SB2188ham001 95TH GENERAL ASSEMBLY

Labor Committee

Adopted in House Comm. on May 14, 2008

09500SB2188ham001 LRB095 14707 AMC 50846 a

AMENDMENT TO SENATE BILL 2188

AMENDMENT NO. ______. Amend Senate Bill 2188 by replacing everything after the enacting clause with the following:

"Section 5. The Employee Leasing Company Act is amended by changing Sections 15 and 30 as follows:

(215 ILCS 113/15)

Sec. 15. Definitions. In this Act:

"Department" means the Illinois Department of Insurance.

"Employee leasing arrangement" means a contractual arrangement, including long-term temporary arrangements whereby a lessor obligates itself to perform specified employer responsibilities as to leased employees. The contract shall specifically identify either the employee leasing company or the client responsible for including the securing of workers' compensation insurance for leased employees. For purposes of this Act, "employee leasing arrangement" does not include "temporary help arrangement".

"Leased employee" or "worker" means a person performing services for a lessee under an employee leasing arrangement.

"Lessee" or "client company" means an entity that obtains any of its work force from another entity through an employee leasing arrangement.

"Lessor" or "employee leasing company" means an entity that leases any of its workers to a lessee through an employee leasing arrangement.

"Long-term temporary arrangement" means an arrangement where one company leases all or a majority number of workers from another for a period in excess of 6 months or consecutive periods equal to or greater than one year.

"Residual market mechanism" means the residual market mechanism as defined in Section 468 of the Illinois Insurance Code.

"Temporary help arrangement" means a service whereby an organization hires its own employees and assigns them to clients for a finite time period to support or supplement the client's work force in special work situations such as, but not limited to, employee absences, temporary skill shortages, seasonal workloads, and special assignments and projects.

Notwithstanding any other rulemaking authority that may exist, neither the Governor nor any agency or agency head under the jurisdiction of the Governor has any authority to make or promulgate rules to implement or enforce the provisions of this amendatory Act of the 95th General Assembly. If, however, the Governor believes that rules are necessary to implement or enforce the provisions of this amendatory Act of the 95th General Assembly, the Governor may suggest rules to the General Assembly by filing them with the Clerk of the House and the Secretary of the Senate and by requesting that the General Assembly authorize such rulemaking by law, enact those suggested rules into law, or take any other appropriate action in the General Assembly's discretion. Nothing contained in this amendatory Act of the 95th General Assembly shall be interpreted to grant rulemaking authority under any other Illinois statute where such authority is not otherwise explicitly given. For the purposes of this amendatory Act of the 95th General Assembly, "rules" is given the meaning contained in Section 1-70 of the Illinois Administrative Procedure Act, and "agency" and "agency head" are given the meanings contained in Sections 1-20 and 1-25 of the Illinois Administrative Procedure Act to the extent that such definitions apply to agencies or agency heads under the jurisdiction of the Governor.

(Source: P.A. 90-499, eff. 1-1-98; 90-794, eff. 8-14-98.)

(215 ILCS 113/30)

Sec. 30. Responsibility for policy issuance and continuance.

(a) When a workers' compensation policy written to cover leased employees is issued to the lessor as the named insured: ,

(1) The the lessee shall be identified thereon by the attachment of an appropriate endorsement indicating that the policy provides coverage solely for leased employees. The endorsement shall, at a minimum, provide for the following:

(i) (1) Coverage under the endorsement shall be limited to the named insured's employees leased to the lessees.

(ii) (2) The experience of the employees leased to the particular lessee shall be separately maintained by the lessor as provided in Section 25.

(b) (Blank).

(2) (c) The lessor shall notify the insurer or a licensed rating organization 30 days prior to the effective date of termination or immediately upon notification of cancellation by the lessor of an employee leasing arrangement with the lessee in order to allow sufficient time to calculate an experience modification factor for the lessee.

(3) (d) The insurer shall provide proof of workers' compensation insurance to the lessor and to each applicable lessee within 30 days of the coverage being effected or changed.

(4) (e) Calculation of a lessor's or lessee's premium shall be done in accordance with the insurer's rating manual filed with the Department.

(b) When a workers' compensation policy that covers leased employees is issued to the lessee as the named insured, coverage under the policy shall cover all exposure of the client for both leased and non-leased workers.

(c) Where the client is the party responsible for worker's compensation coverage of leased employees under the leasing arrangement, coverage under any policy issued to the lessor as named insured for direct employees of the lessor or for leased employees of the lessor at any other client shall not be extended to the leased employees at the client lessee.

(d) Notwithstanding any other rulemaking authority that may exist, neither the Governor nor any agency or agency head under the jurisdiction of the Governor has any authority to make or promulgate rules to implement or enforce the provisions of this amendatory Act of the 95th General Assembly. If, however, the Governor believes that rules are necessary to implement or enforce the provisions of this amendatory Act of the 95th General Assembly, the Governor may suggest rules to the General Assembly by filing them with the Clerk of the House and the Secretary of the Senate and by requesting that the General Assembly authorize such rulemaking by law, enact those suggested rules into law, or take any other appropriate action in the General Assembly's discretion. Nothing contained in this amendatory Act of the 95th General Assembly shall be interpreted to grant rulemaking authority under any other Illinois statute where such authority is not otherwise explicitly given. For the purposes of this amendatory Act of the 95th General Assembly, "rules" is given the meaning contained in Section 1-70 of the Illinois Administrative Procedure Act, and "agency" and "agency head" are given the meanings contained in Sections 1-20 and 1-25 of the Illinois Administrative Procedure Act to the extent that such definitions apply to agencies or agency heads under the jurisdiction of the Governor.

(Source: P.A. 90-499, eff. 1-1-98; 90-794, eff. 8-14-98.)

Section 99. Effective date. This Act takes effect upon becoming law.".