Illinois 2023-2024 Regular Session

Illinois House Bill HB5575 Compare Versions

Only one version of the bill is available at this time.

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1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5575 Introduced , by Rep. Bob Morgan SYNOPSIS AS INTRODUCED: 820 ILCS 305/4 from Ch. 48, par. 138.4820 ILCS 305/19 from Ch. 48, par. 138.19820 ILCS 305/25.5 Amends the Workers' Compensation Act. Makes changes in provisions concerning the collection of civil penalties or reimbursements for amounts paid by the Injured Workers' Benefit Fund due under an order of the Illinois Workers' Compensation Commission. Makes changes to penalties for any person, company, corporation, insurance carrier, healthcare provider, or other entity that intentionally prepares or provides an invalid, false, or counterfeit certificate of insurance as proof of workers' compensation insurance or intentionally assists, abets, solicits, or conspires with any person, company, or other entity to intentionally prepare or provide an invalid, false, or counterfeit certificate of insurance as proof of workers' compensation insurance. Makes other changes. LRB103 36543 SPS 66650 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5575 Introduced , by Rep. Bob Morgan SYNOPSIS AS INTRODUCED: 820 ILCS 305/4 from Ch. 48, par. 138.4820 ILCS 305/19 from Ch. 48, par. 138.19820 ILCS 305/25.5 820 ILCS 305/4 from Ch. 48, par. 138.4 820 ILCS 305/19 from Ch. 48, par. 138.19 820 ILCS 305/25.5 Amends the Workers' Compensation Act. Makes changes in provisions concerning the collection of civil penalties or reimbursements for amounts paid by the Injured Workers' Benefit Fund due under an order of the Illinois Workers' Compensation Commission. Makes changes to penalties for any person, company, corporation, insurance carrier, healthcare provider, or other entity that intentionally prepares or provides an invalid, false, or counterfeit certificate of insurance as proof of workers' compensation insurance or intentionally assists, abets, solicits, or conspires with any person, company, or other entity to intentionally prepare or provide an invalid, false, or counterfeit certificate of insurance as proof of workers' compensation insurance. Makes other changes. LRB103 36543 SPS 66650 b LRB103 36543 SPS 66650 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5575 Introduced , by Rep. Bob Morgan SYNOPSIS AS INTRODUCED:
3	3	820 ILCS 305/4 from Ch. 48, par. 138.4820 ILCS 305/19 from Ch. 48, par. 138.19820 ILCS 305/25.5 820 ILCS 305/4 from Ch. 48, par. 138.4 820 ILCS 305/19 from Ch. 48, par. 138.19 820 ILCS 305/25.5
4	4	820 ILCS 305/4 from Ch. 48, par. 138.4
5	5	820 ILCS 305/19 from Ch. 48, par. 138.19
6	6	820 ILCS 305/25.5
7	7	Amends the Workers' Compensation Act. Makes changes in provisions concerning the collection of civil penalties or reimbursements for amounts paid by the Injured Workers' Benefit Fund due under an order of the Illinois Workers' Compensation Commission. Makes changes to penalties for any person, company, corporation, insurance carrier, healthcare provider, or other entity that intentionally prepares or provides an invalid, false, or counterfeit certificate of insurance as proof of workers' compensation insurance or intentionally assists, abets, solicits, or conspires with any person, company, or other entity to intentionally prepare or provide an invalid, false, or counterfeit certificate of insurance as proof of workers' compensation insurance. Makes other changes.
8	8	LRB103 36543 SPS 66650 b LRB103 36543 SPS 66650 b
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10	10	A BILL FOR
11	11	HB5575LRB103 36543 SPS 66650 b HB5575 LRB103 36543 SPS 66650 b
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13	13	1 AN ACT concerning employment.
14	14	2 Be it enacted by the People of the State of Illinois,
15	15	3 represented in the General Assembly:
16	16	4 Section 5. The Workers' Compensation Act is amended by
17	17	5 changing Sections 4, 19, and 25.5 as follows:
18	18	6 (820 ILCS 305/4) (from Ch. 48, par. 138.4)
19	19	7 (Text of Section from P.A. 101-40 and 102-37)
20	20	8 Sec. 4. (a) Any employer, including but not limited to
21	21	9 general contractors and their subcontractors, who shall come
22	22	10 within the provisions of Section 3 of this Act, and any other
23	23	11 employer who shall elect to provide and pay the compensation
24	24	12 provided for in this Act shall:
25	25	13 (1) File with the Commission annually an application
26	26	14 for approval as a self-insurer which shall include a
27	27	15 current financial statement, and annually, thereafter, an
28	28	16 application for renewal of self-insurance, which shall
29	29	17 include a current financial statement. Said application
30	30	18 and financial statement shall be signed and sworn to by
31	31	19 the president or vice president and secretary or assistant
32	32	20 secretary of the employer if it be a corporation, or by all
33	33	21 of the partners, if it be a copartnership, or by the owner
34	34	22 if it be neither a copartnership nor a corporation. All
35	35	23 initial applications and all applications for renewal of
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39	39	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5575 Introduced , by Rep. Bob Morgan SYNOPSIS AS INTRODUCED:
40	40	820 ILCS 305/4 from Ch. 48, par. 138.4820 ILCS 305/19 from Ch. 48, par. 138.19820 ILCS 305/25.5 820 ILCS 305/4 from Ch. 48, par. 138.4 820 ILCS 305/19 from Ch. 48, par. 138.19 820 ILCS 305/25.5
41	41	820 ILCS 305/4 from Ch. 48, par. 138.4
42	42	820 ILCS 305/19 from Ch. 48, par. 138.19
43	43	820 ILCS 305/25.5
44	44	Amends the Workers' Compensation Act. Makes changes in provisions concerning the collection of civil penalties or reimbursements for amounts paid by the Injured Workers' Benefit Fund due under an order of the Illinois Workers' Compensation Commission. Makes changes to penalties for any person, company, corporation, insurance carrier, healthcare provider, or other entity that intentionally prepares or provides an invalid, false, or counterfeit certificate of insurance as proof of workers' compensation insurance or intentionally assists, abets, solicits, or conspires with any person, company, or other entity to intentionally prepare or provide an invalid, false, or counterfeit certificate of insurance as proof of workers' compensation insurance. Makes other changes.
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46	46	LRB103 36543 SPS 66650 b
47	47	A BILL FOR
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53	53	820 ILCS 305/4 from Ch. 48, par. 138.4
54	54	820 ILCS 305/19 from Ch. 48, par. 138.19
55	55	820 ILCS 305/25.5
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74	74	1 self-insurance must be submitted at least 60 days prior to
75	75	2 the requested effective date of self-insurance. An
76	76	3 employer may elect to provide and pay compensation as
77	77	4 provided for in this Act as a member of a group workers'
78	78	5 compensation pool under Article V 3/4 of the Illinois
79	79	6 Insurance Code. If an employer becomes a member of a group
80	80	7 workers' compensation pool, the employer shall not be
81	81	8 relieved of any obligations imposed by this Act.
82	82	9 If the sworn application and financial statement of
83	83	10 any such employer does not satisfy the Commission of the
84	84	11 financial ability of the employer who has filed it, the
85	85	12 Commission shall require such employer to,
86	86	13 (2) Furnish security, indemnity or a bond guaranteeing
87	87	14 the payment by the employer of the compensation provided
88	88	15 for in this Act, provided that any such employer whose
89	89	16 application and financial statement shall not have
90	90	17 satisfied the commission of his or her financial ability
91	91	18 and who shall have secured his liability in part by excess
92	92	19 liability insurance shall be required to furnish to the
93	93	20 Commission security, indemnity or bond guaranteeing his or
94	94	21 her payment up to the effective limits of the excess
95	95	22 coverage, or
96	96	23 (3) Insure his entire liability to pay such
97	97	24 compensation in some insurance carrier authorized,
98	98	25 licensed, or permitted to do such insurance business in
99	99	26 this State. Every policy of an insurance carrier, insuring
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110	110	1 the payment of compensation under this Act shall cover all
111	111	2 the employees and the entire compensation liability of the
112	112	3 insured: Provided, however, that any employer may insure
113	113	4 his or her compensation liability with 2 or more insurance
114	114	5 carriers or may insure a part and qualify under subsection
115	115	6 1, 2, or 4 for the remainder of his or her liability to pay
116	116	7 such compensation, subject to the following two
117	117	8 provisions:
118	118	9 Firstly, the entire compensation liability of the
119	119	10 employer to employees working at or from one location
120	120	11 shall be insured in one such insurance carrier or
121	121	12 shall be self-insured, and
122	122	13 Secondly, the employer shall submit evidence
123	123	14 satisfactorily to the Commission that his or her
124	124	15 entire liability for the compensation provided for in
125	125	16 this Act will be secured. Any provisions in any
126	126	17 policy, or in any endorsement attached thereto,
127	127	18 attempting to limit or modify in any way, the
128	128	19 liability of the insurance carriers issuing the same
129	129	20 except as otherwise provided herein shall be wholly
130	130	21 void.
131	131	22 Nothing herein contained shall apply to policies of
132	132	23 excess liability carriage secured by employers who have
133	133	24 been approved by the Commission as self-insurers, or
134	134	25 (4) Make some other provision, satisfactory to the
135	135	26 Commission, for the securing of the payment of
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146	146	1 compensation provided for in this Act, and
147	147	2 (5) Upon becoming subject to this Act and thereafter
148	148	3 as often as the Commission may in writing demand, file
149	149	4 with the Commission in form prescribed by it evidence of
150	150	5 his or her compliance with the provision of this Section.
151	151	6 (a-1) Regardless of its state of domicile or its principal
152	152	7 place of business, an employer shall make payments to its
153	153	8 insurance carrier or group self-insurance fund, where
154	154	9 applicable, based upon the premium rates of the situs where
155	155	10 the work or project is located in Illinois if:
156	156	11 (A) the employer is engaged primarily in the building
157	157	12 and construction industry; and
158	158	13 (B) subdivision (a)(3) of this Section applies to the
159	159	14 employer or the employer is a member of a group
160	160	15 self-insurance plan as defined in subsection (1) of
161	161	16 Section 4a.
162	162	17 The Illinois Workers' Compensation Commission shall impose
163	163	18 a penalty upon an employer for violation of this subsection
164	164	19 (a-1) if:
165	165	20 (i) the employer is given an opportunity at a hearing
166	166	21 to present evidence of its compliance with this subsection
167	167	22 (a-1); and
168	168	23 (ii) after the hearing, the Commission finds that the
169	169	24 employer failed to make payments upon the premium rates of
170	170	25 the situs where the work or project is located in
171	171	26 Illinois.
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182	182	1 The penalty shall not exceed $1,000 for each day of work
183	183	2 for which the employer failed to make payments upon the
184	184	3 premium rates of the situs where the work or project is located
185	185	4 in Illinois, but the total penalty shall not exceed $50,000
186	186	5 for each project or each contract under which the work was
187	187	6 performed.
188	188	7 Any penalty under this subsection (a-1) must be imposed
189	189	8 not later than one year after the expiration of the applicable
190	190	9 limitation period specified in subsection (d) of Section 6 of
191	191	10 this Act. Penalties imposed under this subsection (a-1) shall
192	192	11 be deposited into the Illinois Workers' Compensation
193	193	12 Commission Operations Fund, a special fund that is created in
194	194	13 the State treasury. Subject to appropriation, moneys in the
195	195	14 Fund shall be used solely for the operations of the Illinois
196	196	15 Workers' Compensation Commission, the salaries and benefits of
197	197	16 the Self-Insurers Advisory Board employees, the operating
198	198	17 costs of the Self-Insurers Advisory Board, and by the
199	199	18 Department of Insurance for the purposes authorized in
200	200	19 subsection (c) of Section 25.5 of this Act.
201	201	20 (a-2) Every Employee Leasing Company (ELC), as defined in
202	202	21 Section 15 of the Employee Leasing Company Act, shall at a
203	203	22 minimum provide the following information to the Commission or
204	204	23 any entity designated by the Commission regarding each
205	205	24 workers' compensation insurance policy issued to the ELC:
206	206	25 (1) Any client company of the ELC listed as an
207	207	26 additional named insured.
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218	218	1 (2) Any informational schedule attached to the master
219	219	2 policy that identifies any individual client company's
220	220	3 name, FEIN, and job location.
221	221	4 (3) Any certificate of insurance coverage document
222	222	5 issued to a client company specifying its rights and
223	223	6 obligations under the master policy that establishes both
224	224	7 the identity and status of the client, as well as the dates
225	225	8 of inception and termination of coverage, if applicable.
226	226	9 (b) The sworn application and financial statement, or
227	227	10 security, indemnity or bond, or amount of insurance, or other
228	228	11 provisions, filed, furnished, carried, or made by the
229	229	12 employer, as the case may be, shall be subject to the approval
230	230	13 of the Commission.
231	231	14 Deposits under escrow agreements shall be cash, negotiable
232	232	15 United States government bonds or negotiable general
233	233	16 obligation bonds of the State of Illinois. Such cash or bonds
234	234	17 shall be deposited in escrow with any State or National Bank or
235	235	18 Trust Company having trust authority in the State of Illinois.
236	236	19 Upon the approval of the sworn application and financial
237	237	20 statement, security, indemnity or bond or amount of insurance,
238	238	21 filed, furnished or carried, as the case may be, the
239	239	22 Commission shall send to the employer written notice of its
240	240	23 approval thereof. The certificate of compliance by the
241	241	24 employer with the provisions of subparagraphs (2) and (3) of
242	242	25 paragraph (a) of this Section shall be delivered by the
243	243	26 insurance carrier to the Illinois Workers' Compensation
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254	254	1 Commission within five days after the effective date of the
255	255	2 policy so certified. The insurance so certified shall cover
256	256	3 all compensation liability occurring during the time that the
257	257	4 insurance is in effect and no further certificate need be
258	258	5 filed in case such insurance is renewed, extended or otherwise
259	259	6 continued by such carrier. The insurance so certified shall
260	260	7 not be cancelled or in the event that such insurance is not
261	261	8 renewed, extended or otherwise continued, such insurance shall
262	262	9 not be terminated until at least 10 days after receipt by the
263	263	10 Illinois Workers' Compensation Commission of notice of the
264	264	11 cancellation or termination of said insurance; provided,
265	265	12 however, that if the employer has secured insurance from
266	266	13 another insurance carrier, or has otherwise secured the
267	267	14 payment of compensation in accordance with this Section, and
268	268	15 such insurance or other security becomes effective prior to
269	269	16 the expiration of the 10 days, cancellation or termination
270	270	17 may, at the option of the insurance carrier indicated in such
271	271	18 notice, be effective as of the effective date of such other
272	272	19 insurance or security.
273	273	20 (c) Whenever the Commission shall find that any
274	274	21 corporation, company, association, aggregation of individuals,
275	275	22 reciprocal or interinsurers exchange, or other insurer
276	276	23 effecting workers' compensation insurance in this State shall
277	277	24 be insolvent, financially unsound, or unable to fully meet all
278	278	25 payments and liabilities assumed or to be assumed for
279	279	26 compensation insurance in this State, or shall practice a
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290	290	1 policy of delay or unfairness toward employees in the
291	291	2 adjustment, settlement, or payment of benefits due such
292	292	3 employees, the Commission may after reasonable notice and
293	293	4 hearing order and direct that such corporation, company,
294	294	5 association, aggregation of individuals, reciprocal or
295	295	6 interinsurers exchange, or insurer, shall from and after a
296	296	7 date fixed in such order discontinue the writing of any such
297	297	8 workers' compensation insurance in this State. Subject to such
298	298	9 modification of the order as the Commission may later make on
299	299	10 review of the order, as herein provided, it shall thereupon be
300	300	11 unlawful for any such corporation, company, association,
301	301	12 aggregation of individuals, reciprocal or interinsurers
302	302	13 exchange, or insurer to effect any workers' compensation
303	303	14 insurance in this State. A copy of the order shall be served
304	304	15 upon the Director of Insurance by registered mail. Whenever
305	305	16 the Commission finds that any service or adjustment company
306	306	17 used or employed by a self-insured employer or by an insurance
307	307	18 carrier to process, adjust, investigate, compromise or
308	308	19 otherwise handle claims under this Act, has practiced or is
309	309	20 practicing a policy of delay or unfairness toward employees in
310	310	21 the adjustment, settlement or payment of benefits due such
311	311	22 employees, the Commission may after reasonable notice and
312	312	23 hearing order and direct that such service or adjustment
313	313	24 company shall from and after a date fixed in such order be
314	314	25 prohibited from processing, adjusting, investigating,
315	315	26 compromising or otherwise handling claims under this Act.
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326	326	1 Whenever the Commission finds that any self-insured
327	327	2 employer has practiced or is practicing delay or unfairness
328	328	3 toward employees in the adjustment, settlement or payment of
329	329	4 benefits due such employees, the Commission may, after
330	330	5 reasonable notice and hearing, order and direct that after a
331	331	6 date fixed in the order such self-insured employer shall be
332	332	7 disqualified to operate as a self-insurer and shall be
333	333	8 required to insure his entire liability to pay compensation in
334	334	9 some insurance carrier authorized, licensed and permitted to
335	335	10 do such insurance business in this State, as provided in
336	336	11 subparagraph 3 of paragraph (a) of this Section.
337	337	12 All orders made by the Commission under this Section shall
338	338	13 be subject to review by the courts, said review to be taken in
339	339	14 the same manner and within the same time as provided by Section
340	340	15 19 of this Act for review of awards and decisions of the
341	341	16 Commission, upon the party seeking the review filing with the
342	342	17 clerk of the court to which said review is taken a bond in an
343	343	18 amount to be fixed and approved by the court to which the
344	344	19 review is taken, conditioned upon the payment of all
345	345	20 compensation awarded against the person taking said review
346	346	21 pending a decision thereof and further conditioned upon such
347	347	22 other obligations as the court may impose. Upon the review the
348	348	23 Circuit Court shall have power to review all questions of fact
349	349	24 as well as of law. The penalty hereinafter provided for in this
350	350	25 paragraph shall not attach and shall not begin to run until the
351	351	26 final determination of the order of the Commission.
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362	362	1 (d) Whenever a Commissioner, with due process and after a
363	363	2 hearing, determines an employer has knowingly failed to
364	364	3 provide coverage as required by paragraph (a) of this Section,
365	365	4 the failure shall be deemed an immediate serious danger to
366	366	5 public health, safety, and welfare sufficient to justify
367	367	6 service by the Commission of a work-stop order on such
368	368	7 employer, requiring the cessation of all business operations
369	369	8 of such employer at the place of employment or job site. If a
370	370	9 business is declared to be extra hazardous, as defined in
371	371	10 Section 3, a Commissioner may issue an emergency work-stop
372	372	11 order on such an employer ex parte, prior to holding a hearing,
373	373	12 requiring the cessation of all business operations of such
374	374	13 employer at the place of employment or job site while awaiting
375	375	14 the ruling of the Commission. Whenever a Commissioner issues
376	376	15 an emergency work-stop order, the Commission shall issue a
377	377	16 notice of emergency work-stop hearing to be posted at the
378	378	17 employer's places of employment and job sites. Any law
379	379	18 enforcement agency in the State shall, at the request of the
380	380	19 Commission, render any assistance necessary to carry out the
381	381	20 provisions of this Section, including, but not limited to,
382	382	21 preventing any employee of such employer from remaining at a
383	383	22 place of employment or job site after a work-stop order has
384	384	23 taken effect. Any work-stop order shall be lifted upon proof
385	385	24 of insurance as required by this Act. Any orders under this
386	386	25 Section are appealable under Section 19(f) to the Circuit
387	387	26 Court.
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398	398	1 Any individual employer, corporate officer or director of
399	399	2 a corporate employer, partner of an employer partnership, or
400	400	3 member of an employer limited liability company who knowingly
401	401	4 fails to provide coverage as required by paragraph (a) of this
402	402	5 Section is guilty of a Class 4 felony. This provision shall not
403	403	6 apply to any corporate officer or director of any
404	404	7 publicly-owned corporation. Each day's violation constitutes a
405	405	8 separate offense. The State's Attorney of the county in which
406	406	9 the violation occurred, or the Attorney General, shall bring
407	407	10 such actions in the name of the People of the State of
408	408	11 Illinois, or may, in addition to other remedies provided in
409	409	12 this Section, bring an action for an injunction to restrain
410	410	13 the violation or to enjoin the operation of any such employer.
411	411	14 Any individual employer, corporate officer or director of
412	412	15 a corporate employer, partner of an employer partnership, or
413	413	16 member of an employer limited liability company who
414	414	17 negligently fails to provide coverage as required by paragraph
415	415	18 (a) of this Section is guilty of a Class A misdemeanor. This
416	416	19 provision shall not apply to any corporate officer or director
417	417	20 of any publicly-owned corporation. Each day's violation
418	418	21 constitutes a separate offense. The State's Attorney of the
419	419	22 county in which the violation occurred, or the Attorney
420	420	23 General, shall bring such actions in the name of the People of
421	421	24 the State of Illinois.
422	422	25 The criminal penalties in this subsection (d) shall not
423	423	26 apply where there exists a good faith dispute as to the
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434	434	1 existence of an employment relationship. Evidence of good
435	435	2 faith shall include, but not be limited to, compliance with
436	436	3 the definition of employee as used by the Internal Revenue
437	437	4 Service.
438	438	5 All investigative actions must be acted upon within 90
439	439	6 days of the issuance of the complaint. Employers who are
440	440	7 subject to and who knowingly fail to comply with this Section
441	441	8 shall not be entitled to the benefits of this Act during the
442	442	9 period of noncompliance, but shall be liable in an action
443	443	10 under any other applicable law of this State. In the action,
444	444	11 such employer shall not avail himself or herself of the
445	445	12 defenses of assumption of risk or negligence or that the
446	446	13 injury was due to a co-employee. In the action, proof of the
447	447	14 injury shall constitute prima facie evidence of negligence on
448	448	15 the part of such employer and the burden shall be on such
449	449	16 employer to show freedom of negligence resulting in the
450	450	17 injury. The employer shall not join any other defendant in any
451	451	18 such civil action. Nothing in this amendatory Act of the 94th
452	452	19 General Assembly shall affect the employee's rights under
453	453	20 subdivision (a)3 of Section 1 of this Act. Any employer or
454	454	21 carrier who makes payments under subdivision (a)3 of Section 1
455	455	22 of this Act shall have a right of reimbursement from the
456	456	23 proceeds of any recovery under this Section.
457	457	24 An employee of an uninsured employer, or the employee's
458	458	25 dependents in case death ensued, may, instead of proceeding
459	459	26 against the employer in a civil action in court, file an
460	460
461	461
462	462
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470	470	1 application for adjustment of claim with the Commission in
471	471	2 accordance with the provisions of this Act and the Commission
472	472	3 shall hear and determine the application for adjustment of
473	473	4 claim in the manner in which other claims are heard and
474	474	5 determined before the Commission.
475	475	6 All proceedings under this subsection (d) shall be
476	476	7 reported on an annual basis to the Workers' Compensation
477	477	8 Advisory Board.
478	478	9 An investigator with the Department of Insurance may issue
479	479	10 a citation to any employer that is not in compliance with its
480	480	11 obligation to have workers' compensation insurance under this
481	481	12 Act. The amount of the fine shall be based on the period of
482	482	13 time the employer was in non-compliance, but shall be no less
483	483	14 than $500, and shall not exceed $10,000. An employer that has
484	484	15 been issued a citation shall pay the fine to the Department of
485	485	16 Insurance and provide to the Department of Insurance proof
486	486	17 that it obtained the required workers' compensation insurance
487	487	18 within 10 days after the citation was issued. This Section
488	488	19 does not affect any other obligations this Act imposes on
489	489	20 employers.
490	490	21 Upon a finding by the Commission, after reasonable notice
491	491	22 and hearing, of the knowing and willful failure or refusal of
492	492	23 an employer to comply with any of the provisions of paragraph
493	493	24 (a) of this Section, the failure or refusal of an employer,
494	494	25 service or adjustment company, or an insurance carrier to
495	495	26 comply with any order of the Illinois Workers' Compensation
496	496
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498	498
499	499
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506	506	1 Commission pursuant to paragraph (c) of this Section
507	507	2 disqualifying him or her to operate as a self insurer and
508	508	3 requiring him or her to insure his or her liability, or the
509	509	4 knowing and willful failure of an employer to comply with a
510	510	5 citation issued by an investigator with the Department of
511	511	6 Insurance, the Commission may assess a civil penalty of up to
512	512	7 $500 per day for each day of such failure or refusal after the
513	513	8 effective date of this amendatory Act of 1989. The minimum
514	514	9 penalty under this Section shall be the sum of $10,000. Each
515	515	10 day of such failure or refusal shall constitute a separate
516	516	11 offense. The Commission may assess the civil penalty
517	517	12 personally and individually against the corporate officers and
518	518	13 directors of a corporate employer, the partners of an employer
519	519	14 partnership, and the members of an employer limited liability
520	520	15 company, after a finding of a knowing and willful refusal or
521	521	16 failure of each such named corporate officer, director,
522	522	17 partner, or member to comply with this Section. The liability
523	523	18 for the assessed penalty shall be against the named employer
524	524	19 first, and if the named employer fails or refuses to pay the
525	525	20 penalty to the Commission within 30 days after the final order
526	526	21 of the Commission, then the named corporate officers,
527	527	22 directors, partners, or members who have been found to have
528	528	23 knowingly and willfully refused or failed to comply with this
529	529	24 Section shall be liable for the unpaid penalty or any unpaid
530	530	25 portion of the penalty. Upon investigation by the Department
531	531	26 of Insurance, the Attorney General shall have the authority to
532	532
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534	534
535	535
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541	541	HB5575 - 15 - LRB103 36543 SPS 66650 b
542	542	1 prosecute all proceedings to enforce the civil and
543	543	2 administrative provisions of this Section before the
544	544	3 Commission. The Commission and the Department of Insurance
545	545	4 shall promulgate procedural rules for enforcing this Section
546	546	5 relating to their respective duties prescribed herein.
547	547	6 If an employer is found to be in non-compliance with any
548	548	7 provisions of paragraph (a) of this Section more than once,
549	549	8 all minimum penalties will double. Therefore, upon the failure
550	550	9 or refusal of an employer, service or adjustment company, or
551	551	10 insurance carrier to comply with any order of the Commission
552	552	11 pursuant to paragraph (c) of this Section disqualifying him or
553	553	12 her to operate as a self-insurer and requiring him or her to
554	554	13 insure his or her liability, or the knowing and willful
555	555	14 failure of an employer to comply with a citation issued by an
556	556	15 investigator with the Department of Insurance, the Commission
557	557	16 may assess a civil penalty of up to $1,000 per day for each day
558	558	17 of such failure or refusal after the effective date of this
559	559	18 amendatory Act of the 101st General Assembly. The minimum
560	560	19 penalty under this Section shall be the sum of $20,000. In
561	561	20 addition, employers with 2 or more violations of any
562	562	21 provisions of paragraph (a) of this Section may not
563	563	22 self-insure for one year or until all penalties are paid.
564	564	23 Any final order of the Commission imposing penalties under
565	565	24 this Section may be reviewed as described in subsection (f) of
566	566	25 Section 19. It shall be the duty of the Attorney General to
567	567	26 represent the Commission in any review proceeding. After all
568	568
569	569
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578	578	1 reviews have been exhausted or waived, the Commission's order
579	579	2 imposing penalties is a debt due and owing the State and may be
580	580	3 enforced in the same manner as a judgment entered by a court of
581	581	4 competent jurisdiction as described in subsection (g) of
582	582	5 Section 19. It shall be the duty of the Attorney General to
583	583	6 make all reasonable efforts to collect the amounts due under
584	584	7 the Commission's order.
585	585	8 Upon the failure or refusal of any employer, service or
586	586	9 adjustment company or insurance carrier to comply with the
587	587	10 provisions of this Section and with the orders of the
588	588	11 Commission under this Section, or the order of the court on
589	589	12 review after final adjudication, the Commission may bring a
590	590	13 civil action to recover the amount of the penalty in Cook
591	591	14 County or in Sangamon County in which litigation the
592	592	15 Commission shall be represented by the Attorney General. The
593	593	16 Commission shall send notice of its finding of non-compliance
594	594	17 and assessment of the civil penalty to the Attorney General.
595	595	18 It shall be the duty of the Attorney General within 30 days
596	596	19 after receipt of the notice, to institute prosecutions and
597	597	20 promptly prosecute all reported violations of this Section.
598	598	21 Any individual employer, corporate officer or director of
599	599	22 a corporate employer, partner of an employer partnership, or
600	600	23 member of an employer limited liability company who, with the
601	601	24 intent to avoid payment of compensation under this Act to an
602	602	25 injured employee or the employee's dependents, knowingly
603	603	26 transfers, sells, encumbers, assigns, or in any manner
604	604
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614	614	1 disposes of, conceals, secretes, or destroys any property
615	615	2 belonging to the employer, officer, director, partner, or
616	616	3 member is guilty of a Class 4 felony.
617	617	4 Penalties and fines collected pursuant to this paragraph
618	618	5 (d) shall be deposited upon receipt into a special fund which
619	619	6 shall be designated the Injured Workers' Benefit Fund, of
620	620	7 which the State Treasurer is ex-officio custodian, such
621	621	8 special fund to be held and disbursed in accordance with this
622	622	9 paragraph (d) for the purposes hereinafter stated in this
623	623	10 paragraph (d), upon the final order of the Commission. The
624	624	11 Injured Workers' Benefit Fund shall be deposited the same as
625	625	12 are State funds and any interest accruing thereon shall be
626	626	13 added thereto every 6 months. The Injured Workers' Benefit
627	627	14 Fund is subject to audit the same as State funds and accounts
628	628	15 and is protected by the general bond given by the State
629	629	16 Treasurer. The Injured Workers' Benefit Fund is considered
630	630	17 always appropriated for the purposes of disbursements as
631	631	18 provided in this paragraph, and shall be paid out and
632	632	19 disbursed as herein provided and shall not at any time be
633	633	20 appropriated or diverted to any other use or purpose. Moneys
634	634	21 in the Injured Workers' Benefit Fund shall be used only for
635	635	22 payment of workers' compensation benefits for injured
636	636	23 employees when the employer has failed to provide coverage as
637	637	24 determined under this paragraph (d) and has failed to pay the
638	638	25 benefits due to the injured employee.
639	639	26 The Commission shall have the right to order any employer
640	640
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644	644
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650	650	1 who has failed to properly secure its workers' compensation
651	651	2 obligations to reimburse obtain reimbursement from the
652	652	3 employer for compensation obligations paid by the Injured
653	653	4 Workers' Benefit Fund for amounts paid by the Injured Workers'
654	654	5 Benefit Fund to the employer's employees. The Commission shall
655	655	6 reserve jurisdiction in any matter in which an award is made
656	656	7 against the Injured Workers' Benefit Fund for the purpose of
657	657	8 issuing an order requiring reimbursement of the Injured
658	658	9 Workers' Benefit Fund once the amount paid is known. Within 30
659	659	10 days after payment by the Injured Workers' Benefit Fund to the
660	660	11 employee, the Commission shall enter an order requiring the
661	661	12 employer to reimburse the Injured Workers' Benefit Fund. Any
662	662	13 final order may be reviewed as described in subsection (f) of
663	663	14 Section 19. It shall be the duty of the Attorney General to
664	664	15 represent the Commission in any review proceeding. After all
665	665	16 reviews have been exhausted or waived, the Commission's order
666	666	17 requiring reimbursement is a debt due and owing this State and
667	667	18 may be enforced in the same manner as a judgment entered by a
668	668	19 court of competent jurisdiction as described in subsection (g)
669	669	20 of Section 19. It shall be the duty of the Attorney General to
670	670	21 make all reasonable efforts to collect the amounts due under
671	671	22 the Commission's order. Any such amounts obtained shall be
672	672	23 deposited by the Commission into the Injured Workers' Benefit
673	673	24 Fund. If an injured employee or his or her personal
674	674	25 representative receives payment from the Injured Workers'
675	675	26 Benefit Fund, the State of Illinois has the same rights under
676	676
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685	685	HB5575 - 19 - LRB103 36543 SPS 66650 b
686	686	1 paragraph (b) of Section 5 that the employer who failed to pay
687	687	2 the benefits due to the injured employee would have had if the
688	688	3 employer had paid those benefits, and any moneys recovered by
689	689	4 the State as a result of the State's exercise of its rights
690	690	5 under paragraph (b) of Section 5 shall be deposited into the
691	691	6 Injured Workers' Benefit Fund. The custodian of the Injured
692	692	7 Workers' Benefit Fund shall be joined with the employer as a
693	693	8 party respondent in the application for adjustment of claim.
694	694	9 After July 1, 2006, the Commission shall make disbursements
695	695	10 from the Fund once each year to each eligible claimant. An
696	696	11 eligible claimant is an injured worker who has within the
697	697	12 previous fiscal year obtained a final award for benefits from
698	698	13 the Commission against the employer and the Injured Workers'
699	699	14 Benefit Fund and has notified the Commission within 90 days of
700	700	15 receipt of such award. Within a reasonable time after the end
701	701	16 of each fiscal year, the Commission shall make a disbursement
702	702	17 to each eligible claimant. At the time of disbursement, if
703	703	18 there are insufficient moneys in the Fund to pay all claims,
704	704	19 each eligible claimant shall receive a pro-rata share, as
705	705	20 determined by the Commission, of the available moneys in the
706	706	21 Fund for that year. Payment from the Injured Workers' Benefit
707	707	22 Fund to an eligible claimant pursuant to this provision shall
708	708	23 discharge the obligations of the Injured Workers' Benefit Fund
709	709	24 regarding the award entered by the Commission.
710	710	25 (e) This Act shall not affect or disturb the continuance
711	711	26 of any existing insurance, mutual aid, benefit, or relief
712	712
713	713
714	714
715	715
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722	722	1 association or department, whether maintained in whole or in
723	723	2 part by the employer or whether maintained by the employees,
724	724	3 the payment of benefits of such association or department
725	725	4 being guaranteed by the employer or by some person, firm or
726	726	5 corporation for him or her: Provided, the employer contributes
727	727	6 to such association or department an amount not less than the
728	728	7 full compensation herein provided, exclusive of the cost of
729	729	8 the maintenance of such association or department and without
730	730	9 any expense to the employee. This Act shall not prevent the
731	731	10 organization and maintaining under the insurance laws of this
732	732	11 State of any benefit or insurance company for the purpose of
733	733	12 insuring against the compensation provided for in this Act,
734	734	13 the expense of which is maintained by the employer. This Act
735	735	14 shall not prevent the organization or maintaining under the
736	736	15 insurance laws of this State of any voluntary mutual aid,
737	737	16 benefit or relief association among employees for the payment
738	738	17 of additional accident or sick benefits.
739	739	18 (f) No existing insurance, mutual aid, benefit or relief
740	740	19 association or department shall, by reason of anything herein
741	741	20 contained, be authorized to discontinue its operation without
742	742	21 first discharging its obligations to any and all persons
743	743	22 carrying insurance in the same or entitled to relief or
744	744	23 benefits therein.
745	745	24 (g) Any contract, oral, written or implied, of employment
746	746	25 providing for relief benefit, or insurance or any other device
747	747	26 whereby the employee is required to pay any premium or
748	748
749	749
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757	757	HB5575 - 21 - LRB103 36543 SPS 66650 b
758	758	1 premiums for insurance against the compensation provided for
759	759	2 in this Act shall be null and void. Any employer withholding
760	760	3 from the wages of any employee any amount for the purpose of
761	761	4 paying any such premium shall be guilty of a Class B
762	762	5 misdemeanor.
763	763	6 In the event the employer does not pay the compensation
764	764	7 for which he or she is liable, then an insurance company,
765	765	8 association or insurer which may have insured such employer
766	766	9 against such liability shall become primarily liable to pay to
767	767	10 the employee, his or her personal representative or
768	768	11 beneficiary the compensation required by the provisions of
769	769	12 this Act to be paid by such employer. The insurance carrier may
770	770	13 be made a party to the proceedings in which the employer is a
771	771	14 party and an award may be entered jointly against the employer
772	772	15 and the insurance carrier.
773	773	16 (h) It shall be unlawful for any employer, insurance
774	774	17 company or service or adjustment company to interfere with,
775	775	18 restrain or coerce an employee in any manner whatsoever in the
776	776	19 exercise of the rights or remedies granted to him or her by
777	777	20 this Act or to discriminate, attempt to discriminate, or
778	778	21 threaten to discriminate against an employee in any way
779	779	22 because of his or her exercise of the rights or remedies
780	780	23 granted to him or her by this Act.
781	781	24 It shall be unlawful for any employer, individually or
782	782	25 through any insurance company or service or adjustment
783	783	26 company, to discharge or to threaten to discharge, or to
784	784
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794	794	1 refuse to rehire or recall to active service in a suitable
795	795	2 capacity an employee because of the exercise of his or her
796	796	3 rights or remedies granted to him or her by this Act.
797	797	4 (i) If an employer elects to obtain a life insurance
798	798	5 policy on his employees, he may also elect to apply such
799	799	6 benefits in satisfaction of all or a portion of the death
800	800	7 benefits payable under this Act, in which case, the employer's
801	801	8 compensation premium shall be reduced accordingly.
802	802	9 (j) Within 45 days of receipt of an initial application or
803	803	10 application to renew self-insurance privileges the
804	804	11 Self-Insurers Advisory Board shall review and submit for
805	805	12 approval by the Chairman of the Commission recommendations of
806	806	13 disposition of all initial applications to self-insure and all
807	807	14 applications to renew self-insurance privileges filed by
808	808	15 private self-insurers pursuant to the provisions of this
809	809	16 Section and Section 4a-9 of this Act. Each private
810	810	17 self-insurer shall submit with its initial and renewal
811	811	18 applications the application fee required by Section 4a-4 of
812	812	19 this Act.
813	813	20 The Chairman of the Commission shall promptly act upon all
814	814	21 initial applications and applications for renewal in full
815	815	22 accordance with the recommendations of the Board or, should
816	816	23 the Chairman disagree with any recommendation of disposition
817	817	24 of the Self-Insurer's Advisory Board, he shall within 30 days
818	818	25 of receipt of such recommendation provide to the Board in
819	819	26 writing the reasons supporting his decision. The Chairman
820	820
821	821
822	822
823	823
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830	830	1 shall also promptly notify the employer of his decision within
831	831	2 15 days of receipt of the recommendation of the Board.
832	832	3 If an employer is denied a renewal of self-insurance
833	833	4 privileges pursuant to application it shall retain said
834	834	5 privilege for 120 days after receipt of a notice of
835	835	6 cancellation of the privilege from the Chairman of the
836	836	7 Commission.
837	837	8 All orders made by the Chairman under this Section shall
838	838	9 be subject to review by the courts, such review to be taken in
839	839	10 the same manner and within the same time as provided by
840	840	11 subsection (f) of Section 19 of this Act for review of awards
841	841	12 and decisions of the Commission, upon the party seeking the
842	842	13 review filing with the clerk of the court to which such review
843	843	14 is taken a bond in an amount to be fixed and approved by the
844	844	15 court to which the review is taken, conditioned upon the
845	845	16 payment of all compensation awarded against the person taking
846	846	17 such review pending a decision thereof and further conditioned
847	847	18 upon such other obligations as the court may impose. Upon the
848	848	19 review the Circuit Court shall have power to review all
849	849	20 questions of fact as well as of law.
850	850	21 (Source: P.A. 101-40, eff. 1-1-20; 102-37, eff. 7-1-21.)
851	851	22 (Text of Section from P.A. 101-384 and 102-37)
852	852	23 Sec. 4. (a) Any employer, including but not limited to
853	853	24 general contractors and their subcontractors, who shall come
854	854	25 within the provisions of Section 3 of this Act, and any other
855	855
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865	865	1 employer who shall elect to provide and pay the compensation
866	866	2 provided for in this Act shall:
867	867	3 (1) File with the Commission annually an application
868	868	4 for approval as a self-insurer which shall include a
869	869	5 current financial statement, and annually, thereafter, an
870	870	6 application for renewal of self-insurance, which shall
871	871	7 include a current financial statement. Said application
872	872	8 and financial statement shall be signed and sworn to by
873	873	9 the president or vice president and secretary or assistant
874	874	10 secretary of the employer if it be a corporation, or by all
875	875	11 of the partners, if it be a copartnership, or by the owner
876	876	12 if it be neither a copartnership nor a corporation. All
877	877	13 initial applications and all applications for renewal of
878	878	14 self-insurance must be submitted at least 60 days prior to
879	879	15 the requested effective date of self-insurance. An
880	880	16 employer may elect to provide and pay compensation as
881	881	17 provided for in this Act as a member of a group workers'
882	882	18 compensation pool under Article V 3/4 of the Illinois
883	883	19 Insurance Code. If an employer becomes a member of a group
884	884	20 workers' compensation pool, the employer shall not be
885	885	21 relieved of any obligations imposed by this Act.
886	886	22 If the sworn application and financial statement of
887	887	23 any such employer does not satisfy the Commission of the
888	888	24 financial ability of the employer who has filed it, the
889	889	25 Commission shall require such employer to,
890	890	26 (2) Furnish security, indemnity or a bond guaranteeing
891	891
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894	894
895	895
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901	901	1 the payment by the employer of the compensation provided
902	902	2 for in this Act, provided that any such employer whose
903	903	3 application and financial statement shall not have
904	904	4 satisfied the commission of his or her financial ability
905	905	5 and who shall have secured his liability in part by excess
906	906	6 liability insurance shall be required to furnish to the
907	907	7 Commission security, indemnity or bond guaranteeing his or
908	908	8 her payment up to the effective limits of the excess
909	909	9 coverage, or
910	910	10 (3) Insure his entire liability to pay such
911	911	11 compensation in some insurance carrier authorized,
912	912	12 licensed, or permitted to do such insurance business in
913	913	13 this State. Every policy of an insurance carrier, insuring
914	914	14 the payment of compensation under this Act shall cover all
915	915	15 the employees and the entire compensation liability of the
916	916	16 insured: Provided, however, that any employer may insure
917	917	17 his or her compensation liability with 2 or more insurance
918	918	18 carriers or may insure a part and qualify under subsection
919	919	19 1, 2, or 4 for the remainder of his or her liability to pay
920	920	20 such compensation, subject to the following two
921	921	21 provisions:
922	922	22 Firstly, the entire compensation liability of the
923	923	23 employer to employees working at or from one location
924	924	24 shall be insured in one such insurance carrier or
925	925	25 shall be self-insured, and
926	926	26 Secondly, the employer shall submit evidence
927	927
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930	930
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937	937	1 satisfactorily to the Commission that his or her
938	938	2 entire liability for the compensation provided for in
939	939	3 this Act will be secured. Any provisions in any
940	940	4 policy, or in any endorsement attached thereto,
941	941	5 attempting to limit or modify in any way, the
942	942	6 liability of the insurance carriers issuing the same
943	943	7 except as otherwise provided herein shall be wholly
944	944	8 void.
945	945	9 Nothing herein contained shall apply to policies of
946	946	10 excess liability carriage secured by employers who have
947	947	11 been approved by the Commission as self-insurers, or
948	948	12 (4) Make some other provision, satisfactory to the
949	949	13 Commission, for the securing of the payment of
950	950	14 compensation provided for in this Act, and
951	951	15 (5) Upon becoming subject to this Act and thereafter
952	952	16 as often as the Commission may in writing demand, file
953	953	17 with the Commission in form prescribed by it evidence of
954	954	18 his or her compliance with the provision of this Section.
955	955	19 (a-1) Regardless of its state of domicile or its principal
956	956	20 place of business, an employer shall make payments to its
957	957	21 insurance carrier or group self-insurance fund, where
958	958	22 applicable, based upon the premium rates of the situs where
959	959	23 the work or project is located in Illinois if:
960	960	24 (A) the employer is engaged primarily in the building
961	961	25 and construction industry; and
962	962	26 (B) subdivision (a)(3) of this Section applies to the
963	963
964	964
965	965
966	966
967	967
968	968	HB5575 - 26 - LRB103 36543 SPS 66650 b
969	969
970	970
971	971	HB5575- 27 -LRB103 36543 SPS 66650 b HB5575 - 27 - LRB103 36543 SPS 66650 b
972	972	HB5575 - 27 - LRB103 36543 SPS 66650 b
973	973	1 employer or the employer is a member of a group
974	974	2 self-insurance plan as defined in subsection (1) of
975	975	3 Section 4a.
976	976	4 The Illinois Workers' Compensation Commission shall impose
977	977	5 a penalty upon an employer for violation of this subsection
978	978	6 (a-1) if:
979	979	7 (i) the employer is given an opportunity at a hearing
980	980	8 to present evidence of its compliance with this subsection
981	981	9 (a-1); and
982	982	10 (ii) after the hearing, the Commission finds that the
983	983	11 employer failed to make payments upon the premium rates of
984	984	12 the situs where the work or project is located in
985	985	13 Illinois.
986	986	14 The penalty shall not exceed $1,000 for each day of work
987	987	15 for which the employer failed to make payments upon the
988	988	16 premium rates of the situs where the work or project is located
989	989	17 in Illinois, but the total penalty shall not exceed $50,000
990	990	18 for each project or each contract under which the work was
991	991	19 performed.
992	992	20 Any penalty under this subsection (a-1) must be imposed
993	993	21 not later than one year after the expiration of the applicable
994	994	22 limitation period specified in subsection (d) of Section 6 of
995	995	23 this Act. Penalties imposed under this subsection (a-1) shall
996	996	24 be deposited into the Illinois Workers' Compensation
997	997	25 Commission Operations Fund, a special fund that is created in
998	998	26 the State treasury. Subject to appropriation, moneys in the
999	999
1000	1000
1001	1001
1002	1002
1003	1003
1004	1004	HB5575 - 27 - LRB103 36543 SPS 66650 b
1005	1005
1006	1006
1007	1007	HB5575- 28 -LRB103 36543 SPS 66650 b HB5575 - 28 - LRB103 36543 SPS 66650 b
1008	1008	HB5575 - 28 - LRB103 36543 SPS 66650 b
1009	1009	1 Fund shall be used solely for the operations of the Illinois
1010	1010	2 Workers' Compensation Commission and by the Department of
1011	1011	3 Insurance for the purposes authorized in subsection (c) of
1012	1012	4 Section 25.5 of this Act.
1013	1013	5 (a-2) Every Employee Leasing Company (ELC), as defined in
1014	1014	6 Section 15 of the Employee Leasing Company Act, shall at a
1015	1015	7 minimum provide the following information to the Commission or
1016	1016	8 any entity designated by the Commission regarding each
1017	1017	9 workers' compensation insurance policy issued to the ELC:
1018	1018	10 (1) Any client company of the ELC listed as an
1019	1019	11 additional named insured.
1020	1020	12 (2) Any informational schedule attached to the master
1021	1021	13 policy that identifies any individual client company's
1022	1022	14 name, FEIN, and job location.
1023	1023	15 (3) Any certificate of insurance coverage document
1024	1024	16 issued to a client company specifying its rights and
1025	1025	17 obligations under the master policy that establishes both
1026	1026	18 the identity and status of the client, as well as the dates
1027	1027	19 of inception and termination of coverage, if applicable.
1028	1028	20 (b) The sworn application and financial statement, or
1029	1029	21 security, indemnity or bond, or amount of insurance, or other
1030	1030	22 provisions, filed, furnished, carried, or made by the
1031	1031	23 employer, as the case may be, shall be subject to the approval
1032	1032	24 of the Commission.
1033	1033	25 Deposits under escrow agreements shall be cash, negotiable
1034	1034	26 United States government bonds or negotiable general
1035	1035
1036	1036
1037	1037
1038	1038
1039	1039
1040	1040	HB5575 - 28 - LRB103 36543 SPS 66650 b
1041	1041
1042	1042
1043	1043	HB5575- 29 -LRB103 36543 SPS 66650 b HB5575 - 29 - LRB103 36543 SPS 66650 b
1044	1044	HB5575 - 29 - LRB103 36543 SPS 66650 b
1045	1045	1 obligation bonds of the State of Illinois. Such cash or bonds
1046	1046	2 shall be deposited in escrow with any State or National Bank or
1047	1047	3 Trust Company having trust authority in the State of Illinois.
1048	1048	4 Upon the approval of the sworn application and financial
1049	1049	5 statement, security, indemnity or bond or amount of insurance,
1050	1050	6 filed, furnished or carried, as the case may be, the
1051	1051	7 Commission shall send to the employer written notice of its
1052	1052	8 approval thereof. The certificate of compliance by the
1053	1053	9 employer with the provisions of subparagraphs (2) and (3) of
1054	1054	10 paragraph (a) of this Section shall be delivered by the
1055	1055	11 insurance carrier to the Illinois Workers' Compensation
1056	1056	12 Commission within five days after the effective date of the
1057	1057	13 policy so certified. The insurance so certified shall cover
1058	1058	14 all compensation liability occurring during the time that the
1059	1059	15 insurance is in effect and no further certificate need be
1060	1060	16 filed in case such insurance is renewed, extended or otherwise
1061	1061	17 continued by such carrier. The insurance so certified shall
1062	1062	18 not be cancelled or in the event that such insurance is not
1063	1063	19 renewed, extended or otherwise continued, such insurance shall
1064	1064	20 not be terminated until at least 10 days after receipt by the
1065	1065	21 Illinois Workers' Compensation Commission of notice of the
1066	1066	22 cancellation or termination of said insurance; provided,
1067	1067	23 however, that if the employer has secured insurance from
1068	1068	24 another insurance carrier, or has otherwise secured the
1069	1069	25 payment of compensation in accordance with this Section, and
1070	1070	26 such insurance or other security becomes effective prior to
1071	1071
1072	1072
1073	1073
1074	1074
1075	1075
1076	1076	HB5575 - 29 - LRB103 36543 SPS 66650 b
1077	1077
1078	1078
1079	1079	HB5575- 30 -LRB103 36543 SPS 66650 b HB5575 - 30 - LRB103 36543 SPS 66650 b
1080	1080	HB5575 - 30 - LRB103 36543 SPS 66650 b
1081	1081	1 the expiration of the 10 days, cancellation or termination
1082	1082	2 may, at the option of the insurance carrier indicated in such
1083	1083	3 notice, be effective as of the effective date of such other
1084	1084	4 insurance or security.
1085	1085	5 (c) Whenever the Commission shall find that any
1086	1086	6 corporation, company, association, aggregation of individuals,
1087	1087	7 reciprocal or interinsurers exchange, or other insurer
1088	1088	8 effecting workers' compensation insurance in this State shall
1089	1089	9 be insolvent, financially unsound, or unable to fully meet all
1090	1090	10 payments and liabilities assumed or to be assumed for
1091	1091	11 compensation insurance in this State, or shall practice a
1092	1092	12 policy of delay or unfairness toward employees in the
1093	1093	13 adjustment, settlement, or payment of benefits due such
1094	1094	14 employees, the Commission may after reasonable notice and
1095	1095	15 hearing order and direct that such corporation, company,
1096	1096	16 association, aggregation of individuals, reciprocal or
1097	1097	17 interinsurers exchange, or insurer, shall from and after a
1098	1098	18 date fixed in such order discontinue the writing of any such
1099	1099	19 workers' compensation insurance in this State. Subject to such
1100	1100	20 modification of the order as the Commission may later make on
1101	1101	21 review of the order, as herein provided, it shall thereupon be
1102	1102	22 unlawful for any such corporation, company, association,
1103	1103	23 aggregation of individuals, reciprocal or interinsurers
1104	1104	24 exchange, or insurer to effect any workers' compensation
1105	1105	25 insurance in this State. A copy of the order shall be served
1106	1106	26 upon the Director of Insurance by registered mail. Whenever
1107	1107
1108	1108
1109	1109
1110	1110
1111	1111
1112	1112	HB5575 - 30 - LRB103 36543 SPS 66650 b
1113	1113
1114	1114
1115	1115	HB5575- 31 -LRB103 36543 SPS 66650 b HB5575 - 31 - LRB103 36543 SPS 66650 b
1116	1116	HB5575 - 31 - LRB103 36543 SPS 66650 b
1117	1117	1 the Commission finds that any service or adjustment company
1118	1118	2 used or employed by a self-insured employer or by an insurance
1119	1119	3 carrier to process, adjust, investigate, compromise or
1120	1120	4 otherwise handle claims under this Act, has practiced or is
1121	1121	5 practicing a policy of delay or unfairness toward employees in
1122	1122	6 the adjustment, settlement or payment of benefits due such
1123	1123	7 employees, the Commission may after reasonable notice and
1124	1124	8 hearing order and direct that such service or adjustment
1125	1125	9 company shall from and after a date fixed in such order be
1126	1126	10 prohibited from processing, adjusting, investigating,
1127	1127	11 compromising or otherwise handling claims under this Act.
1128	1128	12 Whenever the Commission finds that any self-insured
1129	1129	13 employer has practiced or is practicing delay or unfairness
1130	1130	14 toward employees in the adjustment, settlement or payment of
1131	1131	15 benefits due such employees, the Commission may, after
1132	1132	16 reasonable notice and hearing, order and direct that after a
1133	1133	17 date fixed in the order such self-insured employer shall be
1134	1134	18 disqualified to operate as a self-insurer and shall be
1135	1135	19 required to insure his entire liability to pay compensation in
1136	1136	20 some insurance carrier authorized, licensed and permitted to
1137	1137	21 do such insurance business in this State, as provided in
1138	1138	22 subparagraph 3 of paragraph (a) of this Section.
1139	1139	23 All orders made by the Commission under this Section shall
1140	1140	24 be subject to review by the courts, said review to be taken in
1141	1141	25 the same manner and within the same time as provided by Section
1142	1142	26 19 of this Act for review of awards and decisions of the
1143	1143
1144	1144
1145	1145
1146	1146
1147	1147
1148	1148	HB5575 - 31 - LRB103 36543 SPS 66650 b
1149	1149
1150	1150
1151	1151	HB5575- 32 -LRB103 36543 SPS 66650 b HB5575 - 32 - LRB103 36543 SPS 66650 b
1152	1152	HB5575 - 32 - LRB103 36543 SPS 66650 b
1153	1153	1 Commission, upon the party seeking the review filing with the
1154	1154	2 clerk of the court to which said review is taken a bond in an
1155	1155	3 amount to be fixed and approved by the court to which the
1156	1156	4 review is taken, conditioned upon the payment of all
1157	1157	5 compensation awarded against the person taking said review
1158	1158	6 pending a decision thereof and further conditioned upon such
1159	1159	7 other obligations as the court may impose. Upon the review the
1160	1160	8 Circuit Court shall have power to review all questions of fact
1161	1161	9 as well as of law. The penalty hereinafter provided for in this
1162	1162	10 paragraph shall not attach and shall not begin to run until the
1163	1163	11 final determination of the order of the Commission.
1164	1164	12 (d) Whenever a panel of 3 Commissioners comprised of one
1165	1165	13 member of the employing class, one representative of a labor
1166	1166	14 organization recognized under the National Labor Relations Act
1167	1167	15 or an attorney who has represented labor organizations or has
1168	1168	16 represented employees in workers' compensation cases, and one
1169	1169	17 member not identified with either the employing class or a
1170	1170	18 labor organization, with due process and after a hearing,
1171	1171	19 determines an employer has knowingly failed to provide
1172	1172	20 coverage as required by paragraph (a) of this Section, the
1173	1173	21 failure shall be deemed an immediate serious danger to public
1174	1174	22 health, safety, and welfare sufficient to justify service by
1175	1175	23 the Commission of a work-stop order on such employer,
1176	1176	24 requiring the cessation of all business operations of such
1177	1177	25 employer at the place of employment or job site. Any law
1178	1178	26 enforcement agency in the State shall, at the request of the
1179	1179
1180	1180
1181	1181
1182	1182
1183	1183
1184	1184	HB5575 - 32 - LRB103 36543 SPS 66650 b
1185	1185
1186	1186
1187	1187	HB5575- 33 -LRB103 36543 SPS 66650 b HB5575 - 33 - LRB103 36543 SPS 66650 b
1188	1188	HB5575 - 33 - LRB103 36543 SPS 66650 b
1189	1189	1 Commission, render any assistance necessary to carry out the
1190	1190	2 provisions of this Section, including, but not limited to,
1191	1191	3 preventing any employee of such employer from remaining at a
1192	1192	4 place of employment or job site after a work-stop order has
1193	1193	5 taken effect. Any work-stop order shall be lifted upon proof
1194	1194	6 of insurance as required by this Act. Any orders under this
1195	1195	7 Section are appealable under Section 19(f) to the Circuit
1196	1196	8 Court.
1197	1197	9 Any individual employer, corporate officer or director of
1198	1198	10 a corporate employer, partner of an employer partnership, or
1199	1199	11 member of an employer limited liability company who knowingly
1200	1200	12 fails to provide coverage as required by paragraph (a) of this
1201	1201	13 Section is guilty of a Class 4 felony. This provision shall not
1202	1202	14 apply to any corporate officer or director of any
1203	1203	15 publicly-owned corporation. Each day's violation constitutes a
1204	1204	16 separate offense. The State's Attorney of the county in which
1205	1205	17 the violation occurred, or the Attorney General, shall bring
1206	1206	18 such actions in the name of the People of the State of
1207	1207	19 Illinois, or may, in addition to other remedies provided in
1208	1208	20 this Section, bring an action for an injunction to restrain
1209	1209	21 the violation or to enjoin the operation of any such employer.
1210	1210	22 Any individual employer, corporate officer or director of
1211	1211	23 a corporate employer, partner of an employer partnership, or
1212	1212	24 member of an employer limited liability company who
1213	1213	25 negligently fails to provide coverage as required by paragraph
1214	1214	26 (a) of this Section is guilty of a Class A misdemeanor. This
1215	1215
1216	1216
1217	1217
1218	1218
1219	1219
1220	1220	HB5575 - 33 - LRB103 36543 SPS 66650 b
1221	1221
1222	1222
1223	1223	HB5575- 34 -LRB103 36543 SPS 66650 b HB5575 - 34 - LRB103 36543 SPS 66650 b
1224	1224	HB5575 - 34 - LRB103 36543 SPS 66650 b
1225	1225	1 provision shall not apply to any corporate officer or director
1226	1226	2 of any publicly-owned corporation. Each day's violation
1227	1227	3 constitutes a separate offense. The State's Attorney of the
1228	1228	4 county in which the violation occurred, or the Attorney
1229	1229	5 General, shall bring such actions in the name of the People of
1230	1230	6 the State of Illinois.
1231	1231	7 The criminal penalties in this subsection (d) shall not
1232	1232	8 apply where there exists a good faith dispute as to the
1233	1233	9 existence of an employment relationship. Evidence of good
1234	1234	10 faith shall include, but not be limited to, compliance with
1235	1235	11 the definition of employee as used by the Internal Revenue
1236	1236	12 Service.
1237	1237	13 Employers who are subject to and who knowingly fail to
1238	1238	14 comply with this Section shall not be entitled to the benefits
1239	1239	15 of this Act during the period of noncompliance, but shall be
1240	1240	16 liable in an action under any other applicable law of this
1241	1241	17 State. In the action, such employer shall not avail himself or
1242	1242	18 herself of the defenses of assumption of risk or negligence or
1243	1243	19 that the injury was due to a co-employee. In the action, proof
1244	1244	20 of the injury shall constitute prima facie evidence of
1245	1245	21 negligence on the part of such employer and the burden shall be
1246	1246	22 on such employer to show freedom of negligence resulting in
1247	1247	23 the injury. The employer shall not join any other defendant in
1248	1248	24 any such civil action. Nothing in this amendatory Act of the
1249	1249	25 94th General Assembly shall affect the employee's rights under
1250	1250	26 subdivision (a)3 of Section 1 of this Act. Any employer or
1251	1251
1252	1252
1253	1253
1254	1254
1255	1255
1256	1256	HB5575 - 34 - LRB103 36543 SPS 66650 b
1257	1257
1258	1258
1259	1259	HB5575- 35 -LRB103 36543 SPS 66650 b HB5575 - 35 - LRB103 36543 SPS 66650 b
1260	1260	HB5575 - 35 - LRB103 36543 SPS 66650 b
1261	1261	1 carrier who makes payments under subdivision (a)3 of Section 1
1262	1262	2 of this Act shall have a right of reimbursement from the
1263	1263	3 proceeds of any recovery under this Section.
1264	1264	4 An employee of an uninsured employer, or the employee's
1265	1265	5 dependents in case death ensued, may, instead of proceeding
1266	1266	6 against the employer in a civil action in court, file an
1267	1267	7 application for adjustment of claim with the Commission in
1268	1268	8 accordance with the provisions of this Act and the Commission
1269	1269	9 shall hear and determine the application for adjustment of
1270	1270	10 claim in the manner in which other claims are heard and
1271	1271	11 determined before the Commission.
1272	1272	12 All proceedings under this subsection (d) shall be
1273	1273	13 reported on an annual basis to the Workers' Compensation
1274	1274	14 Advisory Board.
1275	1275	15 An investigator with the Department of Insurance may issue
1276	1276	16 a citation to any employer that is not in compliance with its
1277	1277	17 obligation to have workers' compensation insurance under this
1278	1278	18 Act. The amount of the fine shall be based on the period of
1279	1279	19 time the employer was in non-compliance, but shall be no less
1280	1280	20 than $500, and shall not exceed $2,500. An employer that has
1281	1281	21 been issued a citation shall pay the fine to the Department of
1282	1282	22 Insurance and provide to the Department of Insurance proof
1283	1283	23 that it obtained the required workers' compensation insurance
1284	1284	24 within 10 days after the citation was issued. This Section
1285	1285	25 does not affect any other obligations this Act imposes on
1286	1286	26 employers.
1287	1287
1288	1288
1289	1289
1290	1290
1291	1291
1292	1292	HB5575 - 35 - LRB103 36543 SPS 66650 b
1293	1293
1294	1294
1295	1295	HB5575- 36 -LRB103 36543 SPS 66650 b HB5575 - 36 - LRB103 36543 SPS 66650 b
1296	1296	HB5575 - 36 - LRB103 36543 SPS 66650 b
1297	1297	1 Upon a finding by the Commission, after reasonable notice
1298	1298	2 and hearing, of the knowing and wilful failure or refusal of an
1299	1299	3 employer to comply with any of the provisions of paragraph (a)
1300	1300	4 of this Section, the failure or refusal of an employer,
1301	1301	5 service or adjustment company, or an insurance carrier to
1302	1302	6 comply with any order of the Illinois Workers' Compensation
1303	1303	7 Commission pursuant to paragraph (c) of this Section
1304	1304	8 disqualifying him or her to operate as a self insurer and
1305	1305	9 requiring him or her to insure his or her liability, or the
1306	1306	10 knowing and willful failure of an employer to comply with a
1307	1307	11 citation issued by an investigator with the Department of
1308	1308	12 Insurance, the Commission may assess a civil penalty of up to
1309	1309	13 $500 per day for each day of such failure or refusal after the
1310	1310	14 effective date of this amendatory Act of 1989. The minimum
1311	1311	15 penalty under this Section shall be the sum of $10,000. Each
1312	1312	16 day of such failure or refusal shall constitute a separate
1313	1313	17 offense. The Commission may assess the civil penalty
1314	1314	18 personally and individually against the corporate officers and
1315	1315	19 directors of a corporate employer, the partners of an employer
1316	1316	20 partnership, and the members of an employer limited liability
1317	1317	21 company, after a finding of a knowing and willful refusal or
1318	1318	22 failure of each such named corporate officer, director,
1319	1319	23 partner, or member to comply with this Section. The liability
1320	1320	24 for the assessed penalty shall be against the named employer
1321	1321	25 first, and if the named employer fails or refuses to pay the
1322	1322	26 penalty to the Commission within 30 days after the final order
1323	1323
1324	1324
1325	1325
1326	1326
1327	1327
1328	1328	HB5575 - 36 - LRB103 36543 SPS 66650 b
1329	1329
1330	1330
1331	1331	HB5575- 37 -LRB103 36543 SPS 66650 b HB5575 - 37 - LRB103 36543 SPS 66650 b
1332	1332	HB5575 - 37 - LRB103 36543 SPS 66650 b
1333	1333	1 of the Commission, then the named corporate officers,
1334	1334	2 directors, partners, or members who have been found to have
1335	1335	3 knowingly and willfully refused or failed to comply with this
1336	1336	4 Section shall be liable for the unpaid penalty or any unpaid
1337	1337	5 portion of the penalty. Upon investigation by the Department
1338	1338	6 of Insurance, the Attorney General shall have the authority to
1339	1339	7 prosecute all proceedings to enforce the civil and
1340	1340	8 administrative provisions of this Section before the
1341	1341	9 Commission. The Commission and the Department of Insurance
1342	1342	10 shall promulgate procedural rules for enforcing this Section
1343	1343	11 relating to their respective duties prescribed herein.
1344	1344	12 Any final order of the Commission imposing penalties under
1345	1345	13 this Section may be reviewed as described in subsection (f) of
1346	1346	14 Section 19. It shall be the duty of the Attorney General to
1347	1347	15 represent the Commission in any review proceeding. After all
1348	1348	16 reviews have been exhausted or waived, the Commission's order
1349	1349	17 imposing penalties is a debt due and owing the State and may be
1350	1350	18 enforced in the same manner as a judgment entered by a court of
1351	1351	19 competent jurisdiction as described in subsection (g) of
1352	1352	20 Section 19. It shall be the duty of the Attorney General to
1353	1353	21 make all reasonable efforts to collect the amounts due under
1354	1354	22 the Commission's order.
1355	1355	23 Upon the failure or refusal of any employer, service or
1356	1356	24 adjustment company or insurance carrier to comply with the
1357	1357	25 provisions of this Section and with the orders of the
1358	1358	26 Commission under this Section, or the order of the court on
1359	1359
1360	1360
1361	1361
1362	1362
1363	1363
1364	1364	HB5575 - 37 - LRB103 36543 SPS 66650 b
1365	1365
1366	1366
1367	1367	HB5575- 38 -LRB103 36543 SPS 66650 b HB5575 - 38 - LRB103 36543 SPS 66650 b
1368	1368	HB5575 - 38 - LRB103 36543 SPS 66650 b
1369	1369	1 review after final adjudication, the Commission may bring a
1370	1370	2 civil action to recover the amount of the penalty in Cook
1371	1371	3 County or in Sangamon County in which litigation the
1372	1372	4 Commission shall be represented by the Attorney General. The
1373	1373	5 Commission shall send notice of its finding of non-compliance
1374	1374	6 and assessment of the civil penalty to the Attorney General.
1375	1375	7 It shall be the duty of the Attorney General within 30 days
1376	1376	8 after receipt of the notice, to institute prosecutions and
1377	1377	9 promptly prosecute all reported violations of this Section.
1378	1378	10 Any individual employer, corporate officer or director of
1379	1379	11 a corporate employer, partner of an employer partnership, or
1380	1380	12 member of an employer limited liability company who, with the
1381	1381	13 intent to avoid payment of compensation under this Act to an
1382	1382	14 injured employee or the employee's dependents, knowingly
1383	1383	15 transfers, sells, encumbers, assigns, or in any manner
1384	1384	16 disposes of, conceals, secretes, or destroys any property
1385	1385	17 belonging to the employer, officer, director, partner, or
1386	1386	18 member is guilty of a Class 4 felony.
1387	1387	19 Penalties and fines collected pursuant to this paragraph
1388	1388	20 (d) shall be deposited upon receipt into a special fund which
1389	1389	21 shall be designated the Injured Workers' Benefit Fund, of
1390	1390	22 which the State Treasurer is ex-officio custodian, such
1391	1391	23 special fund to be held and disbursed in accordance with this
1392	1392	24 paragraph (d) for the purposes hereinafter stated in this
1393	1393	25 paragraph (d), upon the final order of the Commission. The
1394	1394	26 Injured Workers' Benefit Fund shall be deposited the same as
1395	1395
1396	1396
1397	1397
1398	1398
1399	1399
1400	1400	HB5575 - 38 - LRB103 36543 SPS 66650 b
1401	1401
1402	1402
1403	1403	HB5575- 39 -LRB103 36543 SPS 66650 b HB5575 - 39 - LRB103 36543 SPS 66650 b
1404	1404	HB5575 - 39 - LRB103 36543 SPS 66650 b
1405	1405	1 are State funds and any interest accruing thereon shall be
1406	1406	2 added thereto every 6 months. The Injured Workers' Benefit
1407	1407	3 Fund is subject to audit the same as State funds and accounts
1408	1408	4 and is protected by the general bond given by the State
1409	1409	5 Treasurer. The Injured Workers' Benefit Fund is considered
1410	1410	6 always appropriated for the purposes of disbursements as
1411	1411	7 provided in this paragraph, and shall be paid out and
1412	1412	8 disbursed as herein provided and shall not at any time be
1413	1413	9 appropriated or diverted to any other use or purpose. Moneys
1414	1414	10 in the Injured Workers' Benefit Fund shall be used only for
1415	1415	11 payment of workers' compensation benefits for injured
1416	1416	12 employees when the employer has failed to provide coverage as
1417	1417	13 determined under this paragraph (d) and has failed to pay the
1418	1418	14 benefits due to the injured employee.
1419	1419	15 The Commission shall have the right to order any employer
1420	1420	16 who has failed to properly secure their workers' compensation
1421	1421	17 obligations to reimburse obtain reimbursement from the
1422	1422	18 employer for compensation obligations paid by the Injured
1423	1423	19 Workers' Benefit Fund for amounts paid by the Injured Workers'
1424	1424	20 Benefit Fund to the employer's employees. The Commission shall
1425	1425	21 reserve jurisdiction in any matter in which an award is made
1426	1426	22 against the Injured Workers' Benefit Fund for the purpose of
1427	1427	23 issuing an order requiring reimbursement of the Injured
1428	1428	24 Workers' Benefit Fund once the amount paid is known. Within 30
1429	1429	25 days after payment by the Injured Workers' Benefit Fund to the
1430	1430	26 employee, the Commission shall enter an order requiring the
1431	1431
1432	1432
1433	1433
1434	1434
1435	1435
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1437	1437
1438	1438
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1440	1440	HB5575 - 40 - LRB103 36543 SPS 66650 b
1441	1441	1 employer to reimburse the Injured Workers' Benefit Fund. Any
1442	1442	2 final order may be reviewed as described in subsection (f) of
1443	1443	3 Section 19. It shall be the duty of the Attorney General to
1444	1444	4 represent the Commission in any review proceeding. After all
1445	1445	5 reviews have been exhausted or waived, the Commission's order
1446	1446	6 requiring reimbursement is a debt due and owing this State and
1447	1447	7 may be enforced in the same manner as a judgment entered by a
1448	1448	8 court of competent jurisdiction as described in subsection (g)
1449	1449	9 of Section 19. It shall be the duty of the Attorney General to
1450	1450	10 make all reasonable efforts to collect the amounts due under
1451	1451	11 the Commission's order. Any such amounts obtained shall be
1452	1452	12 deposited by the Commission into the Injured Workers' Benefit
1453	1453	13 Fund. If an injured employee or his or her personal
1454	1454	14 representative receives payment from the Injured Workers'
1455	1455	15 Benefit Fund, the State of Illinois has the same rights under
1456	1456	16 paragraph (b) of Section 5 that the employer who failed to pay
1457	1457	17 the benefits due to the injured employee would have had if the
1458	1458	18 employer had paid those benefits, and any moneys recovered by
1459	1459	19 the State as a result of the State's exercise of its rights
1460	1460	20 under paragraph (b) of Section 5 shall be deposited into the
1461	1461	21 Injured Workers' Benefit Fund. The custodian of the Injured
1462	1462	22 Workers' Benefit Fund shall be joined with the employer as a
1463	1463	23 party respondent in the application for adjustment of claim.
1464	1464	24 After July 1, 2006, the Commission shall make disbursements
1465	1465	25 from the Fund once each year to each eligible claimant. An
1466	1466	26 eligible claimant is an injured worker who has within the
1467	1467
1468	1468
1469	1469
1470	1470
1471	1471
1472	1472	HB5575 - 40 - LRB103 36543 SPS 66650 b
1473	1473
1474	1474
1475	1475	HB5575- 41 -LRB103 36543 SPS 66650 b HB5575 - 41 - LRB103 36543 SPS 66650 b
1476	1476	HB5575 - 41 - LRB103 36543 SPS 66650 b
1477	1477	1 previous fiscal year obtained a final award for benefits from
1478	1478	2 the Commission against the employer and the Injured Workers'
1479	1479	3 Benefit Fund and has notified the Commission within 90 days of
1480	1480	4 receipt of such award. Within a reasonable time after the end
1481	1481	5 of each fiscal year, the Commission shall make a disbursement
1482	1482	6 to each eligible claimant. At the time of disbursement, if
1483	1483	7 there are insufficient moneys in the Fund to pay all claims,
1484	1484	8 each eligible claimant shall receive a pro-rata share, as
1485	1485	9 determined by the Commission, of the available moneys in the
1486	1486	10 Fund for that year. Payment from the Injured Workers' Benefit
1487	1487	11 Fund to an eligible claimant pursuant to this provision shall
1488	1488	12 discharge the obligations of the Injured Workers' Benefit Fund
1489	1489	13 regarding the award entered by the Commission.
1490	1490	14 (e) This Act shall not affect or disturb the continuance
1491	1491	15 of any existing insurance, mutual aid, benefit, or relief
1492	1492	16 association or department, whether maintained in whole or in
1493	1493	17 part by the employer or whether maintained by the employees,
1494	1494	18 the payment of benefits of such association or department
1495	1495	19 being guaranteed by the employer or by some person, firm or
1496	1496	20 corporation for him or her: Provided, the employer contributes
1497	1497	21 to such association or department an amount not less than the
1498	1498	22 full compensation herein provided, exclusive of the cost of
1499	1499	23 the maintenance of such association or department and without
1500	1500	24 any expense to the employee. This Act shall not prevent the
1501	1501	25 organization and maintaining under the insurance laws of this
1502	1502	26 State of any benefit or insurance company for the purpose of
1503	1503
1504	1504
1505	1505
1506	1506
1507	1507
1508	1508	HB5575 - 41 - LRB103 36543 SPS 66650 b
1509	1509
1510	1510
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1512	1512	HB5575 - 42 - LRB103 36543 SPS 66650 b
1513	1513	1 insuring against the compensation provided for in this Act,
1514	1514	2 the expense of which is maintained by the employer. This Act
1515	1515	3 shall not prevent the organization or maintaining under the
1516	1516	4 insurance laws of this State of any voluntary mutual aid,
1517	1517	5 benefit or relief association among employees for the payment
1518	1518	6 of additional accident or sick benefits.
1519	1519	7 (f) No existing insurance, mutual aid, benefit or relief
1520	1520	8 association or department shall, by reason of anything herein
1521	1521	9 contained, be authorized to discontinue its operation without
1522	1522	10 first discharging its obligations to any and all persons
1523	1523	11 carrying insurance in the same or entitled to relief or
1524	1524	12 benefits therein.
1525	1525	13 (g) Any contract, oral, written or implied, of employment
1526	1526	14 providing for relief benefit, or insurance or any other device
1527	1527	15 whereby the employee is required to pay any premium or
1528	1528	16 premiums for insurance against the compensation provided for
1529	1529	17 in this Act shall be null and void. Any employer withholding
1530	1530	18 from the wages of any employee any amount for the purpose of
1531	1531	19 paying any such premium shall be guilty of a Class B
1532	1532	20 misdemeanor.
1533	1533	21 In the event the employer does not pay the compensation
1534	1534	22 for which he or she is liable, then an insurance company,
1535	1535	23 association or insurer which may have insured such employer
1536	1536	24 against such liability shall become primarily liable to pay to
1537	1537	25 the employee, his or her personal representative or
1538	1538	26 beneficiary the compensation required by the provisions of
1539	1539
1540	1540
1541	1541
1542	1542
1543	1543
1544	1544	HB5575 - 42 - LRB103 36543 SPS 66650 b
1545	1545
1546	1546
1547	1547	HB5575- 43 -LRB103 36543 SPS 66650 b HB5575 - 43 - LRB103 36543 SPS 66650 b
1548	1548	HB5575 - 43 - LRB103 36543 SPS 66650 b
1549	1549	1 this Act to be paid by such employer. The insurance carrier may
1550	1550	2 be made a party to the proceedings in which the employer is a
1551	1551	3 party and an award may be entered jointly against the employer
1552	1552	4 and the insurance carrier.
1553	1553	5 (h) It shall be unlawful for any employer, insurance
1554	1554	6 company or service or adjustment company to interfere with,
1555	1555	7 restrain or coerce an employee in any manner whatsoever in the
1556	1556	8 exercise of the rights or remedies granted to him or her by
1557	1557	9 this Act or to discriminate, attempt to discriminate, or
1558	1558	10 threaten to discriminate against an employee in any way
1559	1559	11 because of his or her exercise of the rights or remedies
1560	1560	12 granted to him or her by this Act.
1561	1561	13 It shall be unlawful for any employer, individually or
1562	1562	14 through any insurance company or service or adjustment
1563	1563	15 company, to discharge or to threaten to discharge, or to
1564	1564	16 refuse to rehire or recall to active service in a suitable
1565	1565	17 capacity an employee because of the exercise of his or her
1566	1566	18 rights or remedies granted to him or her by this Act.
1567	1567	19 (i) If an employer elects to obtain a life insurance
1568	1568	20 policy on his employees, he may also elect to apply such
1569	1569	21 benefits in satisfaction of all or a portion of the death
1570	1570	22 benefits payable under this Act, in which case, the employer's
1571	1571	23 compensation premium shall be reduced accordingly.
1572	1572	24 (j) Within 45 days of receipt of an initial application or
1573	1573	25 application to renew self-insurance privileges the
1574	1574	26 Self-Insurers Advisory Board shall review and submit for
1575	1575
1576	1576
1577	1577
1578	1578
1579	1579
1580	1580	HB5575 - 43 - LRB103 36543 SPS 66650 b
1581	1581
1582	1582
1583	1583	HB5575- 44 -LRB103 36543 SPS 66650 b HB5575 - 44 - LRB103 36543 SPS 66650 b
1584	1584	HB5575 - 44 - LRB103 36543 SPS 66650 b
1585	1585	1 approval by the Chairman of the Commission recommendations of
1586	1586	2 disposition of all initial applications to self-insure and all
1587	1587	3 applications to renew self-insurance privileges filed by
1588	1588	4 private self-insurers pursuant to the provisions of this
1589	1589	5 Section and Section 4a-9 of this Act. Each private
1590	1590	6 self-insurer shall submit with its initial and renewal
1591	1591	7 applications the application fee required by Section 4a-4 of
1592	1592	8 this Act.
1593	1593	9 The Chairman of the Commission shall promptly act upon all
1594	1594	10 initial applications and applications for renewal in full
1595	1595	11 accordance with the recommendations of the Board or, should
1596	1596	12 the Chairman disagree with any recommendation of disposition
1597	1597	13 of the Self-Insurer's Advisory Board, he shall within 30 days
1598	1598	14 of receipt of such recommendation provide to the Board in
1599	1599	15 writing the reasons supporting his decision. The Chairman
1600	1600	16 shall also promptly notify the employer of his decision within
1601	1601	17 15 days of receipt of the recommendation of the Board.
1602	1602	18 If an employer is denied a renewal of self-insurance
1603	1603	19 privileges pursuant to application it shall retain said
1604	1604	20 privilege for 120 days after receipt of a notice of
1605	1605	21 cancellation of the privilege from the Chairman of the
1606	1606	22 Commission.
1607	1607	23 All orders made by the Chairman under this Section shall
1608	1608	24 be subject to review by the courts, such review to be taken in
1609	1609	25 the same manner and within the same time as provided by
1610	1610	26 subsection (f) of Section 19 of this Act for review of awards
1611	1611
1612	1612
1613	1613
1614	1614
1615	1615
1616	1616	HB5575 - 44 - LRB103 36543 SPS 66650 b
1617	1617
1618	1618
1619	1619	HB5575- 45 -LRB103 36543 SPS 66650 b HB5575 - 45 - LRB103 36543 SPS 66650 b
1620	1620	HB5575 - 45 - LRB103 36543 SPS 66650 b
1621	1621	1 and decisions of the Commission, upon the party seeking the
1622	1622	2 review filing with the clerk of the court to which such review
1623	1623	3 is taken a bond in an amount to be fixed and approved by the
1624	1624	4 court to which the review is taken, conditioned upon the
1625	1625	5 payment of all compensation awarded against the person taking
1626	1626	6 such review pending a decision thereof and further conditioned
1627	1627	7 upon such other obligations as the court may impose. Upon the
1628	1628	8 review the Circuit Court shall have power to review all
1629	1629	9 questions of fact as well as of law.
1630	1630	10 (Source: P.A. 101-384, eff. 1-1-20; 102-37, eff. 7-1-21.)
1631	1631	11 (820 ILCS 305/19) (from Ch. 48, par. 138.19)
1632	1632	12 Sec. 19. Any disputed questions of law or fact shall be
1633	1633	13 determined as herein provided.
1634	1634	14 (a) It shall be the duty of the Commission upon
1635	1635	15 notification that the parties have failed to reach an
1636	1636	16 agreement, to designate an Arbitrator.
1637	1637	17 1. Whenever any claimant misconceives his remedy and
1638	1638	18 files an application for adjustment of claim under this
1639	1639	19 Act and it is subsequently discovered, at any time before
1640	1640	20 final disposition of such cause, that the claim for
1641	1641	21 disability or death which was the basis for such
1642	1642	22 application should properly have been made under the
1643	1643	23 Workers' Occupational Diseases Act, then the provisions of
1644	1644	24 Section 19, paragraph (a-1) of the Workers' Occupational
1645	1645	25 Diseases Act having reference to such application shall
1646	1646
1647	1647
1648	1648
1649	1649
1650	1650
1651	1651	HB5575 - 45 - LRB103 36543 SPS 66650 b
1652	1652
1653	1653
1654	1654	HB5575- 46 -LRB103 36543 SPS 66650 b HB5575 - 46 - LRB103 36543 SPS 66650 b
1655	1655	HB5575 - 46 - LRB103 36543 SPS 66650 b
1656	1656	1 apply.
1657	1657	2 2. Whenever any claimant misconceives his remedy and
1658	1658	3 files an application for adjustment of claim under the
1659	1659	4 Workers' Occupational Diseases Act and it is subsequently
1660	1660	5 discovered, at any time before final disposition of such
1661	1661	6 cause that the claim for injury or death which was the
1662	1662	7 basis for such application should properly have been made
1663	1663	8 under this Act, then the application so filed under the
1664	1664	9 Workers' Occupational Diseases Act may be amended in form,
1665	1665	10 substance or both to assert claim for such disability or
1666	1666	11 death under this Act and it shall be deemed to have been so
1667	1667	12 filed as amended on the date of the original filing
1668	1668	13 thereof, and such compensation may be awarded as is
1669	1669	14 warranted by the whole evidence pursuant to this Act. When
1670	1670	15 such amendment is submitted, further or additional
1671	1671	16 evidence may be heard by the Arbitrator or Commission when
1672	1672	17 deemed necessary. Nothing in this Section contained shall
1673	1673	18 be construed to be or permit a waiver of any provisions of
1674	1674	19 this Act with reference to notice but notice if given
1675	1675	20 shall be deemed to be a notice under the provisions of this
1676	1676	21 Act if given within the time required herein.
1677	1677	22 (b) The Arbitrator shall make such inquiries and
1678	1678	23 investigations as he or they shall deem necessary and may
1679	1679	24 examine and inspect all books, papers, records, places, or
1680	1680	25 premises relating to the questions in dispute and hear such
1681	1681	26 proper evidence as the parties may submit.
1682	1682
1683	1683
1684	1684
1685	1685
1686	1686
1687	1687	HB5575 - 46 - LRB103 36543 SPS 66650 b
1688	1688
1689	1689
1690	1690	HB5575- 47 -LRB103 36543 SPS 66650 b HB5575 - 47 - LRB103 36543 SPS 66650 b
1691	1691	HB5575 - 47 - LRB103 36543 SPS 66650 b
1692	1692	1 The hearings before the Arbitrator shall be held in the
1693	1693	2 vicinity where the injury occurred after 10 days' notice of
1694	1694	3 the time and place of such hearing shall have been given to
1695	1695	4 each of the parties or their attorneys of record.
1696	1696	5 The Arbitrator may find that the disabling condition is
1697	1697	6 temporary and has not yet reached a permanent condition and
1698	1698	7 may order the payment of compensation up to the date of the
1699	1699	8 hearing, which award shall be reviewable and enforceable in
1700	1700	9 the same manner as other awards, and in no instance be a bar to
1701	1701	10 a further hearing and determination of a further amount of
1702	1702	11 temporary total compensation or of compensation for permanent
1703	1703	12 disability, but shall be conclusive as to all other questions
1704	1704	13 except the nature and extent of said disability.
1705	1705	14 The decision of the Arbitrator shall be filed with the
1706	1706	15 Commission which Commission shall immediately send to each
1707	1707	16 party or his attorney a copy of such decision, together with a
1708	1708	17 notification of the time when it was filed. As of the effective
1709	1709	18 date of this amendatory Act of the 94th General Assembly, all
1710	1710	19 decisions of the Arbitrator shall set forth in writing
1711	1711	20 findings of fact and conclusions of law, separately stated, if
1712	1712	21 requested by either party. Unless a petition for review is
1713	1713	22 filed by either party within 30 days after the receipt by such
1714	1714	23 party of the copy of the decision and notification of time when
1715	1715	24 filed, and unless such party petitioning for a review shall
1716	1716	25 within 35 days after the receipt by him of the copy of the
1717	1717	26 decision, file with the Commission either an agreed statement
1718	1718
1719	1719
1720	1720
1721	1721
1722	1722
1723	1723	HB5575 - 47 - LRB103 36543 SPS 66650 b
1724	1724
1725	1725
1726	1726	HB5575- 48 -LRB103 36543 SPS 66650 b HB5575 - 48 - LRB103 36543 SPS 66650 b
1727	1727	HB5575 - 48 - LRB103 36543 SPS 66650 b
1728	1728	1 of the facts appearing upon the hearing before the Arbitrator,
1729	1729	2 or if such party shall so elect a correct transcript of
1730	1730	3 evidence of the proceedings at such hearings, then the
1731	1731	4 decision shall become the decision of the Commission and in
1732	1732	5 the absence of fraud shall be conclusive. The Petition for
1733	1733	6 Review shall contain a statement of the petitioning party's
1734	1734	7 specific exceptions to the decision of the arbitrator. The
1735	1735	8 jurisdiction of the Commission to review the decision of the
1736	1736	9 arbitrator shall not be limited to the exceptions stated in
1737	1737	10 the Petition for Review. The Commission, or any member
1738	1738	11 thereof, may grant further time not exceeding 30 days, in
1739	1739	12 which to file such agreed statement or transcript of evidence.
1740	1740	13 Such agreed statement of facts or correct transcript of
1741	1741	14 evidence, as the case may be, shall be authenticated by the
1742	1742	15 signatures of the parties or their attorneys, and in the event
1743	1743	16 they do not agree as to the correctness of the transcript of
1744	1744	17 evidence it shall be authenticated by the signature of the
1745	1745	18 Arbitrator designated by the Commission.
1746	1746	19 Whether the employee is working or not, if the employee is
1747	1747	20 not receiving or has not received medical, surgical, or
1748	1748	21 hospital services or other services or compensation as
1749	1749	22 provided in paragraph (a) of Section 8, or compensation as
1750	1750	23 provided in paragraph (b) of Section 8, the employee may at any
1751	1751	24 time petition for an expedited hearing by an Arbitrator on the
1752	1752	25 issue of whether or not he or she is entitled to receive
1753	1753	26 payment of the services or compensation. Provided the employer
1754	1754
1755	1755
1756	1756
1757	1757
1758	1758
1759	1759	HB5575 - 48 - LRB103 36543 SPS 66650 b
1760	1760
1761	1761
1762	1762	HB5575- 49 -LRB103 36543 SPS 66650 b HB5575 - 49 - LRB103 36543 SPS 66650 b
1763	1763	HB5575 - 49 - LRB103 36543 SPS 66650 b
1764	1764	1 continues to pay compensation pursuant to paragraph (b) of
1765	1765	2 Section 8, the employer may at any time petition for an
1766	1766	3 expedited hearing on the issue of whether or not the employee
1767	1767	4 is entitled to receive medical, surgical, or hospital services
1768	1768	5 or other services or compensation as provided in paragraph (a)
1769	1769	6 of Section 8, or compensation as provided in paragraph (b) of
1770	1770	7 Section 8. When an employer has petitioned for an expedited
1771	1771	8 hearing, the employer shall continue to pay compensation as
1772	1772	9 provided in paragraph (b) of Section 8 unless the arbitrator
1773	1773	10 renders a decision that the employee is not entitled to the
1774	1774	11 benefits that are the subject of the expedited hearing or
1775	1775	12 unless the employee's treating physician has released the
1776	1776	13 employee to return to work at his or her regular job with the
1777	1777	14 employer or the employee actually returns to work at any other
1778	1778	15 job. If the arbitrator renders a decision that the employee is
1779	1779	16 not entitled to the benefits that are the subject of the
1780	1780	17 expedited hearing, a petition for review filed by the employee
1781	1781	18 shall receive the same priority as if the employee had filed a
1782	1782	19 petition for an expedited hearing by an Arbitrator. Neither
1783	1783	20 party shall be entitled to an expedited hearing when the
1784	1784	21 employee has returned to work and the sole issue in dispute
1785	1785	22 amounts to less than 12 weeks of unpaid compensation pursuant
1786	1786	23 to paragraph (b) of Section 8.
1787	1787	24 Expedited hearings shall have priority over all other
1788	1788	25 petitions and shall be heard by the Arbitrator and Commission
1789	1789	26 with all convenient speed. Any party requesting an expedited
1790	1790
1791	1791
1792	1792
1793	1793
1794	1794
1795	1795	HB5575 - 49 - LRB103 36543 SPS 66650 b
1796	1796
1797	1797
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1799	1799	HB5575 - 50 - LRB103 36543 SPS 66650 b
1800	1800	1 hearing shall give notice of a request for an expedited
1801	1801	2 hearing under this paragraph. A copy of the Application for
1802	1802	3 Adjustment of Claim shall be attached to the notice. The
1803	1803	4 Commission shall adopt rules and procedures under which the
1804	1804	5 final decision of the Commission under this paragraph is filed
1805	1805	6 not later than 180 days from the date that the Petition for
1806	1806	7 Review is filed with the Commission.
1807	1807	8 Where 2 or more insurance carriers, private self-insureds,
1808	1808	9 or a group workers' compensation pool under Article V 3/4 of
1809	1809	10 the Illinois Insurance Code dispute coverage for the same
1810	1810	11 injury, any such insurance carrier, private self-insured, or
1811	1811	12 group workers' compensation pool may request an expedited
1812	1812	13 hearing pursuant to this paragraph to determine the issue of
1813	1813	14 coverage, provided coverage is the only issue in dispute and
1814	1814	15 all other issues are stipulated and agreed to and further
1815	1815	16 provided that all compensation benefits including medical
1816	1816	17 benefits pursuant to Section 8(a) continue to be paid to or on
1817	1817	18 behalf of petitioner. Any insurance carrier, private
1818	1818	19 self-insured, or group workers' compensation pool that is
1819	1819	20 determined to be liable for coverage for the injury in issue
1820	1820	21 shall reimburse any insurance carrier, private self-insured,
1821	1821	22 or group workers' compensation pool that has paid benefits to
1822	1822	23 or on behalf of petitioner for the injury.
1823	1823	24 (b-1) If the employee is not receiving medical, surgical
1824	1824	25 or hospital services as provided in paragraph (a) of Section 8
1825	1825	26 or compensation as provided in paragraph (b) of Section 8, the
1826	1826
1827	1827
1828	1828
1829	1829
1830	1830
1831	1831	HB5575 - 50 - LRB103 36543 SPS 66650 b
1832	1832
1833	1833
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1835	1835	HB5575 - 51 - LRB103 36543 SPS 66650 b
1836	1836	1 employee, in accordance with Commission Rules, may file a
1837	1837	2 petition for an emergency hearing by an Arbitrator on the
1838	1838	3 issue of whether or not he is entitled to receive payment of
1839	1839	4 such compensation or services as provided therein. Such
1840	1840	5 petition shall have priority over all other petitions and
1841	1841	6 shall be heard by the Arbitrator and Commission with all
1842	1842	7 convenient speed.
1843	1843	8 Such petition shall contain the following information and
1844	1844	9 shall be served on the employer at least 15 days before it is
1845	1845	10 filed:
1846	1846	11 (i) the date and approximate time of accident;
1847	1847	12 (ii) the approximate location of the accident;
1848	1848	13 (iii) a description of the accident;
1849	1849	14 (iv) the nature of the injury incurred by the
1850	1850	15 employee;
1851	1851	16 (v) the identity of the person, if known, to whom the
1852	1852	17 accident was reported and the date on which it was
1853	1853	18 reported;
1854	1854	19 (vi) the name and title of the person, if known,
1855	1855	20 representing the employer with whom the employee conferred
1856	1856	21 in any effort to obtain compensation pursuant to paragraph
1857	1857	22 (b) of Section 8 of this Act or medical, surgical or
1858	1858	23 hospital services pursuant to paragraph (a) of Section 8
1859	1859	24 of this Act and the date of such conference;
1860	1860	25 (vii) a statement that the employer has refused to pay
1861	1861	26 compensation pursuant to paragraph (b) of Section 8 of
1862	1862
1863	1863
1864	1864
1865	1865
1866	1866
1867	1867	HB5575 - 51 - LRB103 36543 SPS 66650 b
1868	1868
1869	1869
1870	1870	HB5575- 52 -LRB103 36543 SPS 66650 b HB5575 - 52 - LRB103 36543 SPS 66650 b
1871	1871	HB5575 - 52 - LRB103 36543 SPS 66650 b
1872	1872	1 this Act or for medical, surgical or hospital services
1873	1873	2 pursuant to paragraph (a) of Section 8 of this Act;
1874	1874	3 (viii) the name and address, if known, of each witness
1875	1875	4 to the accident and of each other person upon whom the
1876	1876	5 employee will rely to support his allegations;
1877	1877	6 (ix) the dates of treatment related to the accident by
1878	1878	7 medical practitioners, and the names and addresses of such
1879	1879	8 practitioners, including the dates of treatment related to
1880	1880	9 the accident at any hospitals and the names and addresses
1881	1881	10 of such hospitals, and a signed authorization permitting
1882	1882	11 the employer to examine all medical records of all
1883	1883	12 practitioners and hospitals named pursuant to this
1884	1884	13 paragraph;
1885	1885	14 (x) a copy of a signed report by a medical
1886	1886	15 practitioner, relating to the employee's current inability
1887	1887	16 to return to work because of the injuries incurred as a
1888	1888	17 result of the accident or such other documents or
1889	1889	18 affidavits which show that the employee is entitled to
1890	1890	19 receive compensation pursuant to paragraph (b) of Section
1891	1891	20 8 of this Act or medical, surgical or hospital services
1892	1892	21 pursuant to paragraph (a) of Section 8 of this Act. Such
1893	1893	22 reports, documents or affidavits shall state, if possible,
1894	1894	23 the history of the accident given by the employee, and
1895	1895	24 describe the injury and medical diagnosis, the medical
1896	1896	25 services for such injury which the employee has received
1897	1897	26 and is receiving, the physical activities which the
1898	1898
1899	1899
1900	1900
1901	1901
1902	1902
1903	1903	HB5575 - 52 - LRB103 36543 SPS 66650 b
1904	1904
1905	1905
1906	1906	HB5575- 53 -LRB103 36543 SPS 66650 b HB5575 - 53 - LRB103 36543 SPS 66650 b
1907	1907	HB5575 - 53 - LRB103 36543 SPS 66650 b
1908	1908	1 employee cannot currently perform as a result of any
1909	1909	2 impairment or disability due to such injury, and the
1910	1910	3 prognosis for recovery;
1911	1911	4 (xi) complete copies of any reports, records,
1912	1912	5 documents and affidavits in the possession of the employee
1913	1913	6 on which the employee will rely to support his
1914	1914	7 allegations, provided that the employer shall pay the
1915	1915	8 reasonable cost of reproduction thereof;
1916	1916	9 (xii) a list of any reports, records, documents and
1917	1917	10 affidavits which the employee has demanded by subpoena and
1918	1918	11 on which he intends to rely to support his allegations;
1919	1919	12 (xiii) a certification signed by the employee or his
1920	1920	13 representative that the employer has received the petition
1921	1921	14 with the required information 15 days before filing.
1922	1922	15 Fifteen days after receipt by the employer of the petition
1923	1923	16 with the required information the employee may file said
1924	1924	17 petition and required information and shall serve notice of
1925	1925	18 the filing upon the employer. The employer may file a motion
1926	1926	19 addressed to the sufficiency of the petition. If an objection
1927	1927	20 has been filed to the sufficiency of the petition, the
1928	1928	21 arbitrator shall rule on the objection within 2 working days.
1929	1929	22 If such an objection is filed, the time for filing the final
1930	1930	23 decision of the Commission as provided in this paragraph shall
1931	1931	24 be tolled until the arbitrator has determined that the
1932	1932	25 petition is sufficient.
1933	1933	26 The employer shall, within 15 days after receipt of the
1934	1934
1935	1935
1936	1936
1937	1937
1938	1938
1939	1939	HB5575 - 53 - LRB103 36543 SPS 66650 b
1940	1940
1941	1941
1942	1942	HB5575- 54 -LRB103 36543 SPS 66650 b HB5575 - 54 - LRB103 36543 SPS 66650 b
1943	1943	HB5575 - 54 - LRB103 36543 SPS 66650 b
1944	1944	1 notice that such petition is filed, file with the Commission
1945	1945	2 and serve on the employee or his representative a written
1946	1946	3 response to each claim set forth in the petition, including
1947	1947	4 the legal and factual basis for each disputed allegation and
1948	1948	5 the following information: (i) complete copies of any reports,
1949	1949	6 records, documents and affidavits in the possession of the
1950	1950	7 employer on which the employer intends to rely in support of
1951	1951	8 his response, (ii) a list of any reports, records, documents
1952	1952	9 and affidavits which the employer has demanded by subpoena and
1953	1953	10 on which the employer intends to rely in support of his
1954	1954	11 response, (iii) the name and address of each witness on whom
1955	1955	12 the employer will rely to support his response, and (iv) the
1956	1956	13 names and addresses of any medical practitioners selected by
1957	1957	14 the employer pursuant to Section 12 of this Act and the time
1958	1958	15 and place of any examination scheduled to be made pursuant to
1959	1959	16 such Section.
1960	1960	17 Any employer who does not timely file and serve a written
1961	1961	18 response without good cause may not introduce any evidence to
1962	1962	19 dispute any claim of the employee but may cross examine the
1963	1963	20 employee or any witness brought by the employee and otherwise
1964	1964	21 be heard.
1965	1965	22 No document or other evidence not previously identified by
1966	1966	23 either party with the petition or written response, or by any
1967	1967	24 other means before the hearing, may be introduced into
1968	1968	25 evidence without good cause. If, at the hearing, material
1969	1969	26 information is discovered which was not previously disclosed,
1970	1970
1971	1971
1972	1972
1973	1973
1974	1974
1975	1975	HB5575 - 54 - LRB103 36543 SPS 66650 b
1976	1976
1977	1977
1978	1978	HB5575- 55 -LRB103 36543 SPS 66650 b HB5575 - 55 - LRB103 36543 SPS 66650 b
1979	1979	HB5575 - 55 - LRB103 36543 SPS 66650 b
1980	1980	1 the Arbitrator may extend the time for closing proof on the
1981	1981	2 motion of a party for a reasonable period of time which may be
1982	1982	3 more than 30 days. No evidence may be introduced pursuant to
1983	1983	4 this paragraph as to permanent disability. No award may be
1984	1984	5 entered for permanent disability pursuant to this paragraph.
1985	1985	6 Either party may introduce into evidence the testimony taken
1986	1986	7 by deposition of any medical practitioner.
1987	1987	8 The Commission shall adopt rules, regulations and
1988	1988	9 procedures whereby the final decision of the Commission is
1989	1989	10 filed not later than 90 days from the date the petition for
1990	1990	11 review is filed but in no event later than 180 days from the
1991	1991	12 date the petition for an emergency hearing is filed with the
1992	1992	13 Illinois Workers' Compensation Commission.
1993	1993	14 All service required pursuant to this paragraph (b-1) must
1994	1994	15 be by personal service or by certified mail and with evidence
1995	1995	16 of receipt. In addition for the purposes of this paragraph,
1996	1996	17 all service on the employer must be at the premises where the
1997	1997	18 accident occurred if the premises are owned or operated by the
1998	1998	19 employer. Otherwise service must be at the employee's
1999	1999	20 principal place of employment by the employer. If service on
2000	2000	21 the employer is not possible at either of the above, then
2001	2001	22 service shall be at the employer's principal place of
2002	2002	23 business. After initial service in each case, service shall be
2003	2003	24 made on the employer's attorney or designated representative.
2004	2004	25 (c)(1) At a reasonable time in advance of and in
2005	2005	26 connection with the hearing under Section 19(e) or 19(h), the
2006	2006
2007	2007
2008	2008
2009	2009
2010	2010
2011	2011	HB5575 - 55 - LRB103 36543 SPS 66650 b
2012	2012
2013	2013
2014	2014	HB5575- 56 -LRB103 36543 SPS 66650 b HB5575 - 56 - LRB103 36543 SPS 66650 b
2015	2015	HB5575 - 56 - LRB103 36543 SPS 66650 b
2016	2016	1 Commission may on its own motion order an impartial physical
2017	2017	2 or mental examination of a petitioner whose mental or physical
2018	2018	3 condition is in issue, when in the Commission's discretion it
2019	2019	4 appears that such an examination will materially aid in the
2020	2020	5 just determination of the case. The examination shall be made
2021	2021	6 by a member or members of a panel of physicians chosen for
2022	2022	7 their special qualifications by the Illinois State Medical
2023	2023	8 Society. The Commission shall establish procedures by which a
2024	2024	9 physician shall be selected from such list.
2025	2025	10 (2) Should the Commission at any time during the hearing
2026	2026	11 find that compelling considerations make it advisable to have
2027	2027	12 an examination and report at that time, the commission may in
2028	2028	13 its discretion so order.
2029	2029	14 (3) A copy of the report of examination shall be given to
2030	2030	15 the Commission and to the attorneys for the parties.
2031	2031	16 (4) Either party or the Commission may call the examining
2032	2032	17 physician or physicians to testify. Any physician so called
2033	2033	18 shall be subject to cross-examination.
2034	2034	19 (5) The examination shall be made, and the physician or
2035	2035	20 physicians, if called, shall testify, without cost to the
2036	2036	21 parties. The Commission shall determine the compensation and
2037	2037	22 the pay of the physician or physicians. The compensation for
2038	2038	23 this service shall not exceed the usual and customary amount
2039	2039	24 for such service.
2040	2040	25 (6) The fees and payment thereof of all attorneys and
2041	2041	26 physicians for services authorized by the Commission under
2042	2042
2043	2043
2044	2044
2045	2045
2046	2046
2047	2047	HB5575 - 56 - LRB103 36543 SPS 66650 b
2048	2048
2049	2049
2050	2050	HB5575- 57 -LRB103 36543 SPS 66650 b HB5575 - 57 - LRB103 36543 SPS 66650 b
2051	2051	HB5575 - 57 - LRB103 36543 SPS 66650 b
2052	2052	1 this Act shall, upon request of either the employer or the
2053	2053	2 employee or the beneficiary affected, be subject to the review
2054	2054	3 and decision of the Commission.
2055	2055	4 (d) If any employee shall persist in insanitary or
2056	2056	5 injurious practices which tend to either imperil or retard his
2057	2057	6 recovery or shall refuse to submit to such medical, surgical,
2058	2058	7 or hospital treatment as is reasonably essential to promote
2059	2059	8 his recovery, the Commission may, in its discretion, reduce or
2060	2060	9 suspend the compensation of any such injured employee.
2061	2061	10 However, when an employer and employee so agree in writing,
2062	2062	11 the foregoing provision shall not be construed to authorize
2063	2063	12 the reduction or suspension of compensation of an employee who
2064	2064	13 is relying in good faith, on treatment by prayer or spiritual
2065	2065	14 means alone, in accordance with the tenets and practice of a
2066	2066	15 recognized church or religious denomination, by a duly
2067	2067	16 accredited practitioner thereof.
2068	2068	17 (e) This paragraph shall apply to all hearings before the
2069	2069	18 Commission. Such hearings may be held in its office or
2070	2070	19 elsewhere as the Commission may deem advisable. The taking of
2071	2071	20 testimony on such hearings may be had before any member of the
2072	2072	21 Commission. If a petition for review and agreed statement of
2073	2073	22 facts or transcript of evidence is filed, as provided herein,
2074	2074	23 the Commission shall promptly review the decision of the
2075	2075	24 Arbitrator and all questions of law or fact which appear from
2076	2076	25 the statement of facts or transcript of evidence.
2077	2077	26 In all cases in which the hearing before the arbitrator is
2078	2078
2079	2079
2080	2080
2081	2081
2082	2082
2083	2083	HB5575 - 57 - LRB103 36543 SPS 66650 b
2084	2084
2085	2085
2086	2086	HB5575- 58 -LRB103 36543 SPS 66650 b HB5575 - 58 - LRB103 36543 SPS 66650 b
2087	2087	HB5575 - 58 - LRB103 36543 SPS 66650 b
2088	2088	1 held after December 18, 1989, no additional evidence shall be
2089	2089	2 introduced by the parties before the Commission on review of
2090	2090	3 the decision of the Arbitrator. In reviewing decisions of an
2091	2091	4 arbitrator the Commission shall award such temporary
2092	2092	5 compensation, permanent compensation and other payments as are
2093	2093	6 due under this Act. The Commission shall file in its office its
2094	2094	7 decision thereon, and shall immediately send to each party or
2095	2095	8 his attorney a copy of such decision and a notification of the
2096	2096	9 time when it was filed. Decisions shall be filed within 60 days
2097	2097	10 after the Statement of Exceptions and Supporting Brief and
2098	2098	11 Response thereto are required to be filed or oral argument
2099	2099	12 whichever is later.
2100	2100	13 In the event either party requests oral argument, such
2101	2101	14 argument shall be had before a panel of 3 members of the
2102	2102	15 Commission (or before all available members pursuant to the
2103	2103	16 determination of 7 members of the Commission that such
2104	2104	17 argument be held before all available members of the
2105	2105	18 Commission) pursuant to the rules and regulations of the
2106	2106	19 Commission. A panel of 3 members, which shall be comprised of
2107	2107	20 not more than one representative citizen of the employing
2108	2108	21 class and not more than one representative from a labor
2109	2109	22 organization recognized under the National Labor Relations Act
2110	2110	23 or an attorney who has represented labor organizations or has
2111	2111	24 represented employees in workers' compensation cases, shall
2112	2112	25 hear the argument; provided that if all the issues in dispute
2113	2113	26 are solely the nature and extent of the permanent partial
2114	2114
2115	2115
2116	2116
2117	2117
2118	2118
2119	2119	HB5575 - 58 - LRB103 36543 SPS 66650 b
2120	2120
2121	2121
2122	2122	HB5575- 59 -LRB103 36543 SPS 66650 b HB5575 - 59 - LRB103 36543 SPS 66650 b
2123	2123	HB5575 - 59 - LRB103 36543 SPS 66650 b
2124	2124	1 disability, if any, a majority of the panel may deny the
2125	2125	2 request for such argument and such argument shall not be held;
2126	2126	3 and provided further that 7 members of the Commission may
2127	2127	4 determine that the argument be held before all available
2128	2128	5 members of the Commission. A decision of the Commission shall
2129	2129	6 be approved by a majority of Commissioners present at such
2130	2130	7 hearing if any; provided, if no such hearing is held, a
2131	2131	8 decision of the Commission shall be approved by a majority of a
2132	2132	9 panel of 3 members of the Commission as described in this
2133	2133	10 Section. The Commission shall give 10 days' notice to the
2134	2134	11 parties or their attorneys of the time and place of such taking
2135	2135	12 of testimony and of such argument.
2136	2136	13 In any case the Commission in its decision may find
2137	2137	14 specially upon any question or questions of law or fact which
2138	2138	15 shall be submitted in writing by either party whether ultimate
2139	2139	16 or otherwise; provided that on issues other than nature and
2140	2140	17 extent of the disability, if any, the Commission in its
2141	2141	18 decision shall find specially upon any question or questions
2142	2142	19 of law or fact, whether ultimate or otherwise, which are
2143	2143	20 submitted in writing by either party; provided further that
2144	2144	21 not more than 5 such questions may be submitted by either
2145	2145	22 party. Any party may, within 20 days after receipt of notice of
2146	2146	23 the Commission's decision, or within such further time, not
2147	2147	24 exceeding 30 days, as the Commission may grant, file with the
2148	2148	25 Commission either an agreed statement of the facts appearing
2149	2149	26 upon the hearing, or, if such party shall so elect, a correct
2150	2150
2151	2151
2152	2152
2153	2153
2154	2154
2155	2155	HB5575 - 59 - LRB103 36543 SPS 66650 b
2156	2156
2157	2157
2158	2158	HB5575- 60 -LRB103 36543 SPS 66650 b HB5575 - 60 - LRB103 36543 SPS 66650 b
2159	2159	HB5575 - 60 - LRB103 36543 SPS 66650 b
2160	2160	1 transcript of evidence of the additional proceedings presented
2161	2161	2 before the Commission, in which report the party may embody a
2162	2162	3 correct statement of such other proceedings in the case as
2163	2163	4 such party may desire to have reviewed, such statement of
2164	2164	5 facts or transcript of evidence to be authenticated by the
2165	2165	6 signature of the parties or their attorneys, and in the event
2166	2166	7 that they do not agree, then the authentication of such
2167	2167	8 transcript of evidence shall be by the signature of any member
2168	2168	9 of the Commission.
2169	2169	10 If a reporter does not for any reason furnish a transcript
2170	2170	11 of the proceedings before the Arbitrator in any case for use on
2171	2171	12 a hearing for review before the Commission, within the
2172	2172	13 limitations of time as fixed in this Section, the Commission
2173	2173	14 may, in its discretion, order a trial de novo before the
2174	2174	15 Commission in such case upon application of either party. The
2175	2175	16 applications for adjustment of claim and other documents in
2176	2176	17 the nature of pleadings filed by either party, together with
2177	2177	18 the decisions of the Arbitrator and of the Commission and the
2178	2178	19 statement of facts or transcript of evidence hereinbefore
2179	2179	20 provided for in paragraphs (b) and (c) shall be the record of
2180	2180	21 the proceedings of the Commission, and shall be subject to
2181	2181	22 review as hereinafter provided.
2182	2182	23 At the request of either party or on its own motion, the
2183	2183	24 Commission shall set forth in writing the reasons for the
2184	2184	25 decision, including findings of fact and conclusions of law
2185	2185	26 separately stated. The Commission shall by rule adopt a format
2186	2186
2187	2187
2188	2188
2189	2189
2190	2190
2191	2191	HB5575 - 60 - LRB103 36543 SPS 66650 b
2192	2192
2193	2193
2194	2194	HB5575- 61 -LRB103 36543 SPS 66650 b HB5575 - 61 - LRB103 36543 SPS 66650 b
2195	2195	HB5575 - 61 - LRB103 36543 SPS 66650 b
2196	2196	1 for written decisions for the Commission and arbitrators. The
2197	2197	2 written decisions shall be concise and shall succinctly state
2198	2198	3 the facts and reasons for the decision. The Commission may
2199	2199	4 adopt in whole or in part, the decision of the arbitrator as
2200	2200	5 the decision of the Commission. When the Commission does so
2201	2201	6 adopt the decision of the arbitrator, it shall do so by order.
2202	2202	7 Whenever the Commission adopts part of the arbitrator's
2203	2203	8 decision, but not all, it shall include in the order the
2204	2204	9 reasons for not adopting all of the arbitrator's decision.
2205	2205	10 When a majority of a panel, after deliberation, has arrived at
2206	2206	11 its decision, the decision shall be filed as provided in this
2207	2207	12 Section without unnecessary delay, and without regard to the
2208	2208	13 fact that a member of the panel has expressed an intention to
2209	2209	14 dissent. Any member of the panel may file a dissent. Any
2210	2210	15 dissent shall be filed no later than 10 days after the decision
2211	2211	16 of the majority has been filed.
2212	2212	17 Decisions rendered by the Commission and dissents, if any,
2213	2213	18 shall be published together by the Commission. The conclusions
2214	2214	19 of law set out in such decisions shall be regarded as
2215	2215	20 precedents by arbitrators for the purpose of achieving a more
2216	2216	21 uniform administration of this Act.
2217	2217	22 (f) The decision of the Commission acting within its
2218	2218	23 powers, according to the provisions of paragraph (e) of this
2219	2219	24 Section shall, in the absence of fraud, be conclusive unless
2220	2220	25 reviewed as in this paragraph hereinafter provided. However,
2221	2221	26 the Arbitrator or the Commission may on his or its own motion,
2222	2222
2223	2223
2224	2224
2225	2225
2226	2226
2227	2227	HB5575 - 61 - LRB103 36543 SPS 66650 b
2228	2228
2229	2229
2230	2230	HB5575- 62 -LRB103 36543 SPS 66650 b HB5575 - 62 - LRB103 36543 SPS 66650 b
2231	2231	HB5575 - 62 - LRB103 36543 SPS 66650 b
2232	2232	1 or on the motion of either party, correct any clerical error or
2233	2233	2 errors in computation within 15 days after the date of receipt
2234	2234	3 of any award by such Arbitrator or any decision on review of
2235	2235	4 the Commission and shall have the power to recall the original
2236	2236	5 award on arbitration or decision on review, and issue in lieu
2237	2237	6 thereof such corrected award or decision. Where such
2238	2238	7 correction is made the time for review herein specified shall
2239	2239	8 begin to run from the date of the receipt of the corrected
2240	2240	9 award or decision.
2241	2241	10 (1) Except in cases of claims against the State of
2242	2242	11 Illinois other than those claims under Section 18.1, in
2243	2243	12 which case the decision of the Commission shall not be
2244	2244	13 subject to judicial review, the Circuit Court of the
2245	2245	14 county where any of the parties defendant may be found, or
2246	2246	15 if none of the parties defendant can be found in this State
2247	2247	16 then the Circuit Court of the county where the accident
2248	2248	17 occurred, shall by summons to the Commission have power to
2249	2249	18 review all questions of law and fact presented by such
2250	2250	19 record.
2251	2251	20 A proceeding for review shall be commenced within 20
2252	2252	21 days of the receipt of notice of the decision of the
2253	2253	22 Commission. The summons shall be issued by the clerk of
2254	2254	23 such court upon written request returnable on a designated
2255	2255	24 return day, not less than 10 or more than 60 days from the
2256	2256	25 date of issuance thereof, and the written request shall
2257	2257	26 contain the last known address of other parties in
2258	2258
2259	2259
2260	2260
2261	2261
2262	2262
2263	2263	HB5575 - 62 - LRB103 36543 SPS 66650 b
2264	2264
2265	2265
2266	2266	HB5575- 63 -LRB103 36543 SPS 66650 b HB5575 - 63 - LRB103 36543 SPS 66650 b
2267	2267	HB5575 - 63 - LRB103 36543 SPS 66650 b
2268	2268	1 interest and their attorneys of record who are to be
2269	2269	2 served by summons. Service upon any member of the
2270	2270	3 Commission or the Secretary or the Assistant Secretary
2271	2271	4 thereof shall be service upon the Commission, and service
2272	2272	5 upon other parties in interest and their attorneys of
2273	2273	6 record shall be by summons, and such service shall be made
2274	2274	7 upon the Commission and other parties in interest by
2275	2275	8 mailing notices of the commencement of the proceedings and
2276	2276	9 the return day of the summons to the office of the
2277	2277	10 Commission and to the last known place of residence of
2278	2278	11 other parties in interest or their attorney or attorneys
2279	2279	12 of record. The clerk of the court issuing the summons
2280	2280	13 shall on the day of issue mail notice of the commencement
2281	2281	14 of the proceedings which shall be done by mailing a copy of
2282	2282	15 the summons to the office of the Commission, and a copy of
2283	2283	16 the summons to the other parties in interest or their
2284	2284	17 attorney or attorneys of record and the clerk of the court
2285	2285	18 shall make certificate that he has so sent said notices in
2286	2286	19 pursuance of this Section, which shall be evidence of
2287	2287	20 service on the Commission and other parties in interest.
2288	2288	21 The Commission shall not be required to certify the
2289	2289	22 record of their proceedings to the Circuit Court, unless
2290	2290	23 the party commencing the proceedings for review in the
2291	2291	24 Circuit Court as above provided, shall file with the
2292	2292	25 Commission notice of intent to file for review in Circuit
2293	2293	26 Court. It shall be the duty of the Commission upon such
2294	2294
2295	2295
2296	2296
2297	2297
2298	2298
2299	2299	HB5575 - 63 - LRB103 36543 SPS 66650 b
2300	2300
2301	2301
2302	2302	HB5575- 64 -LRB103 36543 SPS 66650 b HB5575 - 64 - LRB103 36543 SPS 66650 b
2303	2303	HB5575 - 64 - LRB103 36543 SPS 66650 b
2304	2304	1 filing of notice of intent to file for review in the
2305	2305	2 Circuit Court to prepare a true and correct copy of such
2306	2306	3 testimony and a true and correct copy of all other matters
2307	2307	4 contained in such record and certified to by the Secretary
2308	2308	5 or Assistant Secretary thereof. The changes made to this
2309	2309	6 subdivision (f)(1) by this amendatory Act of the 98th
2310	2310	7 General Assembly apply to any Commission decision entered
2311	2311	8 after the effective date of this amendatory Act of the
2312	2312	9 98th General Assembly.
2313	2313	10 No request for a summons may be filed and no summons
2314	2314	11 shall issue unless the party seeking to review the
2315	2315	12 decision of the Commission shall exhibit to the clerk of
2316	2316	13 the Circuit Court proof of filing with the Commission of
2317	2317	14 the notice of the intent to file for review in the Circuit
2318	2318	15 Court or an affidavit of the attorney setting forth that
2319	2319	16 notice of intent to file for review in the Circuit Court
2320	2320	17 has been given in writing to the Secretary or Assistant
2321	2321	18 Secretary of the Commission.
2322	2322	19 (2) No such summons shall issue unless the one against
2323	2323	20 whom the Commission shall have rendered an award for the
2324	2324	21 payment of money shall upon the filing of his written
2325	2325	22 request for such summons file with the clerk of the court a
2326	2326	23 bond conditioned that if he shall not successfully
2327	2327	24 prosecute the review, he will pay the award and the costs
2328	2328	25 of the proceedings in the courts. The amount of the bond
2329	2329	26 shall be fixed by any member of the Commission and the
2330	2330
2331	2331
2332	2332
2333	2333
2334	2334
2335	2335	HB5575 - 64 - LRB103 36543 SPS 66650 b
2336	2336
2337	2337
2338	2338	HB5575- 65 -LRB103 36543 SPS 66650 b HB5575 - 65 - LRB103 36543 SPS 66650 b
2339	2339	HB5575 - 65 - LRB103 36543 SPS 66650 b
2340	2340	1 surety or sureties of the bond shall be approved by the
2341	2341	2 clerk of the court. The acceptance of the bond by the clerk
2342	2342	3 of the court shall constitute evidence of his approval of
2343	2343	4 the bond.
2344	2344	5 The following shall not be required to file a bond to
2345	2345	6 secure the payment of the award and the costs of the
2346	2346	7 proceedings in the court to authorize the court to issue
2347	2347	8 such summons:
2348	2348	9 (1) the State Treasurer, for a fund administered
2349	2349	10 by the State Treasurer ex officio against whom the
2350	2350	11 Commission shall have rendered an award for the
2351	2351	12 payment of money; and
2352	2352	13 (2) a county, city, town, township, incorporated
2353	2353	14 village, school district, body politic, or municipal
2354	2354	15 corporation against whom the Commission shall have
2355	2355	16 rendered an award for the payment of money.
2356	2356	17 The court may confirm or set aside the decision of the
2357	2357	18 Commission. If the decision is set aside and the facts
2358	2358	19 found in the proceedings before the Commission are
2359	2359	20 sufficient, the court may enter such decision as is
2360	2360	21 justified by law, or may remand the cause to the
2361	2361	22 Commission for further proceedings and may state the
2362	2362	23 questions requiring further hearing, and give such other
2363	2363	24 instructions as may be proper. Appeals shall be taken to
2364	2364	25 the Appellate Court in accordance with Supreme Court Rules
2365	2365	26 22(g) and 303. Appeals shall be taken from the Appellate
2366	2366
2367	2367
2368	2368
2369	2369
2370	2370
2371	2371	HB5575 - 65 - LRB103 36543 SPS 66650 b
2372	2372
2373	2373
2374	2374	HB5575- 66 -LRB103 36543 SPS 66650 b HB5575 - 66 - LRB103 36543 SPS 66650 b
2375	2375	HB5575 - 66 - LRB103 36543 SPS 66650 b
2376	2376	1 Court to the Supreme Court in accordance with Supreme
2377	2377	2 Court Rule 315.
2378	2378	3 It shall be the duty of the clerk of any court
2379	2379	4 rendering a decision affecting or affirming an award of
2380	2380	5 the Commission to promptly furnish the Commission with a
2381	2381	6 copy of such decision, without charge.
2382	2382	7 The decision of a majority of the members of the panel
2383	2383	8 of the Commission, shall be considered the decision of the
2384	2384	9 Commission.
2385	2385	10 (g) Except in the case of a claim against the State of
2386	2386	11 Illinois, an order of the Commission assessing a civil penalty
2387	2387	12 under subsection (d) of Section 4, or an order of the
2388	2388	13 Commission requiring reimbursement by the employer for amounts
2389	2389	14 paid by the Injured Workers' Benefit Fund under subsection (d)
2390	2390	15 of Section 4, either party may present a certified copy of the
2391	2391	16 award of the Arbitrator, or a certified copy of the decision of
2392	2392	17 the Commission when the same has become final, when no
2393	2393	18 proceedings for review are pending, providing for the payment
2394	2394	19 of compensation according to this Act, to the Circuit Court of
2395	2395	20 the county in which such accident occurred or either of the
2396	2396	21 parties are residents, whereupon the court shall enter a
2397	2397	22 judgment in accordance therewith. In a case where the employer
2398	2398	23 refuses to pay compensation according to such final award or
2399	2399	24 such final decision upon which such judgment is entered the
2400	2400	25 court shall in entering judgment thereon, tax as costs against
2401	2401	26 him the reasonable costs and attorney fees in the arbitration
2402	2402
2403	2403
2404	2404
2405	2405
2406	2406
2407	2407	HB5575 - 66 - LRB103 36543 SPS 66650 b
2408	2408
2409	2409
2410	2410	HB5575- 67 -LRB103 36543 SPS 66650 b HB5575 - 67 - LRB103 36543 SPS 66650 b
2411	2411	HB5575 - 67 - LRB103 36543 SPS 66650 b
2412	2412	1 proceedings and in the court entering the judgment for the
2413	2413	2 person in whose favor the judgment is entered, which judgment
2414	2414	3 and costs taxed as therein provided shall, until and unless
2415	2415	4 set aside, have the same effect as though duly entered in an
2416	2416	5 action duly tried and determined by the court, and shall with
2417	2417	6 like effect, be entered and docketed. The Circuit Court shall
2418	2418	7 have power at any time upon application to make any such
2419	2419	8 judgment conform to any modification required by any
2420	2420	9 subsequent decision of the Supreme Court upon appeal, or as
2421	2421	10 the result of any subsequent proceedings for review, as
2422	2422	11 provided in this Act.
2423	2423	12 Judgment shall not be entered until 15 days' notice of the
2424	2424	13 time and place of the application for the entry of judgment
2425	2425	14 shall be served upon the employer by filing such notice with
2426	2426	15 the Commission, which Commission shall, in case it has on file
2427	2427	16 the address of the employer or the name and address of its
2428	2428	17 agent upon whom notices may be served, immediately send a copy
2429	2429	18 of the notice to the employer or such designated agent.
2430	2430	19 Any order of the Commission assessing a civil penalty or
2431	2431	20 requiring reimbursement for amounts paid by the Injured
2432	2432	21 Workers' Benefit Fund under subsection (d) of Section 4, that
2433	2433	22 has not been fully paid, and after the exhaustion or waiver of
2434	2434	23 the judicial review procedures under subsection (f), is a debt
2435	2435	24 due and owing the State. The debts may be collected using all
2436	2436	25 remedies available under the law. After exhaustion of the
2437	2437	26 judicial review procedures or expiration of the period in
2438	2438
2439	2439
2440	2440
2441	2441
2442	2442
2443	2443	HB5575 - 67 - LRB103 36543 SPS 66650 b
2444	2444
2445	2445
2446	2446	HB5575- 68 -LRB103 36543 SPS 66650 b HB5575 - 68 - LRB103 36543 SPS 66650 b
2447	2447	HB5575 - 68 - LRB103 36543 SPS 66650 b
2448	2448	1 which judicial review under subsection (f) may be sought for a
2449	2449	2 final decision of the Commission, and unless stayed by a court
2450	2450	3 of competent jurisdiction, the order of the Commission may be
2451	2451	4 enforced in the same manner as a judgment entered by a court of
2452	2452	5 competent jurisdiction.
2453	2453	6 Upon being recorded in the manner required by Article XII
2454	2454	7 of the Code of Civil Procedure or by the Uniform Commercial
2455	2455	8 Code, a lien shall be imposed on the real estate or personal
2456	2456	9 estate, or both, of the individual or entity in the amount of
2457	2457	10 any debt due and owing the State under this Section. The lien
2458	2458	11 may be enforced in the same manner as a judgment of a court of
2459	2459	12 competent jurisdiction. A lien shall attach to all property
2460	2460	13 and assets of the person, firm, corporation, association,
2461	2461	14 agency, institution, or other legal entity until the judgment
2462	2462	15 is satisfied.
2463	2463	16 (h) An agreement or award under this Act providing for
2464	2464	17 compensation in installments, may at any time within 18 months
2465	2465	18 after such agreement or award be reviewed by the Commission at
2466	2466	19 the request of either the employer or the employee, on the
2467	2467	20 ground that the disability of the employee has subsequently
2468	2468	21 recurred, increased, diminished or ended.
2469	2469	22 However, as to accidents occurring subsequent to July 1,
2470	2470	23 1955, which are covered by any agreement or award under this
2471	2471	24 Act providing for compensation in installments made as a
2472	2472	25 result of such accident, such agreement or award may at any
2473	2473	26 time within 30 months, or 60 months in the case of an award
2474	2474
2475	2475
2476	2476
2477	2477
2478	2478
2479	2479	HB5575 - 68 - LRB103 36543 SPS 66650 b
2480	2480
2481	2481
2482	2482	HB5575- 69 -LRB103 36543 SPS 66650 b HB5575 - 69 - LRB103 36543 SPS 66650 b
2483	2483	HB5575 - 69 - LRB103 36543 SPS 66650 b
2484	2484	1 under Section 8(d)1, after such agreement or award be reviewed
2485	2485	2 by the Commission at the request of either the employer or the
2486	2486	3 employee on the ground that the disability of the employee has
2487	2487	4 subsequently recurred, increased, diminished or ended.
2488	2488	5 On such review, compensation payments may be
2489	2489	6 re-established, increased, diminished or ended. The Commission
2490	2490	7 shall give 15 days' notice to the parties of the hearing for
2491	2491	8 review. Any employee, upon any petition for such review being
2492	2492	9 filed by the employer, shall be entitled to one day's notice
2493	2493	10 for each 100 miles necessary to be traveled by him in attending
2494	2494	11 the hearing of the Commission upon the petition, and 3 days in
2495	2495	12 addition thereto. Such employee shall, at the discretion of
2496	2496	13 the Commission, also be entitled to 5 cents per mile
2497	2497	14 necessarily traveled by him within the State of Illinois in
2498	2498	15 attending such hearing, not to exceed a distance of 300 miles,
2499	2499	16 to be taxed by the Commission as costs and deposited with the
2500	2500	17 petition of the employer.
2501	2501	18 When compensation which is payable in accordance with an
2502	2502	19 award or settlement contract approved by the Commission, is
2503	2503	20 ordered paid in a lump sum by the Commission, no review shall
2504	2504	21 be had as in this paragraph mentioned.
2505	2505	22 (i) Each party, upon taking any proceedings or steps
2506	2506	23 whatsoever before any Arbitrator, Commission or court, shall
2507	2507	24 file with the Commission his address, or the name and address
2508	2508	25 of any agent upon whom all notices to be given to such party
2509	2509	26 shall be served, either personally or by registered mail,
2510	2510
2511	2511
2512	2512
2513	2513
2514	2514
2515	2515	HB5575 - 69 - LRB103 36543 SPS 66650 b
2516	2516
2517	2517
2518	2518	HB5575- 70 -LRB103 36543 SPS 66650 b HB5575 - 70 - LRB103 36543 SPS 66650 b
2519	2519	HB5575 - 70 - LRB103 36543 SPS 66650 b
2520	2520	1 addressed to such party or agent at the last address so filed
2521	2521	2 with the Commission. In the event such party has not filed his
2522	2522	3 address, or the name and address of an agent as above provided,
2523	2523	4 service of any notice may be had by filing such notice with the
2524	2524	5 Commission.
2525	2525	6 (j) Whenever in any proceeding testimony has been taken or
2526	2526	7 a final decision has been rendered and after the taking of such
2527	2527	8 testimony or after such decision has become final, the injured
2528	2528	9 employee dies, then in any subsequent proceedings brought by
2529	2529	10 the personal representative or beneficiaries of the deceased
2530	2530	11 employee, such testimony in the former proceeding may be
2531	2531	12 introduced with the same force and effect as though the
2532	2532	13 witness having so testified were present in person in such
2533	2533	14 subsequent proceedings and such final decision, if any, shall
2534	2534	15 be taken as final adjudication of any of the issues which are
2535	2535	16 the same in both proceedings.
2536	2536	17 (k) In case where there has been any unreasonable or
2537	2537	18 vexatious delay of payment or intentional underpayment of
2538	2538	19 compensation, or proceedings have been instituted or carried
2539	2539	20 on by the one liable to pay the compensation, which do not
2540	2540	21 present a real controversy, but are merely frivolous or for
2541	2541	22 delay, then the Commission may award compensation additional
2542	2542	23 to that otherwise payable under this Act equal to 50% of the
2543	2543	24 amount payable at the time of such award. Failure to pay
2544	2544	25 compensation in accordance with the provisions of Section 8,
2545	2545	26 paragraph (b) of this Act, shall be considered unreasonable
2546	2546
2547	2547
2548	2548
2549	2549
2550	2550
2551	2551	HB5575 - 70 - LRB103 36543 SPS 66650 b
2552	2552
2553	2553
2554	2554	HB5575- 71 -LRB103 36543 SPS 66650 b HB5575 - 71 - LRB103 36543 SPS 66650 b
2555	2555	HB5575 - 71 - LRB103 36543 SPS 66650 b
2556	2556	1 delay.
2557	2557	2 When determining whether this subsection (k) shall apply,
2558	2558	3 the Commission shall consider whether an Arbitrator has
2559	2559	4 determined that the claim is not compensable or whether the
2560	2560	5 employer has made payments under Section 8(j).
2561	2561	6 (l) If the employee has made written demand for payment of
2562	2562	7 benefits under Section 8(a) or Section 8(b), the employer
2563	2563	8 shall have 14 days after receipt of the demand to set forth in
2564	2564	9 writing the reason for the delay. In the case of demand for
2565	2565	10 payment of medical benefits under Section 8(a), the time for
2566	2566	11 the employer to respond shall not commence until the
2567	2567	12 expiration of the allotted 30 days specified under Section
2568	2568	13 8.2(d). In case the employer or his or her insurance carrier
2569	2569	14 shall without good and just cause fail, neglect, refuse, or
2570	2570	15 unreasonably delay the payment of benefits under Section 8(a)
2571	2571	16 or Section 8(b), the Arbitrator or the Commission shall allow
2572	2572	17 to the employee additional compensation in the sum of $30 per
2573	2573	18 day for each day that the benefits under Section 8(a) or
2574	2574	19 Section 8(b) have been so withheld or refused, not to exceed
2575	2575	20 $10,000. A delay in payment of 14 days or more shall create a
2576	2576	21 rebuttable presumption of unreasonable delay.
2577	2577	22 (m) If the commission finds that an accidental injury was
2578	2578	23 directly and proximately caused by the employer's wilful
2579	2579	24 violation of a health and safety standard under the Health and
2580	2580	25 Safety Act or the Occupational Safety and Health Act in force
2581	2581	26 at the time of the accident, the arbitrator or the Commission
2582	2582
2583	2583
2584	2584
2585	2585
2586	2586
2587	2587	HB5575 - 71 - LRB103 36543 SPS 66650 b
2588	2588
2589	2589
2590	2590	HB5575- 72 -LRB103 36543 SPS 66650 b HB5575 - 72 - LRB103 36543 SPS 66650 b
2591	2591	HB5575 - 72 - LRB103 36543 SPS 66650 b
2592	2592	1 shall allow to the injured employee or his dependents, as the
2593	2593	2 case may be, additional compensation equal to 25% of the
2594	2594	3 amount which otherwise would be payable under the provisions
2595	2595	4 of this Act exclusive of this paragraph. The additional
2596	2596	5 compensation herein provided shall be allowed by an
2597	2597	6 appropriate increase in the applicable weekly compensation
2598	2598	7 rate.
2599	2599	8 (n) After June 30, 1984, decisions of the Illinois
2600	2600	9 Workers' Compensation Commission reviewing an award of an
2601	2601	10 arbitrator of the Commission shall draw interest at a rate
2602	2602	11 equal to the yield on indebtedness issued by the United States
2603	2603	12 Government with a 26-week maturity next previously auctioned
2604	2604	13 on the day on which the decision is filed. Said rate of
2605	2605	14 interest shall be set forth in the Arbitrator's Decision.
2606	2606	15 Interest shall be drawn from the date of the arbitrator's
2607	2607	16 award on all accrued compensation due the employee through the
2608	2608	17 day prior to the date of payments. However, when an employee
2609	2609	18 appeals an award of an Arbitrator or the Commission, and the
2610	2610	19 appeal results in no change or a decrease in the award,
2611	2611	20 interest shall not further accrue from the date of such
2612	2612	21 appeal.
2613	2613	22 The employer or his insurance carrier may tender the
2614	2614	23 payments due under the award to stop the further accrual of
2615	2615	24 interest on such award notwithstanding the prosecution by
2616	2616	25 either party of review, certiorari, appeal to the Supreme
2617	2617	26 Court or other steps to reverse, vacate or modify the award.
2618	2618
2619	2619
2620	2620
2621	2621
2622	2622
2623	2623	HB5575 - 72 - LRB103 36543 SPS 66650 b
2624	2624
2625	2625
2626	2626	HB5575- 73 -LRB103 36543 SPS 66650 b HB5575 - 73 - LRB103 36543 SPS 66650 b
2627	2627	HB5575 - 73 - LRB103 36543 SPS 66650 b
2628	2628	1 (o) By the 15th day of each month each insurer providing
2629	2629	2 coverage for losses under this Act shall notify each insured
2630	2630	3 employer of any compensable claim incurred during the
2631	2631	4 preceding month and the amounts paid or reserved on the claim
2632	2632	5 including a summary of the claim and a brief statement of the
2633	2633	6 reasons for compensability. A cumulative report of all claims
2634	2634	7 incurred during a calendar year or continued from the previous
2635	2635	8 year shall be furnished to the insured employer by the insurer
2636	2636	9 within 30 days after the end of that calendar year.
2637	2637	10 The insured employer may challenge, in proceeding before
2638	2638	11 the Commission, payments made by the insurer without
2639	2639	12 arbitration and payments made after a case is determined to be
2640	2640	13 noncompensable. If the Commission finds that the case was not
2641	2641	14 compensable, the insurer shall purge its records as to that
2642	2642	15 employer of any loss or expense associated with the claim,
2643	2643	16 reimburse the employer for attorneys' fees arising from the
2644	2644	17 challenge and for any payment required of the employer to the
2645	2645	18 Rate Adjustment Fund or the Second Injury Fund, and may not
2646	2646	19 reflect the loss or expense for rate making purposes. The
2647	2647	20 employee shall not be required to refund the challenged
2648	2648	21 payment. The decision of the Commission may be reviewed in the
2649	2649	22 same manner as in arbitrated cases. No challenge may be
2650	2650	23 initiated under this paragraph more than 3 years after the
2651	2651	24 payment is made. An employer may waive the right of challenge
2652	2652	25 under this paragraph on a case by case basis.
2653	2653	26 (p) After filing an application for adjustment of claim
2654	2654
2655	2655
2656	2656
2657	2657
2658	2658
2659	2659	HB5575 - 73 - LRB103 36543 SPS 66650 b
2660	2660
2661	2661
2662	2662	HB5575- 74 -LRB103 36543 SPS 66650 b HB5575 - 74 - LRB103 36543 SPS 66650 b
2663	2663	HB5575 - 74 - LRB103 36543 SPS 66650 b
2664	2664	1 but prior to the hearing on arbitration the parties may
2665	2665	2 voluntarily agree to submit such application for adjustment of
2666	2666	3 claim for decision by an arbitrator under this subsection (p)
2667	2667	4 where such application for adjustment of claim raises only a
2668	2668	5 dispute over temporary total disability, permanent partial
2669	2669	6 disability or medical expenses. Such agreement shall be in
2670	2670	7 writing in such form as provided by the Commission.
2671	2671	8 Applications for adjustment of claim submitted for decision by
2672	2672	9 an arbitrator under this subsection (p) shall proceed
2673	2673	10 according to rule as established by the Commission. The
2674	2674	11 Commission shall promulgate rules including, but not limited
2675	2675	12 to, rules to ensure that the parties are adequately informed
2676	2676	13 of their rights under this subsection (p) and of the voluntary
2677	2677	14 nature of proceedings under this subsection (p). The findings
2678	2678	15 of fact made by an arbitrator acting within his or her powers
2679	2679	16 under this subsection (p) in the absence of fraud shall be
2680	2680	17 conclusive. However, the arbitrator may on his own motion, or
2681	2681	18 the motion of either party, correct any clerical errors or
2682	2682	19 errors in computation within 15 days after the date of receipt
2683	2683	20 of such award of the arbitrator and shall have the power to
2684	2684	21 recall the original award on arbitration, and issue in lieu
2685	2685	22 thereof such corrected award. The decision of the arbitrator
2686	2686	23 under this subsection (p) shall be considered the decision of
2687	2687	24 the Commission and proceedings for review of questions of law
2688	2688	25 arising from the decision may be commenced by either party
2689	2689	26 pursuant to subsection (f) of Section 19. The Advisory Board
2690	2690
2691	2691
2692	2692
2693	2693
2694	2694
2695	2695	HB5575 - 74 - LRB103 36543 SPS 66650 b
2696	2696
2697	2697
2698	2698	HB5575- 75 -LRB103 36543 SPS 66650 b HB5575 - 75 - LRB103 36543 SPS 66650 b
2699	2699	HB5575 - 75 - LRB103 36543 SPS 66650 b
2700	2700	1 established under Section 13.1 shall compile a list of
2701	2701	2 certified Commission arbitrators, each of whom shall be
2702	2702	3 approved by at least 7 members of the Advisory Board. The
2703	2703	4 chairman shall select 5 persons from such list to serve as
2704	2704	5 arbitrators under this subsection (p). By agreement, the
2705	2705	6 parties shall select one arbitrator from among the 5 persons
2706	2706	7 selected by the chairman except that if the parties do not
2707	2707	8 agree on an arbitrator from among the 5 persons, the parties
2708	2708	9 may, by agreement, select an arbitrator of the American
2709	2709	10 Arbitration Association, whose fee shall be paid by the State
2710	2710	11 in accordance with rules promulgated by the Commission.
2711	2711	12 Arbitration under this subsection (p) shall be voluntary.
2712	2712	13 (Source: P.A. 101-384, eff. 1-1-20; 102-775, eff. 5-13-22.)
2713	2713	14 (820 ILCS 305/25.5)
2714	2714	15 Sec. 25.5. Unlawful acts; penalties.
2715	2715	16 (a) It is unlawful for any person, company, corporation,
2716	2716	17 insurance carrier, healthcare provider, or other entity to:
2717	2717	18 (1) Intentionally present or cause to be presented any
2718	2718	19 false or fraudulent claim for the payment of any workers'
2719	2719	20 compensation benefit.
2720	2720	21 (2) Intentionally make or cause to be made any false
2721	2721	22 or fraudulent material statement or material
2722	2722	23 representation for the purpose of obtaining or denying any
2723	2723	24 workers' compensation benefit.
2724	2724	25 (3) Intentionally make or cause to be made any false
2725	2725
2726	2726
2727	2727
2728	2728
2729	2729
2730	2730	HB5575 - 75 - LRB103 36543 SPS 66650 b
2731	2731
2732	2732
2733	2733	HB5575- 76 -LRB103 36543 SPS 66650 b HB5575 - 76 - LRB103 36543 SPS 66650 b
2734	2734	HB5575 - 76 - LRB103 36543 SPS 66650 b
2735	2735	1 or fraudulent statements with regard to entitlement to
2736	2736	2 workers' compensation benefits with the intent to prevent
2737	2737	3 an injured worker from making a legitimate claim for any
2738	2738	4 workers' compensation benefits.
2739	2739	5 (4) Intentionally prepare or provide an invalid,
2740	2740	6 false, or counterfeit certificate of insurance as proof of
2741	2741	7 workers' compensation insurance.
2742	2742	8 (5) Intentionally make or cause to be made any false
2743	2743	9 or fraudulent material statement or material
2744	2744	10 representation for the purpose of obtaining workers'
2745	2745	11 compensation insurance at less than the proper amount for
2746	2746	12 that insurance.
2747	2747	13 (6) Intentionally make or cause to be made any false
2748	2748	14 or fraudulent material statement or material
2749	2749	15 representation on an initial or renewal self-insurance
2750	2750	16 application or accompanying financial statement for the
2751	2751	17 purpose of obtaining self-insurance status or reducing the
2752	2752	18 amount of security that may be required to be furnished
2753	2753	19 pursuant to Section 4 of this Act.
2754	2754	20 (7) Intentionally make or cause to be made any false
2755	2755	21 or fraudulent material statement to the Department of
2756	2756	22 Insurance's fraud and insurance non-compliance unit in the
2757	2757	23 course of an investigation of fraud or insurance
2758	2758	24 non-compliance.
2759	2759	25 (8) Intentionally assist, abet, solicit, or conspire
2760	2760	26 with any person, company, or other entity to commit any of
2761	2761
2762	2762
2763	2763
2764	2764
2765	2765
2766	2766	HB5575 - 76 - LRB103 36543 SPS 66650 b
2767	2767
2768	2768
2769	2769	HB5575- 77 -LRB103 36543 SPS 66650 b HB5575 - 77 - LRB103 36543 SPS 66650 b
2770	2770	HB5575 - 77 - LRB103 36543 SPS 66650 b
2771	2771	1 the acts in paragraph (1), (2), (3), (4), (5), (6), or (7)
2772	2772	2 of this subsection (a).
2773	2773	3 (8.5) Intentionally assist, abet, solicit, or conspire
2774	2774	4 with any person, company, or other entity to commit any of
2775	2775	5 the acts in paragraph (4) of this subsection (a).
2776	2776	6 (9) Intentionally present a bill or statement for the
2777	2777	7 payment for medical services that were not provided.
2778	2778	8 For the purposes of paragraphs (2), (3), (5), (6), (7),
2779	2779	9 and (9), the term "statement" includes any writing, notice,
2780	2780	10 proof of injury, bill for services, hospital or doctor records
2781	2781	11 and reports, or X-ray and test results.
2782	2782	12 (b) Sentences for violations of paragraphs (1), (2), (3),
2783	2783	13 (5), (6), (7), (8), and (9) of subsection (a) are as follows:
2784	2784	14 (1) A violation in which the value of the property
2785	2785	15 obtained or attempted to be obtained is $300 or less is a
2786	2786	16 Class A misdemeanor.
2787	2787	17 (2) A violation in which the value of the property
2788	2788	18 obtained or attempted to be obtained is more than $300 but
2789	2789	19 not more than $10,000 is a Class 3 felony.
2790	2790	20 (3) A violation in which the value of the property
2791	2791	21 obtained or attempted to be obtained is more than $10,000
2792	2792	22 but not more than $100,000 is a Class 2 felony.
2793	2793	23 (4) A violation in which the value of the property
2794	2794	24 obtained or attempted to be obtained is more than $100,000
2795	2795	25 is a Class 1 felony.
2796	2796	26 (5) A person convicted under this subsection Section
2797	2797
2798	2798
2799	2799
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2807	2807	1 shall be ordered to pay monetary restitution to the
2808	2808	2 injured worker, insurance company, or self-insured entity
2809	2809	3 or any other person for any financial loss sustained as a
2810	2810	4 result of a violation of this Section, including any court
2811	2811	5 costs and attorney fees. An order of restitution also
2812	2812	6 includes expenses incurred and paid by the State of
2813	2813	7 Illinois or an insurance company or self-insured entity in
2814	2814	8 connection with any medical evaluation or treatment
2815	2815	9 services.
2816	2816	10 For the purposes of this subsection Section, where the
2817	2817	11 exact value of property obtained or attempted to be obtained
2818	2818	12 is either not alleged or is not specifically set by the terms
2819	2819	13 of a policy of insurance, the value of the property shall be
2820	2820	14 the fair market replacement value of the property claimed to
2821	2821	15 be lost, the reasonable costs of reimbursing a vendor or other
2822	2822	16 claimant for services to be rendered, or both. Notwithstanding
2823	2823	17 the foregoing, an injured worker, an insurance company,
2824	2824	18 self-insured entity, or any other person suffering financial
2825	2825	19 loss sustained as a result of violation of this Section may
2826	2826	20 seek restitution, including court costs and attorney's fees in
2827	2827	21 a civil action in a court of competent jurisdiction.
2828	2828	22 (b-5) Sentences for violations of paragraphs (4) and (8.5)
2829	2829	23 of subsection (a) are as follows:
2830	2830	24 (1) A violation in which the value of the property
2831	2831	25 obtained or attempted to be obtained is $10,000 or less,
2832	2832	26 is a Class 3 felony and a civil penalty of at least $10,000
2833	2833
2834	2834
2835	2835
2836	2836
2837	2837
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2839	2839
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2843	2843	1 per violation, payable to the Injured Workers' Benefit
2844	2844	2 Fund, shall be assessed.
2845	2845	3 (2) A violation in which the value of the property
2846	2846	4 obtained or attempted to be obtained is more than $10,000,
2847	2847	5 but not more than $100,000, is a Class 2 felony and a civil
2848	2848	6 penalty of at least $10,000 per violation, payable to the
2849	2849	7 Injured Workers' Benefit Fund, shall be assessed.
2850	2850	8 (3) A violation in which the value of the property
2851	2851	9 obtained or attempted to be obtained is more than $100,000
2852	2852	10 is a Class 1 felony and a civil penalty of at least $10,000
2853	2853	11 per violation, payable to the Injured Workers' Benefit
2854	2854	12 Fund, shall be assessed.
2855	2855	13 (4) A person convicted under this subsection shall be
2856	2856	14 ordered to pay monetary restitution to the injured worker,
2857	2857	15 insurance company, or self-insured entity or any other
2858	2858	16 person for any financial loss sustained as a result of a
2859	2859	17 violation of this Section, including any court costs and
2860	2860	18 attorney's fees. An order of restitution also includes
2861	2861	19 expenses incurred and paid by the State of Illinois or an
2862	2862	20 insurance company or self-insured entity in connection
2863	2863	21 with any medical evaluation or treatment services.
2864	2864	22 For the purposes of this subsection, the value of the
2865	2865	23 property obtained or attempted to be obtained shall be the
2866	2866	24 amount of premiums saved by use of the invalid, false, or
2867	2867	25 counterfeit certificate of insurance, the value of any
2868	2868	26 payments under any contract obtained by reliance on the
2869	2869
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2879	2879	1 invalid, false, or counterfeit certificate of insurance, or
2880	2880	2 both. Notwithstanding the foregoing, an injured worker,
2881	2881	3 insurance company, self-insured entity, or any other person
2882	2882	4 suffering financial loss sustained as a result of violation of
2883	2883	5 this subsection may seek restitution, including court costs
2884	2884	6 and attorney's fees in a civil action in a court of competent
2885	2885	7 jurisdiction.
2886	2886	8 (c) The Department of Insurance shall establish a fraud
2887	2887	9 and insurance non-compliance unit responsible for
2888	2888	10 investigating incidences of fraud and insurance non-compliance
2889	2889	11 pursuant to this Section. The size of the staff of the unit
2890	2890	12 shall be subject to appropriation by the General Assembly. It
2891	2891	13 shall be the duty of the fraud and insurance non-compliance
2892	2892	14 unit to determine the identity of insurance carriers,
2893	2893	15 employers, employees, or other persons or entities who have
2894	2894	16 violated the fraud and insurance non-compliance provisions of
2895	2895	17 this Section. The fraud and insurance non-compliance unit
2896	2896	18 shall report violations of the fraud and insurance
2897	2897	19 non-compliance provisions of this Section to the Special
2898	2898	20 Prosecutions Bureau of the Criminal Division of the Office of
2899	2899	21 the Attorney General or to the State's Attorney of the county
2900	2900	22 in which the offense allegedly occurred, either of whom has
2901	2901	23 the authority to prosecute violations under this Section.
2902	2902	24 With respect to the subject of any investigation being
2903	2903	25 conducted, the fraud and insurance non-compliance unit shall
2904	2904	26 have the general power of subpoena of the Department of
2905	2905
2906	2906
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2915	2915	1 Insurance, including the authority to issue a subpoena to a
2916	2916	2 medical provider, pursuant to Section 8-802 of the Code of
2917	2917	3 Civil Procedure.
2918	2918	4 (d) Any person may report allegations of insurance
2919	2919	5 non-compliance and fraud pursuant to this Section to the
2920	2920	6 Department of Insurance's fraud and insurance non-compliance
2921	2921	7 unit whose duty it shall be to investigate the report. The unit
2922	2922	8 shall notify the Commission of reports of insurance
2923	2923	9 non-compliance. Any person reporting an allegation of
2924	2924	10 insurance non-compliance or fraud against either an employee
2925	2925	11 or employer under this Section must identify himself. Except
2926	2926	12 as provided in this subsection and in subsection (e), all
2927	2927	13 reports shall remain confidential except to refer an
2928	2928	14 investigation to the Attorney General or State's Attorney for
2929	2929	15 prosecution or if the fraud and insurance non-compliance
2930	2930	16 unit's investigation reveals that the conduct reported may be
2931	2931	17 in violation of other laws or regulations of the State of
2932	2932	18 Illinois, the unit may report such conduct to the appropriate
2933	2933	19 governmental agency charged with administering such laws and
2934	2934	20 regulations. Any person who intentionally makes a false report
2935	2935	21 under this Section to the fraud and insurance non-compliance
2936	2936	22 unit is guilty of a Class A misdemeanor.
2937	2937	23 (e) In order for the fraud and insurance non-compliance
2938	2938	24 unit to investigate a report of fraud related to an employee's
2939	2939	25 claim, (i) the employee must have filed with the Commission an
2940	2940	26 Application for Adjustment of Claim and the employee must have
2941	2941
2942	2942
2943	2943
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2947	2947
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2951	2951	1 either received or attempted to receive benefits under this
2952	2952	2 Act that are related to the reported fraud or (ii) the employee
2953	2953	3 must have made a written demand for the payment of benefits
2954	2954	4 that are related to the reported fraud. There shall be no
2955	2955	5 immunity, under this Act or otherwise, for any person who
2956	2956	6 files a false report or who files a report without good and
2957	2957	7 just cause. Confidentiality of medical information shall be
2958	2958	8 strictly maintained. Investigations that are not referred for
2959	2959	9 prosecution shall be destroyed upon the expiration of the
2960	2960	10 statute of limitations for the acts under investigation and
2961	2961	11 shall not be disclosed except that the person making the
2962	2962	12 report shall be notified that the investigation is being
2963	2963	13 closed. It is unlawful for any employer, insurance carrier,
2964	2964	14 service adjustment company, third party administrator,
2965	2965	15 self-insured, or similar entity to file or threaten to file a
2966	2966	16 report of fraud against an employee because of the exercise by
2967	2967	17 the employee of the rights and remedies granted to the
2968	2968	18 employee by this Act.
2969	2969	19 (e-5) (Blank).
2970	2970	20 (f) Any person convicted of fraud related to workers'
2971	2971	21 compensation pursuant to this Section shall be subject to the
2972	2972	22 penalties prescribed in the Criminal Code of 2012 and shall be
2973	2973	23 ineligible to receive or retain any compensation, disability,
2974	2974	24 or medical benefits as defined in this Act if the
2975	2975	25 compensation, disability, or medical benefits were owed or
2976	2976	26 received as a result of fraud for which the recipient of the
2977	2977
2978	2978
2979	2979
2980	2980
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2983	2983
2984	2984
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2987	2987	1 compensation, disability, or medical benefit was convicted.
2988	2988	2 This subsection applies to accidental injuries or diseases
2989	2989	3 that occur on or after the effective date of this amendatory
2990	2990	4 Act of the 94th General Assembly.
2991	2991	5 (g) Civil liability. Any person convicted of fraud who
2992	2992	6 knowingly obtains, attempts to obtain, or causes to be
2993	2993	7 obtained any benefits under this Act by the making of a false
2994	2994	8 claim or who knowingly misrepresents any material fact shall
2995	2995	9 be civilly liable to the payor of benefits or the insurer or
2996	2996	10 the payor's or insurer's subrogee or assignee in an amount
2997	2997	11 equal to 3 times the value of the benefits or insurance
2998	2998	12 coverage wrongfully obtained or twice the value of the
2999	2999	13 benefits or insurance coverage attempted to be obtained, plus
3000	3000	14 reasonable attorney's fees and expenses incurred by the payor
3001	3001	15 or the payor's subrogee or assignee who successfully brings a
3002	3002	16 claim under this subsection. This subsection applies to
3003	3003	17 accidental injuries or diseases that occur on or after the
3004	3004	18 effective date of this amendatory Act of the 94th General
3005	3005	19 Assembly.
3006	3006	20 (h) The fraud and insurance non-compliance unit shall
3007	3007	21 submit a written report on an annual basis to the Chairman of
3008	3008	22 the Commission, the Workers' Compensation Advisory Board, the
3009	3009	23 General Assembly, the Governor, and the Attorney General by
3010	3010	24 January 1 and July 1 of each year. This report shall include,
3011	3011	25 at the minimum, the following information:
3012	3012	26 (1) The number of allegations of insurance
3013	3013
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