preferred stock during the preceding 5
790+4 years.
791+5 (4) The market value of stock in any one corporation
792+6 does not exceed 5% of the cash and invested assets of the
793+7 pension fund, and the investments in the stock of any one
794+8 corporation do not exceed 5% of the total outstanding
795+9 stock of that corporation.
796+10 (5) The straight preferred stocks or convertible
797+11 preferred stocks are issued or guaranteed by a corporation
798+12 whose common stock qualifies for investment by the board.
799+13 (6) The issuer of the stocks has been subject to the
800+14 requirements of Section 12 of the federal Securities
801+15 Exchange Act of 1934 and has been current with the filing
802+16 requirements of Sections 13 and 14 of that Act during the
803+17 preceding 3 years.
804+18 (b) A pension fund's total investment in the items
805+19 authorized under this Section and Section 1-113.3 shall not
806+20 exceed 35% of the market value of the pension fund's net
807+21 present assets stated in its most recent annual report on file
808+22 with the Public Pension Division of the Illinois Department of
809+23 Insurance.
810+24 (c) A pension fund that invests funds under this Section
811+25 shall electronically file with the Public Pension Division of
812+26 the Department of Insurance any reports of its investment
813+
814+
815+
816+
817+
818+ HB2089 Enrolled - 23 - LRB103 05055 BMS 51381 b
819+
820+
821+HB2089 Enrolled- 24 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 24 - LRB103 05055 BMS 51381 b
822+ HB2089 Enrolled - 24 - LRB103 05055 BMS 51381 b
823+1 activities that the Division may require, at the times and in
824+2 the format required by the Division.
825+3 (Source: P.A. 100-201, eff. 8-18-17.)
826+4 (40 ILCS 5/1-113.4a)
827+5 Sec. 1-113.4a. List of additional permitted investments
828+6 for Article 3 and 4 pension funds with net assets of
829+7 $10,000,000 or more.
830+8 (a) In addition to the items in Sections 1-113.2 and
831+9 1-113.3, a pension fund established under Article 3 or 4 that
832+10 has net assets of at least $10,000,000 and has appointed an
833+11 investment adviser, as defined under Sections 1-101.4 and
834+12 1-113.5, may, through that investment adviser, invest an
835+13 additional portion of its assets in common and preferred
836+14 stocks and mutual funds.
837+15 (b) The stocks must meet all of the following
838+16 requirements:
839+17 (1) The common stocks must be listed on a national
840+18 securities exchange or board of trade (as defined in the
841+19 Federal Securities Exchange Act of 1934 and set forth in
842+20 paragraph G of Section 3 of the Illinois Securities Law of
843+21 1953) or quoted in the National Association of Securities
844+22 Dealers Automated Quotation System National Market System.
845+23 (2) The securities must be of a corporation in
846+24 existence for at least 5 years.
847+25 (3) The market value of stock in any one corporation
848+
849+
850+
851+
852+
853+ HB2089 Enrolled - 24 - LRB103 05055 BMS 51381 b
854+
855+
856+HB2089 Enrolled- 25 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 25 - LRB103 05055 BMS 51381 b
857+ HB2089 Enrolled - 25 - LRB103 05055 BMS 51381 b
858+1 may not exceed 5% of the cash and invested assets of the
859+2 pension fund, and the investments in the stock of any one
860+3 corporation may not exceed 5% of the total outstanding
861+4 stock of that corporation.
862+5 (4) The straight preferred stocks or convertible
863+6 preferred stocks must be issued or guaranteed by a
864+7 corporation whose common stock qualifies for investment by
865+8 the board.
866+9 (c) The mutual funds must meet the following requirements:
867+10 (1) The mutual fund must be managed by an investment
868+11 company registered under the Federal Investment Company
869+12 Act of 1940 and registered under the Illinois Securities
870+13 Law of 1953.
871+14 (2) The mutual fund must have been in operation for at
872+15 least 5 years.
873+16 (3) The mutual fund must have total net assets of
874+17 $250,000,000 or more.
875+18 (4) The mutual fund must be comprised of a diversified
876+19 portfolio of common or preferred stocks, bonds, or money
877+20 market instruments.
878+21 (d) A pension fund's total investment in the items
879+22 authorized under this Section and Section 1-113.3 shall not
880+23 exceed 50% effective July 1, 2011 and 55% effective July 1,
881+24 2012 of the market value of the pension fund's net present
882+25 assets stated in its most recent annual report on file with the
883+26 Public Pension Division of the Department of Insurance.
884+
885+
886+
887+
888+
889+ HB2089 Enrolled - 25 - LRB103 05055 BMS 51381 b
890+
891+
892+HB2089 Enrolled- 26 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 26 - LRB103 05055 BMS 51381 b
893+ HB2089 Enrolled - 26 - LRB103 05055 BMS 51381 b
894+1 (e) A pension fund that invests funds under this Section
895+2 shall electronically file with the Public Pension Division of
896+3 the Department of Insurance any reports of its investment
897+4 activities that the Division may require, at the time and in
898+5 the format required by the Division.
899+6 (Source: P.A. 96-1495, eff. 1-1-11.)
900+7 (40 ILCS 5/1-113.5)
901+8 Sec. 1-113.5. Investment advisers and investment services
902+9 for all Article 3 or 4 pension funds.
903+10 (a) The board of trustees of a pension fund may appoint
904+11 investment advisers as defined in Section 1-101.4. The board
905+12 of any pension fund investing in common or preferred stock
906+13 under Section 1-113.4 shall appoint an investment adviser
907+14 before making such investments.
908+15 The investment adviser shall be a fiduciary, as defined in
909+16 Section 1-101.2, with respect to the pension fund and shall be
910+17 one of the following:
911+18 (1) an investment adviser registered under the federal
912+19 Investment Advisers Act of 1940 and the Illinois
913+20 Securities Law of 1953;
914+21 (2) a bank or trust company authorized to conduct a
915+22 trust business in Illinois;
916+23 (3) a life insurance company authorized to transact
917+24 business in Illinois; or
918+25 (4) an investment company as defined and registered
919+
920+
921+
922+
923+
924+ HB2089 Enrolled - 26 - LRB103 05055 BMS 51381 b
925+
926+
927+HB2089 Enrolled- 27 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 27 - LRB103 05055 BMS 51381 b
928+ HB2089 Enrolled - 27 - LRB103 05055 BMS 51381 b
929+1 under the federal Investment Company Act of 1940 and
930+2 registered under the Illinois Securities Law of 1953.
931+3 (a-5) Notwithstanding any other provision of law, a person
932+4 or entity that provides consulting services (referred to as a
933+5 "consultant" in this Section) to a pension fund with respect
934+6 to the selection of fiduciaries may not be awarded a contract
935+7 to provide those consulting services that is more than 5 years
936+8 in duration. No contract to provide such consulting services
937+9 may be renewed or extended. At the end of the term of a
938+10 contract, however, the contractor is eligible to compete for a
939+11 new contract. No person shall attempt to avoid or contravene
940+12 the restrictions of this subsection by any means. All offers
941+13 from responsive offerors shall be accompanied by disclosure of
942+14 the names and addresses of the following:
943+15 (1) The offeror.
944+16 (2) Any entity that is a parent of, or owns a
945+17 controlling interest in, the offeror.
946+18 (3) Any entity that is a subsidiary of, or in which a
947+19 controlling interest is owned by, the offeror.
948+20 Beginning on July 1, 2008, a person, other than a trustee
949+21 or an employee of a pension fund or retirement system, may not
950+22 act as a consultant under this Section unless that person is at
951+23 least one of the following: (i) registered as an investment
952+24 adviser under the federal Investment Advisers Act of 1940 (15
953+25 U.S.C. 80b-1, et seq.); (ii) registered as an investment
954+26 adviser under the Illinois Securities Law of 1953; (iii) a
955+
956+
957+
958+
959+
960+ HB2089 Enrolled - 27 - LRB103 05055 BMS 51381 b
961+
962+
963+HB2089 Enrolled- 28 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 28 - LRB103 05055 BMS 51381 b
964+ HB2089 Enrolled - 28 - LRB103 05055 BMS 51381 b
965+1 bank, as defined in the Investment Advisers Act of 1940; or
966+2 (iv) an insurance company authorized to transact business in
967+3 this State.
968+4 (b) All investment advice and services provided by an
969+5 investment adviser or a consultant appointed under this
970+6 Section shall be rendered pursuant to a written contract
971+7 between the investment adviser and the board, and in
972+8 accordance with the board's investment policy.
973+9 The contract shall include all of the following:
974+10 (1) acknowledgement in writing by the investment
975+11 adviser that he or she is a fiduciary with respect to the
976+12 pension fund;
977+13 (2) the board's investment policy;
978+14 (3) full disclosure of direct and indirect fees,
979+15 commissions, penalties, and any other compensation that
980+16 may be received by the investment adviser, including
981+17 reimbursement for expenses; and
982+18 (4) a requirement that the investment adviser submit
983+19 periodic written reports, on at least a quarterly basis,
984+20 for the board's review at its regularly scheduled
985+21 meetings. All returns on investment shall be reported as
986+22 net returns after payment of all fees, commissions, and
987+23 any other compensation.
988+24 (b-5) Each contract described in subsection (b) shall also
989+25 include (i) full disclosure of direct and indirect fees,
990+26 commissions, penalties, and other compensation, including
991+
992+
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994+
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996+ HB2089 Enrolled - 28 - LRB103 05055 BMS 51381 b
997+
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999+HB2089 Enrolled- 29 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 29 - LRB103 05055 BMS 51381 b
1000+ HB2089 Enrolled - 29 - LRB103 05055 BMS 51381 b
1001+1 reimbursement for expenses, that may be paid by or on behalf of
1002+2 the investment adviser or consultant in connection with the
1003+3 provision of services to the pension fund and (ii) a
1004+4 requirement that the investment adviser or consultant update
1005+5 the disclosure promptly after a modification of those payments
1006+6 or an additional payment.
1007+7 Within 30 days after the effective date of this amendatory
1008+8 Act of the 95th General Assembly, each investment adviser and
1009+9 consultant providing services on the effective date or subject
1010+10 to an existing contract for the provision of services must
1011+11 disclose to the board of trustees all direct and indirect
1012+12 fees, commissions, penalties, and other compensation paid by
1013+13 or on behalf of the investment adviser or consultant in
1014+14 connection with the provision of those services and shall
1015+15 update that disclosure promptly after a modification of those
1016+16 payments or an additional payment.
1017+17 A person required to make a disclosure under subsection
1018+18 (d) is also required to disclose direct and indirect fees,
1019+19 commissions, penalties, or other compensation that shall or
1020+20 may be paid by or on behalf of the person in connection with
1021+21 the rendering of those services. The person shall update the
1022+22 disclosure promptly after a modification of those payments or
1023+23 an additional payment.
1024+24 The disclosures required by this subsection shall be in
1025+25 writing and shall include the date and amount of each payment
1026+26 and the name and address of each recipient of a payment.
1027+
1028+
1029+
1030+
1031+
1032+ HB2089 Enrolled - 29 - LRB103 05055 BMS 51381 b
1033+
1034+
1035+HB2089 Enrolled- 30 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 30 - LRB103 05055 BMS 51381 b
1036+ HB2089 Enrolled - 30 - LRB103 05055 BMS 51381 b
1037+1 (c) Within 30 days after appointing an investment adviser
1038+2 or consultant, the board shall submit a copy of the contract to
1039+3 the Public Pension Division of the Department of Insurance of
1040+4 the Department of Financial and Professional Regulation.
1041+5 (d) Investment services provided by a person other than an
1042+6 investment adviser appointed under this Section, including but
1043+7 not limited to services provided by the kinds of persons
1044+8 listed in items (1) through (4) of subsection (a), shall be
1045+9 rendered only after full written disclosure of direct and
1046+10 indirect fees, commissions, penalties, and any other
1047+11 compensation that shall or may be received by the person
1048+12 rendering those services.
1049+13 (e) The board of trustees of each pension fund shall
1050+14 retain records of investment transactions in accordance with
1051+15 the rules of the Public Pension Division of the Department of
1052+16 Insurance Financial and Professional Regulation.
1053+17 (Source: P.A. 95-950, eff. 8-29-08; 96-6, eff. 4-3-09.)
1054+18 (40 ILCS 5/1-113.18)
1055+19 Sec. 1-113.18. Ethics training. All board members of a
1056+20 retirement system, pension fund, or investment board created
1057+21 under this Code must attend ethics training of at least 8 hours
1058+22 per year. The training required under this Section shall
1059+23 include training on ethics, fiduciary duty, and investment
1060+24 issues and any other curriculum that the board of the
1061+25 retirement system, pension fund, or investment board
1062+
1063+
1064+
1065+
1066+
1067+ HB2089 Enrolled - 30 - LRB103 05055 BMS 51381 b
1068+
1069+
1070+HB2089 Enrolled- 31 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 31 - LRB103 05055 BMS 51381 b
1071+ HB2089 Enrolled - 31 - LRB103 05055 BMS 51381 b
1072+1 establishes as being important for the administration of the
1073+2 retirement system, pension fund, or investment board. The
1074+3 Supreme Court of Illinois shall be responsible for ethics
1075+4 training and curriculum for judges designated by the Court to
1076+5 serve as members of a retirement system, pension fund, or
1077+6 investment board. Each board shall annually certify its
1078+7 members' compliance with this Section and submit an annual
1079+8 certification to the Public Pension Division of the Department
1080+9 of Insurance of the Department of Financial and Professional
1081+10 Regulation. Judges shall annually certify compliance with the
1082+11 ethics training requirement and shall submit an annual
1083+12 certification to the Chief Justice of the Supreme Court of
1084+13 Illinois. For an elected or appointed trustee under Article 3
1085+14 or 4 of this Code, fulfillment of the requirements of Section
1086+15 1-109.3 satisfies the requirements of this Section.
1087+16 (Source: P.A. 100-904, eff. 8-17-18.)
1088+17 (40 ILCS 5/2-162)
1089+18 (Text of Section WITHOUT the changes made by P.A. 98-599,
1090+19 which has been held unconstitutional)
1091+20 Sec. 2-162. Application and expiration of new benefit
1092+21 increases.
1093+22 (a) As used in this Section, "new benefit increase" means
1094+23 an increase in the amount of any benefit provided under this
1095+24 Article, or an expansion of the conditions of eligibility for
1096+25 any benefit under this Article, that results from an amendment
1097+
1098+
1099+
1100+
1101+
1102+ HB2089 Enrolled - 31 - LRB103 05055 BMS 51381 b
1103+
1104+
1105+HB2089 Enrolled- 32 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 32 - LRB103 05055 BMS 51381 b
1106+ HB2089 Enrolled - 32 - LRB103 05055 BMS 51381 b
1107+1 to this Code that takes effect after the effective date of this
1108+2 amendatory Act of the 94th General Assembly.
1109+3 (b) Notwithstanding any other provision of this Code or
1110+4 any subsequent amendment to this Code, every new benefit
1111+5 increase is subject to this Section and shall be deemed to be
1112+6 granted only in conformance with and contingent upon
1113+7 compliance with the provisions of this Section.
1114+8 (c) The Public Act enacting a new benefit increase must
1115+9 identify and provide for payment to the System of additional
1116+10 funding at least sufficient to fund the resulting annual
1117+11 increase in cost to the System as it accrues.
1118+12 Every new benefit increase is contingent upon the General
1119+13 Assembly providing the additional funding required under this
1120+14 subsection. The Commission on Government Forecasting and
1121+15 Accountability shall analyze whether adequate additional
1122+16 funding has been provided for the new benefit increase and
1123+17 shall report its analysis to the Public Pension Division of
1124+18 the Department of Insurance Financial and Professional
1125+19 Regulation. A new benefit increase created by a Public Act
1126+20 that does not include the additional funding required under
1127+21 this subsection is null and void. If the Public Pension
1128+22 Division determines that the additional funding provided for a
1129+23 new benefit increase under this subsection is or has become
1130+24 inadequate, it may so certify to the Governor and the State
1131+25 Comptroller and, in the absence of corrective action by the
1132+26 General Assembly, the new benefit increase shall expire at the
1133+
1134+
1135+
1136+
1137+
1138+ HB2089 Enrolled - 32 - LRB103 05055 BMS 51381 b
1139+
1140+
1141+HB2089 Enrolled- 33 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 33 - LRB103 05055 BMS 51381 b
1142+ HB2089 Enrolled - 33 - LRB103 05055 BMS 51381 b
1143+1 end of the fiscal year in which the certification is made.
1144+2 (d) Every new benefit increase shall expire 5 years after
1145+3 its effective date or on such earlier date as may be specified
1146+4 in the language enacting the new benefit increase or provided
1147+5 under subsection (c). This does not prevent the General
1148+6 Assembly from extending or re-creating a new benefit increase
1149+7 by law.
1150+8 (e) Except as otherwise provided in the language creating
1151+9 the new benefit increase, a new benefit increase that expires
1152+10 under this Section continues to apply to persons who applied
1153+11 and qualified for the affected benefit while the new benefit
1154+12 increase was in effect and to the affected beneficiaries and
1155+13 alternate payees of such persons, but does not apply to any
1156+14 other person, including without limitation a person who
1157+15 continues in service after the expiration date and did not
1158+16 apply and qualify for the affected benefit while the new
1159+17 benefit increase was in effect.
1160+18 (Source: P.A. 94-4, eff. 6-1-05.)
1161+19 (40 ILCS 5/3-110) (from Ch. 108 1/2, par. 3-110)
1162+20 Sec. 3-110. Creditable service.
1163+21 (a) "Creditable service" is the time served by a police
1164+22 officer as a member of a regularly constituted police force of
1165+23 a municipality. In computing creditable service furloughs
1166+24 without pay exceeding 30 days shall not be counted, but all
1167+25 leaves of absence for illness or accident, regardless of
1168+
1169+
1170+
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1177+ HB2089 Enrolled - 34 - LRB103 05055 BMS 51381 b
1178+1 length, and all periods of disability retirement for which a
1179+2 police officer has received no disability pension payments
1180+3 under this Article shall be counted.
1181+4 (a-5) Up to 3 years of time during which the police officer
1182+5 receives a disability pension under Section 3-114.1, 3-114.2,
1183+6 3-114.3, or 3-114.6 shall be counted as creditable service,
1184+7 provided that (i) the police officer returns to active service
1185+8 after the disability for a period at least equal to the period
1186+9 for which credit is to be established and (ii) the police
1187+10 officer makes contributions to the fund based on the rates
1188+11 specified in Section 3-125.1 and the salary upon which the
1189+12 disability pension is based. These contributions may be paid
1190+13 at any time prior to the commencement of a retirement pension.
1191+14 The police officer may, but need not, elect to have the
1192+15 contributions deducted from the disability pension or to pay
1193+16 them in installments on a schedule approved by the board. If
1194+17 not deducted from the disability pension, the contributions
1195+18 shall include interest at the rate of 6% per year, compounded
1196+19 annually, from the date for which service credit is being
1197+20 established to the date of payment. If contributions are paid
1198+21 under this subsection (a-5) in excess of those needed to
1199+22 establish the credit, the excess shall be refunded. This
1200+23 subsection (a-5) applies to persons receiving a disability
1201+24 pension under Section 3-114.1, 3-114.2, 3-114.3, or 3-114.6 on
1202+25 the effective date of this amendatory Act of the 91st General
1203+26 Assembly, as well as persons who begin to receive such a
1204+
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1212+HB2089 Enrolled- 35 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 35 - LRB103 05055 BMS 51381 b
1213+ HB2089 Enrolled - 35 - LRB103 05055 BMS 51381 b
1214+1 disability pension after that date.
1215+2 (b) Creditable service includes all periods of service in
1216+3 the military, naval or air forces of the United States entered
1217+4 upon while an active police officer of a municipality,
1218+5 provided that upon applying for a permanent pension, and in
1219+6 accordance with the rules of the board, the police officer
1220+7 pays into the fund the amount the officer would have
1221+8 contributed if he or she had been a regular contributor during
1222+9 such period, to the extent that the municipality which the
1223+10 police officer served has not made such contributions in the
1224+11 officer's behalf. The total amount of such creditable service
1225+12 shall not exceed 5 years, except that any police officer who on
1226+13 July 1, 1973 had more than 5 years of such creditable service
1227+14 shall receive the total amount thereof.
1228+15 (b-5) Creditable service includes all periods of service
1229+16 in the military, naval, or air forces of the United States
1230+17 entered upon before beginning service as an active police
1231+18 officer of a municipality, provided that, in accordance with
1232+19 the rules of the board, the police officer pays into the fund
1233+20 the amount the police officer would have contributed if he or
1234+21 she had been a regular contributor during such period, plus an
1235+22 amount determined by the Board to be equal to the
1236+23 municipality's normal cost of the benefit, plus interest at
1237+24 the actuarially assumed rate calculated from the date the
1238+25 employee last became a police officer under this Article. The
1239+26 total amount of such creditable service shall not exceed 2
1240+
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1249+ HB2089 Enrolled - 36 - LRB103 05055 BMS 51381 b
1250+1 years.
1251+2 (c) Creditable service also includes service rendered by a
1252+3 police officer while on leave of absence from a police
1253+4 department to serve as an executive of an organization whose
1254+5 membership consists of members of a police department, subject
1255+6 to the following conditions: (i) the police officer is a
1256+7 participant of a fund established under this Article with at
1257+8 least 10 years of service as a police officer; (ii) the police
1258+9 officer received no credit for such service under any other
1259+10 retirement system, pension fund, or annuity and benefit fund
1260+11 included in this Code; (iii) pursuant to the rules of the board
1261+12 the police officer pays to the fund the amount he or she would
1262+13 have contributed had the officer been an active member of the
1263+14 police department; (iv) the organization pays a contribution
1264+15 equal to the municipality's normal cost for that period of
1265+16 service; and (v) for all leaves of absence under this
1266+17 subsection (c), including those beginning before the effective
1267+18 date of this amendatory Act of the 97th General Assembly, the
1268+19 police officer continues to remain in sworn status, subject to
1269+20 the professional standards of the public employer or those
1270+21 terms established in statute.
1271+22 (d)(1) Creditable service also includes periods of
1272+23 service originally established in another police pension
1273+24 fund under this Article or in the Fund established under
1274+25 Article 7 of this Code for which (i) the contributions
1275+26 have been transferred under Section 3-110.7 or Section
1276+
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1282+
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1284+HB2089 Enrolled- 37 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 37 - LRB103 05055 BMS 51381 b
1285+ HB2089 Enrolled - 37 - LRB103 05055 BMS 51381 b
1286+1 7-139.9 and (ii) any additional contribution required
1287+2 under paragraph (2) of this subsection has been paid in
1288+3 full in accordance with the requirements of this
1289+4 subsection (d).
1290+5 (2) If the board of the pension fund to which
1291+6 creditable service and related contributions are
1292+7 transferred under Section 7-139.9 determines that the
1293+8 amount transferred is less than the true cost to the
1294+9 pension fund of allowing that creditable service to be
1295+10 established, then in order to establish that creditable
1296+11 service the police officer must pay to the pension fund,
1297+12 within the payment period specified in paragraph (3) of
1298+13 this subsection, an additional contribution equal to the
1299+14 difference, as determined by the board in accordance with
1300+15 the rules and procedures adopted under paragraph (6) of
1301+16 this subsection. If the board of the pension fund to which
1302+17 creditable service and related contributions are
1303+18 transferred under Section 3-110.7 determines that the
1304+19 amount transferred is less than the true cost to the
1305+20 pension fund of allowing that creditable service to be
1306+21 established, then the police officer may elect (A) to
1307+22 establish that creditable service by paying to the pension
1308+23 fund, within the payment period specified in paragraph (3)
1309+24 of this subsection (d), an additional contribution equal
1310+25 to the difference, as determined by the board in
1311+26 accordance with the rules and procedures adopted under
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1321+ HB2089 Enrolled - 38 - LRB103 05055 BMS 51381 b
1322+1 paragraph (6) of this subsection (d) or (B) to have his or
1323+2 her creditable service reduced by an amount equal to the
1324+3 difference between the amount transferred under Section
1325+4 3-110.7 and the true cost to the pension fund of allowing
1326+5 that creditable service to be established, as determined
1327+6 by the board in accordance with the rules and procedures
1328+7 adopted under paragraph (6) of this subsection (d).
1329+8 (3) Except as provided in paragraph (4), the
1330+9 additional contribution that is required or elected under
1331+10 paragraph (2) of this subsection (d) must be paid to the
1332+11 board (i) within 5 years from the date of the transfer of
1333+12 contributions under Section 3-110.7 or 7-139.9 and (ii)
1334+13 before the police officer terminates service with the
1335+14 fund. The additional contribution may be paid in a lump
1336+15 sum or in accordance with a schedule of installment
1337+16 payments authorized by the board.
1338+17 (4) If the police officer dies in service before
1339+18 payment in full has been made and before the expiration of
1340+19 the 5-year payment period, the surviving spouse of the
1341+20 officer may elect to pay the unpaid amount on the
1342+21 officer's behalf within 6 months after the date of death,
1343+22 in which case the creditable service shall be granted as
1344+23 though the deceased police officer had paid the remaining
1345+24 balance on the day before the date of death.
1346+25 (5) If the additional contribution that is required or
1347+26 elected under paragraph (2) of this subsection (d) is not
1348+
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1357+ HB2089 Enrolled - 39 - LRB103 05055 BMS 51381 b
1358+1 paid in full within the required time, the creditable
1359+2 service shall not be granted and the police officer (or
1360+3 the officer's surviving spouse or estate) shall be
1361+4 entitled to receive a refund of (i) any partial payment of
1362+5 the additional contribution that has been made by the
1363+6 police officer and (ii) those portions of the amounts
1364+7 transferred under subdivision (a)(1) of Section 3-110.7 or
1365+8 subdivisions (a)(1) and (a)(3) of Section 7-139.9 that
1366+9 represent employee contributions paid by the police
1367+10 officer (but not the accumulated interest on those
1368+11 contributions) and interest paid by the police officer to
1369+12 the prior pension fund in order to reinstate service
1370+13 terminated by acceptance of a refund.
1371+14 At the time of paying a refund under this item (5), the
1372+15 pension fund shall also repay to the pension fund from
1373+16 which the contributions were transferred under Section
1374+17 3-110.7 or 7-139.9 the amount originally transferred under
1375+18 subdivision (a)(2) of that Section, plus interest at the
1376+19 rate of 6% per year, compounded annually, from the date of
1377+20 the original transfer to the date of repayment. Amounts
1378+21 repaid to the Article 7 fund under this provision shall be
1379+22 credited to the appropriate municipality.
1380+23 Transferred credit that is not granted due to failure
1381+24 to pay the additional contribution within the required
1382+25 time is lost; it may not be transferred to another pension
1383+26 fund and may not be reinstated in the pension fund from
1384+
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1393+ HB2089 Enrolled - 40 - LRB103 05055 BMS 51381 b
1394+1 which it was transferred.
1395+2 (6) The Public Employee Pension Fund Division of the
1396+3 Department of Insurance shall establish by rule the manner
1397+4 of making the calculation required under paragraph (2) of
1398+5 this subsection, taking into account the appropriate
1399+6 actuarial assumptions; the police officer's service, age,
1400+7 and salary history; the level of funding of the pension
1401+8 fund to which the credits are being transferred; and any
1402+9 other factors that the Division determines to be relevant.
1403+10 The rules may require that all calculations made under
1404+11 paragraph (2) be reported to the Division by the board
1405+12 performing the calculation, together with documentation of
1406+13 the creditable service to be transferred, the amounts of
1407+14 contributions and interest to be transferred, the manner
1408+15 in which the calculation was performed, the numbers relied
1409+16 upon in making the calculation, the results of the
1410+17 calculation, and any other information the Division may
1411+18 deem useful.
1412+19 (e)(1) Creditable service also includes periods of
1413+20 service originally established in the Fund established
1414+21 under Article 7 of this Code for which the contributions
1415+22 have been transferred under Section 7-139.11.
1416+23 (2) If the board of the pension fund to which
1417+24 creditable service and related contributions are
1418+25 transferred under Section 7-139.11 determines that the
1419+26 amount transferred is less than the true cost to the
1420+
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1429+ HB2089 Enrolled - 41 - LRB103 05055 BMS 51381 b
1430+1 pension fund of allowing that creditable service to be
1431+2 established, then the amount of creditable service the
1432+3 police officer may establish under this subsection (e)
1433+4 shall be reduced by an amount equal to the difference, as
1434+5 determined by the board in accordance with the rules and
1435+6 procedures adopted under paragraph (3) of this subsection.
1436+7 (3) The Public Pension Division of the Department of
1437+8 Insurance Financial and Professional Regulation shall
1438+9 establish by rule the manner of making the calculation
1439+10 required under paragraph (2) of this subsection, taking
1440+11 into account the appropriate actuarial assumptions; the
1441+12 police officer's service, age, and salary history; the
1442+13 level of funding of the pension fund to which the credits
1443+14 are being transferred; and any other factors that the
1444+15 Division determines to be relevant. The rules may require
1445+16 that all calculations made under paragraph (2) be reported
1446+17 to the Division by the board performing the calculation,
1447+18 together with documentation of the creditable service to
1448+19 be transferred, the amounts of contributions and interest
1449+20 to be transferred, the manner in which the calculation was
1450+21 performed, the numbers relied upon in making the
1451+22 calculation, the results of the calculation, and any other
1452+23 information the Division may deem useful.
1453+24 (4) Until January 1, 2010, a police officer who
1454+25 transferred service from the Fund established under
1455+26 Article 7 of this Code under the provisions of Public Act
1456+
1457+
1458+
1459+
1460+
1461+ HB2089 Enrolled - 41 - LRB103 05055 BMS 51381 b
1462+
1463+
1464+HB2089 Enrolled- 42 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 42 - LRB103 05055 BMS 51381 b
1465+ HB2089 Enrolled - 42 - LRB103 05055 BMS 51381 b
1466+1 94-356 may establish additional credit, but only for the
1467+2 amount of the service credit reduction in that transfer,
1468+3 as calculated under paragraph (3) of this subsection (e).
1469+4 This credit may be established upon payment by the police
1470+5 officer of an amount to be determined by the board, equal
1471+6 to (1) the amount that would have been contributed as
1472+7 employee and employer contributions had all of the service
1473+8 been as an employee under this Article, plus interest
1474+9 thereon at the rate of 6% per year, compounded annually
1475+10 from the date of service to the date of transfer, less (2)
1476+11 the total amount transferred from the Article 7 Fund, plus
1477+12 (3) interest on the difference at the rate of 6% per year,
1478+13 compounded annually, from the date of the transfer to the
1479+14 date of payment. The additional service credit is allowed
1480+15 under this amendatory Act of the 95th General Assembly
1481+16 notwithstanding the provisions of Article 7 terminating
1482+17 all transferred credits on the date of transfer.
1483+18 (Source: P.A. 96-297, eff. 8-11-09; 96-1260, eff. 7-23-10;
1484+19 97-651, eff. 1-5-12.)
1485+20 (40 ILCS 5/4-108) (from Ch. 108 1/2, par. 4-108)
1486+21 Sec. 4-108. Creditable service.
1487+22 (a) Creditable service is the time served as a firefighter
1488+23 of a municipality. In computing creditable service, furloughs
1489+24 and leaves of absence without pay exceeding 30 days in any one
1490+25 year shall not be counted, but leaves of absence for illness or
1491+
1492+
1493+
1494+
1495+
1496+ HB2089 Enrolled - 42 - LRB103 05055 BMS 51381 b
1497+
1498+
1499+HB2089 Enrolled- 43 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 43 - LRB103 05055 BMS 51381 b
1500+ HB2089 Enrolled - 43 - LRB103 05055 BMS 51381 b
1501+1 accident regardless of length, and periods of disability for
1502+2 which a firefighter received no disability pension payments
1503+3 under this Article, shall be counted.
1504+4 (b) Furloughs and leaves of absence of 30 days or less in
1505+5 any one year may be counted as creditable service, if the
1506+6 firefighter makes the contribution to the fund that would have
1507+7 been required had he or she not been on furlough or leave of
1508+8 absence. To qualify for this creditable service, the
1509+9 firefighter must pay the required contributions to the fund
1510+10 not more than 90 days subsequent to the termination of the
1511+11 furlough or leave of absence, to the extent that the
1512+12 municipality has not made such contribution on his or her
1513+13 behalf.
1514+14 (c) Creditable service includes:
1515+15 (1) Service in the military, naval or air forces of
1516+16 the United States entered upon when the person was an
1517+17 active firefighter, provided that, upon applying for a
1518+18 permanent pension, and in accordance with the rules of the
1519+19 board the firefighter pays into the fund the amount that
1520+20 would have been contributed had he or she been a regular
1521+21 contributor during such period of service, if and to the
1522+22 extent that the municipality which the firefighter served
1523+23 made no such contributions in his or her behalf. The total
1524+24 amount of such creditable service shall not exceed 5
1525+25 years, except that any firefighter who on July 1, 1973 had
1526+26 more than 5 years of such creditable service shall receive
1527+
1528+
1529+
1530+
1531+
1532+ HB2089 Enrolled - 43 - LRB103 05055 BMS 51381 b
1533+
1534+
1535+HB2089 Enrolled- 44 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 44 - LRB103 05055 BMS 51381 b
1536+ HB2089 Enrolled - 44 - LRB103 05055 BMS 51381 b
1537+1 the total amount thereof as of that date.
1538+2 (1.5) Up to 24 months of service in the military,
1539+3 naval, or air forces of the United States that was served
1540+4 prior to employment by a municipality or fire protection
1541+5 district as a firefighter. To receive the credit for the
1542+6 military service prior to the employment as a firefighter,
1543+7 the firefighter must apply in writing to the fund and must
1544+8 make contributions to the fund equal to (i) the employee
1545+9 contributions that would have been required had the
1546+10 service been rendered as a member, plus (ii) an amount
1547+11 determined by the fund to be equal to the employer's
1548+12 normal cost of the benefits accrued for that military
1549+13 service, plus (iii) interest at the actuarially assumed
1550+14 rate provided by the Public Pension Division of the
1551+15 Department of Insurance Financial and Professional
1552+16 Regulation, compounded annually from the first date of
1553+17 membership in the fund to the date of payment on items (i)
1554+18 and (ii). The changes to this paragraph (1.5) by this
1555+19 amendatory Act of the 95th General Assembly apply only to
1556+20 participating employees in service on or after its
1557+21 effective date.
1558+22 (2) Service prior to July 1, 1976 by a firefighter
1559+23 initially excluded from participation by reason of age who
1560+24 elected to participate and paid the required contributions
1561+25 for such service.
1562+26 (3) Up to 8 years of service by a firefighter as an
1563+
1564+
1565+
1566+
1567+
1568+ HB2089 Enrolled - 44 - LRB103 05055 BMS 51381 b
1569+
1570+
1571+HB2089 Enrolled- 45 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 45 - LRB103 05055 BMS 51381 b
1572+ HB2089 Enrolled - 45 - LRB103 05055 BMS 51381 b
1573+1 officer in a statewide firefighters' association when he
1574+2 is on a leave of absence from a municipality's payroll,
1575+3 provided that (i) the firefighter has at least 10 years of
1576+4 creditable service as an active firefighter, (ii) the
1577+5 firefighter contributes to the fund the amount that he
1578+6 would have contributed had he remained an active member of
1579+7 the fund, (iii) the employee or statewide firefighter
1580+8 association contributes to the fund an amount equal to the
1581+9 employer's required contribution as determined by the
1582+10 board, and (iv) for all leaves of absence under this
1583+11 subdivision (3), including those beginning before the
1584+12 effective date of this amendatory Act of the 97th General
1585+13 Assembly, the firefighter continues to remain in sworn
1586+14 status, subject to the professional standards of the
1587+15 public employer or those terms established in statute.
1588+16 (4) Time spent as an on-call fireman for a
1589+17 municipality, calculated at the rate of one year of
1590+18 creditable service for each 5 years of time spent as an
1591+19 on-call fireman, provided that (i) the firefighter has at
1592+20 least 18 years of creditable service as an active
1593+21 firefighter, (ii) the firefighter spent at least 14 years
1594+22 as an on-call firefighter for the municipality, (iii) the
1595+23 firefighter applies for such creditable service within 30
1596+24 days after the effective date of this amendatory Act of
1597+25 1989, (iv) the firefighter contributes to the Fund an
1598+26 amount representing employee contributions for the number
1599+
1600+
1601+
1602+
1603+
1604+ HB2089 Enrolled - 45 - LRB103 05055 BMS 51381 b
1605+
1606+
1607+HB2089 Enrolled- 46 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 46 - LRB103 05055 BMS 51381 b
1608+ HB2089 Enrolled - 46 - LRB103 05055 BMS 51381 b
1609+1 of years of creditable service granted under this
1610+2 subdivision (4), based on the salary and contribution rate
1611+3 in effect for the firefighter at the date of entry into the
1612+4 Fund, to be determined by the board, and (v) not more than
1613+5 3 years of creditable service may be granted under this
1614+6 subdivision (4).
1615+7 Except as provided in Section 4-108.5, creditable
1616+8 service shall not include time spent as a volunteer
1617+9 firefighter, whether or not any compensation was received
1618+10 therefor. The change made in this Section by Public Act
1619+11 83-0463 is intended to be a restatement and clarification
1620+12 of existing law, and does not imply that creditable
1621+13 service was previously allowed under this Article for time
1622+14 spent as a volunteer firefighter.
1623+15 (5) Time served between July 1, 1976 and July 1, 1988
1624+16 in the position of protective inspection officer or
1625+17 administrative assistant for fire services, for a
1626+18 municipality with a population under 10,000 that is
1627+19 located in a county with a population over 3,000,000 and
1628+20 that maintains a firefighters' pension fund under this
1629+21 Article, if the position included firefighting duties,
1630+22 notwithstanding that the person may not have held an
1631+23 appointment as a firefighter, provided that application is
1632+24 made to the pension fund within 30 days after the
1633+25 effective date of this amendatory Act of 1991, and the
1634+26 corresponding contributions are paid for the number of
1635+
1636+
1637+
1638+
1639+
1640+ HB2089 Enrolled - 46 - LRB103 05055 BMS 51381 b
1641+
1642+
1643+HB2089 Enrolled- 47 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 47 - LRB103 05055 BMS 51381 b
1644+ HB2089 Enrolled - 47 - LRB103 05055 BMS 51381 b
1645+1 years of service granted, based upon the salary and
1646+2 contribution rate in effect for the firefighter at the
1647+3 date of entry into the pension fund, as determined by the
1648+4 Board.
1649+5 (6) Service before becoming a participant by a
1650+6 firefighter initially excluded from participation by
1651+7 reason of age who becomes a participant under the
1652+8 amendment to Section 4-107 made by this amendatory Act of
1653+9 1993 and pays the required contributions for such service.
1654+10 (7) Up to 3 years of time during which the firefighter
1655+11 receives a disability pension under Section 4-110,
1656+12 4-110.1, or 4-111, provided that (i) the firefighter
1657+13 returns to active service after the disability for a
1658+14 period at least equal to the period for which credit is to
1659+15 be established and (ii) the firefighter makes
1660+16 contributions to the fund based on the rates specified in
1661+17 Section 4-118.1 and the salary upon which the disability
1662+18 pension is based. These contributions may be paid at any
1663+19 time prior to the commencement of a retirement pension.
1664+20 The firefighter may, but need not, elect to have the
1665+21 contributions deducted from the disability pension or to
1666+22 pay them in installments on a schedule approved by the
1667+23 board. If not deducted from the disability pension, the
1668+24 contributions shall include interest at the rate of 6% per
1669+25 year, compounded annually, from the date for which service
1670+26 credit is being established to the date of payment. If
1671+
1672+
1673+
1674+
1675+
1676+ HB2089 Enrolled - 47 - LRB103 05055 BMS 51381 b
1677+
1678+
1679+HB2089 Enrolled- 48 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 48 - LRB103 05055 BMS 51381 b
1680+ HB2089 Enrolled - 48 - LRB103 05055 BMS 51381 b
1681+1 contributions are paid under this subdivision (c)(7) in
1682+2 excess of those needed to establish the credit, the excess
1683+3 shall be refunded. This subdivision (c)(7) applies to
1684+4 persons receiving a disability pension under Section
1685+5 4-110, 4-110.1, or 4-111 on the effective date of this
1686+6 amendatory Act of the 91st General Assembly, as well as
1687+7 persons who begin to receive such a disability pension
1688+8 after that date.
1689+9 (8) Up to 6 years of service as a police officer and
1690+10 participant in an Article 3 police pension fund
1691+11 administered by the unit of local government that employs
1692+12 the firefighter under this Article, provided that the
1693+13 service has been transferred to, and the required payment
1694+14 received by, the Article 4 fund in accordance with
1695+15 subsection (a) of Section 3-110.12 of this Code.
1696+16 (9) Up to 8 years of service as a police officer and
1697+17 participant in an Article 3 police pension fund
1698+18 administered by a unit of local government, provided that
1699+19 the service has been transferred to, and the required
1700+20 payment received by, the Article 4 fund in accordance with
1701+21 subsection (a-5) of Section 3-110.12 of this Code.
1702+22 (Source: P.A. 102-63, eff. 7-9-21.)
1703+23 (40 ILCS 5/4-109.3)
1704+24 Sec. 4-109.3. Employee creditable service.
1705+25 (a) As used in this Section:
1706+
1707+
1708+
1709+
1710+
1711+ HB2089 Enrolled - 48 - LRB103 05055 BMS 51381 b
1712+
1713+
1714+HB2089 Enrolled- 49 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 49 - LRB103 05055 BMS 51381 b
1715+ HB2089 Enrolled - 49 - LRB103 05055 BMS 51381 b
1716+1 "Final monthly salary" means the monthly salary attached
1717+2 to the rank held by the firefighter at the time of his or her
1718+3 last withdrawal from service under a particular pension fund.
1719+4 "Last pension fund" means the pension fund in which the
1720+5 firefighter was participating at the time of his or her last
1721+6 withdrawal from service.
1722+7 (b) The benefits provided under this Section are available
1723+8 only to a firefighter who:
1724+9 (1) is a firefighter at the time of withdrawal from
1725+10 the last pension fund and for at least the final 3 years of
1726+11 employment prior to that withdrawal;
1727+12 (2) has established service credit with at least one
1728+13 pension fund established under this Article other than the
1729+14 last pension fund;
1730+15 (3) has a total of at least 20 years of service under
1731+16 the various pension funds established under this Article
1732+17 and has attained age 50; and
1733+18 (4) is in service on or after the effective date of
1734+19 this amendatory Act of the 93rd General Assembly.
1735+20 (c) A firefighter who is eligible for benefits under this
1736+21 Section may elect to receive a retirement pension from each
1737+22 pension fund under this Article in which the firefighter has
1738+23 at least one year of service credit but has not received a
1739+24 refund under Section 4-116 (unless the firefighter repays that
1740+25 refund under subsection (g)) or subsection (c) of Section
1741+26 4-118.1, by applying in writing and paying the contribution
1742+
1743+
1744+
1745+
1746+
1747+ HB2089 Enrolled - 49 - LRB103 05055 BMS 51381 b
1748+
1749+
1750+HB2089 Enrolled- 50 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 50 - LRB103 05055 BMS 51381 b
1751+ HB2089 Enrolled - 50 - LRB103 05055 BMS 51381 b
1752+1 required under subsection (i).
1753+2 (d) From each such pension fund other than the last
1754+3 pension fund, in lieu of any retirement pension otherwise
1755+4 payable under this Article, a firefighter to whom this Section
1756+5 applies may elect to receive a monthly pension of 1/12th of
1757+6 2.5% of his or her final monthly salary under that fund for
1758+7 each month of service in that fund, subject to a maximum of 75%
1759+8 of that final monthly salary.
1760+9 (e) From the last pension fund, in lieu of any retirement
1761+10 pension otherwise payable under this Article, a firefighter to
1762+11 whom this Section applies may elect to receive a monthly
1763+12 pension calculated as follows:
1764+13 The last pension fund shall calculate the retirement
1765+14 pension that would be payable to the firefighter under Section
1766+15 4-109 as if he or she had participated in that last pension
1767+16 fund during his or her entire period of service under all
1768+17 pension funds established under this Article (excluding any
1769+18 period of service for which the firefighter has received a
1770+19 refund under Section 4-116, unless the firefighter repays that
1771+20 refund under subsection (g), or for which the firefighter has
1772+21 received a refund under subsection (c) of Section 4-118.1).
1773+22 From this hypothetical pension there shall be subtracted the
1774+23 original amounts of the retirement pensions payable to the
1775+24 firefighter by all other pension funds under subsection (d).
1776+25 The remainder is the retirement pension payable to the
1777+26 firefighter by the last pension fund under this subsection
1778+
1779+
1780+
1781+
1782+
1783+ HB2089 Enrolled - 50 - LRB103 05055 BMS 51381 b
1784+
1785+
1786+HB2089 Enrolled- 51 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 51 - LRB103 05055 BMS 51381 b
1787+ HB2089 Enrolled - 51 - LRB103 05055 BMS 51381 b
1788+1 (e).
1789+2 (f) Pensions elected under this Section shall be subject
1790+3 to increases as provided in Section 4-109.1.
1791+4 (g) A current firefighter may reinstate creditable service
1792+5 in a pension fund established under this Article that was
1793+6 terminated upon receipt of a refund, by payment to that
1794+7 pension fund of the amount of the refund together with
1795+8 interest thereon at the rate of 6% per year, compounded
1796+9 annually, from the date of the refund to the date of payment. A
1797+10 repayment of a refund under this Section may be made in equal
1798+11 installments over a period of up to 10 years, but must be paid
1799+12 in full prior to retirement.
1800+13 (h) As a condition of being eligible for the benefits
1801+14 provided in this Section, a person who is hired to a position
1802+15 as a firefighter on or after July 1, 2004 must, within 21
1803+16 months after being hired, notify the new employer, all of his
1804+17 or her previous employers under this Article, and the Public
1805+18 Pension Division of the Department Division of Insurance of
1806+19 the Department of Financial and Professional Regulation of his
1807+20 or her intent to receive the benefits provided under this
1808+21 Section.
1809+22 As a condition of being eligible for the benefits provided
1810+23 in this Section, a person who first becomes a firefighter
1811+24 under this Article after December 31, 2010 must (1) within 21
1812+25 months after being hired or within 21 months after the
1813+26 effective date of this amendatory Act of the 102nd General
1814+
1815+
1816+
1817+
1818+
1819+ HB2089 Enrolled - 51 - LRB103 05055 BMS 51381 b
1820+
1821+
1822+HB2089 Enrolled- 52 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 52 - LRB103 05055 BMS 51381 b
1823+ HB2089 Enrolled - 52 - LRB103 05055 BMS 51381 b
1824+1 Assembly, whichever is later, notify the new employer, all of
1825+2 his or her previous employers under this Article, and the
1826+3 Public Pension Division of the Department of Insurance of his
1827+4 or her intent to receive the benefits provided under this
1828+5 Section; and (2) make the required contributions with
1829+6 applicable interest. A person who first becomes a firefighter
1830+7 under this Article after December 31, 2010 and who, before the
1831+8 effective date of this amendatory Act of the 102nd General
1832+9 Assembly, notified the new employer, all of his or her
1833+10 previous employers under this Article, and the Public Pension
1834+11 Division of the Department of Insurance of his or her intent to
1835+12 receive the benefits provided under this Section shall be
1836+13 deemed to have met the notice requirement under item (1) of the
1837+14 preceding sentence. The changes made to this Section by this
1838+15 amendatory Act of the 102nd General Assembly apply
1839+16 retroactively, notwithstanding Section 1-103.1.
1840+17 (i) In order to receive a pension under this Section or an
1841+18 occupational disease disability pension for which he or she
1842+19 becomes eligible due to the application of subsection (m) of
1843+20 this Section, a firefighter must pay to each pension fund from
1844+21 which he or she has elected to receive a pension under this
1845+22 Section a contribution equal to 1% of monthly salary for each
1846+23 month of service credit that the firefighter has in that fund
1847+24 (other than service credit for which the firefighter has
1848+25 already paid the additional contribution required under
1849+26 subsection (c) of Section 4-118.1), together with interest
1850+
1851+
1852+
1853+
1854+
1855+ HB2089 Enrolled - 52 - LRB103 05055 BMS 51381 b
1856+
1857+
1858+HB2089 Enrolled- 53 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 53 - LRB103 05055 BMS 51381 b
1859+ HB2089 Enrolled - 53 - LRB103 05055 BMS 51381 b
1860+1 thereon at the rate of 6% per annum, compounded annually, from
1861+2 the firefighter's first day of employment with that fund or
1862+3 the first day of the fiscal year of that fund that immediately
1863+4 precedes the firefighter's first day of employment with that
1864+5 fund, whichever is earlier.
1865+6 In order for a firefighter who, as of the effective date of
1866+7 this amendatory Act of the 93rd General Assembly, has not
1867+8 begun to receive a pension under this Section or an
1868+9 occupational disease disability pension under subsection (m)
1869+10 of this Section and who has contributed 1/12th of 1% of monthly
1870+11 salary for each month of service credit that the firefighter
1871+12 has in that fund (other than service credit for which the
1872+13 firefighter has already paid the additional contribution
1873+14 required under subsection (c) of Section 4-118.1), together
1874+15 with the required interest thereon, to receive a pension under
1875+16 this Section or an occupational disease disability pension for
1876+17 which he or she becomes eligible due to the application of
1877+18 subsection (m) of this Section, the firefighter must, within
1878+19 one year after the effective date of this amendatory Act of the
1879+20 93rd General Assembly, make an additional contribution equal
1880+21 to 11/12ths of 1% of monthly salary for each month of service
1881+22 credit that the firefighter has in that fund (other than
1882+23 service credit for which the firefighter has already paid the
1883+24 additional contribution required under subsection (c) of
1884+25 Section 4-118.1), together with interest thereon at the rate
1885+26 of 6% per annum, compounded annually, from the firefighter's
1886+
1887+
1888+
1889+
1890+
1891+ HB2089 Enrolled - 53 - LRB103 05055 BMS 51381 b
1892+
1893+
1894+HB2089 Enrolled- 54 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 54 - LRB103 05055 BMS 51381 b
1895+ HB2089 Enrolled - 54 - LRB103 05055 BMS 51381 b
1896+1 first day of employment with that fund or the first day of the
1897+2 fiscal year of that fund that immediately precedes the
1898+3 firefighter's first day of employment with the fund, whichever
1899+4 is earlier. A firefighter who, as of the effective date of this
1900+5 amendatory Act of the 93rd General Assembly, has not begun to
1901+6 receive a pension under this Section or an occupational
1902+7 disease disability pension under subsection (m) of this
1903+8 Section and who has contributed 1/12th of 1% of monthly salary
1904+9 for each month of service credit that the firefighter has in
1905+10 that fund (other than service credit for which the firefighter
1906+11 has already paid the additional contribution required under
1907+12 subsection (c) of Section 4-118.1), together with the required
1908+13 interest thereon, in order to receive a pension under this
1909+14 Section or an occupational disease disability pension under
1910+15 subsection (m) of this Section, may elect, within one year
1911+16 after the effective date of this amendatory Act of the 93rd
1912+17 General Assembly to forfeit the benefits provided under this
1913+18 Section and receive a refund of that contribution.
1914+19 (j) A retired firefighter who is receiving pension
1915+20 payments under Section 4-109 may reenter active service under
1916+21 this Article. Subject to the provisions of Section 4-117, the
1917+22 firefighter may receive credit for service performed after the
1918+23 reentry if the firefighter (1) applies to receive credit for
1919+24 that service, (2) suspends his or her pensions under this
1920+25 Section, and (3) makes the contributions required under
1921+26 subsection (i).
1922+
1923+
1924+
1925+
1926+
1927+ HB2089 Enrolled - 54 - LRB103 05055 BMS 51381 b
1928+
1929+
1930+HB2089 Enrolled- 55 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 55 - LRB103 05055 BMS 51381 b
1931+ HB2089 Enrolled - 55 - LRB103 05055 BMS 51381 b
1932+1 (k) A firefighter who is newly hired or promoted to a
1933+2 position as a firefighter shall not be denied participation in
1934+3 a fund under this Article based on his or her age.
1935+4 (l) If a firefighter who elects to make contributions
1936+5 under subsection (c) of Section 4-118.1 for the pension
1937+6 benefits provided under this Section becomes entitled to a
1938+7 disability pension under Section 4-110, the last pension fund
1939+8 is responsible to pay that disability pension and the amount
1940+9 of that disability pension shall be based only on the
1941+10 firefighter's service with the last pension fund.
1942+11 (m) Notwithstanding any provision in Section 4-110.1 to
1943+12 the contrary, if a firefighter who elects to make
1944+13 contributions under subsection (c) of Section 4-118.1 for the
1945+14 pension benefits provided under this Section becomes entitled
1946+15 to an occupational disease disability pension under Section
1947+16 4-110.1, each pension fund to which the firefighter has made
1948+17 contributions under subsection (c) of Section 4-118.1 must pay
1949+18 a portion of that occupational disease disability pension
1950+19 equal to the proportion that the firefighter's service credit
1951+20 with that pension fund for which the contributions under
1952+21 subsection (c) of Section 4-118.1 have been made bears to the
1953+22 firefighter's total service credit with all of the pension
1954+23 funds for which the contributions under subsection (c) of
1955+24 Section 4-118.1 have been made. A firefighter who has made
1956+25 contributions under subsection (c) of Section 4-118.1 for at
1957+26 least 5 years of creditable service shall be deemed to have met
1958+
1959+
1960+
1961+
1962+
1963+ HB2089 Enrolled - 55 - LRB103 05055 BMS 51381 b
1964+
1965+
1966+HB2089 Enrolled- 56 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 56 - LRB103 05055 BMS 51381 b
1967+ HB2089 Enrolled - 56 - LRB103 05055 BMS 51381 b
1968+1 the 5-year creditable service requirement under Section
1969+2 4-110.1, regardless of whether the firefighter has 5 years of
1970+3 creditable service with the last pension fund.
1971+4 (n) If a firefighter who elects to make contributions
1972+5 under subsection (c) of Section 4-118.1 for the pension
1973+6 benefits provided under this Section becomes entitled to a
1974+7 disability pension under Section 4-111, the last pension fund
1975+8 is responsible to pay that disability pension, provided that
1976+9 the firefighter has at least 7 years of creditable service
1977+10 with the last pension fund. In the event a firefighter began
1978+11 employment with a new employer as a result of an
1979+12 intergovernmental agreement that resulted in the elimination
1980+13 of the previous employer's fire department, the firefighter
1981+14 shall not be required to have 7 years of creditable service
1982+15 with the last pension fund to qualify for a disability pension
1983+16 under Section 4-111. Under this circumstance, a firefighter
1984+17 shall be required to have 7 years of total combined creditable
1985+18 service time to qualify for a disability pension under Section
1986+19 4-111. The disability pension received pursuant to this
1987+20 Section shall be paid by the previous employer and new
1988+21 employer in proportion to the firefighter's years of service
1989+22 with each employer.
1990+23 (Source: P.A. 102-81, eff. 7-9-21.)
1991+24 (40 ILCS 5/18-169)
1992+25 Sec. 18-169. Application and expiration of new benefit
1993+
1994+
1995+
1996+
1997+
1998+ HB2089 Enrolled - 56 - LRB103 05055 BMS 51381 b
1999+
2000+
2001+HB2089 Enrolled- 57 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 57 - LRB103 05055 BMS 51381 b
2002+ HB2089 Enrolled - 57 - LRB103 05055 BMS 51381 b
2003+1 increases.
2004+2 (a) As used in this Section, "new benefit increase" means
2005+3 an increase in the amount of any benefit provided under this
2006+4 Article, or an expansion of the conditions of eligibility for
2007+5 any benefit under this Article, that results from an amendment
2008+6 to this Code that takes effect after the effective date of this
2009+7 amendatory Act of the 94th General Assembly.
2010+8 (b) Notwithstanding any other provision of this Code or
2011+9 any subsequent amendment to this Code, every new benefit
2012+10 increase is subject to this Section and shall be deemed to be
2013+11 granted only in conformance with and contingent upon
2014+12 compliance with the provisions of this Section.
2015+13 (c) The Public Act enacting a new benefit increase must
2016+14 identify and provide for payment to the System of additional
2017+15 funding at least sufficient to fund the resulting annual
2018+16 increase in cost to the System as it accrues.
2019+17 Every new benefit increase is contingent upon the General
2020+18 Assembly providing the additional funding required under this
2021+19 subsection. The Commission on Government Forecasting and
2022+20 Accountability shall analyze whether adequate additional
2023+21 funding has been provided for the new benefit increase and
2024+22 shall report its analysis to the Public Pension Division of
2025+23 the Department of Insurance Financial and Professional
2026+24 Regulation. A new benefit increase created by a Public Act
2027+25 that does not include the additional funding required under
2028+26 this subsection is null and void. If the Public Pension
2029+
2030+
2031+
2032+
2033+
2034+ HB2089 Enrolled - 57 - LRB103 05055 BMS 51381 b
2035+
2036+
2037+HB2089 Enrolled- 58 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 58 - LRB103 05055 BMS 51381 b
2038+ HB2089 Enrolled - 58 - LRB103 05055 BMS 51381 b
2039+1 Division determines that the additional funding provided for a
2040+2 new benefit increase under this subsection is or has become
2041+3 inadequate, it may so certify to the Governor and the State
2042+4 Comptroller and, in the absence of corrective action by the
2043+5 General Assembly, the new benefit increase shall expire at the
2044+6 end of the fiscal year in which the certification is made.
2045+7 (d) Every new benefit increase shall expire 5 years after
2046+8 its effective date or on such earlier date as may be specified
2047+9 in the language enacting the new benefit increase or provided
2048+10 under subsection (c). This does not prevent the General
2049+11 Assembly from extending or re-creating a new benefit increase
2050+12 by law.
2051+13 (e) Except as otherwise provided in the language creating
2052+14 the new benefit increase, a new benefit increase that expires
2053+15 under this Section continues to apply to persons who applied
2054+16 and qualified for the affected benefit while the new benefit
2055+17 increase was in effect and to the affected beneficiaries and
2056+18 alternate payees of such persons, but does not apply to any
2057+19 other person, including without limitation a person who
2058+20 continues in service after the expiration date and did not
2059+21 apply and qualify for the affected benefit while the new
2060+22 benefit increase was in effect.
2061+23 (Source: P.A. 94-4, eff. 6-1-05.)
2062+24 (40 ILCS 5/22-1004)
2063+25 Sec. 22-1004. Commission on Government Forecasting and
2064+
2065+
2066+
2067+
2068+
2069+ HB2089 Enrolled - 58 - LRB103 05055 BMS 51381 b
2070+
2071+
2072+HB2089 Enrolled- 59 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 59 - LRB103 05055 BMS 51381 b
2073+ HB2089 Enrolled - 59 - LRB103 05055 BMS 51381 b
2074+1 Accountability report on Articles 3 and 4 funds. Each odd
2075+2 numbered year, the Commission on Government Forecasting and
2076+3 Accountability shall analyze data submitted by the Public
2077+4 Pension Division of the Illinois Department of Insurance
2078+5 Financial and Professional Regulation pertaining to the
2079+6 pension systems established under Article 3 and Article 4 of
2080+7 this Code. The Commission shall issue a formal report during
2081+8 such years, the content of which is, to the extent
2082+9 practicable, to be similar in nature to that required under
2083+10 Section 22-1003. In addition to providing aggregate analyses
2084+11 of both systems, the report shall analyze the fiscal status
2085+12 and provide forecasting projections for selected individual
2086+13 funds in each system. To the fullest extent practicable, the
2087+14 report shall analyze factors that affect each selected
2088+15 individual fund's unfunded liability and any actuarial gains
2089+16 and losses caused by salary increases, investment returns,
2090+17 employer contributions, benefit increases, change in
2091+18 assumptions, the difference in employer contributions and the
2092+19 normal cost plus interest, and any other applicable factors.
2093+20 In analyzing net investment returns, the report shall analyze
2094+21 the assumed investment return compared to the actual
2095+22 investment return over the preceding 10 fiscal years. The
2096+23 Public Pension Division of the Department of Insurance
2097+24 Financial and Professional Regulation shall provide to the
2098+25 Commission any assistance that the Commission may request with
2099+26 respect to its report under this Section.
2100+
2101+
2102+
2103+
2104+
2105+ HB2089 Enrolled - 59 - LRB103 05055 BMS 51381 b
2106+
2107+
2108+HB2089 Enrolled- 60 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 60 - LRB103 05055 BMS 51381 b
2109+ HB2089 Enrolled - 60 - LRB103 05055 BMS 51381 b
2110+1 (Source: P.A. 95-950, eff. 8-29-08.)
2111+2 Section 10. The Illinois Insurance Code is amended by
2112+3 changing Sections 143.20a, 155.18, 155.19, 155.36, 155.49,
2113+4 370c, 412, 500-140, and 1204 as follows:
2114+5 (215 ILCS 5/143.20a) (from Ch. 73, par. 755.20a)
2115+6 Sec. 143.20a. Cancellation of Fire and Marine Policies.
2116+7 (1) Policies covering property, except policies described in
2117+8 subsection (b) of Section 143.13 143.13b, of this Code, issued
2118+9 for the kinds of business enumerated in Class 3 of Section 4 of
2119+10 this Code may be cancelled 10 days following receipt of
2120+11 written notice by the named insureds if the insured property
2121+12 is found to consist of one or more of the following:
2122+13 (a) Buildings to which, following a fire loss, permanent
2123+14 repairs have not commenced within 60 days after satisfactory
2124+15 adjustment of loss, unless such delay is a direct result of a
2125+16 labor dispute or weather conditions.
2126+17 (b) Buildings which have been unoccupied 60 consecutive
2127+18 days, except buildings which have a seasonal occupancy and
2128+19 buildings which are undergoing construction, repair or
2129+20 reconstruction and are properly secured against unauthorized
2130+21 entry.
2131+22 (c) Buildings on which, because of their physical
2132+23 condition, there is an outstanding order to vacate, an
2133+24 outstanding demolition order, or which have been declared
2134+
2135+
2136+
2137+
2138+
2139+ HB2089 Enrolled - 60 - LRB103 05055 BMS 51381 b
2140+
2141+
2142+HB2089 Enrolled- 61 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 61 - LRB103 05055 BMS 51381 b
2143+ HB2089 Enrolled - 61 - LRB103 05055 BMS 51381 b
2144+1 unsafe in accordance with applicable law.
2145+2 (d) Buildings on which heat, water, sewer service or
2146+3 public lighting have not been connected for 30 consecutive
2147+4 days or more.
2148+5 (2) All notices of cancellation under this Section shall
2149+6 be sent by certified mail and regular mail to the address of
2150+7 record of the named insureds.
2151+8 (3) All cancellations made pursuant to this Section shall
2152+9 be on a pro rata basis.
2153+10 (Source: P.A. 86-437.)
2154+11 (215 ILCS 5/155.18) (from Ch. 73, par. 767.18)
2155+12 (Text of Section WITHOUT the changes made by P.A. 94-677,
2156+13 which has been held unconstitutional)
2157+14 Sec. 155.18. (a) This Section shall apply to insurance on
2158+15 risks based upon negligence by a physician, hospital or other
2159+16 health care provider, referred to herein as medical liability
2160+17 insurance. This Section shall not apply to contracts of
2161+18 reinsurance, nor to any farm, county, district or township
2162+19 mutual insurance company transacting business under an Act
2163+20 entitled "An Act relating to local mutual district, county and
2164+21 township insurance companies", approved March 13, 1936, as now
2165+22 or hereafter amended, nor to any such company operating under
2166+23 a special charter.
2167+24 (b) The following standards shall apply to the making and
2168+25 use of rates pertaining to all classes of medical liability
2169+
2170+
2171+
2172+
2173+
2174+ HB2089 Enrolled - 61 - LRB103 05055 BMS 51381 b
2175+
2176+
2177+HB2089 Enrolled- 62 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 62 - LRB103 05055 BMS 51381 b
2178+ HB2089 Enrolled - 62 - LRB103 05055 BMS 51381 b
2179+1 insurance:
2180+2 (1) Rates shall not be excessive or inadequate, as
2181+3 herein defined, nor shall they be unfairly discriminatory.
2182+4 No rate shall be held to be excessive unless such rate is
2183+5 unreasonably high for the insurance provided, and a
2184+6 reasonable degree of competition does not exist in the
2185+7 area with respect to the classification to which such rate
2186+8 is applicable.
2187+9 No rate shall be held inadequate unless it is
2188+10 unreasonably low for the insurance provided and continued
2189+11 use of it would endanger solvency of the company.
2190+12 (2) Consideration shall be given, to the extent
2191+13 applicable, to past and prospective loss experience within
2192+14 and outside this State, to a reasonable margin for
2193+15 underwriting profit and contingencies, to past and
2194+16 prospective expenses both countrywide and those especially
2195+17 applicable to this State, and to all other factors,
2196+18 including judgment factors, deemed relevant within and
2197+19 outside this State.
2198+20 Consideration may also be given in the making and use
2199+21 of rates to dividends, savings or unabsorbed premium
2200+22 deposits allowed or returned by companies to their
2201+23 policyholders, members or subscribers.
2202+24 (3) The systems of expense provisions included in the
2203+25 rates for use by any company or group of companies may
2204+26 differ from those of other companies or groups of
2205+
2206+
2207+
2208+
2209+
2210+ HB2089 Enrolled - 62 - LRB103 05055 BMS 51381 b
2211+
2212+
2213+HB2089 Enrolled- 63 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 63 - LRB103 05055 BMS 51381 b
2214+ HB2089 Enrolled - 63 - LRB103 05055 BMS 51381 b
2215+1 companies to reflect the operating methods of any such
2216+2 company or group with respect to any kind of insurance, or
2217+3 with respect to any subdivision or combination thereof.
2218+4 (4) Risks may be grouped by classifications for the
2219+5 establishment of rates and minimum premiums.
2220+6 Classification rates may be modified to produce rates for
2221+7 individual risks in accordance with rating plans which
2222+8 establish standards for measuring variations in hazards or
2223+9 expense provisions, or both. Such standards may measure
2224+10 any difference among risks that have a probable effect
2225+11 upon losses or expenses. Such classifications or
2226+12 modifications of classifications of risks may be
2227+13 established based upon size, expense, management,
2228+14 individual experience, location or dispersion of hazard,
2229+15 or any other reasonable considerations and shall apply to
2230+16 all risks under the same or substantially the same
2231+17 circumstances or conditions. The rate for an established
2232+18 classification should be related generally to the
2233+19 anticipated loss and expense factors of the class.
2234+20 (c) Every company writing medical liability insurance
2235+21 shall file with the Director of Insurance the rates and rating
2236+22 schedules it uses for medical liability insurance.
2237+23 (1) This filing shall occur at least annually and as
2238+24 often as the rates are changed or amended.
2239+25 (2) For the purposes of this Section any change in
2240+26 premium to the company's insureds as a result of a change
2241+
2242+
2243+
2244+
2245+
2246+ HB2089 Enrolled - 63 - LRB103 05055 BMS 51381 b
2247+
2248+
2249+HB2089 Enrolled- 64 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 64 - LRB103 05055 BMS 51381 b
2250+ HB2089 Enrolled - 64 - LRB103 05055 BMS 51381 b
2251+1 in the company's base rates or a change in its increased
2252+2 limits factors shall constitute a change in rates and
2253+3 shall require a filing with the Director.
2254+4 (3) It shall be certified in such filing by an officer of
2255+5 the company and a qualified actuary that the company's rates
2256+6 are based on sound actuarial principles and are not
2257+7 inconsistent with the company's experience.
2258+8 (d) If after a hearing the Director finds:
2259+9 (1) that any rate, rating plan or rating system
2260+10 violates the provisions of this Section applicable to it,
2261+11 he may issue an order to the company which has been the
2262+12 subject of the hearing specifying in what respects such
2263+13 violation exists and stating when, within a reasonable
2264+14 period of time, the further use of such rate or rating
2265+15 system by such company in contracts of insurance made
2266+16 thereafter shall be prohibited;
2267+17 (2) that the violation of any of the provisions of
2268+18 this Section applicable to it by any company which has
2269+19 been the subject of hearing was wilful, he may suspend or
2270+20 revoke, in whole or in part, the certificate of authority
2271+21 of such company with respect to the class of insurance
2272+22 which has been the subject of the hearing.
2273+23 (Source: P.A. 79-1434.)
2274+24 (215 ILCS 5/155.19) (from Ch. 73, par. 767.19)
2275+25 (Text of Section WITHOUT the changes made by P.A. 94-677,
2276+
2277+
2278+
2279+
2280+
2281+ HB2089 Enrolled - 64 - LRB103 05055 BMS 51381 b
2282+
2283+
2284+HB2089 Enrolled- 65 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 65 - LRB103 05055 BMS 51381 b
2285+ HB2089 Enrolled - 65 - LRB103 05055 BMS 51381 b
2286+1 which has been held unconstitutional)
2287+2 Sec. 155.19. All claims filed after December 31, 1976 with
2288+3 any insurer and all suits filed after December 31, 1976 in any
2289+4 court in this State, alleging liability on the part of any
2290+5 physician, hospital or other health care provider for
2291+6 medically related injuries, shall be reported to the Director
2292+7 of Insurance in such form and under such terms and conditions
2293+8 as may be prescribed by the Director. The Director shall
2294+9 maintain complete and accurate records of all such claims and
2295+10 suits including their nature, amount, disposition and other
2296+11 information as he may deem useful or desirable in observing
2297+12 and reporting on health care provider liability trends in this
2298+13 State. The Director shall release to appropriate disciplinary
2299+14 and licensing agencies any such data or information which may
2300+15 assist such agencies in improving the quality of health care
2301+16 or which may be useful to such agencies for the purpose of
2302+17 professional discipline.
2303+18 With due regard for appropriate maintenance of the
2304+19 confidentiality thereof, the Director may release from time to
2305+20 time to the Governor, the General Assembly and the general
2306+21 public statistical reports based on such data and information.
2307+22 The Director may promulgate such rules and regulations as
2308+23 may be necessary to carry out the provisions of this Section.
2309+24 (Source: P.A. 79-1434.)
2310+25 (215 ILCS 5/155.36)
2311+
2312+
2313+
2314+
2315+
2316+ HB2089 Enrolled - 65 - LRB103 05055 BMS 51381 b
2317+
2318+
2319+HB2089 Enrolled- 66 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 66 - LRB103 05055 BMS 51381 b
2320+ HB2089 Enrolled - 66 - LRB103 05055 BMS 51381 b
2321+1 Sec. 155.36. Managed Care Reform and Patient Rights Act.
2322+2 Insurance companies that transact the kinds of insurance
2323+3 authorized under Class 1(b) or Class 2(a) of Section 4 of this
2324+4 Code shall comply with Sections 25, 45, 45.1, 45.2, 45.3, 65,
2325+5 70, and 85, subsection (d) of Section 30, and the definition of
2326+6 the term "emergency medical condition" in Section 10 of the
2327+7 Managed Care Reform and Patient Rights Act.
2328+8 (Source: P.A. 101-608, eff. 1-1-20; 102-409, eff. 1-1-22.)
2329+9 (215 ILCS 5/155.49 new)
2330+10 Sec. 155.49. Insurance company supplier diversity report.
2331+11 (a) Every company authorized to do business in this State
2332+12 or accredited by this State with assets of at least
2333+13 $50,000,000 shall submit a 2-page report on its voluntary
2334+14 supplier diversity program, or the company's procurement
2335+15 program if there is no supplier diversity program, to the
2336+16 Department. The report shall set forth all of the following:
2337+17 (1) The name, address, phone number, and email address
2338+18 of the point of contact for the supplier diversity program
2339+19 for vendors to register with the program.
2340+20 (2) Local and State certifications the company accepts
2341+21 or recognizes for minority-owned, women-owned, LGBT-owned,
2342+22 or veteran-owned business status.
2343+23 (3) On the second page, a narrative explaining the
2344+24 results of the program and the tactics to be employed to
2345+25 achieve the goals of its voluntary supplier diversity
2346+
2347+
2348+
2349+
2350+
2351+ HB2089 Enrolled - 66 - LRB103 05055 BMS 51381 b
2352+
2353+
2354+HB2089 Enrolled- 67 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 67 - LRB103 05055 BMS 51381 b
2355+ HB2089 Enrolled - 67 - LRB103 05055 BMS 51381 b
2356+1 program.
2357+2 (4) The voluntary goals for the calendar year for
2358+3 which the report is made in each category for the entire
2359+4 budget of the company and the commodity codes or a
2360+5 description of particular goods and services for the area
2361+6 of procurement in which the company expects most of those
2362+7 goals to focus on in that year.
2363+8 Each company is required to submit a searchable report, in
2364+9 Portable Document Format (PDF), to the Department on or before
2365+10 April 1, 2024 and on or before April 1 every year thereafter.
2366+11 (b) For each report submitted under subsection (a), the
2367+12 Department shall publish the results on its Internet website
2368+13 for 5 years after submission. The Department is not
2369+14 responsible for collecting the reports or for the content of
2370+15 the reports.
2371+16 (c) The Department shall hold an annual insurance company
2372+17 supplier diversity workshop in July of 2024 and every July
2373+18 thereafter to discuss the reports with representatives of the
2374+19 companies and vendors.
2375+20 (d) The Department shall prepare a one-page template, not
2376+21 including the narrative section, for the voluntary supplier
2377+22 diversity reports.
2378+23 (e) The Department may adopt such rules as it deems
2379+24 necessary to implement this Section.
2380+25 (215 ILCS 5/370c) (from Ch. 73, par. 982c)
2381+
2382+
2383+
2384+
2385+
2386+ HB2089 Enrolled - 67 - LRB103 05055 BMS 51381 b
2387+
2388+
2389+HB2089 Enrolled- 68 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 68 - LRB103 05055 BMS 51381 b
2390+ HB2089 Enrolled - 68 - LRB103 05055 BMS 51381 b
2391+1 Sec. 370c. Mental and emotional disorders.
2392+2 (a)(1) On and after January 1, 2022 (the effective date of
2393+3 Public Act 102-579), every insurer that amends, delivers,
2394+4 issues, or renews group accident and health policies providing
2395+5 coverage for hospital or medical treatment or services for
2396+6 illness on an expense-incurred basis shall provide coverage
2397+7 for the medically necessary treatment of mental, emotional,
2398+8 nervous, or substance use disorders or conditions consistent
2399+9 with the parity requirements of Section 370c.1 of this Code.
2400+10 (2) Each insured that is covered for mental, emotional,
2401+11 nervous, or substance use disorders or conditions shall be
2402+12 free to select the physician licensed to practice medicine in
2403+13 all its branches, licensed clinical psychologist, licensed
2404+14 clinical social worker, licensed clinical professional
2405+15 counselor, licensed marriage and family therapist, licensed
2406+16 speech-language pathologist, or other licensed or certified
2407+17 professional at a program licensed pursuant to the Substance
2408+18 Use Disorder Act of his or her choice to treat such disorders,
2409+19 and the insurer shall pay the covered charges of such
2410+20 physician licensed to practice medicine in all its branches,
2411+21 licensed clinical psychologist, licensed clinical social
2412+22 worker, licensed clinical professional counselor, licensed
2413+23 marriage and family therapist, licensed speech-language
2414+24 pathologist, or other licensed or certified professional at a
2415+25 program licensed pursuant to the Substance Use Disorder Act up
2416+26 to the limits of coverage, provided (i) the disorder or
2417+
2418+
2419+
2420+
2421+
2422+ HB2089 Enrolled - 68 - LRB103 05055 BMS 51381 b
2423+
2424+
2425+HB2089 Enrolled- 69 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 69 - LRB103 05055 BMS 51381 b
2426+ HB2089 Enrolled - 69 - LRB103 05055 BMS 51381 b
2427+1 condition treated is covered by the policy, and (ii) the
2428+2 physician, licensed psychologist, licensed clinical social
2429+3 worker, licensed clinical professional counselor, licensed
2430+4 marriage and family therapist, licensed speech-language
2431+5 pathologist, or other licensed or certified professional at a
2432+6 program licensed pursuant to the Substance Use Disorder Act is
2433+7 authorized to provide said services under the statutes of this
2434+8 State and in accordance with accepted principles of his or her
2435+9 profession.
2436+10 (3) Insofar as this Section applies solely to licensed
2437+11 clinical social workers, licensed clinical professional
2438+12 counselors, licensed marriage and family therapists, licensed
2439+13 speech-language pathologists, and other licensed or certified
2440+14 professionals at programs licensed pursuant to the Substance
2441+15 Use Disorder Act, those persons who may provide services to
2442+16 individuals shall do so after the licensed clinical social
2443+17 worker, licensed clinical professional counselor, licensed
2444+18 marriage and family therapist, licensed speech-language
2445+19 pathologist, or other licensed or certified professional at a
2446+20 program licensed pursuant to the Substance Use Disorder Act
2447+21 has informed the patient of the desirability of the patient
2448+22 conferring with the patient's primary care physician.
2449+23 (4) "Mental, emotional, nervous, or substance use disorder
2450+24 or condition" means a condition or disorder that involves a
2451+25 mental health condition or substance use disorder that falls
2452+26 under any of the diagnostic categories listed in the mental
2453+
2454+
2455+
2456+
2457+
2458+ HB2089 Enrolled - 69 - LRB103 05055 BMS 51381 b
2459+
2460+
2461+HB2089 Enrolled- 70 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 70 - LRB103 05055 BMS 51381 b
2462+ HB2089 Enrolled - 70 - LRB103 05055 BMS 51381 b
2463+1 and behavioral disorders chapter of the current edition of the
2464+2 World Health Organization's International Classification of
2465+3 Disease or that is listed in the most recent version of the
2466+4 American Psychiatric Association's Diagnostic and Statistical
2467+5 Manual of Mental Disorders. "Mental, emotional, nervous, or
2468+6 substance use disorder or condition" includes any mental
2469+7 health condition that occurs during pregnancy or during the
2470+8 postpartum period and includes, but is not limited to,
2471+9 postpartum depression.
2472+10 (5) Medically necessary treatment and medical necessity
2473+11 determinations shall be interpreted and made in a manner that
2474+12 is consistent with and pursuant to subsections (h) through
2475+13 (t).
2476+14 (b)(1) (Blank).
2477+15 (2) (Blank).
2478+16 (2.5) (Blank).
2479+17 (3) Unless otherwise prohibited by federal law and
2480+18 consistent with the parity requirements of Section 370c.1 of
2481+19 this Code, the reimbursing insurer that amends, delivers,
2482+20 issues, or renews a group or individual policy of accident and
2483+21 health insurance, a qualified health plan offered through the
2484+22 health insurance marketplace, or a provider of treatment of
2485+23 mental, emotional, nervous, or substance use disorders or
2486+24 conditions shall furnish medical records or other necessary
2487+25 data that substantiate that initial or continued treatment is
2488+26 at all times medically necessary. An insurer shall provide a
2489+
2490+
2491+
2492+
2493+
2494+ HB2089 Enrolled - 70 - LRB103 05055 BMS 51381 b
2495+
2496+
2497+HB2089 Enrolled- 71 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 71 - LRB103 05055 BMS 51381 b
2498+ HB2089 Enrolled - 71 - LRB103 05055 BMS 51381 b
2499+1 mechanism for the timely review by a provider holding the same
2500+2 license and practicing in the same specialty as the patient's
2501+3 provider, who is unaffiliated with the insurer, jointly
2502+4 selected by the patient (or the patient's next of kin or legal
2503+5 representative if the patient is unable to act for himself or
2504+6 herself), the patient's provider, and the insurer in the event
2505+7 of a dispute between the insurer and patient's provider
2506+8 regarding the medical necessity of a treatment proposed by a
2507+9 patient's provider. If the reviewing provider determines the
2508+10 treatment to be medically necessary, the insurer shall provide
2509+11 reimbursement for the treatment. Future contractual or
2510+12 employment actions by the insurer regarding the patient's
2511+13 provider may not be based on the provider's participation in
2512+14 this procedure. Nothing prevents the insured from agreeing in
2513+15 writing to continue treatment at his or her expense. When
2514+16 making a determination of the medical necessity for a
2515+17 treatment modality for mental, emotional, nervous, or
2516+18 substance use disorders or conditions, an insurer must make
2517+19 the determination in a manner that is consistent with the
2518+20 manner used to make that determination with respect to other
2519+21 diseases or illnesses covered under the policy, including an
2520+22 appeals process. Medical necessity determinations for
2521+23 substance use disorders shall be made in accordance with
2522+24 appropriate patient placement criteria established by the
2523+25 American Society of Addiction Medicine. No additional criteria
2524+26 may be used to make medical necessity determinations for
2525+
2526+
2527+
2528+
2529+
2530+ HB2089 Enrolled - 71 - LRB103 05055 BMS 51381 b
2531+
2532+
2533+HB2089 Enrolled- 72 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 72 - LRB103 05055 BMS 51381 b
2534+ HB2089 Enrolled - 72 - LRB103 05055 BMS 51381 b
2535+1 substance use disorders.
2536+2 (4) A group health benefit plan amended, delivered,
2537+3 issued, or renewed on or after January 1, 2019 (the effective
2538+4 date of Public Act 100-1024) or an individual policy of
2539+5 accident and health insurance or a qualified health plan
2540+6 offered through the health insurance marketplace amended,
2541+7 delivered, issued, or renewed on or after January 1, 2019 (the
2542+8 effective date of Public Act 100-1024):
2543+9 (A) shall provide coverage based upon medical
2544+10 necessity for the treatment of a mental, emotional,
2545+11 nervous, or substance use disorder or condition consistent
2546+12 with the parity requirements of Section 370c.1 of this
2547+13 Code; provided, however, that in each calendar year
2548+14 coverage shall not be less than the following:
2549+15 (i) 45 days of inpatient treatment; and
2550+16 (ii) beginning on June 26, 2006 (the effective
2551+17 date of Public Act 94-921), 60 visits for outpatient
2552+18 treatment including group and individual outpatient
2553+19 treatment; and
2554+20 (iii) for plans or policies delivered, issued for
2555+21 delivery, renewed, or modified after January 1, 2007
2556+22 (the effective date of Public Act 94-906), 20
2557+23 additional outpatient visits for speech therapy for
2558+24 treatment of pervasive developmental disorders that
2559+25 will be in addition to speech therapy provided
2560+26 pursuant to item (ii) of this subparagraph (A); and
2561+
2562+
2563+
2564+
2565+
2566+ HB2089 Enrolled - 72 - LRB103 05055 BMS 51381 b
2567+
2568+
2569+HB2089 Enrolled- 73 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 73 - LRB103 05055 BMS 51381 b
2570+ HB2089 Enrolled - 73 - LRB103 05055 BMS 51381 b
2571+1 (B) may not include a lifetime limit on the number of
2572+2 days of inpatient treatment or the number of outpatient
2573+3 visits covered under the plan.
2574+4 (C) (Blank).
2575+5 (5) An issuer of a group health benefit plan or an
2576+6 individual policy of accident and health insurance or a
2577+7 qualified health plan offered through the health insurance
2578+8 marketplace may not count toward the number of outpatient
2579+9 visits required to be covered under this Section an outpatient
2580+10 visit for the purpose of medication management and shall cover
2581+11 the outpatient visits under the same terms and conditions as
2582+12 it covers outpatient visits for the treatment of physical
2583+13 illness.
2584+14 (5.5) An individual or group health benefit plan amended,
2585+15 delivered, issued, or renewed on or after September 9, 2015
2586+16 (the effective date of Public Act 99-480) shall offer coverage
2587+17 for medically necessary acute treatment services and medically
2588+18 necessary clinical stabilization services. The treating
2589+19 provider shall base all treatment recommendations and the
2590+20 health benefit plan shall base all medical necessity
2591+21 determinations for substance use disorders in accordance with
2592+22 the most current edition of the Treatment Criteria for
2593+23 Addictive, Substance-Related, and Co-Occurring Conditions
2594+24 established by the American Society of Addiction Medicine. The
2595+25 treating provider shall base all treatment recommendations and
2596+26 the health benefit plan shall base all medical necessity
2597+
2598+
2599+
2600+
2601+
2602+ HB2089 Enrolled - 73 - LRB103 05055 BMS 51381 b
2603+
2604+
2605+HB2089 Enrolled- 74 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 74 - LRB103 05055 BMS 51381 b
2606+ HB2089 Enrolled - 74 - LRB103 05055 BMS 51381 b
2607+1 determinations for medication-assisted treatment in accordance
2608+2 with the most current Treatment Criteria for Addictive,
2609+3 Substance-Related, and Co-Occurring Conditions established by
2610+4 the American Society of Addiction Medicine.
2611+5 As used in this subsection:
2612+6 "Acute treatment services" means 24-hour medically
2613+7 supervised addiction treatment that provides evaluation and
2614+8 withdrawal management and may include biopsychosocial
2615+9 assessment, individual and group counseling, psychoeducational
2616+10 groups, and discharge planning.
2617+11 "Clinical stabilization services" means 24-hour treatment,
2618+12 usually following acute treatment services for substance
2619+13 abuse, which may include intensive education and counseling
2620+14 regarding the nature of addiction and its consequences,
2621+15 relapse prevention, outreach to families and significant
2622+16 others, and aftercare planning for individuals beginning to
2623+17 engage in recovery from addiction.
2624+18 (6) An issuer of a group health benefit plan may provide or
2625+19 offer coverage required under this Section through a managed
2626+20 care plan.
2627+21 (6.5) An individual or group health benefit plan amended,
2628+22 delivered, issued, or renewed on or after January 1, 2019 (the
2629+23 effective date of Public Act 100-1024):
2630+24 (A) shall not impose prior authorization requirements,
2631+25 other than those established under the Treatment Criteria
2632+26 for Addictive, Substance-Related, and Co-Occurring
2633+
2634+
2635+
2636+
2637+
2638+ HB2089 Enrolled - 74 - LRB103 05055 BMS 51381 b
2639+
2640+
2641+HB2089 Enrolled- 75 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 75 - LRB103 05055 BMS 51381 b
2642+ HB2089 Enrolled - 75 - LRB103 05055 BMS 51381 b
2643+1 Conditions established by the American Society of
2644+2 Addiction Medicine, on a prescription medication approved
2645+3 by the United States Food and Drug Administration that is
2646+4 prescribed or administered for the treatment of substance
2647+5 use disorders;
2648+6 (B) shall not impose any step therapy requirements,
2649+7 other than those established under the Treatment Criteria
2650+8 for Addictive, Substance-Related, and Co-Occurring
2651+9 Conditions established by the American Society of
2652+10 Addiction Medicine, before authorizing coverage for a
2653+11 prescription medication approved by the United States Food
2654+12 and Drug Administration that is prescribed or administered
2655+13 for the treatment of substance use disorders;
2656+14 (C) shall place all prescription medications approved
2657+15 by the United States Food and Drug Administration
2658+16 prescribed or administered for the treatment of substance
2659+17 use disorders on, for brand medications, the lowest tier
2660+18 of the drug formulary developed and maintained by the
2661+19 individual or group health benefit plan that covers brand
2662+20 medications and, for generic medications, the lowest tier
2663+21 of the drug formulary developed and maintained by the
2664+22 individual or group health benefit plan that covers
2665+23 generic medications; and
2666+24 (D) shall not exclude coverage for a prescription
2667+25 medication approved by the United States Food and Drug
2668+26 Administration for the treatment of substance use
2669+
2670+
2671+
2672+
2673+
2674+ HB2089 Enrolled - 75 - LRB103 05055 BMS 51381 b
2675+
2676+
2677+HB2089 Enrolled- 76 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 76 - LRB103 05055 BMS 51381 b
2678+ HB2089 Enrolled - 76 - LRB103 05055 BMS 51381 b
2679+1 disorders and any associated counseling or wraparound
2680+2 services on the grounds that such medications and services
2681+3 were court ordered.
2682+4 (7) (Blank).
2683+5 (8) (Blank).
2684+6 (9) With respect to all mental, emotional, nervous, or
2685+7 substance use disorders or conditions, coverage for inpatient
2686+8 treatment shall include coverage for treatment in a
2687+9 residential treatment center certified or licensed by the
2688+10 Department of Public Health or the Department of Human
2689+11 Services.
2690+12 (c) This Section shall not be interpreted to require
2691+13 coverage for speech therapy or other habilitative services for
2692+14 those individuals covered under Section 356z.15 of this Code.
2693+15 (d) With respect to a group or individual policy of
2694+16 accident and health insurance or a qualified health plan
2695+17 offered through the health insurance marketplace, the
2696+18 Department and, with respect to medical assistance, the
2697+19 Department of Healthcare and Family Services shall each
2698+20 enforce the requirements of this Section and Sections 356z.23
2699+21 and 370c.1 of this Code, the Paul Wellstone and Pete Domenici
2700+22 Mental Health Parity and Addiction Equity Act of 2008, 42
2701+23 U.S.C. 18031(j), and any amendments to, and federal guidance
2702+24 or regulations issued under, those Acts, including, but not
2703+25 limited to, final regulations issued under the Paul Wellstone
2704+26 and Pete Domenici Mental Health Parity and Addiction Equity
2705+
2706+
2707+
2708+
2709+
2710+ HB2089 Enrolled - 76 - LRB103 05055 BMS 51381 b
2711+
2712+
2713+HB2089 Enrolled- 77 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 77 - LRB103 05055 BMS 51381 b
2714+ HB2089 Enrolled - 77 - LRB103 05055 BMS 51381 b
2715+1 Act of 2008 and final regulations applying the Paul Wellstone
2716+2 and Pete Domenici Mental Health Parity and Addiction Equity
2717+3 Act of 2008 to Medicaid managed care organizations, the
2718+4 Children's Health Insurance Program, and alternative benefit
2719+5 plans. Specifically, the Department and the Department of
2720+6 Healthcare and Family Services shall take action:
2721+7 (1) proactively ensuring compliance by individual and
2722+8 group policies, including by requiring that insurers
2723+9 submit comparative analyses, as set forth in paragraph (6)
2724+10 of subsection (k) of Section 370c.1, demonstrating how
2725+11 they design and apply nonquantitative treatment
2726+12 limitations, both as written and in operation, for mental,
2727+13 emotional, nervous, or substance use disorder or condition
2728+14 benefits as compared to how they design and apply
2729+15 nonquantitative treatment limitations, as written and in
2730+16 operation, for medical and surgical benefits;
2731+17 (2) evaluating all consumer or provider complaints
2732+18 regarding mental, emotional, nervous, or substance use
2733+19 disorder or condition coverage for possible parity
2734+20 violations;
2735+21 (3) performing parity compliance market conduct
2736+22 examinations or, in the case of the Department of
2737+23 Healthcare and Family Services, parity compliance audits
2738+24 of individual and group plans and policies, including, but
2739+25 not limited to, reviews of:
2740+26 (A) nonquantitative treatment limitations,
2741+
2742+
2743+
2744+
2745+
2746+ HB2089 Enrolled - 77 - LRB103 05055 BMS 51381 b
2747+
2748+
2749+HB2089 Enrolled- 78 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 78 - LRB103 05055 BMS 51381 b
2750+ HB2089 Enrolled - 78 - LRB103 05055 BMS 51381 b
2751+1 including, but not limited to, prior authorization
2752+2 requirements, concurrent review, retrospective review,
2753+3 step therapy, network admission standards,
2754+4 reimbursement rates, and geographic restrictions;
2755+5 (B) denials of authorization, payment, and
2756+6 coverage; and
2757+7 (C) other specific criteria as may be determined
2758+8 by the Department.
2759+9 The findings and the conclusions of the parity compliance
2760+10 market conduct examinations and audits shall be made public.
2761+11 The Director may adopt rules to effectuate any provisions
2762+12 of the Paul Wellstone and Pete Domenici Mental Health Parity
2763+13 and Addiction Equity Act of 2008 that relate to the business of
2764+14 insurance.
2765+15 (e) Availability of plan information.
2766+16 (1) The criteria for medical necessity determinations
2767+17 made under a group health plan, an individual policy of
2768+18 accident and health insurance, or a qualified health plan
2769+19 offered through the health insurance marketplace with
2770+20 respect to mental health or substance use disorder
2771+21 benefits (or health insurance coverage offered in
2772+22 connection with the plan with respect to such benefits)
2773+23 must be made available by the plan administrator (or the
2774+24 health insurance issuer offering such coverage) to any
2775+25 current or potential participant, beneficiary, or
2776+26 contracting provider upon request.
2777+
2778+
2779+
2780+
2781+
2782+ HB2089 Enrolled - 78 - LRB103 05055 BMS 51381 b
2783+
2784+
2785+HB2089 Enrolled- 79 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 79 - LRB103 05055 BMS 51381 b
2786+ HB2089 Enrolled - 79 - LRB103 05055 BMS 51381 b
2787+1 (2) The reason for any denial under a group health
2788+2 benefit plan, an individual policy of accident and health
2789+3 insurance, or a qualified health plan offered through the
2790+4 health insurance marketplace (or health insurance coverage
2791+5 offered in connection with such plan or policy) of
2792+6 reimbursement or payment for services with respect to
2793+7 mental, emotional, nervous, or substance use disorders or
2794+8 conditions benefits in the case of any participant or
2795+9 beneficiary must be made available within a reasonable
2796+10 time and in a reasonable manner and in readily
2797+11 understandable language by the plan administrator (or the
2798+12 health insurance issuer offering such coverage) to the
2799+13 participant or beneficiary upon request.
2800+14 (f) As used in this Section, "group policy of accident and
2801+15 health insurance" and "group health benefit plan" includes (1)
2802+16 State-regulated employer-sponsored group health insurance
2803+17 plans written in Illinois or which purport to provide coverage
2804+18 for a resident of this State; and (2) State employee health
2805+19 plans.
2806+20 (g) (1) As used in this subsection:
2807+21 "Benefits", with respect to insurers, means the benefits
2808+22 provided for treatment services for inpatient and outpatient
2809+23 treatment of substance use disorders or conditions at American
2810+24 Society of Addiction Medicine levels of treatment 2.1
2811+25 (Intensive Outpatient), 2.5 (Partial Hospitalization), 3.1
2812+26 (Clinically Managed Low-Intensity Residential), 3.3
2813+
2814+
2815+
2816+
2817+
2818+ HB2089 Enrolled - 79 - LRB103 05055 BMS 51381 b
2819+
2820+
2821+HB2089 Enrolled- 80 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 80 - LRB103 05055 BMS 51381 b
2822+ HB2089 Enrolled - 80 - LRB103 05055 BMS 51381 b
2823+1 (Clinically Managed Population-Specific High-Intensity
2824+2 Residential), 3.5 (Clinically Managed High-Intensity
2825+3 Residential), and 3.7 (Medically Monitored Intensive
2826+4 Inpatient) and OMT (Opioid Maintenance Therapy) services.
2827+5 "Benefits", with respect to managed care organizations,
2828+6 means the benefits provided for treatment services for
2829+7 inpatient and outpatient treatment of substance use disorders
2830+8 or conditions at American Society of Addiction Medicine levels
2831+9 of treatment 2.1 (Intensive Outpatient), 2.5 (Partial
2832+10 Hospitalization), 3.5 (Clinically Managed High-Intensity
2833+11 Residential), and 3.7 (Medically Monitored Intensive
2834+12 Inpatient) and OMT (Opioid Maintenance Therapy) services.
2835+13 "Substance use disorder treatment provider or facility"
2836+14 means a licensed physician, licensed psychologist, licensed
2837+15 psychiatrist, licensed advanced practice registered nurse, or
2838+16 licensed, certified, or otherwise State-approved facility or
2839+17 provider of substance use disorder treatment.
2840+18 (2) A group health insurance policy, an individual health
2841+19 benefit plan, or qualified health plan that is offered through
2842+20 the health insurance marketplace, small employer group health
2843+21 plan, and large employer group health plan that is amended,
2844+22 delivered, issued, executed, or renewed in this State, or
2845+23 approved for issuance or renewal in this State, on or after
2846+24 January 1, 2019 (the effective date of Public Act 100-1023)
2847+25 shall comply with the requirements of this Section and Section
2848+26 370c.1. The services for the treatment and the ongoing
2849+
2850+
2851+
2852+
2853+
2854+ HB2089 Enrolled - 80 - LRB103 05055 BMS 51381 b
2855+
2856+
2857+HB2089 Enrolled- 81 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 81 - LRB103 05055 BMS 51381 b
2858+ HB2089 Enrolled - 81 - LRB103 05055 BMS 51381 b
2859+1 assessment of the patient's progress in treatment shall follow
2860+2 the requirements of 77 Ill. Adm. Code 2060.
2861+3 (3) Prior authorization shall not be utilized for the
2862+4 benefits under this subsection. The substance use disorder
2863+5 treatment provider or facility shall notify the insurer of the
2864+6 initiation of treatment. For an insurer that is not a managed
2865+7 care organization, the substance use disorder treatment
2866+8 provider or facility notification shall occur for the
2867+9 initiation of treatment of the covered person within 2
2868+10 business days. For managed care organizations, the substance
2869+11 use disorder treatment provider or facility notification shall
2870+12 occur in accordance with the protocol set forth in the
2871+13 provider agreement for initiation of treatment within 24
2872+14 hours. If the managed care organization is not capable of
2873+15 accepting the notification in accordance with the contractual
2874+16 protocol during the 24-hour period following admission, the
2875+17 substance use disorder treatment provider or facility shall
2876+18 have one additional business day to provide the notification
2877+19 to the appropriate managed care organization. Treatment plans
2878+20 shall be developed in accordance with the requirements and
2879+21 timeframes established in 77 Ill. Adm. Code 2060. If the
2880+22 substance use disorder treatment provider or facility fails to
2881+23 notify the insurer of the initiation of treatment in
2882+24 accordance with these provisions, the insurer may follow its
2883+25 normal prior authorization processes.
2884+26 (4) For an insurer that is not a managed care
2885+
2886+
2887+
2888+
2889+
2890+ HB2089 Enrolled - 81 - LRB103 05055 BMS 51381 b
2891+
2892+
2893+HB2089 Enrolled- 82 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 82 - LRB103 05055 BMS 51381 b
2894+ HB2089 Enrolled - 82 - LRB103 05055 BMS 51381 b
2895+1 organization, if an insurer determines that benefits are no
2896+2 longer medically necessary, the insurer shall notify the
2897+3 covered person, the covered person's authorized
2898+4 representative, if any, and the covered person's health care
2899+5 provider in writing of the covered person's right to request
2900+6 an external review pursuant to the Health Carrier External
2901+7 Review Act. The notification shall occur within 24 hours
2902+8 following the adverse determination.
2903+9 Pursuant to the requirements of the Health Carrier
2904+10 External Review Act, the covered person or the covered
2905+11 person's authorized representative may request an expedited
2906+12 external review. An expedited external review may not occur if
2907+13 the substance use disorder treatment provider or facility
2908+14 determines that continued treatment is no longer medically
2909+15 necessary. Under this subsection, a request for expedited
2910+16 external review must be initiated within 24 hours following
2911+17 the adverse determination notification by the insurer. Failure
2912+18 to request an expedited external review within 24 hours shall
2913+19 preclude a covered person or a covered person's authorized
2914+20 representative from requesting an expedited external review.
2915+21 If an expedited external review request meets the criteria
2916+22 of the Health Carrier External Review Act, an independent
2917+23 review organization shall make a final determination of
2918+24 medical necessity within 72 hours. If an independent review
2919+25 organization upholds an adverse determination, an insurer
2920+26 shall remain responsible to provide coverage of benefits
2921+
2922+
2923+
2924+
2925+
2926+ HB2089 Enrolled - 82 - LRB103 05055 BMS 51381 b
2927+
2928+
2929+HB2089 Enrolled- 83 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 83 - LRB103 05055 BMS 51381 b
2930+ HB2089 Enrolled - 83 - LRB103 05055 BMS 51381 b
2931+1 through the day following the determination of the independent
2932+2 review organization. A decision to reverse an adverse
2933+3 determination shall comply with the Health Carrier External
2934+4 Review Act.
2935+5 (5) The substance use disorder treatment provider or
2936+6 facility shall provide the insurer with 7 business days'
2937+7 advance notice of the planned discharge of the patient from
2938+8 the substance use disorder treatment provider or facility and
2939+9 notice on the day that the patient is discharged from the
2940+10 substance use disorder treatment provider or facility.
2941+11 (6) The benefits required by this subsection shall be
2942+12 provided to all covered persons with a diagnosis of substance
2943+13 use disorder or conditions. The presence of additional related
2944+14 or unrelated diagnoses shall not be a basis to reduce or deny
2945+15 the benefits required by this subsection.
2946+16 (7) Nothing in this subsection shall be construed to
2947+17 require an insurer to provide coverage for any of the benefits
2948+18 in this subsection.
2949+19 (h) As used in this Section:
2950+20 "Generally accepted standards of mental, emotional,
2951+21 nervous, or substance use disorder or condition care" means
2952+22 standards of care and clinical practice that are generally
2953+23 recognized by health care providers practicing in relevant
2954+24 clinical specialties such as psychiatry, psychology, clinical
2955+25 sociology, social work, addiction medicine and counseling, and
2956+26 behavioral health treatment. Valid, evidence-based sources
2957+
2958+
2959+
2960+
2961+
2962+ HB2089 Enrolled - 83 - LRB103 05055 BMS 51381 b
2963+
2964+
2965+HB2089 Enrolled- 84 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 84 - LRB103 05055 BMS 51381 b
2966+ HB2089 Enrolled - 84 - LRB103 05055 BMS 51381 b
2967+1 reflecting generally accepted standards of mental, emotional,
2968+2 nervous, or substance use disorder or condition care include
2969+3 peer-reviewed scientific studies and medical literature,
2970+4 recommendations of nonprofit health care provider professional
2971+5 associations and specialty societies, including, but not
2972+6 limited to, patient placement criteria and clinical practice
2973+7 guidelines, recommendations of federal government agencies,
2974+8 and drug labeling approved by the United States Food and Drug
2975+9 Administration.
2976+10 "Medically necessary treatment of mental, emotional,
2977+11 nervous, or substance use disorders or conditions" means a
2978+12 service or product addressing the specific needs of that
2979+13 patient, for the purpose of screening, preventing, diagnosing,
2980+14 managing, or treating an illness, injury, or condition or its
2981+15 symptoms and comorbidities, including minimizing the
2982+16 progression of an illness, injury, or condition or its
2983+17 symptoms and comorbidities in a manner that is all of the
2984+18 following:
2985+19 (1) in accordance with the generally accepted
2986+20 standards of mental, emotional, nervous, or substance use
2987+21 disorder or condition care;
2988+22 (2) clinically appropriate in terms of type,
2989+23 frequency, extent, site, and duration; and
2990+24 (3) not primarily for the economic benefit of the
2991+25 insurer, purchaser, or for the convenience of the patient,
2992+26 treating physician, or other health care provider.
2993+
2994+
2995+
2996+
2997+
2998+ HB2089 Enrolled - 84 - LRB103 05055 BMS 51381 b
2999+
3000+
3001+HB2089 Enrolled- 85 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 85 - LRB103 05055 BMS 51381 b
3002+ HB2089 Enrolled - 85 - LRB103 05055 BMS 51381 b
3003+1 "Utilization review" means either of the following:
3004+2 (1) prospectively, retrospectively, or concurrently
3005+3 reviewing and approving, modifying, delaying, or denying,
3006+4 based in whole or in part on medical necessity, requests
3007+5 by health care providers, insureds, or their authorized
3008+6 representatives for coverage of health care services
3009+7 before, retrospectively, or concurrently with the
3010+8 provision of health care services to insureds.
3011+9 (2) evaluating the medical necessity, appropriateness,
3012+10 level of care, service intensity, efficacy, or efficiency
3013+11 of health care services, benefits, procedures, or
3014+12 settings, under any circumstances, to determine whether a
3015+13 health care service or benefit subject to a medical
3016+14 necessity coverage requirement in an insurance policy is
3017+15 covered as medically necessary for an insured.
3018+16 "Utilization review criteria" means patient placement
3019+17 criteria or any criteria, standards, protocols, or guidelines
3020+18 used by an insurer to conduct utilization review.
3021+19 (i)(1) Every insurer that amends, delivers, issues, or
3022+20 renews a group or individual policy of accident and health
3023+21 insurance or a qualified health plan offered through the
3024+22 health insurance marketplace in this State and Medicaid
3025+23 managed care organizations providing coverage for hospital or
3026+24 medical treatment on or after January 1, 2023 shall, pursuant
3027+25 to subsections (h) through (s), provide coverage for medically
3028+26 necessary treatment of mental, emotional, nervous, or
3029+
3030+
3031+
3032+
3033+
3034+ HB2089 Enrolled - 85 - LRB103 05055 BMS 51381 b
3035+
3036+
3037+HB2089 Enrolled- 86 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 86 - LRB103 05055 BMS 51381 b
3038+ HB2089 Enrolled - 86 - LRB103 05055 BMS 51381 b
3039+1 substance use disorders or conditions.
3040+2 (2) An insurer shall not set a specific limit on the
3041+3 duration of benefits or coverage of medically necessary
3042+4 treatment of mental, emotional, nervous, or substance use
3043+5 disorders or conditions or limit coverage only to alleviation
3044+6 of the insured's current symptoms.
3045+7 (3) All medical necessity determinations made by the
3046+8 insurer concerning service intensity, level of care placement,
3047+9 continued stay, and transfer or discharge of insureds
3048+10 diagnosed with mental, emotional, nervous, or substance use
3049+11 disorders or conditions shall be conducted in accordance with
3050+12 the requirements of subsections (k) through (u).
3051+13 (4) An insurer that authorizes a specific type of
3052+14 treatment by a provider pursuant to this Section shall not
3053+15 rescind or modify the authorization after that provider
3054+16 renders the health care service in good faith and pursuant to
3055+17 this authorization for any reason, including, but not limited
3056+18 to, the insurer's subsequent cancellation or modification of
3057+19 the insured's or policyholder's contract, or the insured's or
3058+20 policyholder's eligibility. Nothing in this Section shall
3059+21 require the insurer to cover a treatment when the
3060+22 authorization was granted based on a material
3061+23 misrepresentation by the insured, the policyholder, or the
3062+24 provider. Nothing in this Section shall require Medicaid
3063+25 managed care organizations to pay for services if the
3064+26 individual was not eligible for Medicaid at the time the
3065+
3066+
3067+
3068+
3069+
3070+ HB2089 Enrolled - 86 - LRB103 05055 BMS 51381 b
3071+
3072+
3073+HB2089 Enrolled- 87 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 87 - LRB103 05055 BMS 51381 b
3074+ HB2089 Enrolled - 87 - LRB103 05055 BMS 51381 b
3075+1 service was rendered. Nothing in this Section shall require an
3076+2 insurer to pay for services if the individual was not the
3077+3 insurer's enrollee at the time services were rendered. As used
3078+4 in this paragraph, "material" means a fact or situation that
3079+5 is not merely technical in nature and results in or could
3080+6 result in a substantial change in the situation.
3081+7 (j) An insurer shall not limit benefits or coverage for
3082+8 medically necessary services on the basis that those services
3083+9 should be or could be covered by a public entitlement program,
3084+10 including, but not limited to, special education or an
3085+11 individualized education program, Medicaid, Medicare,
3086+12 Supplemental Security Income, or Social Security Disability
3087+13 Insurance, and shall not include or enforce a contract term
3088+14 that excludes otherwise covered benefits on the basis that
3089+15 those services should be or could be covered by a public
3090+16 entitlement program. Nothing in this subsection shall be
3091+17 construed to require an insurer to cover benefits that have
3092+18 been authorized and provided for a covered person by a public
3093+19 entitlement program. Medicaid managed care organizations are
3094+20 not subject to this subsection.
3095+21 (k) An insurer shall base any medical necessity
3096+22 determination or the utilization review criteria that the
3097+23 insurer, and any entity acting on the insurer's behalf,
3098+24 applies to determine the medical necessity of health care
3099+25 services and benefits for the diagnosis, prevention, and
3100+26 treatment of mental, emotional, nervous, or substance use
3101+
3102+
3103+
3104+
3105+
3106+ HB2089 Enrolled - 87 - LRB103 05055 BMS 51381 b
3107+
3108+
3109+HB2089 Enrolled- 88 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 88 - LRB103 05055 BMS 51381 b
3110+ HB2089 Enrolled - 88 - LRB103 05055 BMS 51381 b
3111+1 disorders or conditions on current generally accepted
3112+2 standards of mental, emotional, nervous, or substance use
3113+3 disorder or condition care. All denials and appeals shall be
3114+4 reviewed by a professional with experience or expertise
3115+5 comparable to the provider requesting the authorization.
3116+6 (l) For medical necessity determinations relating to level
3117+7 of care placement, continued stay, and transfer or discharge
3118+8 of insureds diagnosed with mental, emotional, and nervous
3119+9 disorders or conditions, an insurer shall apply the patient
3120+10 placement criteria set forth in the most recent version of the
3121+11 treatment criteria developed by an unaffiliated nonprofit
3122+12 professional association for the relevant clinical specialty
3123+13 or, for Medicaid managed care organizations, patient placement
3124+14 criteria determined by the Department of Healthcare and Family
3125+15 Services that are consistent with generally accepted standards
3126+16 of mental, emotional, nervous or substance use disorder or
3127+17 condition care. Pursuant to subsection (b), in conducting
3128+18 utilization review of all covered services and benefits for
3129+19 the diagnosis, prevention, and treatment of substance use
3130+20 disorders an insurer shall use the most recent edition of the
3131+21 patient placement criteria established by the American Society
3132+22 of Addiction Medicine.
3133+23 (m) For medical necessity determinations relating to level
3134+24 of care placement, continued stay, and transfer or discharge
3135+25 that are within the scope of the sources specified in
3136+26 subsection (l), an insurer shall not apply different,
3137+
3138+
3139+
3140+
3141+
3142+ HB2089 Enrolled - 88 - LRB103 05055 BMS 51381 b
3143+
3144+
3145+HB2089 Enrolled- 89 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 89 - LRB103 05055 BMS 51381 b
3146+ HB2089 Enrolled - 89 - LRB103 05055 BMS 51381 b
3147+1 additional, conflicting, or more restrictive utilization
3148+2 review criteria than the criteria set forth in those sources.
3149+3 For all level of care placement decisions, the insurer shall
3150+4 authorize placement at the level of care consistent with the
3151+5 assessment of the insured using the relevant patient placement
3152+6 criteria as specified in subsection (l). If that level of
3153+7 placement is not available, the insurer shall authorize the
3154+8 next higher level of care. In the event of disagreement, the
3155+9 insurer shall provide full detail of its assessment using the
3156+10 relevant criteria as specified in subsection (l) to the
3157+11 provider of the service and the patient.
3158+12 Nothing in this subsection or subsection (l) prohibits an
3159+13 insurer from applying utilization review criteria that were
3160+14 developed in accordance with subsection (k) to health care
3161+15 services and benefits for mental, emotional, and nervous
3162+16 disorders or conditions that are not related to medical
3163+17 necessity determinations for level of care placement,
3164+18 continued stay, and transfer or discharge. If an insurer
3165+19 purchases or licenses utilization review criteria pursuant to
3166+20 this subsection, the insurer shall verify and document before
3167+21 use that the criteria were developed in accordance with
3168+22 subsection (k).
3169+23 (n) In conducting utilization review that is outside the
3170+24 scope of the criteria as specified in subsection (l) or
3171+25 relates to the advancements in technology or in the types or
3172+26 levels of care that are not addressed in the most recent
3173+
3174+
3175+
3176+
3177+
3178+ HB2089 Enrolled - 89 - LRB103 05055 BMS 51381 b
3179+
3180+
3181+HB2089 Enrolled- 90 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 90 - LRB103 05055 BMS 51381 b
3182+ HB2089 Enrolled - 90 - LRB103 05055 BMS 51381 b
3183+1 versions of the sources specified in subsection (l), an
3184+2 insurer shall conduct utilization review in accordance with
3185+3 subsection (k).
3186+4 (o) This Section does not in any way limit the rights of a
3187+5 patient under the Medical Patient Rights Act.
3188+6 (p) This Section does not in any way limit early and
3189+7 periodic screening, diagnostic, and treatment benefits as
3190+8 defined under 42 U.S.C. 1396d(r).
3191+9 (q) To ensure the proper use of the criteria described in
3192+10 subsection (l), every insurer shall do all of the following:
3193+11 (1) Educate the insurer's staff, including any third
3194+12 parties contracted with the insurer to review claims,
3195+13 conduct utilization reviews, or make medical necessity
3196+14 determinations about the utilization review criteria.
3197+15 (2) Make the educational program available to other
3198+16 stakeholders, including the insurer's participating or
3199+17 contracted providers and potential participants,
3200+18 beneficiaries, or covered lives. The education program
3201+19 must be provided at least once a year, in-person or
3202+20 digitally, or recordings of the education program must be
3203+21 made available to the aforementioned stakeholders.
3204+22 (3) Provide, at no cost, the utilization review
3205+23 criteria and any training material or resources to
3206+24 providers and insured patients upon request. For
3207+25 utilization review criteria not concerning level of care
3208+26 placement, continued stay, and transfer or discharge used
3209+
3210+
3211+
3212+
3213+
3214+ HB2089 Enrolled - 90 - LRB103 05055 BMS 51381 b
3215+
3216+
3217+HB2089 Enrolled- 91 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 91 - LRB103 05055 BMS 51381 b
3218+ HB2089 Enrolled - 91 - LRB103 05055 BMS 51381 b
3219+1 by the insurer pursuant to subsection (m), the insurer may
3220+2 place the criteria on a secure, password-protected website
3221+3 so long as the access requirements of the website do not
3222+4 unreasonably restrict access to insureds or their
3223+5 providers. No restrictions shall be placed upon the
3224+6 insured's or treating provider's access right to
3225+7 utilization review criteria obtained under this paragraph
3226+8 at any point in time, including before an initial request
3227+9 for authorization.
3228+10 (4) Track, identify, and analyze how the utilization
3229+11 review criteria are used to certify care, deny care, and
3230+12 support the appeals process.
3231+13 (5) Conduct interrater reliability testing to ensure
3232+14 consistency in utilization review decision making that
3233+15 covers how medical necessity decisions are made; this
3234+16 assessment shall cover all aspects of utilization review
3235+17 as defined in subsection (h).
3236+18 (6) Run interrater reliability reports about how the
3237+19 clinical guidelines are used in conjunction with the
3238+20 utilization review process and parity compliance
3239+21 activities.
3240+22 (7) Achieve interrater reliability pass rates of at
3241+23 least 90% and, if this threshold is not met, immediately
3242+24 provide for the remediation of poor interrater reliability
3243+25 and interrater reliability testing for all new staff
3244+26 before they can conduct utilization review without
3245+
3246+
3247+
3248+
3249+
3250+ HB2089 Enrolled - 91 - LRB103 05055 BMS 51381 b
3251+
3252+
3253+HB2089 Enrolled- 92 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 92 - LRB103 05055 BMS 51381 b
3254+ HB2089 Enrolled - 92 - LRB103 05055 BMS 51381 b
3255+1 supervision.
3256+2 (8) Maintain documentation of interrater reliability
3257+3 testing and the remediation actions taken for those with
3258+4 pass rates lower than 90% and submit to the Department of
3259+5 Insurance or, in the case of Medicaid managed care
3260+6 organizations, the Department of Healthcare and Family
3261+7 Services the testing results and a summary of remedial
3262+8 actions as part of parity compliance reporting set forth
3263+9 in subsection (k) of Section 370c.1.
3264+10 (r) This Section applies to all health care services and
3265+11 benefits for the diagnosis, prevention, and treatment of
3266+12 mental, emotional, nervous, or substance use disorders or
3267+13 conditions covered by an insurance policy, including
3268+14 prescription drugs.
3269+15 (s) This Section applies to an insurer that amends,
3270+16 delivers, issues, or renews a group or individual policy of
3271+17 accident and health insurance or a qualified health plan
3272+18 offered through the health insurance marketplace in this State
3273+19 providing coverage for hospital or medical treatment and
3274+20 conducts utilization review as defined in this Section,
3275+21 including Medicaid managed care organizations, and any entity
3276+22 or contracting provider that performs utilization review or
3277+23 utilization management functions on an insurer's behalf.
3278+24 (t) If the Director determines that an insurer has
3279+25 violated this Section, the Director may, after appropriate
3280+26 notice and opportunity for hearing, by order, assess a civil
3281+
3282+
3283+
3284+
3285+
3286+ HB2089 Enrolled - 92 - LRB103 05055 BMS 51381 b
3287+
3288+
3289+HB2089 Enrolled- 93 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 93 - LRB103 05055 BMS 51381 b
3290+ HB2089 Enrolled - 93 - LRB103 05055 BMS 51381 b
3291+1 penalty between $1,000 and $5,000 for each violation. Moneys
3292+2 collected from penalties shall be deposited into the Parity
3293+3 Advancement Fund established in subsection (i) of Section
3294+4 370c.1.
3295+5 (u) An insurer shall not adopt, impose, or enforce terms
3296+6 in its policies or provider agreements, in writing or in
3297+7 operation, that undermine, alter, or conflict with the
3298+8 requirements of this Section.
3299+9 (v) The provisions of this Section are severable. If any
3300+10 provision of this Section or its application is held invalid,
3301+11 that invalidity shall not affect other provisions or
3302+12 applications that can be given effect without the invalid
3303+13 provision or application.
3304+14 (Source: P.A. 101-81, eff. 7-12-19; 101-386, eff. 8-16-19;
3305+15 102-558, eff. 8-20-21; 102-579, eff. 1-1-22; 102-813, eff.
3306+16 5-13-22.)
3307+17 (215 ILCS 5/412) (from Ch. 73, par. 1024)
3308+18 Sec. 412. Refunds; penalties; collection.
3309+19 (1)(a) Whenever it appears to the satisfaction of the
3310+20 Director that because of some mistake of fact, error in
3311+21 calculation, or erroneous interpretation of a statute of this
3312+22 or any other state, any authorized company, surplus line
3313+23 producer, or industrial insured has paid to him, pursuant to
3314+24 any provision of law, taxes, fees, or other charges in excess
3315+25 of the amount legally chargeable against it, during the 6 year
3316+
3317+
3318+
3319+
3320+
3321+ HB2089 Enrolled - 93 - LRB103 05055 BMS 51381 b
3322+
3323+
3324+HB2089 Enrolled- 94 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 94 - LRB103 05055 BMS 51381 b
3325+ HB2089 Enrolled - 94 - LRB103 05055 BMS 51381 b
3326+1 period immediately preceding the discovery of such
3327+2 overpayment, he shall have power to refund to such company,
3328+3 surplus line producer, or industrial insured the amount of the
3329+4 excess or excesses by applying the amount or amounts thereof
3330+5 toward the payment of taxes, fees, or other charges already
3331+6 due, or which may thereafter become due from that company
3332+7 until such excess or excesses have been fully refunded, or
3333+8 upon a written request from the authorized company, surplus
3334+9 line producer, or industrial insured, the Director shall
3335+10 provide a cash refund within 120 days after receipt of the
3336+11 written request if all necessary information has been filed
3337+12 with the Department in order for it to perform an audit of the
3338+13 tax report for the transaction or period or annual return for
3339+14 the year in which the overpayment occurred or within 120 days
3340+15 after the date the Department receives all the necessary
3341+16 information to perform such audit. The Director shall not
3342+17 provide a cash refund if there are insufficient funds in the
3343+18 Insurance Premium Tax Refund Fund to provide a cash refund, if
3344+19 the amount of the overpayment is less than $100, or if the
3345+20 amount of the overpayment can be fully offset against the
3346+21 taxpayer's estimated liability for the year following the year
3347+22 of the cash refund request. Any cash refund shall be paid from
3348+23 the Insurance Premium Tax Refund Fund, a special fund hereby
3349+24 created in the State treasury.
3350+25 (b) As determined by the Director pursuant to paragraph
3351+26 (a) of this subsection, the Department shall deposit an amount
3352+
3353+
3354+
3355+
3356+
3357+ HB2089 Enrolled - 94 - LRB103 05055 BMS 51381 b
3358+
3359+
3360+HB2089 Enrolled- 95 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 95 - LRB103 05055 BMS 51381 b
3361+ HB2089 Enrolled - 95 - LRB103 05055 BMS 51381 b
3362+1 of cash refunds approved by the Director for payment as a
3363+2 result of overpayment of tax liability collected under
3364+3 Sections 121-2.08, 409, 444, 444.1, and 445 of this Code into
3365+4 the Insurance Premium Tax Refund Fund.
3366+5 (c) Beginning July 1, 1999, moneys in the Insurance
3367+6 Premium Tax Refund Fund shall be expended exclusively for the
3368+7 purpose of paying cash refunds resulting from overpayment of
3369+8 tax liability under Sections 121-2.08, 409, 444, 444.1, and
3370+9 445 of this Code as determined by the Director pursuant to
3371+10 subsection 1(a) of this Section. Cash refunds made in
3372+11 accordance with this Section may be made from the Insurance
3373+12 Premium Tax Refund Fund only to the extent that amounts have
3374+13 been deposited and retained in the Insurance Premium Tax
3375+14 Refund Fund.
3376+15 (d) This Section shall constitute an irrevocable and
3377+16 continuing appropriation from the Insurance Premium Tax Refund
3378+17 Fund for the purpose of paying cash refunds pursuant to the
3379+18 provisions of this Section.
3380+19 (2)(a) When any insurance company fails to file any tax
3381+20 return required under Sections 408.1, 409, 444, and 444.1 of
3382+21 this Code or Section 12 of the Fire Investigation Act on the
3383+22 date prescribed, including any extensions, there shall be
3384+23 added as a penalty $400 or 10% of the amount of such tax,
3385+24 whichever is greater, for each month or part of a month of
3386+25 failure to file, the entire penalty not to exceed $2,000 or 50%
3387+26 of the tax due, whichever is greater.
3388+
3389+
3390+
3391+
3392+
3393+ HB2089 Enrolled - 95 - LRB103 05055 BMS 51381 b
3394+
3395+
3396+HB2089 Enrolled- 96 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 96 - LRB103 05055 BMS 51381 b
3397+ HB2089 Enrolled - 96 - LRB103 05055 BMS 51381 b
3398+1 (b) When any industrial insured or surplus line producer
3399+2 fails to file any tax return or report required under Sections
3400+3 121-2.08 and 445 of this Code or Section 12 of the Fire
3401+4 Investigation Act on the date prescribed, including any
3402+5 extensions, there shall be added:
3403+6 (i) as a late fee, if the return or report is received
3404+7 at least one day but not more than 15 7 days after the
3405+8 prescribed due date, $50 $400 or 5% 10% of the tax due,
3406+9 whichever is greater, the entire fee not to exceed $1,000;
3407+10 (ii) as a late fee, if the return or report is received
3408+11 at least 8 days but not more than 14 days after the
3409+12 prescribed due date, $400 or 10% of the tax due, whichever
3410+13 is greater, the entire fee not to exceed $1,500;
3411+14 (ii) (iii) as a late fee, if the return or report is
3412+15 received at least 16 15 days but not more than 30 21 days
3413+16 after the prescribed due date, $100 $400 or 5% 10% of the
3414+17 tax due, whichever is greater, the entire fee not to
3415+18 exceed $2,000; or
3416+19 (iii) (iv) as a penalty, if the return or report is
3417+20 received more than 30 21 days after the prescribed due
3418+21 date, $100 $400 or 5% 10% of the tax due, whichever is
3419+22 greater, for each month or part of a month of failure to
3420+23 file, the entire penalty not to exceed $500 $2,000 or 30%
3421+24 50% of the tax due, whichever is greater.
3422+25 A tax return or report shall be deemed received as of the
3423+26 date mailed as evidenced by a postmark, proof of mailing on a
3424+
3425+
3426+
3427+
3428+
3429+ HB2089 Enrolled - 96 - LRB103 05055 BMS 51381 b
3430+
3431+
3432+HB2089 Enrolled- 97 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 97 - LRB103 05055 BMS 51381 b
3433+ HB2089 Enrolled - 97 - LRB103 05055 BMS 51381 b
3434+1 recognized United States Postal Service form or a form
3435+2 acceptable to the United States Postal Service or other
3436+3 commercial mail delivery service, or other evidence acceptable
3437+4 to the Director.
3438+5 (3)(a) When any insurance company fails to pay the full
3439+6 amount due under the provisions of this Section, Sections
3440+7 408.1, 409, 444, or 444.1 of this Code, or Section 12 of the
3441+8 Fire Investigation Act, there shall be added to the amount due
3442+9 as a penalty an amount equal to 10% of the deficiency.
3443+10 (a-5) When any industrial insured or surplus line producer
3444+11 fails to pay the full amount due under the provisions of this
3445+12 Section, Sections 121-2.08 or 445 of this Code, or Section 12
3446+13 of the Fire Investigation Act on the date prescribed, there
3447+14 shall be added:
3448+15 (i) as a late fee, if the payment is received at least
3449+16 one day but not more than 7 days after the prescribed due
3450+17 date, 10% of the tax due, the entire fee not to exceed
3451+18 $1,000;
3452+19 (ii) as a late fee, if the payment is received at least
3453+20 8 days but not more than 14 days after the prescribed due
3454+21 date, 10% of the tax due, the entire fee not to exceed
3455+22 $1,500;
3456+23 (iii) as a late fee, if the payment is received at
3457+24 least 15 days but not more than 21 days after the
3458+25 prescribed due date, 10% of the tax due, the entire fee not
3459+26 to exceed $2,000; or
3460+
3461+
3462+
3463+
3464+
3465+ HB2089 Enrolled - 97 - LRB103 05055 BMS 51381 b
3466+
3467+
3468+HB2089 Enrolled- 98 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 98 - LRB103 05055 BMS 51381 b
3469+ HB2089 Enrolled - 98 - LRB103 05055 BMS 51381 b
3470+1 (iv) as a penalty, if the return or report is received
3471+2 more than 21 days after the prescribed due date, 10% of the
3472+3 tax due.
3473+4 A tax payment shall be deemed received as of the date
3474+5 mailed as evidenced by a postmark, proof of mailing on a
3475+6 recognized United States Postal Service form or a form
3476+7 acceptable to the United States Postal Service or other
3477+8 commercial mail delivery service, or other evidence acceptable
3478+9 to the Director.
3479+10 (b) If such failure to pay is determined by the Director to
3480+11 be wilful, after a hearing under Sections 402 and 403, there
3481+12 shall be added to the tax as a penalty an amount equal to the
3482+13 greater of 50% of the deficiency or 10% of the amount due and
3483+14 unpaid for each month or part of a month that the deficiency
3484+15 remains unpaid commencing with the date that the amount
3485+16 becomes due. Such amount shall be in lieu of any determined
3486+17 under paragraph (a) or (a-5).
3487+18 (4) Any insurance company, industrial insured, or surplus
3488+19 line producer that fails to pay the full amount due under this
3489+20 Section or Sections 121-2.08, 408.1, 409, 444, 444.1, or 445
3490+21 of this Code, or Section 12 of the Fire Investigation Act is
3491+22 liable, in addition to the tax and any late fees and penalties,
3492+23 for interest on such deficiency at the rate of 12% per annum,
3493+24 or at such higher adjusted rates as are or may be established
3494+25 under subsection (b) of Section 6621 of the Internal Revenue
3495+26 Code, from the date that payment of any such tax was due,
3496+
3497+
3498+
3499+
3500+
3501+ HB2089 Enrolled - 98 - LRB103 05055 BMS 51381 b
3502+
3503+
3504+HB2089 Enrolled- 99 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 99 - LRB103 05055 BMS 51381 b
3505+ HB2089 Enrolled - 99 - LRB103 05055 BMS 51381 b
3506+1 determined without regard to any extensions, to the date of
3507+2 payment of such amount.
3508+3 (5) The Director, through the Attorney General, may
3509+4 institute an action in the name of the People of the State of
3510+5 Illinois, in any court of competent jurisdiction, for the
3511+6 recovery of the amount of such taxes, fees, and penalties due,
3512+7 and prosecute the same to final judgment, and take such steps
3513+8 as are necessary to collect the same.
3514+9 (6) In the event that the certificate of authority of a
3515+10 foreign or alien company is revoked for any cause or the
3516+11 company withdraws from this State prior to the renewal date of
3517+12 the certificate of authority as provided in Section 114, the
3518+13 company may recover the amount of any such tax paid in advance.
3519+14 Except as provided in this subsection, no revocation or
3520+15 withdrawal excuses payment of or constitutes grounds for the
3521+16 recovery of any taxes or penalties imposed by this Code.
3522+17 (7) When an insurance company or domestic affiliated group
3523+18 fails to pay the full amount of any fee of $200 or more due
3524+19 under Section 408 of this Code, there shall be added to the
3525+20 amount due as a penalty the greater of $100 or an amount equal
3526+21 to 10% of the deficiency for each month or part of a month that
3527+22 the deficiency remains unpaid.
3528+23 (8) The Department shall have a lien for the taxes, fees,
3529+24 charges, fines, penalties, interest, other charges, or any
3530+25 portion thereof, imposed or assessed pursuant to this Code,
3531+26 upon all the real and personal property of any company or
3532+
3533+
3534+
3535+
3536+
3537+ HB2089 Enrolled - 99 - LRB103 05055 BMS 51381 b
3538+
3539+
3540+HB2089 Enrolled- 100 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 100 - LRB103 05055 BMS 51381 b
3541+ HB2089 Enrolled - 100 - LRB103 05055 BMS 51381 b
3542+1 person to whom the assessment or final order has been issued or
3543+2 whenever a tax return is filed without payment of the tax or
3544+3 penalty shown therein to be due, including all such property
3545+4 of the company or person acquired after receipt of the
3546+5 assessment, issuance of the order, or filing of the return.
3547+6 The company or person is liable for the filing fee incurred by
3548+7 the Department for filing the lien and the filing fee incurred
3549+8 by the Department to file the release of that lien. The filing
3550+9 fees shall be paid to the Department in addition to payment of
3551+10 the tax, fee, charge, fine, penalty, interest, other charges,
3552+11 or any portion thereof, included in the amount of the lien.
3553+12 However, where the lien arises because of the issuance of a
3554+13 final order of the Director or tax assessment by the
3555+14 Department, the lien shall not attach and the notice referred
3556+15 to in this Section shall not be filed until all administrative
3557+16 proceedings or proceedings in court for review of the final
3558+17 order or assessment have terminated or the time for the taking
3559+18 thereof has expired without such proceedings being instituted.
3560+19 Upon the granting of Department review after a lien has
3561+20 attached, the lien shall remain in full force except to the
3562+21 extent to which the final assessment may be reduced by a
3563+22 revised final assessment following the rehearing or review.
3564+23 The lien created by the issuance of a final assessment shall
3565+24 terminate, unless a notice of lien is filed, within 3 years
3566+25 after the date all proceedings in court for the review of the
3567+26 final assessment have terminated or the time for the taking
3568+
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3571+
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3576+HB2089 Enrolled- 101 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 101 - LRB103 05055 BMS 51381 b
3577+ HB2089 Enrolled - 101 - LRB103 05055 BMS 51381 b
3578+1 thereof has expired without such proceedings being instituted,
3579+2 or (in the case of a revised final assessment issued pursuant
3580+3 to a rehearing or review by the Department) within 3 years
3581+4 after the date all proceedings in court for the review of such
3582+5 revised final assessment have terminated or the time for the
3583+6 taking thereof has expired without such proceedings being
3584+7 instituted. Where the lien results from the filing of a tax
3585+8 return without payment of the tax or penalty shown therein to
3586+9 be due, the lien shall terminate, unless a notice of lien is
3587+10 filed, within 3 years after the date when the return is filed
3588+11 with the Department.
3589+12 The time limitation period on the Department's right to
3590+13 file a notice of lien shall not run during any period of time
3591+14 in which the order of any court has the effect of enjoining or
3592+15 restraining the Department from filing such notice of lien. If
3593+16 the Department finds that a company or person is about to
3594+17 depart from the State, to conceal himself or his property, or
3595+18 to do any other act tending to prejudice or to render wholly or
3596+19 partly ineffectual proceedings to collect the amount due and
3597+20 owing to the Department unless such proceedings are brought
3598+21 without delay, or if the Department finds that the collection
3599+22 of the amount due from any company or person will be
3600+23 jeopardized by delay, the Department shall give the company or
3601+24 person notice of such findings and shall make demand for
3602+25 immediate return and payment of the amount, whereupon the
3603+26 amount shall become immediately due and payable. If the
3604+
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3610+
3611+
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3613+ HB2089 Enrolled - 102 - LRB103 05055 BMS 51381 b
3614+1 company or person, within 5 days after the notice (or within
3615+2 such extension of time as the Department may grant), does not
3616+3 comply with the notice or show to the Department that the
3617+4 findings in the notice are erroneous, the Department may file
3618+5 a notice of jeopardy assessment lien in the office of the
3619+6 recorder of the county in which any property of the company or
3620+7 person may be located and shall notify the company or person of
3621+8 the filing. The jeopardy assessment lien shall have the same
3622+9 scope and effect as the statutory lien provided for in this
3623+10 Section. If the company or person believes that the company or
3624+11 person does not owe some or all of the tax for which the
3625+12 jeopardy assessment lien against the company or person has
3626+13 been filed, or that no jeopardy to the revenue in fact exists,
3627+14 the company or person may protest within 20 days after being
3628+15 notified by the Department of the filing of the jeopardy
3629+16 assessment lien and request a hearing, whereupon the
3630+17 Department shall hold a hearing in conformity with the
3631+18 provisions of this Code and, pursuant thereto, shall notify
3632+19 the company or person of its findings as to whether or not the
3633+20 jeopardy assessment lien will be released. If not, and if the
3634+21 company or person is aggrieved by this decision, the company
3635+22 or person may file an action for judicial review of the final
3636+23 determination of the Department in accordance with the
3637+24 Administrative Review Law. If, pursuant to such hearing (or
3638+25 after an independent determination of the facts by the
3639+26 Department without a hearing), the Department determines that
3640+
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3649+ HB2089 Enrolled - 103 - LRB103 05055 BMS 51381 b
3650+1 some or all of the amount due covered by the jeopardy
3651+2 assessment lien is not owed by the company or person, or that
3652+3 no jeopardy to the revenue exists, or if on judicial review the
3653+4 final judgment of the court is that the company or person does
3654+5 not owe some or all of the amount due covered by the jeopardy
3655+6 assessment lien against them, or that no jeopardy to the
3656+7 revenue exists, the Department shall release its jeopardy
3657+8 assessment lien to the extent of such finding of nonliability
3658+9 for the amount, or to the extent of such finding of no jeopardy
3659+10 to the revenue. The Department shall also release its jeopardy
3660+11 assessment lien against the company or person whenever the
3661+12 amount due and owing covered by the lien, plus any interest
3662+13 which may be due, are paid and the company or person has paid
3663+14 the Department in cash or by guaranteed remittance an amount
3664+15 representing the filing fee for the lien and the filing fee for
3665+16 the release of that lien. The Department shall file that
3666+17 release of lien with the recorder of the county where that lien
3667+18 was filed.
3668+19 Nothing in this Section shall be construed to give the
3669+20 Department a preference over the rights of any bona fide
3670+21 purchaser, holder of a security interest, mechanics
3671+22 lienholder, mortgagee, or judgment lien creditor arising prior
3672+23 to the filing of a regular notice of lien or a notice of
3673+24 jeopardy assessment lien in the office of the recorder in the
3674+25 county in which the property subject to the lien is located.
3675+26 For purposes of this Section, "bona fide" shall not include
3676+
3677+
3678+
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3682+
3683+
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3685+ HB2089 Enrolled - 104 - LRB103 05055 BMS 51381 b
3686+1 any mortgage of real or personal property or any other credit
3687+2 transaction that results in the mortgagee or the holder of the
3688+3 security acting as trustee for unsecured creditors of the
3689+4 company or person mentioned in the notice of lien who executed
3690+5 such chattel or real property mortgage or the document
3691+6 evidencing such credit transaction. The lien shall be inferior
3692+7 to the lien of general taxes, special assessments, and special
3693+8 taxes levied by any political subdivision of this State. In
3694+9 case title to land to be affected by the notice of lien or
3695+10 notice of jeopardy assessment lien is registered under the
3696+11 provisions of the Registered Titles (Torrens) Act, such notice
3697+12 shall be filed in the office of the Registrar of Titles of the
3698+13 county within which the property subject to the lien is
3699+14 situated and shall be entered upon the register of titles as a
3700+15 memorial or charge upon each folium of the register of titles
3701+16 affected by such notice, and the Department shall not have a
3702+17 preference over the rights of any bona fide purchaser,
3703+18 mortgagee, judgment creditor, or other lienholder arising
3704+19 prior to the registration of such notice. The regular lien or
3705+20 jeopardy assessment lien shall not be effective against any
3706+21 purchaser with respect to any item in a retailer's stock in
3707+22 trade purchased from the retailer in the usual course of the
3708+23 retailer's business.
3709+24 (Source: P.A. 102-775, eff. 5-13-22.)
3710+25 (215 ILCS 5/500-140)
3711+
3712+
3713+
3714+
3715+
3716+ HB2089 Enrolled - 104 - LRB103 05055 BMS 51381 b
3717+
3718+
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3720+ HB2089 Enrolled - 105 - LRB103 05055 BMS 51381 b
3721+1 (Section scheduled to be repealed on January 1, 2027)
3722+2 Sec. 500-140. Injunctive relief. A person required to be
3723+3 licensed under this Article but failing to obtain a valid and
3724+4 current license under this Article constitutes a public
3725+5 nuisance. The Director may report the failure to obtain a
3726+6 license to the Attorney General, whose duty it is to apply
3727+7 forthwith by complaint on relation of the Director in the name
3728+8 of the people of the State of Illinois, for injunctive relief
3729+9 in the circuit court of the county where the failure to obtain
3730+10 a license occurred to enjoin that person from acting in any
3731+11 capacity that requires such a license failing to obtain a
3732+12 license. Upon the filing of a verified petition in the court,
3733+13 the court, if satisfied by affidavit or otherwise that the
3734+14 person is required to have a license and does not have a valid
3735+15 and current license, may enter a temporary restraining order
3736+16 without notice or bond, enjoining the defendant from acting in
3737+17 any capacity that requires such license. A copy of the
3738+18 verified complaint shall be served upon the defendant, and the
3739+19 proceedings shall thereafter be conducted as in other civil
3740+20 cases. If it is established that the defendant has been, or is
3741+21 engaged in any unlawful practice, the court may enter an order
3742+22 or judgment perpetually enjoining the defendant from further
3743+23 engaging in such practice. In all proceedings brought under
3744+24 this Section, the court, in its discretion, may apportion the
3745+25 costs among the parties, including the cost of filing the
3746+26 complaint, service of process, witness fees and expenses,
3747+
3748+
3749+
3750+
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3753+
3754+
3755+HB2089 Enrolled- 106 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 106 - LRB103 05055 BMS 51381 b
3756+ HB2089 Enrolled - 106 - LRB103 05055 BMS 51381 b
3757+1 court reporter charges, and reasonable attorney fees. In case
3758+2 of the violation of any injunctive order entered under the
3759+3 provisions of this Section, the court may summarily try and
3760+4 punish the offender for contempt of court. The injunctive
3761+5 relief available under this Section is in addition to and not
3762+6 in lieu of all other penalties and remedies provided in this
3763+7 Code.
3764+8 (Source: P.A. 92-386, eff. 1-1-02.)
3765+9 (215 ILCS 5/1204) (from Ch. 73, par. 1065.904)
3766+10 (Text of Section WITHOUT the changes made by P.A. 94-677,
3767+11 which has been held unconstitutional)
3768+12 Sec. 1204. (A) The Director shall promulgate rules and
3769+13 regulations which shall require each insurer licensed to write
3770+14 property or casualty insurance in the State and each syndicate
3771+15 doing business on the Illinois Insurance Exchange to record
3772+16 and report its loss and expense experience and other data as
3773+17 may be necessary to assess the relationship of insurance
3774+18 premiums and related income as compared to insurance costs and
3775+19 expenses. The Director may designate one or more rate service
3776+20 organizations or advisory organizations to gather and compile
3777+21 such experience and data. The Director shall require each
3778+22 insurer licensed to write property or casualty insurance in
3779+23 this State and each syndicate doing business on the Illinois
3780+24 Insurance Exchange to submit a report, on a form furnished by
3781+25 the Director, showing its direct writings in this State and
3782+
3783+
3784+
3785+
3786+
3787+ HB2089 Enrolled - 106 - LRB103 05055 BMS 51381 b
3788+
3789+
3790+HB2089 Enrolled- 107 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 107 - LRB103 05055 BMS 51381 b
3791+ HB2089 Enrolled - 107 - LRB103 05055 BMS 51381 b
3792+1 companywide.
3793+2 (B) Such report required by subsection (A) of this Section
3794+3 may include, but not be limited to, the following specific
3795+4 types of insurance written by such insurer:
3796+5 (1) Political subdivision liability insurance reported
3797+6 separately in the following categories:
3798+7 (a) municipalities;
3799+8 (b) school districts;
3800+9 (c) other political subdivisions;
3801+10 (2) Public official liability insurance;
3802+11 (3) Dram shop liability insurance;
3803+12 (4) Day care center liability insurance;
3804+13 (5) Labor, fraternal or religious organizations
3805+14 liability insurance;
3806+15 (6) Errors and omissions liability insurance;
3807+16 (7) Officers and directors liability insurance
3808+17 reported separately as follows:
3809+18 (a) non-profit entities;
3810+19 (b) for-profit entities;
3811+20 (8) Products liability insurance;
3812+21 (9) Medical malpractice insurance;
3813+22 (10) Attorney malpractice insurance;
3814+23 (11) Architects and engineers malpractice insurance;
3815+24 and
3816+25 (12) Motor vehicle insurance reported separately for
3817+26 commercial and private passenger vehicles as follows:
3818+
3819+
3820+
3821+
3822+
3823+ HB2089 Enrolled - 107 - LRB103 05055 BMS 51381 b
3824+
3825+
3826+HB2089 Enrolled- 108 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 108 - LRB103 05055 BMS 51381 b
3827+ HB2089 Enrolled - 108 - LRB103 05055 BMS 51381 b
3828+1 (a) motor vehicle physical damage insurance;
3829+2 (b) motor vehicle liability insurance.
3830+3 (C) Such report may include, but need not be limited to the
3831+4 following data, both specific to this State and companywide,
3832+5 in the aggregate or by type of insurance for the previous year
3833+6 on a calendar year basis:
3834+7 (1) Direct premiums written;
3835+8 (2) Direct premiums earned;
3836+9 (3) Number of policies;
3837+10 (4) Net investment income, using appropriate estimates
3838+11 where necessary;
3839+12 (5) Losses paid;
3840+13 (6) Losses incurred;
3841+14 (7) Loss reserves:
3842+15 (a) Losses unpaid on reported claims;
3843+16 (b) Losses unpaid on incurred but not reported
3844+17 claims;
3845+18 (8) Number of claims:
3846+19 (a) Paid claims;
3847+20 (b) Arising claims;
3848+21 (9) Loss adjustment expenses:
3849+22 (a) Allocated loss adjustment expenses;
3850+23 (b) Unallocated loss adjustment expenses;
3851+24 (10) Net underwriting gain or loss;
3852+25 (11) Net operation gain or loss, including net
3853+26 investment income;
3854+
3855+
3856+
3857+
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3860+
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3863+ HB2089 Enrolled - 109 - LRB103 05055 BMS 51381 b
3864+1 (12) Any other information requested by the Director.
3865+2 (C-3) Additional information by an advisory organization
3866+3 as defined in Section 463 of this Code.
3867+4 (1) An advisory organization as defined in Section 463
3868+5 of this Code shall report annually the following
3869+6 information in such format as may be prescribed by the
3870+7 Secretary:
3871+8 (a) paid and incurred losses for each of the past
3872+9 10 years;
3873+10 (b) medical payments and medical charges, if
3874+11 collected, for each of the past 10 years;
3875+12 (c) the following indemnity payment information:
3876+13 cumulative payments by accident year by calendar year
3877+14 of development. This array will show payments made and
3878+15 frequency of claims in the following categories:
3879+16 medical only, permanent partial disability (PPD),
3880+17 permanent total disability (PTD), temporary total
3881+18 disability (TTD), and fatalities;
3882+19 (d) injuries by frequency and severity;
3883+20 (e) by class of employee.
3884+21 (2) The report filed with the Secretary of Financial
3885+22 and Professional Regulation under paragraph (1) of this
3886+23 subsection (C-3) shall be made available, on an aggregate
3887+24 basis, to the General Assembly and to the general public.
3888+25 The identity of the petitioner, the respondent, the
3889+26 attorneys, and the insurers shall not be disclosed.
3890+
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3896+
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3899+ HB2089 Enrolled - 110 - LRB103 05055 BMS 51381 b
3900+1 (3) Reports required under this subsection (C-3) shall
3901+2 be filed with the Secretary no later than September 1 in
3902+3 2006 and no later than September 1 of each year
3903+4 thereafter.
3904+5 (D) In addition to the information which may be requested
3905+6 under subsection (C), the Director may also request on a
3906+7 companywide, aggregate basis, Federal Income Tax recoverable,
3907+8 net realized capital gain or loss, net unrealized capital gain
3908+9 or loss, and all other expenses not requested in subsection
3909+10 (C) above.
3910+11 (E) Violations - Suspensions - Revocations.
3911+12 (1) Any company or person subject to this Article, who
3912+13 willfully or repeatedly fails to observe or who otherwise
3913+14 violates any of the provisions of this Article or any rule
3914+15 or regulation promulgated by the Director under authority
3915+16 of this Article or any final order of the Director entered
3916+17 under the authority of this Article shall by civil penalty
3917+18 forfeit to the State of Illinois a sum not to exceed
3918+19 $2,000. Each day during which a violation occurs
3919+20 constitutes a separate offense.
3920+21 (2) No forfeiture liability under paragraph (1) of
3921+22 this subsection may attach unless a written notice of
3922+23 apparent liability has been issued by the Director and
3923+24 received by the respondent, or the Director sends written
3924+25 notice of apparent liability by registered or certified
3925+26 mail, return receipt requested, to the last known address
3926+
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3935+ HB2089 Enrolled - 111 - LRB103 05055 BMS 51381 b
3936+1 of the respondent. Any respondent so notified must be
3937+2 granted an opportunity to request a hearing within 10 days
3938+3 from receipt of notice, or to show in writing, why he
3939+4 should not be held liable. A notice issued under this
3940+5 Section must set forth the date, facts and nature of the
3941+6 act or omission with which the respondent is charged and
3942+7 must specifically identify the particular provision of
3943+8 this Article, rule, regulation or order of which a
3944+9 violation is charged.
3945+10 (3) No forfeiture liability under paragraph (1) of
3946+11 this subsection may attach for any violation occurring
3947+12 more than 2 years prior to the date of issuance of the
3948+13 notice of apparent liability and in no event may the total
3949+14 civil penalty forfeiture imposed for the acts or omissions
3950+15 set forth in any one notice of apparent liability exceed
3951+16 $100,000.
3952+17 (4) All administrative hearings conducted pursuant to
3953+18 this Article are subject to 50 Ill. Adm. Code 2402 and all
3954+19 administrative hearings are subject to the Administrative
3955+20 Review Law.
3956+21 (5) The civil penalty forfeitures provided for in this
3957+22 Section are payable to the General Revenue Fund of the
3958+23 State of Illinois, and may be recovered in a civil suit in
3959+24 the name of the State of Illinois brought in the Circuit
3960+25 Court in Sangamon County or in the Circuit Court of the
3961+26 county where the respondent is domiciled or has its
3962+
3963+
3964+
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3971+ HB2089 Enrolled - 112 - LRB103 05055 BMS 51381 b
3972+1 principal operating office.
3973+2 (6) In any case where the Director issues a notice of
3974+3 apparent liability looking toward the imposition of a
3975+4 civil penalty forfeiture under this Section that fact may
3976+5 not be used in any other proceeding before the Director to
3977+6 the prejudice of the respondent to whom the notice was
3978+7 issued, unless (a) the civil penalty forfeiture has been
3979+8 paid, or (b) a court has ordered payment of the civil
3980+9 penalty forfeiture and that order has become final.
3981+10 (7) When any person or company has a license or
3982+11 certificate of authority under this Code and knowingly
3983+12 fails or refuses to comply with a lawful order of the
3984+13 Director requiring compliance with this Article, entered
3985+14 after notice and hearing, within the period of time
3986+15 specified in the order, the Director may, in addition to
3987+16 any other penalty or authority provided, revoke or refuse
3988+17 to renew the license or certificate of authority of such
3989+18 person or company, or may suspend the license or
3990+19 certificate of authority of such person or company until
3991+20 compliance with such order has been obtained.
3992+21 (8) When any person or company has a license or
3993+22 certificate of authority under this Code and knowingly
3994+23 fails or refuses to comply with any provisions of this
3995+24 Article, the Director may, after notice and hearing, in
3996+25 addition to any other penalty provided, revoke or refuse
3997+26 to renew the license or certificate of authority of such
3998+
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4007+ HB2089 Enrolled - 113 - LRB103 05055 BMS 51381 b
4008+1 person or company, or may suspend the license or
4009+2 certificate of authority of such person or company, until
4010+3 compliance with such provision of this Article has been
4011+4 obtained.
4012+5 (9) No suspension or revocation under this Section may
4013+6 become effective until 5 days from the date that the
4014+7 notice of suspension or revocation has been personally
4015+8 delivered or delivered by registered or certified mail to
4016+9 the company or person. A suspension or revocation under
4017+10 this Section is stayed upon the filing, by the company or
4018+11 person, of a petition for judicial review under the
4019+12 Administrative Review Law.
4020+13 (Source: P.A. 94-277, eff. 7-20-05; 95-331, eff. 8-21-07.)
4021+14 (215 ILCS 5/155.18a rep.)
4022+15 Section 15. The Illinois Insurance Code is amended by
4023+16 repealing Section 155.18a.
4024+17 Section 20. The Small Employer Health Insurance Rating Act
4025+18 is amended by changing Section 15 as follows:
4026+19 (215 ILCS 93/15)
4027+20 Sec. 15. Applicability and scope.
4028+21 (a) This Act shall apply to each health benefit plan for a
4029+22 small employer that is delivered, issued for delivery,
4030+23 renewed, or continued in this State after July 1, 2000. For
4031+
4032+
4033+
4034+
4035+
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4037+
4038+
4039+HB2089 Enrolled- 114 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 114 - LRB103 05055 BMS 51381 b
4040+ HB2089 Enrolled - 114 - LRB103 05055 BMS 51381 b
4041+1 purposes of this Section, the date a plan is continued shall be
4042+2 the first rating period which commences after July 1, 2000.
4043+3 The Act shall apply to any such health benefit plan which
4044+4 provides coverage to employees of a small employer, except
4045+5 that the Act shall not apply to individual health insurance
4046+6 policies.
4047+7 (b) This Act shall not apply to any health benefit plan for
4048+8 a small employer that is delivered, issued, renewed, or
4049+9 continued in this State on or after January 1, 2022. However,
4050+10 if 42 U.S.C. 18032(c)(2) or any successor law is repealed,
4051+11 then this Act shall apply to each health benefit plan for a
4052+12 small employer that is delivered, issued, renewed, or
4053+13 continued in this State on or after the date that law ceases to
4054+14 apply to such plans.
4055+15 (Source: P.A. 91-510, eff. 1-1-00; 92-16, eff. 6-28-01.)
4056+16 Section 22. The Dental Service Plan Act is amended by
4057+17 changing Section 25 as follows:
4058+18 (215 ILCS 110/25) (from Ch. 32, par. 690.25)
4059+19 Sec. 25. Application of Insurance Code provisions. Dental
4060+20 service plan corporations and all persons interested therein
4061+21 or dealing therewith shall be subject to the provisions of
4062+22 Articles IIA, XI, and XII 1/2 and Sections 3.1, 133, 136, 139,
4063+23 140, 143, 143c, 149, 355.2, 355.3, 367.2, 401, 401.1, 402,
4064+24 403, 403A, 408, 408.2, and 412, and subsection (15) of Section
4065+
4066+
4067+
4068+
4069+
4070+ HB2089 Enrolled - 114 - LRB103 05055 BMS 51381 b
4071+
4072+
4073+HB2089 Enrolled- 115 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 115 - LRB103 05055 BMS 51381 b
4074+ HB2089 Enrolled - 115 - LRB103 05055 BMS 51381 b
4075+1 367 of the Illinois Insurance Code.
4076+2 (Source: P.A. 99-151, eff. 7-28-15.)
4077+3 Section 25. The Health Maintenance Organization Act is
4078+4 amended by changing Section 5-3 as follows:
4079+5 (215 ILCS 125/5-3) (from Ch. 111 1/2, par. 1411.2)
4080+6 Sec. 5-3. Insurance Code provisions.
4081+7 (a) Health Maintenance Organizations shall be subject to
4082+8 the provisions of Sections 133, 134, 136, 137, 139, 140,
4083+9 141.1, 141.2, 141.3, 143, 143c, 147, 148, 149, 151, 152, 153,
4084+10 154, 154.5, 154.6, 154.7, 154.8, 155.04, 155.22a, 155.49,
4085+11 355.2, 355.3, 355b, 355c, 356f, 356g.5-1, 356m, 356q, 356v,
4086+12 356w, 356x, 356y, 356z.2, 356z.3a, 356z.4, 356z.4a, 356z.5,
4087+13 356z.6, 356z.8, 356z.9, 356z.10, 356z.11, 356z.12, 356z.13,
4088+14 356z.14, 356z.15, 356z.17, 356z.18, 356z.19, 356z.20, 356z.21,
4089+15 356z.22, 356z.23, 356z.24, 356z.25, 356z.26, 356z.28, 356z.29,
4090+16 356z.30, 356z.30a, 356z.31, 356z.32, 356z.33, 356z.34,
4091+17 356z.35, 356z.36, 356z.37, 356z.38, 356z.39, 356z.40, 356z.41,
4092+18 356z.44, 356z.45, 356z.46, 356z.47, 356z.48, 356z.49, 356z.50,
4093+19 356z.51, 356z.53 256z.53, 356z.54, 356z.55, 356z.56, 356z.57,
4094+20 356z.58, 356z.59, 356z.60, 364, 364.01, 364.3, 367.2, 367.2-5,
4095+21 367i, 368a, 368b, 368c, 368d, 368e, 370c, 370c.1, 401, 401.1,
4096+22 402, 403, 403A, 408, 408.2, 409, 412, 444, and 444.1,
4097+23 paragraph (c) of subsection (2) of Section 367, and Articles
4098+24 IIA, VIII 1/2, XII, XII 1/2, XIII, XIII 1/2, XXV, XXVI, and
4099+
4100+
4101+
4102+
4103+
4104+ HB2089 Enrolled - 115 - LRB103 05055 BMS 51381 b
4105+
4106+
4107+HB2089 Enrolled- 116 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 116 - LRB103 05055 BMS 51381 b
4108+ HB2089 Enrolled - 116 - LRB103 05055 BMS 51381 b
4109+1 XXXIIB of the Illinois Insurance Code.
4110+2 (b) For purposes of the Illinois Insurance Code, except
4111+3 for Sections 444 and 444.1 and Articles XIII and XIII 1/2,
4112+4 Health Maintenance Organizations in the following categories
4113+5 are deemed to be "domestic companies":
4114+6 (1) a corporation authorized under the Dental Service
4115+7 Plan Act or the Voluntary Health Services Plans Act;
4116+8 (2) a corporation organized under the laws of this
4117+9 State; or
4118+10 (3) a corporation organized under the laws of another
4119+11 state, 30% or more of the enrollees of which are residents
4120+12 of this State, except a corporation subject to
4121+13 substantially the same requirements in its state of
4122+14 organization as is a "domestic company" under Article VIII
4123+15 1/2 of the Illinois Insurance Code.
4124+16 (c) In considering the merger, consolidation, or other
4125+17 acquisition of control of a Health Maintenance Organization
4126+18 pursuant to Article VIII 1/2 of the Illinois Insurance Code,
4127+19 (1) the Director shall give primary consideration to
4128+20 the continuation of benefits to enrollees and the
4129+21 financial conditions of the acquired Health Maintenance
4130+22 Organization after the merger, consolidation, or other
4131+23 acquisition of control takes effect;
4132+24 (2)(i) the criteria specified in subsection (1)(b) of
4133+25 Section 131.8 of the Illinois Insurance Code shall not
4134+26 apply and (ii) the Director, in making his determination
4135+
4136+
4137+
4138+
4139+
4140+ HB2089 Enrolled - 116 - LRB103 05055 BMS 51381 b
4141+
4142+
4143+HB2089 Enrolled- 117 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 117 - LRB103 05055 BMS 51381 b
4144+ HB2089 Enrolled - 117 - LRB103 05055 BMS 51381 b
4145+1 with respect to the merger, consolidation, or other
4146+2 acquisition of control, need not take into account the
4147+3 effect on competition of the merger, consolidation, or
4148+4 other acquisition of control;
4149+5 (3) the Director shall have the power to require the
4150+6 following information:
4151+7 (A) certification by an independent actuary of the
4152+8 adequacy of the reserves of the Health Maintenance
4153+9 Organization sought to be acquired;
4154+10 (B) pro forma financial statements reflecting the
4155+11 combined balance sheets of the acquiring company and
4156+12 the Health Maintenance Organization sought to be
4157+13 acquired as of the end of the preceding year and as of
4158+14 a date 90 days prior to the acquisition, as well as pro
4159+15 forma financial statements reflecting projected
4160+16 combined operation for a period of 2 years;
4161+17 (C) a pro forma business plan detailing an
4162+18 acquiring party's plans with respect to the operation
4163+19 of the Health Maintenance Organization sought to be
4164+20 acquired for a period of not less than 3 years; and
4165+21 (D) such other information as the Director shall
4166+22 require.
4167+23 (d) The provisions of Article VIII 1/2 of the Illinois
4168+24 Insurance Code and this Section 5-3 shall apply to the sale by
4169+25 any health maintenance organization of greater than 10% of its
4170+26 enrollee population (including without limitation the health
4171+
4172+
4173+
4174+
4175+
4176+ HB2089 Enrolled - 117 - LRB103 05055 BMS 51381 b
4177+
4178+
4179+HB2089 Enrolled- 118 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 118 - LRB103 05055 BMS 51381 b
4180+ HB2089 Enrolled - 118 - LRB103 05055 BMS 51381 b
4181+1 maintenance organization's right, title, and interest in and
4182+2 to its health care certificates).
4183+3 (e) In considering any management contract or service
4184+4 agreement subject to Section 141.1 of the Illinois Insurance
4185+5 Code, the Director (i) shall, in addition to the criteria
4186+6 specified in Section 141.2 of the Illinois Insurance Code,
4187+7 take into account the effect of the management contract or
4188+8 service agreement on the continuation of benefits to enrollees
4189+9 and the financial condition of the health maintenance
4190+10 organization to be managed or serviced, and (ii) need not take
4191+11 into account the effect of the management contract or service
4192+12 agreement on competition.
4193+13 (f) Except for small employer groups as defined in the
4194+14 Small Employer Rating, Renewability and Portability Health
4195+15 Insurance Act and except for medicare supplement policies as
4196+16 defined in Section 363 of the Illinois Insurance Code, a
4197+17 Health Maintenance Organization may by contract agree with a
4198+18 group or other enrollment unit to effect refunds or charge
4199+19 additional premiums under the following terms and conditions:
4200+20 (i) the amount of, and other terms and conditions with
4201+21 respect to, the refund or additional premium are set forth
4202+22 in the group or enrollment unit contract agreed in advance
4203+23 of the period for which a refund is to be paid or
4204+24 additional premium is to be charged (which period shall
4205+25 not be less than one year); and
4206+26 (ii) the amount of the refund or additional premium
4207+
4208+
4209+
4210+
4211+
4212+ HB2089 Enrolled - 118 - LRB103 05055 BMS 51381 b
4213+
4214+
4215+HB2089 Enrolled- 119 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 119 - LRB103 05055 BMS 51381 b
4216+ HB2089 Enrolled - 119 - LRB103 05055 BMS 51381 b
4217+1 shall not exceed 20% of the Health Maintenance
4218+2 Organization's profitable or unprofitable experience with
4219+3 respect to the group or other enrollment unit for the
4220+4 period (and, for purposes of a refund or additional
4221+5 premium, the profitable or unprofitable experience shall
4222+6 be calculated taking into account a pro rata share of the
4223+7 Health Maintenance Organization's administrative and
4224+8 marketing expenses, but shall not include any refund to be
4225+9 made or additional premium to be paid pursuant to this
4226+10 subsection (f)). The Health Maintenance Organization and
4227+11 the group or enrollment unit may agree that the profitable
4228+12 or unprofitable experience may be calculated taking into
4229+13 account the refund period and the immediately preceding 2
4230+14 plan years.
4231+15 The Health Maintenance Organization shall include a
4232+16 statement in the evidence of coverage issued to each enrollee
4233+17 describing the possibility of a refund or additional premium,
4234+18 and upon request of any group or enrollment unit, provide to
4235+19 the group or enrollment unit a description of the method used
4236+20 to calculate (1) the Health Maintenance Organization's
4237+21 profitable experience with respect to the group or enrollment
4238+22 unit and the resulting refund to the group or enrollment unit
4239+23 or (2) the Health Maintenance Organization's unprofitable
4240+24 experience with respect to the group or enrollment unit and
4241+25 the resulting additional premium to be paid by the group or
4242+26 enrollment unit.
4243+
4244+
4245+
4246+
4247+
4248+ HB2089 Enrolled - 119 - LRB103 05055 BMS 51381 b
4249+
4250+
4251+HB2089 Enrolled- 120 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 120 - LRB103 05055 BMS 51381 b
4252+ HB2089 Enrolled - 120 - LRB103 05055 BMS 51381 b
4253+1 In no event shall the Illinois Health Maintenance
4254+2 Organization Guaranty Association be liable to pay any
4255+3 contractual obligation of an insolvent organization to pay any
4256+4 refund authorized under this Section.
4257+5 (g) Rulemaking authority to implement Public Act 95-1045,
4258+6 if any, is conditioned on the rules being adopted in
4259+7 accordance with all provisions of the Illinois Administrative
4260+8 Procedure Act and all rules and procedures of the Joint
4261+9 Committee on Administrative Rules; any purported rule not so
4262+10 adopted, for whatever reason, is unauthorized.
4263+11 (Source: P.A. 101-13, eff. 6-12-19; 101-81, eff. 7-12-19;
4264+12 101-281, eff. 1-1-20; 101-371, eff. 1-1-20; 101-393, eff.
4265+13 1-1-20; 101-452, eff. 1-1-20; 101-461, eff. 1-1-20; 101-625,
4266+14 eff. 1-1-21; 102-30, eff. 1-1-22; 102-34, eff. 6-25-21;
4267+15 102-203, eff. 1-1-22; 102-306, eff. 1-1-22; 102-443, eff.
4268+16 1-1-22; 102-589, eff. 1-1-22; 102-642, eff. 1-1-22; 102-665,
4269+17 eff. 10-8-21; 102-731, eff. 1-1-23; 102-775, eff. 5-13-22;
4270+18 102-804, eff. 1-1-23; 102-813, eff. 5-13-22; 102-816, eff.
4271+19 1-1-23; 102-860, eff. 1-1-23; 102-901, eff. 7-1-22; 102-1093,
4272+20 eff. 1-1-23; 102-1117, eff. 1-13-23; revised 1-22-23.)
4273+21 Section 27. The Limited Health Service Organization Act is
4274+22 amended by changing Section 4003 as follows:
4275+23 (215 ILCS 130/4003) (from Ch. 73, par. 1504-3)
4276+24 Sec. 4003. Illinois Insurance Code provisions. Limited
4277+
4278+
4279+
4280+
4281+
4282+ HB2089 Enrolled - 120 - LRB103 05055 BMS 51381 b
4283+
4284+
4285+HB2089 Enrolled- 121 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 121 - LRB103 05055 BMS 51381 b
4286+ HB2089 Enrolled - 121 - LRB103 05055 BMS 51381 b
4287+1 health service organizations shall be subject to the
4288+2 provisions of Sections 133, 134, 136, 137, 139, 140, 141.1,
4289+3 141.2, 141.3, 143, 143c, 147, 148, 149, 151, 152, 153, 154,
4290+4 154.5, 154.6, 154.7, 154.8, 155.04, 155.37, 155.49, 355.2,
4291+5 355.3, 355b, 356q, 356v, 356z.10, 356z.21, 356z.22, 356z.25,
4292+6 356z.26, 356z.29, 356z.30a, 356z.32, 356z.33, 356z.41,
4293+7 356z.46, 356z.47, 356z.51, 356z.53, 356z.54, 356z.57, 356z.59,
4294+8 364.3, 368a, 401, 401.1, 402, 403, 403A, 408, 408.2, 409, 412,
4295+9 444, and 444.1 and Articles IIA, VIII 1/2, XII, XII 1/2, XIII,
4296+10 XIII 1/2, XXV, and XXVI of the Illinois Insurance Code. For
4297+11 purposes of the Illinois Insurance Code, except for Sections
4298+12 444 and 444.1 and Articles XIII and XIII 1/2, limited health
4299+13 service organizations in the following categories are deemed
4300+14 to be domestic companies:
4301+15 (1) a corporation under the laws of this State; or
4302+16 (2) a corporation organized under the laws of another
4303+17 state, 30% or more of the enrollees of which are residents
4304+18 of this State, except a corporation subject to
4305+19 substantially the same requirements in its state of
4306+20 organization as is a domestic company under Article VIII
4307+21 1/2 of the Illinois Insurance Code.
4308+22 (Source: P.A. 101-81, eff. 7-12-19; 101-281, eff. 1-1-20;
4309+23 101-393, eff. 1-1-20; 101-625, eff. 1-1-21; 102-30, eff.
4310+24 1-1-22; 102-203, eff. 1-1-22; 102-306, eff. 1-1-22; 102-642,
4311+25 eff. 1-1-22; 102-731, eff. 1-1-23; 102-775, eff. 5-13-22;
4312+26 102-813, eff. 5-13-22; 102-816, eff. 1-1-23; 102-860, eff.
4313+
4314+
4315+
4316+
4317+
4318+ HB2089 Enrolled - 121 - LRB103 05055 BMS 51381 b
4319+
4320+
4321+HB2089 Enrolled- 122 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 122 - LRB103 05055 BMS 51381 b
4322+ HB2089 Enrolled - 122 - LRB103 05055 BMS 51381 b
4323+1 1-1-23; 102-1093, eff. 1-1-23; revised 12-13-22.)
4324+2 Section 30. The Managed Care Reform and Patient Rights Act
4325+3 is amended by changing Section 10 as follows:
4326+4 (215 ILCS 134/10)
4327+5 Sec. 10. Definitions.
4328+6 "Adverse determination" means a determination by a health
4329+7 care plan under Section 45 or by a utilization review program
4330+8 under Section 85 that a health care service is not medically
4331+9 necessary.
4332+10 "Clinical peer" means a health care professional who is in
4333+11 the same profession and the same or similar specialty as the
4334+12 health care provider who typically manages the medical
4335+13 condition, procedures, or treatment under review.
4336+14 "Department" means the Department of Insurance.
4337+15 "Emergency medical condition" means a medical condition
4338+16 manifesting itself by acute symptoms of sufficient severity,
4339+17 regardless of the final diagnosis given, such that a prudent
4340+18 layperson, who possesses an average knowledge of health and
4341+19 medicine, could reasonably expect the absence of immediate
4342+20 medical attention to result in:
4343+21 (1) placing the health of the individual (or, with
4344+22 respect to a pregnant woman, the health of the woman or her
4345+23 unborn child) in serious jeopardy;
4346+24 (2) serious impairment to bodily functions;
4347+
4348+
4349+
4350+
4351+
4352+ HB2089 Enrolled - 122 - LRB103 05055 BMS 51381 b
4353+
4354+
4355+HB2089 Enrolled- 123 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 123 - LRB103 05055 BMS 51381 b
4356+ HB2089 Enrolled - 123 - LRB103 05055 BMS 51381 b
4357+1 (3) serious dysfunction of any bodily organ or part;
4358+2 (4) inadequately controlled pain; or
4359+3 (5) with respect to a pregnant woman who is having
4360+4 contractions:
4361+5 (A) inadequate time to complete a safe transfer to
4362+6 another hospital before delivery; or
4363+7 (B) a transfer to another hospital may pose a
4364+8 threat to the health or safety of the woman or unborn
4365+9 child.
4366+10 "Emergency medical screening examination" means a medical
4367+11 screening examination and evaluation by a physician licensed
4368+12 to practice medicine in all its branches, or to the extent
4369+13 permitted by applicable laws, by other appropriately licensed
4370+14 personnel under the supervision of or in collaboration with a
4371+15 physician licensed to practice medicine in all its branches to
4372+16 determine whether the need for emergency services exists.
4373+17 "Emergency services" means, with respect to an enrollee of
4374+18 a health care plan, transportation services, including but not
4375+19 limited to ambulance services, and covered inpatient and
4376+20 outpatient hospital services furnished by a provider qualified
4377+21 to furnish those services that are needed to evaluate or
4378+22 stabilize an emergency medical condition. "Emergency services"
4379+23 does not refer to post-stabilization medical services.
4380+24 "Enrollee" means any person and his or her dependents
4381+25 enrolled in or covered by a health care plan.
4382+26 "Health care plan" means a plan, including, but not
4383+
4384+
4385+
4386+
4387+
4388+ HB2089 Enrolled - 123 - LRB103 05055 BMS 51381 b
4389+
4390+
4391+HB2089 Enrolled- 124 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 124 - LRB103 05055 BMS 51381 b
4392+ HB2089 Enrolled - 124 - LRB103 05055 BMS 51381 b
4393+1 limited to, a health maintenance organization, a managed care
4394+2 community network as defined in the Illinois Public Aid Code,
4395+3 or an accountable care entity as defined in the Illinois
4396+4 Public Aid Code that receives capitated payments to cover
4397+5 medical services from the Department of Healthcare and Family
4398+6 Services, that establishes, operates, or maintains a network
4399+7 of health care providers that has entered into an agreement
4400+8 with the plan to provide health care services to enrollees to
4401+9 whom the plan has the ultimate obligation to arrange for the
4402+10 provision of or payment for services through organizational
4403+11 arrangements for ongoing quality assurance, utilization review
4404+12 programs, or dispute resolution. Nothing in this definition
4405+13 shall be construed to mean that an independent practice
4406+14 association or a physician hospital organization that
4407+15 subcontracts with a health care plan is, for purposes of that
4408+16 subcontract, a health care plan.
4409+17 For purposes of this definition, "health care plan" shall
4410+18 not include the following:
4411+19 (1) indemnity health insurance policies including
4412+20 those using a contracted provider network;
4413+21 (2) health care plans that offer only dental or only
4414+22 vision coverage;
4415+23 (3) preferred provider administrators, as defined in
4416+24 Section 370g(g) of the Illinois Insurance Code;
4417+25 (4) employee or employer self-insured health benefit
4418+26 plans under the federal Employee Retirement Income
4419+
4420+
4421+
4422+
4423+
4424+ HB2089 Enrolled - 124 - LRB103 05055 BMS 51381 b
4425+
4426+
4427+HB2089 Enrolled- 125 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 125 - LRB103 05055 BMS 51381 b
4428+ HB2089 Enrolled - 125 - LRB103 05055 BMS 51381 b
4429+1 Security Act of 1974;
4430+2 (5) health care provided pursuant to the Workers'
4431+3 Compensation Act or the Workers' Occupational Diseases
4432+4 Act; and
4433+5 (6) except with respect to subsections (a) and (b) of
4434+6 Section 65 and subsection (a-5) of Section 70,
4435+7 not-for-profit voluntary health services plans with health
4436+8 maintenance organization authority in existence as of
4437+9 January 1, 1999 that are affiliated with a union and that
4438+10 only extend coverage to union members and their
4439+11 dependents.
4440+12 "Health care professional" means a physician, a registered
4441+13 professional nurse, or other individual appropriately licensed
4442+14 or registered to provide health care services.
4443+15 "Health care provider" means any physician, hospital
4444+16 facility, facility licensed under the Nursing Home Care Act,
4445+17 long-term care facility as defined in Section 1-113 of the
4446+18 Nursing Home Care Act, or other person that is licensed or
4447+19 otherwise authorized to deliver health care services. Nothing
4448+20 in this Act shall be construed to define Independent Practice
4449+21 Associations or Physician-Hospital Organizations as health
4450+22 care providers.
4451+23 "Health care services" means any services included in the
4452+24 furnishing to any individual of medical care, or the
4453+25 hospitalization incident to the furnishing of such care, as
4454+26 well as the furnishing to any person of any and all other
4455+
4456+
4457+
4458+
4459+
4460+ HB2089 Enrolled - 125 - LRB103 05055 BMS 51381 b
4461+
4462+
4463+HB2089 Enrolled- 126 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 126 - LRB103 05055 BMS 51381 b
4464+ HB2089 Enrolled - 126 - LRB103 05055 BMS 51381 b
4465+1 services for the purpose of preventing, alleviating, curing,
4466+2 or healing human illness or injury including behavioral
4467+3 health, mental health, home health, and pharmaceutical
4468+4 services and products.
4469+5 "Medical director" means a physician licensed in any state
4470+6 to practice medicine in all its branches appointed by a health
4471+7 care plan.
4472+8 "Person" means a corporation, association, partnership,
4473+9 limited liability company, sole proprietorship, or any other
4474+10 legal entity.
4475+11 "Physician" means a person licensed under the Medical
4476+12 Practice Act of 1987.
4477+13 "Post-stabilization medical services" means health care
4478+14 services provided to an enrollee that are furnished in a
4479+15 licensed hospital by a provider that is qualified to furnish
4480+16 such services, and determined to be medically necessary and
4481+17 directly related to the emergency medical condition following
4482+18 stabilization.
4483+19 "Stabilization" means, with respect to an emergency
4484+20 medical condition, to provide such medical treatment of the
4485+21 condition as may be necessary to assure, within reasonable
4486+22 medical probability, that no material deterioration of the
4487+23 condition is likely to result.
4488+24 "Utilization review" means the evaluation of the medical
4489+25 necessity, appropriateness, and efficiency of the use of
4490+26 health care services, procedures, and facilities.
4491+
4492+
4493+
4494+
4495+
4496+ HB2089 Enrolled - 126 - LRB103 05055 BMS 51381 b
4497+
4498+
4499+HB2089 Enrolled- 127 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 127 - LRB103 05055 BMS 51381 b
4500+ HB2089 Enrolled - 127 - LRB103 05055 BMS 51381 b
4501+1 "Utilization review program" means a program established
4502+2 by a person to perform utilization review.
4503+3 (Source: P.A. 101-452, eff. 1-1-20; 102-409, eff. 1-1-22.)
4504+4 Section 99. Effective date. This Act takes effect July 1,
4505+5 2023.
4506+HB2089 Enrolled- 128 -LRB103 05055 BMS 51381 b 1 INDEX 2 Statutes amended in order of appearance 3 40 ILCS 5/1-110.64 40 ILCS 5/1-110.105 40 ILCS 5/1-110.15 6 40 ILCS 5/1-113.4 7 40 ILCS 5/1-113.4a 8 40 ILCS 5/1-113.5 9 40 ILCS 5/1-113.1810 40 ILCS 5/2-162 11 40 ILCS 5/3-110from Ch. 108 1/2, par. 3-110 12 40 ILCS 5/4-108from Ch. 108 1/2, par. 4-108 13 40 ILCS 5/4-109.3 14 40 ILCS 5/18-16915 40 ILCS 5/22-1004 16 215 ILCS 5/143.20afrom Ch. 73, par. 755.20a 17 215 ILCS 5/155.18from Ch. 73, par. 767.18 18 215 ILCS 5/155.19from Ch. 73, par. 767.19 19 215 ILCS 5/155.36 20 215 ILCS 5/370cfrom Ch. 73, par. 982c 21 215 ILCS 5/412from Ch. 73, par. 1024 22 215 ILCS 5/500-140 23 215 ILCS 5/1204from Ch. 73, par. 1065.904 24 215 ILCS 5/155.18a rep. 25 215 ILCS 93/15 HB2089 Enrolled- 129 -LRB103 05055 BMS 51381 b HB2089 Enrolled- 128 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 128 - LRB103 05055 BMS 51381 b 1 INDEX 2 Statutes amended in order of appearance 3 40 ILCS 5/1-110.6 4 40 ILCS 5/1-110.10 5 40 ILCS 5/1-110.15 6 40 ILCS 5/1-113.4 7 40 ILCS 5/1-113.4a 8 40 ILCS 5/1-113.5 9 40 ILCS 5/1-113.18 10 40 ILCS 5/2-162 11 40 ILCS 5/3-110 from Ch. 108 1/2, par. 3-110 12 40 ILCS 5/4-108 from Ch. 108 1/2, par. 4-108 13 40 ILCS 5/4-109.3 14 40 ILCS 5/18-169 15 40 ILCS 5/22-1004 16 215 ILCS 5/143.20a from Ch. 73, par. 755.20a 17 215 ILCS 5/155.18 from Ch. 73, par. 767.18 18 215 ILCS 5/155.19 from Ch. 73, par. 767.19 19 215 ILCS 5/155.36 20 215 ILCS 5/370c from Ch. 73, par. 982c 21 215 ILCS 5/412 from Ch. 73, par. 1024 22 215 ILCS 5/500-140 23 215 ILCS 5/1204 from Ch. 73, par. 1065.904 24 215 ILCS 5/155.18a rep. 25 215 ILCS 93/15 HB2089 Enrolled- 129 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 129 - LRB103 05055 BMS 51381 b
4507+HB2089 Enrolled- 128 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 128 - LRB103 05055 BMS 51381 b
4508+ HB2089 Enrolled - 128 - LRB103 05055 BMS 51381 b
4509+1 INDEX
4510+2 Statutes amended in order of appearance
4511+3 40 ILCS 5/1-110.6
4512+4 40 ILCS 5/1-110.10
4513+5 40 ILCS 5/1-110.15
4514+6 40 ILCS 5/1-113.4
4515+7 40 ILCS 5/1-113.4a
4516+8 40 ILCS 5/1-113.5
4517+9 40 ILCS 5/1-113.18
4518+10 40 ILCS 5/2-162
4519+11 40 ILCS 5/3-110 from Ch. 108 1/2, par. 3-110
4520+12 40 ILCS 5/4-108 from Ch. 108 1/2, par. 4-108
4521+13 40 ILCS 5/4-109.3
4522+14 40 ILCS 5/18-169
4523+15 40 ILCS 5/22-1004
4524+16 215 ILCS 5/143.20a from Ch. 73, par. 755.20a
4525+17 215 ILCS 5/155.18 from Ch. 73, par. 767.18
4526+18 215 ILCS 5/155.19 from Ch. 73, par. 767.19
4527+19 215 ILCS 5/155.36
4528+20 215 ILCS 5/370c from Ch. 73, par. 982c
4529+21 215 ILCS 5/412 from Ch. 73, par. 1024
4530+22 215 ILCS 5/500-140
4531+23 215 ILCS 5/1204 from Ch. 73, par. 1065.904
4532+24 215 ILCS 5/155.18a rep.
4533+25 215 ILCS 93/15
4534+HB2089 Enrolled- 129 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 129 - LRB103 05055 BMS 51381 b
4535+ HB2089 Enrolled - 129 - LRB103 05055 BMS 51381 b
4536+
4537+
4538+
4539+
4540+
4541+ HB2089 Enrolled - 127 - LRB103 05055 BMS 51381 b
4542+
4543+
4544+
4545+HB2089 Enrolled- 128 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 128 - LRB103 05055 BMS 51381 b
4546+ HB2089 Enrolled - 128 - LRB103 05055 BMS 51381 b
4547+1 INDEX
4548+2 Statutes amended in order of appearance
4549+3 40 ILCS 5/1-110.6
4550+4 40 ILCS 5/1-110.10
4551+5 40 ILCS 5/1-110.15
4552+6 40 ILCS 5/1-113.4
4553+7 40 ILCS 5/1-113.4a
4554+8 40 ILCS 5/1-113.5
4555+9 40 ILCS 5/1-113.18
4556+10 40 ILCS 5/2-162
4557+11 40 ILCS 5/3-110 from Ch. 108 1/2, par. 3-110
4558+12 40 ILCS 5/4-108 from Ch. 108 1/2, par. 4-108
4559+13 40 ILCS 5/4-109.3
4560+14 40 ILCS 5/18-169
4561+15 40 ILCS 5/22-1004
4562+16 215 ILCS 5/143.20a from Ch. 73, par. 755.20a
4563+17 215 ILCS 5/155.18 from Ch. 73, par. 767.18
4564+18 215 ILCS 5/155.19 from Ch. 73, par. 767.19
4565+19 215 ILCS 5/155.36
4566+20 215 ILCS 5/370c from Ch. 73, par. 982c
4567+21 215 ILCS 5/412 from Ch. 73, par. 1024
4568+22 215 ILCS 5/500-140
4569+23 215 ILCS 5/1204 from Ch. 73, par. 1065.904
4570+24 215 ILCS 5/155.18a rep.
4571+25 215 ILCS 93/15
4572+
4573+
4574+
4575+
4576+
4577+ HB2089 Enrolled - 128 - LRB103 05055 BMS 51381 b
4578+
4579+
4580+HB2089 Enrolled- 129 -LRB103 05055 BMS 51381 b HB2089 Enrolled - 129 - LRB103 05055 BMS 51381 b
4581+ HB2089 Enrolled - 129 - LRB103 05055 BMS 51381 b
4582+
4583+
4584+
4585+
4586+
4587+ HB2089 Enrolled - 129 - LRB103 05055 BMS 51381 b