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HB 5228

Illinois House•Passed

Summary

HB 5228, “WORK COMP-STATE LICENSURE”, was introduced in the House on Feb 5, 2026 by Rep. Jay Hoffman (D) with 2 co-sponsors. It last saw action on Aug 7, 2026: Public Act . . . . . . . . . 104-0792.

Record

Text

HB 5228 has 2 co-sponsors and 6 roll calls.

hb5228/enrolled.txt
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Full Text of HB5228
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	HB5228 - 104th General Assembly
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		HB5228 Enrolled		LRB104 20014 SPS 33465 b
    AN ACT concerning employment.
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
    Section 5. The Illinois Insurance Code is amended by
changing Section 416 as follows:
    (215 ILCS 5/416)
    Sec. 416. Illinois Workers' Compensation Commission
Operations Fund Surcharge.
    (a) As of July 30, 2004 (the effective date of Public Act
93-840), every company licensed or authorized by the Illinois
Department of Insurance and insuring employers' liabilities
arising under the Workers' Compensation Act or the Workers'
Occupational Diseases Act shall remit to the Director a
surcharge based upon the annual direct written premium, as
reported under Section 136 of this Act, of the company in the
manner provided in this Section. Such proceeds shall be
deposited into the Illinois Workers' Compensation Commission
Operations Fund as established in the Workers' Compensation
Act. If a company survives or was formed by a merger,
consolidation, reorganization, or reincorporation, the direct
written premiums of all companies party to the merger,
consolidation, reorganization, or reincorporation shall, for
purposes of determining the amount of the fee imposed by this
		HB5228 Enrolled	- 2 -	LRB104 20014 SPS 33465 b
Section, be regarded as those of the surviving or new company.
    (b) Beginning on July 30, 2004 (the effective date of
Public Act 93-840) and on July 1 of each year thereafter
through 2023, the Director shall charge an annual Illinois
Workers' Compensation Commission Operations Fund Surcharge
from every company subject to subsection (a) of this Section
equal to 1.01% of its direct written premium for insuring
employers' liabilities arising under the Workers' Compensation
Act or Workers' Occupational Diseases Act as reported in each
company's annual statement filed for the previous year as
required by Section 136. Within 15 days after June 5, 2024 (the
effective date of Public Act 103-590) and on July 1 of each
year thereafter, the Director shall charge an annual Illinois
Workers' Compensation Commission Operations Fund Surcharge
from every company subject to subsection (a) of this Section
equal to 1.092% of its direct written premium for insuring
employers' liabilities arising under the Workers' Compensation
Act or Workers' Occupational Diseases Act as reported in each
company's annual statement filed for the previous year as
required by Section 136. The Illinois Workers' Compensation
Commission Operations Fund Surcharge shall be collected by
companies subject to subsection (a) of this Section as a
separately stated surcharge on insured employers at the rate
of 1.092% of direct written premium for the surcharge due in
2024 and each year thereafter, plus an additional amount 
determined under subsection (b-5) beginning in 2026. The
		HB5228 Enrolled	- 3 -	LRB104 20014 SPS 33465 b
Illinois Workers' Compensation Commission Operations Fund
Surcharge shall not be collected by companies subject to
subsection (a) of this Section from any employer that
self-insures its liabilities arising under the Workers'
Compensation Act or Workers' Occupational Diseases Act,
provided that the employer has paid the Illinois Workers'
Compensation Commission Operations Fund Fee pursuant to
Section 4d of the Workers' Compensation Act. All sums
collected by the Department of Insurance under the provisions
of this Section shall be paid promptly after the receipt of the
same, accompanied by a detailed statement thereof, into the
Illinois Workers' Compensation Commission Operations Fund in
the State treasury.
    (b-5) As used in this subsection:
    "Annual funding target for the year" means $7,000,000 for 
2026 and, for each year thereafter, the previous year's annual 
funding target increased by 3.5%.
    "Statewide underwriting gain for the previous year" means 
the sum of the underwriting gains for all companies that had an 
underwriting gain for their workers' compensation and excess 
workers' compensation lines in this State, as reported in the 
companies' annual statements filed for the previous year under 
Section 136.
    "Underwriting gain" means, if the difference is a positive 
dollar amount, the difference between direct earned premiums 
and the sum of the following expenses and fees:
		HB5228 Enrolled	- 4 -	LRB104 20014 SPS 33465 b
        (A) direct losses incurred;
        (B) direct defense and cost containment expense 
    incurred;
        (C) commission and brokerage expenses; and
        (D) taxes, licenses, and fees.
    On or before July 1, 2026 or 15 days after the effective 
date of this amendatory Act of the 104th General Assembly, 
whichever is later, and on or before July 1 of each year 
thereafter, in addition to the amount required by subsections 
(a) and (b), the Director shall charge an amount to be included 
in a company's obligation to pay the annual Illinois Workers' 
Compensation Commission Operations Fund Surcharge under this 
Section. The additional amount shall be collected from every 
company subject to subsection (a) that had an underwriting 
gain for its workers' compensation and excess workers' 
compensation lines in this State, as reported in the company's 
annual statement filed for the previous year under Section 
136. All provisions of this Section for the administration and 
enforcement of the portion of the annual Illinois Workers' 
Compensation Commission Operations Fund Surcharge described in 
subsection (b) shall apply to the additional amount described 
in this subsection.
    The additional amount included in each company's surcharge 
for a given year shall be a percentage of the company's 
underwriting gain for its workers' compensation and excess 
workers' compensation lines in this State, as reported in the 
		HB5228 Enrolled	- 5 -	LRB104 20014 SPS 33465 b
company's annual statement filed for the previous year under 
Section 136. Each year's percentage shall be calculated as the 
annual funding target for the year divided by the statewide 
underwriting gain for the previous year multiplied by 100.
    Before collecting the additional amount each year, the 
Department shall publish a company bulletin demonstrating the 
calculation of the percentage in accordance with this 
subsection. The bulletin shall include or contain a hyperlink 
to download the underlying data from the companies' annual 
statements that the Department used to perform the 
calculation.
    The additional amount included in the surcharge shall be 
deposited into the Illinois Workers' Compensation Commission 
Operations Fund in accordance with the Workers' Compensation 
Act. If a company survives or was formed by a merger, 
consolidation, reorganization, or reincorporation, the 
underwriting gain in this State for all companies that are 
parties to the merger, consolidation, reorganization, or 
reincorporation shall, for purposes of determining the 
additional amount imposed by this subsection, be regarded as 
those of the surviving or new company.
    (c) In addition to the authority specifically granted
under Article XXV of this Code, the Director shall have such
authority to adopt rules or establish forms as may be
reasonably necessary for purposes of enforcing this Section.
The Director shall also have authority to defer, waive, or
		HB5228 Enrolled	- 6 -	LRB104 20014 SPS 33465 b
abate the surcharge or any penalties imposed by this Section
if in the Director's opinion the company's solvency and
ability to meet its insured obligations would be immediately
threatened by payment of the surcharge due.
    (d) When a company fails to pay the full amount of any
annual Illinois Workers' Compensation Commission Operations
Fund Surcharge of $100 or more due under this Section, there
shall be added to the amount due as a penalty an amount equal
to 10% of the deficiency for each month or part of a month that
the deficiency remains unpaid.
    (e) The Department of Insurance may enforce the collection
of any delinquent payment, penalty, or portion thereof by
legal action or in any other manner by which the collection of
debts due the State of Illinois may be enforced under the laws
of this State.
    (f) Whenever it appears to the satisfaction of the
Director that a company has paid pursuant to this Act an
Illinois Workers' Compensation Commission Operations Fund
Surcharge in an amount in excess of the amount legally
collectable from the company, the Director shall issue a
credit memorandum for an amount equal to the amount of such
overpayment. A credit memorandum may be applied for the 2-year
period from the date of issuance, against the payment of any
amount due during that period under the surcharge imposed by
this Section or, subject to reasonable rule of the Department
of Insurance including requirement of notification, may be
		HB5228 Enrolled	- 7 -	LRB104 20014 SPS 33465 b
assigned to any other company subject to regulation under this
Act. Any application of credit memoranda after the period
provided for in this Section is void.
    (g) Annually, the Governor may direct a transfer of up to
2% of all moneys collected under this Section to the Insurance
Financial Regulation Fund.
(Source: P.A. 103-590, eff. 6-5-24; 104-417, eff. 8-15-25.)
    Section 10. The Workers' Compensation Act is amended by
changing Sections 4, 7, 8.7, and 12 as follows:
    (820 ILCS 305/4)  (from Ch. 48, par. 138.4)
    (Text of Section from P.A. 101-40, 102-37, and 103-590)
    Sec. 4. (a) Any employer, including but not limited to
general contractors and their subcontractors, who shall come
within the provisions of Section 3 of this Act, and any other
employer who shall elect to provide and pay the compensation
provided for in this Act shall:
        (1) File with the Commission annually an application
    for approval as a self-insurer which shall include a
    current financial statement, and annually, thereafter, an
    application for renewal of self-insurance, which shall
    include a current financial statement. Said application
    and financial statement shall be signed and sworn to by
    the president or vice president and secretary or assistant
    secretary of the employer if it be a corporation, or by all
		HB5228 Enrolled	- 8 -	LRB104 20014 SPS 33465 b
    of the partners, if it be a copartnership, or by the owner
    if it be neither a copartnership nor a corporation. All
    initial applications and all applications for renewal of
    self-insurance must be submitted at least 60 days prior to
    the requested effective date of self-insurance. An
    employer may elect to provide and pay compensation as
    provided for in this Act as a member of a group workers'
    compensation pool under Article V 3/4 of the Illinois
    Insurance Code. If an employer becomes a member of a group
    workers' compensation pool, the employer shall not be
    relieved of any obligations imposed by this Act.
        If the sworn application and financial statement of
    any such employer does not satisfy the Commission of the
    financial ability of the employer who has filed it, the
    Commission shall require such employer to,
        (2) Furnish security, indemnity or a bond guaranteeing
    the payment by the employer of the compensation provided
    for in this Act, provided that any such employer whose
    application and financial statement shall not have
    satisfied the commission of his or her financial ability
    and who shall have secured his liability in part by excess
    liability insurance shall be required to furnish to the
    Commission security, indemnity or bond guaranteeing his or
    her payment up to the effective limits of the excess
    coverage, or
        (3) Insure his entire liability to pay such
		HB5228 Enrolled	- 9 -	LRB104 20014 SPS 33465 b
    compensation in some insurance carrier authorized,
    licensed, or permitted to do such insurance business in
    this State. Every policy of an insurance carrier, insuring
    the payment of compensation under this Act shall cover all
    the employees and the entire compensation liability of the
    insured: Provided, however, that any employer may insure
    his or her compensation liability with 2 or more insurance
    carriers or may insure a part and qualify under subsection
    1, 2, or 4 for the remainder of his or her liability to pay
    such compensation, subject to the following two
    provisions:
            Firstly, the entire compensation liability of the
        employer to employees working at or from one location
        shall be insured in one such insurance carrier or
        shall be self-insured, and
            Secondly, the employer shall submit evidence
        satisfactorily to the Commission that his or her
        entire liability for the compensation provided for in
        this Act will be secured. Any provisions in any
        policy, or in any endorsement attached thereto,
        attempting to limit or modify in any way, the
        liability of the insurance carriers issuing the same
        except as otherwise provided herein shall be wholly
        void.
        Nothing herein contained shall apply to policies of
    excess liability carriage secured by employers who have
		HB5228 Enrolled	- 10 -	LRB104 20014 SPS 33465 b
    been approved by the Commission as self-insurers, or
        (4) Make some other provision, satisfactory to the
    Commission, for the securing of the payment of
    compensation provided for in this Act, and
        (5) Upon becoming subject to this Act and thereafter
    as often as the Commission may in writing demand, file
    with the Commission in form prescribed by it evidence of
    his or her compliance with the provision of this Section.
    (a-1) Regardless of its state of domicile or its principal
place of business, an employer shall make payments to its
insurance carrier or group self-insurance fund, where
applicable, based upon the premium rates of the situs where
the work or project is located in Illinois if:
        (A) the employer is engaged primarily in the building
    and construction industry; and
        (B) subdivision (a)(3) of this Section applies to the
    employer or the employer is a member of a group
    self-insurance plan as defined in subsection (1) of
    Section 4a.
    The Illinois Workers' Compensation Commission shall impose
a penalty upon an employer for violation of this subsection
(a-1) if:
        (i) the employer is given an opportunity at a hearing
    to present evidence of its compliance with this subsection
    (a-1); and
        (ii) after the hearing, the Commission finds that the
		HB5228 Enrolled	- 11 -	LRB104 20014 SPS 33465 b
    employer failed to make payments upon the premium rates of
    the situs where the work or project is located in
    Illinois.
    The penalty shall not exceed $1,000 for each day of work
for which the employer failed to make payments upon the
premium rates of the situs where the work or project is located
in Illinois, but the total penalty shall not exceed $50,000
for each project or each contract under which the work was
performed.
    Any penalty under this subsection (a-1) must be imposed
not later than one year after the expiration of the applicable
limitation period specified in subsection (d) of Section 6 of
this Act. Penalties imposed under this subsection (a-1) shall
be deposited into the Illinois Workers' Compensation
Commission Operations Fund, a special fund that is created in
the State treasury. Subject to appropriation, moneys in the
Fund shall be used solely for the operations of the Illinois
Workers' Compensation Commission, the salaries and benefits of
the Self-Insurers Advisory Board employees, the operating
costs of the Self-Insurers Advisory Board, and by the
Department of Insurance for the purposes authorized in
subsection (c) of Section 25.5 of this Act.
    (a-2) Every Employee Leasing Company (ELC), as defined in
Section 15 of the Employee Leasing Company Act, shall at a
minimum provide the following information to the Commission or
any entity designated by the Commission regarding each
		HB5228 Enrolled	- 12 -	LRB104 20014 SPS 33465 b
workers' compensation insurance policy issued to the ELC:
        (1) Any client company of the ELC listed as an
    additional named insured.
        (2) Any informational schedule attached to the master
    policy that identifies any individual client company's
    name, FEIN, and job location.
        (3) Any certificate of insurance coverage document
    issued to a client company specifying its rights and
    obligations under the master policy that establishes both
    the identity and status of the client, as well as the dates
    of inception and termination of coverage, if applicable.
    (a-3) Any corporation, limited liability company, or 
partnership engaged in activities requiring licensure by a 
State agency, for which proof that it has insured its workers' 
compensation liability is a requirement for licensure, that 
fails to satisfy a requirement outlined in paragraph (1), (2), 
(3), or (4) of subsection (a) shall be subject to civil 
penalties under subsection (d) unless it shows by clear and 
convincing evidence that it was not operating during the time 
its license was active.
    (b) The sworn application and financial statement, or
security, indemnity or bond, or amount of insurance, or other
provisions, filed, furnished, carried, or made by the
employer, as the case may be, shall be subject to the approval
of the Commission.
    Deposits under escrow agreements shall be cash, negotiable
		HB5228 Enrolled	- 13 -	LRB104 20014 SPS 33465 b
United States government bonds or negotiable general
obligation bonds of the State of Illinois. Such cash or bonds
shall be deposited in escrow with any State or National Bank or
Trust Company having trust authority in the State of Illinois.
    Upon the approval of the sworn application and financial
statement, security, indemnity or bond or amount of insurance,
filed, furnished or carried, as the case may be, the
Commission shall send to the employer written notice of its
approval thereof. The certificate of compliance by the
employer with the provisions of subparagraphs (2) and (3) of
paragraph (a) of this Section shall be delivered by the
insurance carrier to the Illinois Workers' Compensation
Commission within five days after the effective date of the
policy so certified. The insurance so certified shall cover
all compensation liability occurring during the time that the
insurance is in effect and no further certificate need be
filed in case such insurance is renewed, extended or otherwise
continued by such carrier. The insurance so certified shall
not be cancelled or in the event that such insurance is not
renewed, extended or otherwise continued, such insurance shall
not be terminated until at least 10 days after receipt by the
Illinois Workers' Compensation Commission of notice of the
cancellation or termination of said insurance; provided,
however, that if the employer has secured insurance from
another insurance carrier, or has otherwise secured the
payment of compensation in accordance with this Section, and
		HB5228 Enrolled	- 14 -	LRB104 20014 SPS 33465 b
such insurance or other security becomes effective prior to
the expiration of the 10 days, cancellation or termination
may, at the option of the insurance carrier indicated in such
notice, be effective as of the effective date of such other
insurance or security.
    (c) Whenever the Commission shall find that any
corporation, company, association, aggregation of individuals,
reciprocal or interinsurers exchange, or other insurer
effecting workers' compensation insurance in this State shall
be insolvent, financially unsound, or unable to fully meet all
payments and liabilities assumed or to be assumed for
compensation insurance in this State, or shall practice a
policy of delay or unfairness toward employees in the
adjustment, settlement, or payment of benefits due such
employees, the Commission may after reasonable notice and
hearing order and direct that such corporation, company,
association, aggregation of individuals, reciprocal or
interinsurers exchange, or insurer, shall from and after a
date fixed in such order discontinue the writing of any such
workers' compensation insurance in this State. Subject to such
modification of the order as the Commission may later make on
review of the order, as herein provided, it shall thereupon be
unlawful for any such corporation, company, association,
aggregation of individuals, reciprocal or interinsurers
exchange, or insurer to effect any workers' compensation
insurance in this State. A copy of the order shall be served
		HB5228 Enrolled	- 15 -	LRB104 20014 SPS 33465 b
upon the Director of Insurance by registered mail. Whenever
the Commission finds that any service or adjustment company
used or employed by a self-insured employer or by an insurance
carrier to process, adjust, investigate, compromise or
otherwise handle claims under this Act, has practiced or is
practicing a policy of delay or unfairness toward employees in
the adjustment, settlement or payment of benefits due such
employees, the Commission may after reasonable notice and
hearing order and direct that such service or adjustment
company shall from and after a date fixed in such order be
prohibited from processing, adjusting, investigating,
compromising or otherwise handling claims under this Act.
    Whenever the Commission finds that any self-insured
employer has practiced or is practicing delay or unfairness
toward employees in the adjustment, settlement or payment of
benefits due such employees, the Commission may, after
reasonable notice and hearing, order and direct that after a
date fixed in the order such self-insured employer shall be
disqualified to operate as a self-insurer and shall be
required to insure his entire liability to pay compensation in
some insurance carrier authorized, licensed and permitted to
do such insurance business in this State, as provided in
subparagraph 3 of paragraph (a) of this Section.
    All orders made by the Commission under this Section shall
be subject to review by the courts, said review to be taken in
the same manner and within the same time as provided by Section
		HB5228 Enrolled	- 16 -	LRB104 20014 SPS 33465 b
19 of this Act for review of awards and decisions of the
Commission, upon the party seeking the review filing with the
clerk of the court to which said review is taken a bond in an
amount to be fixed and approved by the court to which the
review is taken, conditioned upon the payment of all
compensation awarded against the person taking said review
pending a decision thereof and further conditioned upon such
other obligations as the court may impose. Upon the review the
Circuit Court shall have power to review all questions of fact
as well as of law. The penalty hereinafter provided for in this
paragraph shall not attach and shall not begin to run until the
final determination of the order of the Commission.
    (d) Whenever a Commissioner, with due process and after a
hearing, determines an employer has knowingly failed to
provide coverage as required by paragraph (a) of this Section,
the failure shall be deemed an immediate serious danger to
public health, safety, and welfare sufficient to justify
service by the Commission of a work-stop order on such
employer, requiring the cessation of all business operations
of such employer at the place of employment or job site. If a
business is declared to be extra hazardous, as defined in
Section 3, a Commissioner may issue an emergency work-stop
order on such an employer ex parte, prior to holding a hearing,
requiring the cessation of all business operations of such
employer at the place of employment or job site while awaiting
the ruling of the Commission. Whenever a Commissioner issues
		HB5228 Enrolled	- 17 -	LRB104 20014 SPS 33465 b
an emergency work-stop order, the Commission shall issue a
notice of emergency work-stop hearing to be posted at the
employer's places of employment and job sites. Any law
enforcement agency in the State shall, at the request of the
Commission, render any assistance necessary to carry out the
provisions of this Section, including, but not limited to,
preventing any employee of such employer from remaining at a
place of employment or job site after a work-stop order has
taken effect. Any work-stop order shall be lifted upon proof
of insurance as required by this Act. Any orders under this
Section are appealable under Section 19(f) to the Circuit
Court.
    Any individual employer, corporate officer or director of
a corporate employer, partner of an employer partnership, or
member of an employer limited liability company who knowingly
fails to provide coverage as required by paragraph (a) of this
Section is guilty of a Class 4 felony. This provision shall not
apply to any corporate officer or director of any
publicly-owned corporation. Each day's violation constitutes a
separate offense. The State's Attorney of the county in which
the violation occurred, or the Attorney General, shall bring
such actions in the name of the People of the State of
Illinois, or may, in addition to other remedies provided in
this Section, bring an action for an injunction to restrain
the violation or to enjoin the operation of any such employer.
    Any individual employer, corporate officer or director of
		HB5228 Enrolled	- 18 -	LRB104 20014 SPS 33465 b
a corporate employer, partner of an employer partnership, or
member of an employer limited liability company who
negligently fails to provide coverage as required by paragraph
(a) of this Section is guilty of a Class A misdemeanor. This
provision shall not apply to any corporate officer or director
of any publicly-owned corporation. Each day's violation
constitutes a separate offense. The State's Attorney of the
county in which the violation occurred, or the Attorney
General, shall bring such actions in the name of the People of
the State of Illinois.
    The criminal penalties in this subsection (d) shall not
apply where there exists a good faith dispute as to the
existence of an employment relationship. Evidence of good
faith shall include, but not be limited to, compliance with
the definition of employee as used by the Internal Revenue
Service.
    All investigative actions must be acted upon within 90
days of the issuance of the complaint. Employers who are
subject to and who knowingly fail to comply with this Section
shall not be entitled to the benefits of this Act during the
period of noncompliance, but shall be liable in an action
under any other applicable law of this State. In the action,
such employer shall not avail himself or herself of the
defenses of assumption of risk or negligence or that the
injury was due to a co-employee. In the action, proof of the
injury shall constitute prima facie evidence of negligence on
		HB5228 Enrolled	- 19 -	LRB104 20014 SPS 33465 b
the part of such employer and the burden shall be on such
employer to show freedom of negligence resulting in the
injury. The employer shall not join any other defendant in any
such civil action. Nothing in this amendatory Act of the 94th
General Assembly shall affect the employee's rights under
subdivision (a)3 of Section 1 of this Act. Any employer or
carrier who makes payments under subdivision (a)3 of Section 1
of this Act shall have a right of reimbursement from the
proceeds of any recovery under this Section.
    An employee of an uninsured employer, or the employee's
dependents in case death ensued, may, instead of proceeding
against the employer in a civil action in court, file an
application for adjustment of claim with the Commission in
accordance with the provisions of this Act and the Commission
shall hear and determine the application for adjustment of
claim in the manner in which other claims are heard and
determined before the Commission.
    All proceedings under this subsection (d) shall be
reported on an annual basis to the Workers' Compensation
Advisory Board.
    An investigator with the Department of Insurance may issue
a citation to any employer that is not in compliance with its
obligation to have workers' compensation insurance under this
Act. The amount of the fine shall be based on the period of
time the employer was in non-compliance, but shall be no less
than $500, and shall not exceed $10,000. An employer that has
		HB5228 Enrolled	- 20 -	LRB104 20014 SPS 33465 b
been issued a citation shall pay the fine to the Department of
Insurance and provide to the Department of Insurance proof
that it obtained the required workers' compensation insurance
within 10 days after the citation was issued. This Section
does not affect any other obligations this Act imposes on
employers.
    Upon a finding by the Commission, after reasonable notice
and hearing, of the knowing and willful failure or refusal of
an employer to comply with any of the provisions of paragraph
(a) of this Section, the failure or refusal of an employer,
service or adjustment company, or an insurance carrier to
comply with any order of the Illinois Workers' Compensation
Commission pursuant to paragraph (c) of this Section
disqualifying him or her to operate as a self insurer and
requiring him or her to insure his or her liability, or the
knowing and willful failure of an employer to comply with a
citation issued by an investigator with the Department of
Insurance, the Commission may assess a civil penalty of up to
$500 per day for each day of such failure or refusal after the
effective date of this amendatory Act of 1989. The minimum
penalty under this Section shall be the sum of $10,000. Each
day of such failure or refusal shall constitute a separate
offense. The Commission may assess the civil penalty
personally and individually against the corporate officers and
directors of a corporate employer, the partners of an employer
partnership, and the members of an employer limited liability
		HB5228 Enrolled	- 21 -	LRB104 20014 SPS 33465 b
company, after a finding of a knowing and willful refusal or
failure of each such named corporate officer, director,
partner, or member to comply with this Section. The liability
for the assessed penalty shall be against the named employer
first, and if the named employer fails or refuses to pay the
penalty to the Commission within 30 days after the final order
of the Commission, then the named corporate officers,
directors, partners, or members who have been found to have
knowingly and willfully refused or failed to comply with this
Section shall be liable for the unpaid penalty or any unpaid
portion of the penalty. Upon investigation by the Department
of Insurance, the Attorney General shall have the authority to
prosecute all proceedings to enforce the civil and
administrative provisions of this Section before the
Commission. The Commission and the Department of Insurance
shall promulgate procedural rules for enforcing this Section
relating to their respective duties prescribed herein.
    If an employer is found to be in non-compliance with any
provisions of paragraph (a) of this Section more than once,
all minimum penalties will double. Therefore, upon the failure
or refusal of an employer, service or adjustment company, or
insurance carrier to comply with any order of the Commission
pursuant to paragraph (c) of this Section disqualifying him or
her to operate as a self-insurer and requiring him or her to
insure his or her liability, or the knowing and willful
failure of an employer to comply with a citation issued by an
		HB5228 Enrolled	- 22 -	LRB104 20014 SPS 33465 b
investigator with the Department of Insurance, the Commission
may assess a civil penalty of up to $1,000 per day for each day
of such failure or refusal after the effective date of this
amendatory Act of the 101st General Assembly. The minimum
penalty under this Section shall be the sum of $20,000. In
addition, employers with 2 or more violations of any
provisions of paragraph (a) of this Section may not
self-insure for one year or until all penalties are paid.
    A Commission decision imposing penalties under this
Section may be judicially reviewed only as described in
Section 19(f). After expiration of the period for seeking
judicial review, the Commission's final decision imposing
penalties may be enforced in the same manner as a judgment
entered by a court of competent jurisdiction. The Commission's
final decision imposing penalties is a debt due and owing to
the State and can be enforced to the same extent as a judgment
entered by a circuit court. The Attorney General shall
represent the Commission and the Department of Insurance in
any action challenging the final decision in circuit court. If
the court affirms the Commission's decision, the court shall
enter judgment against the employer in the amount of the fines
assessed by the Commission. The Attorney General shall make
reasonable efforts to collect the amounts due under the
Commission's decision.
    Any individual employer, corporate officer or director of
a corporate employer, partner of an employer partnership, or
		HB5228 Enrolled	- 23 -	LRB104 20014 SPS 33465 b
member of an employer limited liability company who, with the
intent to avoid payment of compensation under this Act to an
injured employee or the employee's dependents, knowingly
transfers, sells, encumbers, assigns, or in any manner
disposes of, conceals, secretes, or destroys any property
belonging to the employer, officer, director, partner, or
member is guilty of a Class 4 felony.
    Penalties and fines collected pursuant to this paragraph
(d) shall be deposited upon receipt into a special fund which
shall be designated the Injured Workers' Benefit Fund, of
which the State Treasurer is ex-officio custodian, such
special fund to be held and disbursed in accordance with this
paragraph (d) for the purposes hereinafter stated in this
paragraph (d), upon the final order of the Commission. The
Injured Workers' Benefit Fund shall be deposited the same as
are State funds and any interest accruing thereon shall be
added thereto every 6 months. The Injured Workers' Benefit
Fund is subject to audit the same as State funds and accounts
and is protected by the general bond given by the State
Treasurer. The Injured Workers' Benefit Fund is considered
always appropriated for the purposes of disbursements as
provided in this paragraph, and shall be paid out and
disbursed as herein provided and shall not at any time be
appropriated or diverted to any other use or purpose. Moneys
in the Injured Workers' Benefit Fund shall be used only for
payment of workers' compensation benefits for injured
		HB5228 Enrolled	- 24 -	LRB104 20014 SPS 33465 b
employees when the employer has failed to provide coverage as
determined under this paragraph (d) and has failed to pay the
benefits due to the injured employee. The employer shall
reimburse the Injured Workers' Benefit Fund for any amounts
paid to an employee on account of the compensation awarded by
the Commission. The Attorney General shall make reasonable
efforts to obtain reimbursement for the Injured Workers'
Benefit Fund.
    Any such amounts obtained shall be deposited by the
Commission into the Injured Workers' Benefit Fund. If an
injured employee or his or her personal representative
receives payment from the Injured Workers' Benefit Fund, the
State of Illinois has the same rights under paragraph (b) of
Section 5 that the employer who failed to pay the benefits due
to the injured employee would have had if the employer had paid
those benefits, and any moneys recovered by the State as a
result of the State's exercise of its rights under paragraph
(b) of Section 5 shall be deposited into the Injured Workers'
Benefit Fund. The custodian of the Injured Workers' Benefit
Fund shall be joined with the employer as a party respondent in
the application for adjustment of claim. After July 1, 2006,
the Commission shall make disbursements from the Fund once
each year to each eligible claimant. An eligible claimant is
an injured worker who has within the previous fiscal year
obtained a final award for benefits from the Commission
against the employer and the Injured Workers' Benefit Fund and
		HB5228 Enrolled	- 25 -	LRB104 20014 SPS 33465 b
has notified the Commission within 90 days of receipt of such
award. Within a reasonable time after the end of each fiscal
year, the Commission shall make a disbursement to each
eligible claimant. At the time of disbursement, if there are
insufficient moneys in the Fund to pay all claims, each
eligible claimant shall receive a pro-rata share, as
determined by the Commission, of the available moneys in the
Fund for that year. Payment from the Injured Workers' Benefit
Fund to an eligible claimant pursuant to this provision shall
discharge the obligations of the Injured Workers' Benefit Fund
regarding the award entered by the Commission.
    (e) This Act shall not affect or disturb the continuance
of any existing insurance, mutual aid, benefit, or relief
association or department, whether maintained in whole or in
part by the employer or whether maintained by the employees,
the payment of benefits of such association or department
being guaranteed by the employer or by some person, firm or
corporation for him or her: Provided, the employer contributes
to such association or department an amount not less than the
full compensation herein provided, exclusive of the cost of
the maintenance of such association or department and without
any expense to the employee. This Act shall not prevent the
organization and maintaining under the insurance laws of this
State of any benefit or insurance company for the purpose of
insuring against the compensation provided for in this Act,
the expense of which is maintained by the employer. This Act
		HB5228 Enrolled	- 26 -	LRB104 20014 SPS 33465 b
shall not prevent the organization or maintaining under the
insurance laws of this State of any voluntary mutual aid,
benefit or relief association among employees for the payment
of additional accident or sick benefits.
    (f) No existing insurance, mutual aid, benefit or relief
association or department shall, by reason of anything herein
contained, be authorized to discontinue its operation without
first discharging its obligations to any and all persons
carrying insurance in the same or entitled to relief or
benefits therein.
    (g) Any contract, oral, written or implied, of employment
providing for relief benefit, or insurance or any other device
whereby the employee is required to pay any premium or
premiums for insurance against the compensation provided for
in this Act shall be null and void. Any employer withholding
from the wages of any employee any amount for the purpose of
paying any such premium shall be guilty of a Class B
misdemeanor.
    In the event the employer does not pay the compensation
for which he or she is liable, then an insurance company,
association or insurer which may have insured such employer
against such liability shall become primarily liable to pay to
the employee, his or her personal representative or
beneficiary the compensation required by the provisions of
this Act to be paid by such employer. The insurance carrier may
be made a party to the proceedings in which the employer is a
		HB5228 Enrolled	- 27 -	LRB104 20014 SPS 33465 b
party and an award may be entered jointly against the employer
and the insurance carrier.
    (h) It shall be unlawful for any employer, insurance
company or service or adjustment company to interfere with,
restrain or coerce an employee in any manner whatsoever in the
exercise of the rights or remedies granted to him or her by
this Act or to discriminate, attempt to discriminate, or
threaten to discriminate against an employee in any way
because of his or her exercise of the rights or remedies
granted to him or her by this Act.
    It shall be unlawful for any employer, individually or
through any insurance company or service or adjustment
company, to discharge or to threaten to discharge, or to
refuse to rehire or recall to active service in a suitable
capacity an employee because of the exercise of his or her
rights or remedies granted to him or her by this Act.
    (i) If an employer elects to obtain a life insurance
policy on his employees, he may also elect to apply such
benefits in satisfaction of all or a portion of the death
benefits payable under this Act, in which case, the employer's
compensation premium shall be reduced accordingly.
    (j) Within 45 days of receipt of an initial application or
application to renew self-insurance privileges the
Self-Insurers Advisory Board shall review and submit for
approval by the Chairman of the Commission recommendations of
disposition of all initial applications to self-insure and all
		HB5228 Enrolled	- 28 -	LRB104 20014 SPS 33465 b
applications to renew self-insurance privileges filed by
private self-insurers pursuant to the provisions of this
Section and Section 4a-9 of this Act. Each private
self-insurer shall submit with its initial and renewal
applications the application fee required by Section 4a-4 of
this Act.
    The Chairman of the Commission shall promptly act upon all
initial applications and applications for renewal in full
accordance with the recommendations of the Board or, should
the Chairman disagree with any recommendation of disposition
of the Self-Insurer's Advisory Board, he shall within 30 days
of receipt of such recommendation provide to the Board in
writing the reasons supporting his decision. The Chairman
shall also promptly notify the employer of his decision within
15 days of receipt of the recommendation of the Board.
    If an employer is denied a renewal of self-insurance
privileges pursuant to application it shall retain said
privilege for 120 days after receipt of a notice of
cancellation of the privilege from the Chairman of the
Commission.
    All orders made by the Chairman under this Section shall
be subject to review by the courts, such review to be taken in
the same manner and within the same time as provided by
subsection (f) of Section 19 of this Act for review of awards
and decisions of the Commission, upon the party seeking the
review filing with the clerk of the court to which such review
		HB5228 Enrolled	- 29 -	LRB104 20014 SPS 33465 b
is taken a bond in an amount to be fixed and approved by the
court to which the review is taken, conditioned upon the
payment of all compensation awarded against the person taking
such review pending a decision thereof and further conditioned
upon such other obligations as the court may impose. Upon the
review the Circuit Court shall have power to review all
questions of fact as well as of law.
(Source: P.A. 101-40, eff. 1-1-20; 102-37, eff. 7-1-21;
103-590, eff. 6-5-24..)
    (Text of Section from P.A. 101-384, 102-37, and 103-590)
    Sec. 4. (a) Any employer, including but not limited to
general contractors and their subcontractors, who shall come
within the provisions of Section 3 of this Act, and any other
employer who shall elect to provide and pay the compensation
provided for in this Act shall:
        (1) File with the Commission annually an application
    for approval as a self-insurer which shall include a
    current financial statement, and annually, thereafter, an
    application for renewal of self-insurance, which shall
    include a current financial statement. Said application
    and financial statement shall be signed and sworn to by
    the president or vice president and secretary or assistant
    secretary of the employer if it be a corporation, or by all
    of the partners, if it be a copartnership, or by the owner
    if it be neither a copartnership nor a corporation. All
		HB5228 Enrolled	- 30 -	LRB104 20014 SPS 33465 b
    initial applications and all applications for renewal of
    self-insurance must be submitted at least 60 days prior to
    the requested effective date of self-insurance. An
    employer may elect to provide and pay compensation as
    provided for in this Act as a member of a group workers'
    compensation pool under Article V 3/4 of the Illinois
    Insurance Code. If an employer becomes a member of a group
    workers' compensation pool, the employer shall not be
    relieved of any obligations imposed by this Act.
        If the sworn application and financial statement of
    any such employer does not satisfy the Commission of the
    financial ability of the employer who has filed it, the
    Commission shall require such employer to,
        (2) Furnish security, indemnity or a bond guaranteeing
    the payment by the employer of the compensation provided
    for in this Act, provided that any such employer whose
    application and financial statement shall not have
    satisfied the commission of his or her financial ability
    and who shall have secured his liability in part by excess
    liability insurance shall be required to furnish to the
    Commission security, indemnity or bond guaranteeing his or
    her payment up to the effective limits of the excess
    coverage, or
        (3) Insure his entire liability to pay such
    compensation in some insurance carrier authorized,
    licensed, or permitted to do such insurance business in
		HB5228 Enrolled	- 31 -	LRB104 20014 SPS 33465 b
    this State. Every policy of an insurance carrier, insuring
    the payment of compensation under this Act shall cover all
    the employees and the entire compensation liability of the
    insured: Provided, however, that any employer may insure
    his or her compensation liability with 2 or more insurance
    carriers or may insure a part and qualify under subsection
    1, 2, or 4 for the remainder of his or her liability to pay
    such compensation, subject to the following two
    provisions:
            Firstly, the entire compensation liability of the
        employer to employees working at or from one location
        shall be insured in one such insurance carrier or
        shall be self-insured, and
            Secondly, the employer shall submit evidence
        satisfactorily to the Commission that his or her
        entire liability for the compensation provided for in
        this Act will be secured. Any provisions in any
        policy, or in any endorsement attached thereto,
        attempting to limit or modify in any way, the
        liability of the insurance carriers issuing the same
        except as otherwise provided herein shall be wholly
        void.
        Nothing herein contained shall apply to policies of
    excess liability carriage secured by employers who have
    been approved by the Commission as self-insurers, or
        (4) Make some other provision, satisfactory to the
		HB5228 Enrolled	- 32 -	LRB104 20014 SPS 33465 b
    Commission, for the securing of the payment of
    compensation provided for in this Act, and
        (5) Upon becoming subject to this Act and thereafter
    as often as the Commission may in writing demand, file
    with the Commission in form prescribed by it evidence of
    his or her compliance with the provision of this Section.
    (a-1) Regardless of its state of domicile or its principal
place of business, an employer shall make payments to its
insurance carrier or group self-insurance fund, where
applicable, based upon the premium rates of the situs where
the work or project is located in Illinois if:
        (A) the employer is engaged primarily in the building
    and construction industry; and
        (B) subdivision (a)(3) of this Section applies to the
    employer or the employer is a member of a group
    self-insurance plan as defined in subsection (1) of
    Section 4a.
    The Illinois Workers' Compensation Commission shall impose
a penalty upon an employer for violation of this subsection
(a-1) if:
        (i) the employer is given an opportunity at a hearing
    to present evidence of its compliance with this subsection
    (a-1); and
        (ii) after the hearing, the Commission finds that the
    employer failed to make payments upon the premium rates of
    the situs where the work or project is located in
		HB5228 Enrolled	- 33 -	LRB104 20014 SPS 33465 b
    Illinois.
    The penalty shall not exceed $1,000 for each day of work
for which the employer failed to make payments upon the
premium rates of the situs where the work or project is located
in Illinois, but the total penalty shall not exceed $50,000
for each project or each contract under which the work was
performed.
    Any penalty under this subsection (a-1) must be imposed
not later than one year after the expiration of the applicable
limitation period specified in subsection (d) of Section 6 of
this Act. Penalties imposed under this subsection (a-1) shall
be deposited into the Illinois Workers' Compensation
Commission Operations Fund, a special fund that is created in
the State treasury. Subject to appropriation, moneys in the
Fund shall be used solely for the operations of the Illinois
Workers' Compensation Commission and by the Department of
Insurance for the purposes authorized in subsection (c) of
Section 25.5 of this Act.
    (a-2) Every Employee Leasing Company (ELC), as defined in
Section 15 of the Employee Leasing Company Act, shall at a
minimum provide the following information to the Commission or
any entity designated by the Commission regarding each
workers' compensation insurance policy issued to the ELC:
        (1) Any client company of the ELC listed as an
    additional named insured.
        (2) Any informational schedule attached to the master
		HB5228 Enrolled	- 34 -	LRB104 20014 SPS 33465 b
    policy that identifies any individual client company's
    name, FEIN, and job location.
        (3) Any certificate of insurance coverage document
    issued to a client company specifying its rights and
    obligations under the master policy that establishes both
    the identity and status of the client, as well as the dates
    of inception and termination of coverage, if applicable.
    (a-3) Any corporation, limited liability company, or 
partnership engaged in activities requiring licensure by a 
State agency, for which proof that it has insured its workers' 
compensation liability is a requirement for licensure, that 
fails to satisfy a requirement outlined in paragraph (1), (2), 
(3), or (4) of subsection (a) shall be subject to civil 
penalties under subsection (d) unless it shows by clear and 
convincing evidence that it was not operating during the time 
its license was active.
    (b) The sworn application and financial statement, or
security, indemnity or bond, or amount of insurance, or other
provisions, filed, furnished, carried, or made by the
employer, as the case may be, shall be subject to the approval
of the Commission.
    Deposits under escrow agreements shall be cash, negotiable
United States government bonds or negotiable general
obligation bonds of the State of Illinois. Such cash or bonds
shall be deposited in escrow with any State or National Bank or
Trust Company having trust authority in the State of Illinois.
		HB5228 Enrolled	- 35 -	LRB104 20014 SPS 33465 b
    Upon the approval of the sworn application and financial
statement, security, indemnity or bond or amount of insurance,
filed, furnished or carried, as the case may be, the
Commission shall send to the employer written notice of its
approval thereof. The certificate of compliance by the
employer with the provisions of subparagraphs (2) and (3) of
paragraph (a) of this Section shall be delivered by the
insurance carrier to the Illinois Workers' Compensation
Commission within five days after the effective date of the
policy so certified. The insurance so certified shall cover
all compensation liability occurring during the time that the
insurance is in effect and no further certificate need be
filed in case such insurance is renewed, extended or otherwise
continued by such carrier. The insurance so certified shall
not be cancelled or in the event that such insurance is not
renewed, extended or otherwise continued, such insurance shall
not be terminated until at least 10 days after receipt by the
Illinois Workers' Compensation Commission of notice of the
cancellation or termination of said insurance; provided,
however, that if the employer has secured insurance from
another insurance carrier, or has otherwise secured the
payment of compensation in accordance with this Section, and
such insurance or other security becomes effective prior to
the expiration of the 10 days, cancellation or termination
may, at the option of the insurance carrier indicated in such
notice, be effective as of the effective date of such other
		HB5228 Enrolled	- 36 -	LRB104 20014 SPS 33465 b
insurance or security.
    (c) Whenever the Commission shall find that any
corporation, company, association, aggregation of individuals,
reciprocal or interinsurers exchange, or other insurer
effecting workers' compensation insurance in this State shall
be insolvent, financially unsound, or unable to fully meet all
payments and liabilities assumed or to be assumed for
compensation insurance in this State, or shall practice a
policy of delay or unfairness toward employees in the
adjustment, settlement, or payment of benefits due such
employees, the Commission may after reasonable notice and
hearing order and direct that such corporation, company,
association, aggregation of individuals, reciprocal or
interinsurers exchange, or insurer, shall from and after a
date fixed in such order discontinue the writing of any such
workers' compensation insurance in this State. Subject to such
modification of the order as the Commission may later make on
review of the order, as herein provided, it shall thereupon be
unlawful for any such corporation, company, association,
aggregation of individuals, reciprocal or interinsurers
exchange, or insurer to effect any workers' compensation
insurance in this State. A copy of the order shall be served
upon the Director of Insurance by registered mail. Whenever
the Commission finds that any service or adjustment company
used or employed by a self-insured employer or by an insurance
carrier to process, adjust, investigate, compromise or
		HB5228 Enrolled	- 37 -	LRB104 20014 SPS 33465 b
otherwise handle claims under this Act, has practiced or is
practicing a policy of delay or unfairness toward employees in
the adjustment, settlement or payment of benefits due such
employees, the Commission may after reasonable notice and
hearing order and direct that such service or adjustment
company shall from and after a date fixed in such order be
prohibited from processing, adjusting, investigating,
compromising or otherwise handling claims under this Act.
    Whenever the Commission finds that any self-insured
employer has practiced or is practicing delay or unfairness
toward employees in the adjustment, settlement or payment of
benefits due such employees, the Commission may, after
reasonable notice and hearing, order and direct that after a
date fixed in the order such self-insured employer shall be
disqualified to operate as a self-insurer and shall be
required to insure his entire liability to pay compensation in
some insurance carrier authorized, licensed and permitted to
do such insurance business in this State, as provided in
subparagraph 3 of paragraph (a) of this Section.
    All orders made by the Commission under this Section shall
be subject to review by the courts, said review to be taken in
the same manner and within the same time as provided by Section
19 of this Act for review of awards and decisions of the
Commission, upon the party seeking the review filing with the
clerk of the court to which said review is taken a bond in an
amount to be fixed and approved by the court to which the
		HB5228 Enrolled	- 38 -	LRB104 20014 SPS 33465 b
review is taken, conditioned upon the payment of all
compensation awarded against the person taking said review
pending a decision thereof and further conditioned upon such
other obligations as the court may impose. Upon the review the
Circuit Court shall have power to review all questions of fact
as well as of law. The penalty hereinafter provided for in this
paragraph shall not attach and shall not begin to run until the
final determination of the order of the Commission.
    (d) Whenever a panel of 3 Commissioners comprised of one
member of the employing class, one representative of a labor
organization recognized under the National Labor Relations Act
or an attorney who has represented labor organizations or has
represented employees in workers' compensation cases, and one
member not identified with either the employing class or a
labor organization, with due process and after a hearing,
determines an employer has knowingly failed to provide
coverage as required by paragraph (a) of this Section, the
failure shall be deemed an immediate serious danger to public
health, safety, and welfare sufficient to justify service by
the Commission of a work-stop order on such employer,
requiring the cessation of all business operations of such
employer at the place of employment or job site. Any law
enforcement agency in the State shall, at the request of the
Commission, render any assistance necessary to carry out the
provisions of this Section, including, but not limited to,
preventing any employee of such employer from remaining at a
		HB5228 Enrolled	- 39 -	LRB104 20014 SPS 33465 b
place of employment or job site after a work-stop order has
taken effect. Any work-stop order shall be lifted upon proof
of insurance as required by this Act. Any orders under this
Section are appealable under Section 19(f) to the Circuit
Court.
    Any individual employer, corporate officer or director of
a corporate employer, partner of an employer partnership, or
member of an employer limited liability company who knowingly
fails to provide coverage as required by paragraph (a) of this
Section is guilty of a Class 4 felony. This provision shall not
apply to any corporate officer or director of any
publicly-owned corporation. Each day's violation constitutes a
separate offense. The State's Attorney of the county in which
the violation occurred, or the Attorney General, shall bring
such actions in the name of the People of the State of
Illinois, or may, in addition to other remedies provided in
this Section, bring an action for an injunction to restrain
the violation or to enjoin the operation of any such employer.
    Any individual employer, corporate officer or director of
a corporate employer, partner of an employer partnership, or
member of an employer limited liability company who
negligently fails to provide coverage as required by paragraph
(a) of this Section is guilty of a Class A misdemeanor. This
provision shall not apply to any corporate officer or director
of any publicly-owned corporation. Each day's violation
constitutes a separate offense. The State's Attorney of the
		HB5228 Enrolled	- 40 -	LRB104 20014 SPS 33465 b
county in which the violation occurred, or the Attorney
General, shall bring such actions in the name of the People of
the State of Illinois.
    The criminal penalties in this subsection (d) shall not
apply where there exists a good faith dispute as to the
existence of an employment relationship. Evidence of good
faith shall include, but not be limited to, compliance with
the definition of employee as used by the Internal Revenue
Service.
    Employers who are subject to and who knowingly fail to
comply with this Section shall not be entitled to the benefits
of this Act during the period of noncompliance, but shall be
liable in an action under any other applicable law of this
State. In the action, such employer shall not avail himself or
herself of the defenses of assumption of risk or negligence or
that the injury was due to a co-employee. In the action, proof
of the injury shall constitute prima facie evidence of
negligence on the part of such employer and the burden shall be
on such employer to show freedom of negligence resulting in
the injury. The employer shall not join any other defendant in
any such civil action. Nothing in this amendatory Act of the
94th General Assembly shall affect the employee's rights under
subdivision (a)3 of Section 1 of this Act. Any employer or
carrier who makes payments under subdivision (a)3 of Section 1
of this Act shall have a right of reimbursement from the
proceeds of any recovery under this Section.
		HB5228 Enrolled	- 41 -	LRB104 20014 SPS 33465 b
    An employee of an uninsured employer, or the employee's
dependents in case death ensued, may, instead of proceeding
against the employer in a civil action in court, file an
application for adjustment of claim with the Commission in
accordance with the provisions of this Act and the Commission
shall hear and determine the application for adjustment of
claim in the manner in which other claims are heard and
determined before the Commission.
    All proceedings under this subsection (d) shall be
reported on an annual basis to the Workers' Compensation
Advisory Board.
    An investigator with the Department of Insurance may issue
a citation to any employer that is not in compliance with its
obligation to have workers' compensation insurance under this
Act. The amount of the fine shall be based on the period of
time the employer was in non-compliance, but shall be no less
than $500, and shall not exceed $2,500. An employer that has
been issued a citation shall pay the fine to the Department of
Insurance and provide to the Department of Insurance proof
that it obtained the required workers' compensation insurance
within 10 days after the citation was issued. This Section
does not affect any other obligations this Act imposes on
employers.
    Upon a finding by the Commission, after reasonable notice
and hearing, of the knowing and wilful failure or refusal of an
employer to comply with any of the provisions of paragraph (a)
		HB5228 Enrolled	- 42 -	LRB104 20014 SPS 33465 b
of this Section, the failure or refusal of an employer,
service or adjustment company, or an insurance carrier to
comply with any order of the Illinois Workers' Compensation
Commission pursuant to paragraph (c) of this Section
disqualifying him or her to operate as a self insurer and
requiring him or her to insure his or her liability, or the
knowing and willful failure of an employer to comply with a
citation issued by an investigator with the Department of
Insurance, the Commission may assess a civil penalty of up to
$500 per day for each day of such failure or refusal after the
effective date of this amendatory Act of 1989. The minimum
penalty under this Section shall be the sum of $10,000. Each
day of such failure or refusal shall constitute a separate
offense. The Commission may assess the civil penalty
personally and individually against the corporate officers and
directors of a corporate employer, the partners of an employer
partnership, and the members of an employer limited liability
company, after a finding of a knowing and willful refusal or
failure of each such named corporate officer, director,
partner, or member to comply with this Section. The liability
for the assessed penalty shall be against the named employer
first, and if the named employer fails or refuses to pay the
penalty to the Commission within 30 days after the final order
of the Commission, then the named corporate officers,
directors, partners, or members who have been found to have
knowingly and willfully refused or failed to comply with this
		HB5228 Enrolled	- 43 -	LRB104 20014 SPS 33465 b
Section shall be liable for the unpaid penalty or any unpaid
portion of the penalty. Upon investigation by the Department
of Insurance, the Attorney General shall have the authority to
prosecute all proceedings to enforce the civil and
administrative provisions of this Section before the
Commission. The Commission and the Department of Insurance
shall promulgate procedural rules for enforcing this Section
relating to their respective duties prescribed herein.
    A Commission decision imposing penalties under this
Section may be judicially reviewed only as described in
Section 19(f). After expiration of the period for seeking
judicial review, the Commission's final decision imposing
penalties may be enforced in the same manner as a judgment
entered by a court of competent jurisdiction. The Commission's
final decision imposing penalties is a debt due and owing to
the State and can be enforced to the same extent as a judgment
entered by a circuit court. The Attorney General shall
represent the Commission and the Department of Insurance in
any action challenging the final decision in circuit court. If
the court affirms the Commission's decision, the court shall
enter judgment against the employer in the amount of the fines
assessed by the Commission. The Attorney General shall make
reasonable efforts to collect the amounts due under the
Commission's decision.
    Any individual employer, corporate officer or director of
a corporate employer, partner of an employer partnership, or
		HB5228 Enrolled	- 44 -	LRB104 20014 SPS 33465 b
member of an employer limited liability company who, with the
intent to avoid payment of compensation under this Act to an
injured employee or the employee's dependents, knowingly
transfers, sells, encumbers, assigns, or in any manner
disposes of, conceals, secretes, or destroys any property
belonging to the employer, officer, director, partner, or
member is guilty of a Class 4 felony.
    Penalties and fines collected pursuant to this paragraph
(d) shall be deposited upon receipt into a special fund which
shall be designated the Injured Workers' Benefit Fund, of
which the State Treasurer is ex-officio custodian, such
special fund to be held and disbursed in accordance with this
paragraph (d) for the purposes hereinafter stated in this
paragraph (d), upon the final order of the Commission. The
Injured Workers' Benefit Fund shall be deposited the same as
are State funds and any interest accruing thereon shall be
added thereto every 6 months. The Injured Workers' Benefit
Fund is subject to audit the same as State funds and accounts
and is protected by the general bond given by the State
Treasurer. The Injured Workers' Benefit Fund is considered
always appropriated for the purposes of disbursements as
provided in this paragraph, and shall be paid out and
disbursed as herein provided and shall not at any time be
appropriated or diverted to any other use or purpose. Moneys
in the Injured Workers' Benefit Fund shall be used only for
payment of workers' compensation benefits for injured
		HB5228 Enrolled	- 45 -	LRB104 20014 SPS 33465 b
employees when the employer has failed to provide coverage as
determined under this paragraph (d) and has failed to pay the
benefits due to the injured employee. The employer shall
reimburse the Injured Workers' Benefit Fund for any amounts
paid to an employee on account of the compensation awarded by
the Commission. The Attorney General shall make reasonable
efforts to obtain reimbursement for the Injured Workers'
Benefit Fund.
    Any such amounts obtained shall be deposited by the
Commission into the Injured Workers' Benefit Fund. If an
injured employee or his or her personal representative
receives payment from the Injured Workers' Benefit Fund, the
State of Illinois has the same rights under paragraph (b) of
Section 5 that the employer who failed to pay the benefits due
to the injured employee would have had if the employer had paid
those benefits, and any moneys recovered by the State as a
result of the State's exercise of its rights under paragraph
(b) of Section 5 shall be deposited into the Injured Workers'
Benefit Fund. The custodian of the Injured Workers' Benefit
Fund shall be joined with the employer as a party respondent in
the application for adjustment of claim. After July 1, 2006,
the Commission shall make disbursements from the Fund once
each year to each eligible claimant. An eligible claimant is
an injured worker who has within the previous fiscal year
obtained a final award for benefits from the Commission
against the employer and the Injured Workers' Benefit Fund and
		HB5228 Enrolled	- 46 -	LRB104 20014 SPS 33465 b
has notified the Commission within 90 days of receipt of such
award. Within a reasonable time after the end of each fiscal
year, the Commission shall make a disbursement to each
eligible claimant. At the time of disbursement, if there are
insufficient moneys in the Fund to pay all claims, each
eligible claimant shall receive a pro-rata share, as
determined by the Commission, of the available moneys in the
Fund for that year. Payment from the Injured Workers' Benefit
Fund to an eligible claimant pursuant to this provision shall
discharge the obligations of the Injured Workers' Benefit Fund
regarding the award entered by the Commission.
    (e) This Act shall not affect or disturb the continuance
of any existing insurance, mutual aid, benefit, or relief
association or department, whether maintained in whole or in
part by the employer or whether maintained by the employees,
the payment of benefits of such association or department
being guaranteed by the employer or by some person, firm or
corporation for him or her: Provided, the employer contributes
to such association or department an amount not less than the
full compensation herein provided, exclusive of the cost of
the maintenance of such association or department and without
any expense to the employee. This Act shall not prevent the
organization and maintaining under the insurance laws of this
State of any benefit or insurance company for the purpose of
insuring against the compensation provided for in this Act,
the expense of which is maintained by the employer. This Act
		HB5228 Enrolled	- 47 -	LRB104 20014 SPS 33465 b
shall not prevent the organization or maintaining under the
insurance laws of this State of any voluntary mutual aid,
benefit or relief association among employees for the payment
of additional accident or sick benefits.
    (f) No existing insurance, mutual aid, benefit or relief
association or department shall, by reason of anything herein
contained, be authorized to discontinue its operation without
first discharging its obligations to any and all persons
carrying insurance in the same or entitled to relief or
benefits therein.
    (g) Any contract, oral, written or implied, of employment
providing for relief benefit, or insurance or any other device
whereby the employee is required to pay any premium or
premiums for insurance against the compensation provided for
in this Act shall be null and void. Any employer withholding
from the wages of any employee any amount for the purpose of
paying any such premium shall be guilty of a Class B
misdemeanor.
    In the event the employer does not pay the compensation
for which he or she is liable, then an insurance company,
association or insurer which may have insured such employer
against such liability shall become primarily liable to pay to
the employee, his or her personal representative or
beneficiary the compensation required by the provisions of
this Act to be paid by such employer. The insurance carrier may
be made a party to the proceedings in which the employer is a
		HB5228 Enrolled	- 48 -	LRB104 20014 SPS 33465 b
party and an award may be entered jointly against the employer
and the insurance carrier.
    (h) It shall be unlawful for any employer, insurance
company or service or adjustment company to interfere with,
restrain or coerce an employee in any manner whatsoever in the
exercise of the rights or remedies granted to him or her by
this Act or to discriminate, attempt to discriminate, or
threaten to discriminate against an employee in any way
because of his or her exercise of the rights or remedies
granted to him or her by this Act.
    It shall be unlawful for any employer, individually or
through any insurance company or service or adjustment
company, to discharge or to threaten to discharge, or to
refuse to rehire or recall to active service in a suitable
capacity an employee because of the exercise of his or her
rights or remedies granted to him or her by this Act.
    (i) If an employer elects to obtain a life insurance
policy on his employees, he may also elect to apply such
benefits in satisfaction of all or a portion of the death
benefits payable under this Act, in which case, the employer's
compensation premium shall be reduced accordingly.
    (j) Within 45 days of receipt of an initial application or
application to renew self-insurance privileges the
Self-Insurers Advisory Board shall review and submit for
approval by the Chairman of the Commission recommendations of
disposition of all initial applications to self-insure and all
		HB5228 Enrolled	- 49 -	LRB104 20014 SPS 33465 b
applications to renew self-insurance privileges filed by
private self-insurers pursuant to the provisions of this
Section and Section 4a-9 of this Act. Each private
self-insurer shall submit with its initial and renewal
applications the application fee required by Section 4a-4 of
this Act.
    The Chairman of the Commission shall promptly act upon all
initial applications and applications for renewal in full
accordance with the recommendations of the Board or, should
the Chairman disagree with any recommendation of disposition
of the Self-Insurer's Advisory Board, he shall within 30 days
of receipt of such recommendation provide to the Board in
writing the reasons supporting his decision. The Chairman
shall also promptly notify the employer of his decision within
15 days of receipt of the recommendation of the Board.
    If an employer is denied a renewal of self-insurance
privileges pursuant to application it shall retain said
privilege for 120 days after receipt of a notice of
cancellation of the privilege from the Chairman of the
Commission.
    All orders made by the Chairman under this Section shall
be subject to review by the courts, such review to be taken in
the same manner and within the same time as provided by
subsection (f) of Section 19 of this Act for review of awards
and decisions of the Commission, upon the party seeking the
review filing with the clerk of the court to which such review
		HB5228 Enrolled	- 50 -	LRB104 20014 SPS 33465 b
is taken a bond in an amount to be fixed and approved by the
court to which the review is taken, conditioned upon the
payment of all compensation awarded against the person taking
such review pending a decision thereof and further conditioned
upon such other obligations as the court may impose. Upon the
review the Circuit Court shall have power to review all
questions of fact as well as of law.
(Source: P.A. 101-384, eff. 1-1-20; 102-37, eff. 7-1-21;
103-590, eff. 6-5-24.)
    (820 ILCS 305/7)
    Sec. 7. The amount of compensation which shall be paid for
an accidental injury to the employee resulting in death is:
    (a) If the employee leaves surviving a widow, widower,
child or children, the applicable weekly compensation rate
computed in accordance with subparagraph 2 of paragraph (b) of
Section 8, shall be payable during the life of the widow or
widower and if any surviving child or children shall not be
physically or mentally incapacitated then until the death of
the widow or widower or until the youngest child shall reach
the age of 18, whichever shall come later; provided that if
such child or children shall be enrolled as a full-time
student in any accredited educational institution, the
payments shall continue until such child has attained the age
of 25. In the event any surviving child or children shall be
physically or mentally incapacitated, the payments shall
		HB5228 Enrolled	- 51 -	LRB104 20014 SPS 33465 b
continue for the duration of such incapacity.
    The term "child" means a child whom the deceased employee
left surviving, including a posthumous child, a child legally
adopted, a child whom the deceased employee was legally
obligated to support or a child to whom the deceased employee
stood in loco parentis. The term "children" means the plural
of "child".
    The term "physically or mentally incapacitated child or
children" means a child or children incapable of engaging in
regular and substantial gainful employment.
    In the event of the remarriage of a widow or widower, where
the decedent did not leave surviving any child or children
who, at the time of such remarriage, are entitled to
compensation benefits under this Act, the surviving spouse
shall be paid a lump sum equal to 2 years compensation benefits
and all further rights of such widow or widower shall be
extinguished.
    If the employee leaves surviving any child or children
under 18 years of age who at the time of death shall be
entitled to compensation under this paragraph (a) of this
Section, the weekly compensation payments herein provided for
such child or children shall in any event continue for a period
of not less than 6 years.
    Any beneficiary entitled to compensation under this
paragraph (a) of this Section shall receive from the special
fund provided in paragraph (f) of this Section, in addition to
		HB5228 Enrolled	- 52 -	LRB104 20014 SPS 33465 b
the compensation herein provided, supplemental benefits in
accordance with paragraph (g) of Section 8.
    (b) If no compensation is payable under paragraph (a) of
this Section and the employee leaves surviving a parent or
parents who at the time of the accident were totally dependent
upon the earnings of the employee then weekly payments equal
to the compensation rate payable in the case where the
employee leaves surviving a widow or widower, shall be paid to
such parent or parents for the duration of their lives, and in
the event of the death of either, for the life of the survivor.
    (c) If no compensation is payable under paragraph (a) or
(b) of this Section and the employee leaves surviving any
child or children who are not entitled to compensation under
the foregoing paragraph (a) but who at the time of the accident
were nevertheless in any manner dependent upon the earnings of
the employee, or leaves surviving a parent or parents who at
the time of the accident were partially dependent upon the
earnings of the employee, then there shall be paid to such
dependent or dependents for a period of 8 years weekly
compensation payments at such proportion of the applicable
rate if the employee had left surviving a widow or widower as
such dependency bears to total dependency. In the event of the
death of any such beneficiary the share of such beneficiary
shall be divided equally among the surviving beneficiaries and
in the event of the death of the last such beneficiary all the
rights under this paragraph shall be extinguished.
		HB5228 Enrolled	- 53 -	LRB104 20014 SPS 33465 b
    (d) If no compensation is payable under paragraph (a),
(b), or (c) of this Section and the employee leaves surviving
any grandparent, grandparents, grandchild or grandchildren or
collateral heirs dependent upon the employee's earnings to the
extent of 50% or more of total dependency, then there shall be
paid to such dependent or dependents for a period of 5 years
weekly compensation payments at such proportion of the
applicable rate if the employee had left surviving a widow or
widower as such dependency bears to total dependency. In the
event of the death of any such beneficiary the share of such
beneficiary shall be divided equally among the surviving
beneficiaries and in the event of the death of the last such
beneficiary all rights hereunder shall be extinguished.
    (e) The compensation to be paid for accidental injury
which results in death, as provided in this Section, shall be
paid to the persons who form the basis for determining the
amount of compensation to be paid by the employer, the
respective shares to be in the proportion of their respective
dependency at the time of the accident on the earnings of the
deceased. The Commission or an Arbitrator thereof may, in its
or his discretion, order or award the payment to the parent or
grandparent of a child for the latter's support the amount of
compensation which but for such order or award would have been
paid to such child as its share of the compensation payable,
which order or award may be modified from time to time by the
Commission in its discretion with respect to the person to
		HB5228 Enrolled	- 54 -	LRB104 20014 SPS 33465 b
whom shall be paid the amount of the order or award remaining
unpaid at the time of the modification.
    The payments of compensation by the employer in accordance
with the order or award of the Commission discharges such
employer from all further obligation as to such compensation.
    (f) The sum of $10,000 [$8,000] for burial expenses shall be
paid by the employer to the widow or widower, other dependent,
next of kin or to the person or persons incurring the expense
of burial.
    In the event the employer failed to provide necessary
first aid, medical, surgical or hospital service, he shall pay
the cost thereof to the person or persons entitled to
compensation under paragraphs (a), (b), (c), or (d) of this
Section, or to the person or persons incurring the obligation
therefore, or providing the same.
    On January 15 and July 15, 1981, and on January 15 and July
15 of each year thereafter the employer shall within 60 days
pay a sum equal to 1/8 of 1% of all compensation payments made
by him after July 1, 1980, either under this Act or the
Workers' Occupational Diseases Act, whether by lump sum
settlement or weekly compensation payments, but not including
hospital, surgical or rehabilitation payments, made during the
first 6 months and during the second 6 months respectively of
the fiscal year next preceding the date of the payments, into a
special fund which shall be designated the "Second Injury
Fund", of which the State Treasurer is ex officio custodian,
		HB5228 Enrolled	- 55 -	LRB104 20014 SPS 33465 b
such special fund to be held and disbursed for the purposes
hereinafter stated in paragraphs (f) and (g) of Section 8,
either upon the order of the Commission or of a competent
court. Said special fund shall be deposited the same as are
State funds and any interest accruing thereon shall be added
thereto every 6 months. It is subject to audit the same as
State funds and accounts and is protected by the General bond
given by the State Treasurer. It is considered always
appropriated for the purposes of disbursements as provided in
paragraph (f) of Section 8 of this Act, and shall be paid out
and disbursed as therein provided and shall not at any time be
appropriated or diverted to any other use or purpose.
    On January 15, 1991, the employer shall further pay a sum
equal to one half of 1% of all compensation payments made by
him from January 1, 1990 through June 30, 1990 either under
this Act or under the Workers' Occupational Diseases Act,
whether by lump sum settlement or weekly compensation
payments, but not including hospital, surgical or
rehabilitation payments, into an additional Special Fund which
shall be designated as the "Rate Adjustment Fund". On March
15, 1991, the employer shall pay into the Rate Adjustment Fund
a sum equal to one half of 1% of all such compensation payments
made from July 1, 1990 through December 31, 1990. Within 60
days after July 15, 1991, the employer shall pay into the Rate
Adjustment Fund a sum equal to one half of 1% of all such
compensation payments made from January 1, 1991 through June
		HB5228 Enrolled	- 56 -	LRB104 20014 SPS 33465 b
30, 1991. Within 60 days after January 15 of 1992 and each
subsequent year through 1996, the employer shall pay into the
Rate Adjustment Fund a sum equal to one half of 1% of all such
compensation payments made in the last 6 months of the
preceding calendar year. Within 60 days after July 15 of 1992
and each subsequent year through 1995, the employer shall pay
into the Rate Adjustment Fund a sum equal to one half of 1% of
all such compensation payments made in the first 6 months of
the same calendar year. Within 60 days after January 15 of 1997
and each subsequent year through 2005, the employer shall pay
into the Rate Adjustment Fund a sum equal to three-fourths of
1% of all such compensation payments made in the last 6 months
of the preceding calendar year. Within 60 days after July 15 of
1996 and each subsequent year through 2004, the employer shall
pay into the Rate Adjustment Fund a sum equal to three-fourths
of 1% of all such compensation payments made in the first 6
months of the same calendar year. Within 60 days after July 15
of 2005, the employer shall pay into the Rate Adjustment Fund a
sum equal to 1% of such compensation payments made in the first
6 months of the same calendar year. Within 60 days after
January 15 of 2006 and each subsequent year through 2024, the
employer shall pay into the Rate Adjustment Fund a sum equal to
1.25% of such compensation payments made in the last 6 months
of the preceding calendar year. Within 60 days after July 15 of
2006 and each subsequent year through 2023, the employer shall
pay into the Rate Adjustment Fund a sum equal to 1.25% of such
		HB5228 Enrolled	- 57 -	LRB104 20014 SPS 33465 b
compensation payments made in the first 6 months of the same
calendar year. Within 60 days after July 15 of 2024 and each
subsequent year thereafter, the employer shall pay into the
Rate Adjustment Fund a sum equal to 1.375% of such
compensation payments made in the first 6 months of the same
calendar year. Within 60 days after January 15 of 2025 and each
subsequent year thereafter, the employer shall pay into the
Rate Adjustment Fund a sum equal to 1.375% of such
compensation payments made in the last 6 months of the
preceding calendar year. The administrative costs of
collecting assessments from employers for the Rate Adjustment
Fund shall be paid from the Rate Adjustment Fund. The cost of
an actuarial audit of the Fund shall be paid from the Rate
Adjustment Fund. The State Treasurer is ex officio custodian
of such Special Fund and the same shall be held and disbursed
for the purposes hereinafter stated in paragraphs (f) and (g)
of Section 8 upon the order of the Commission or of a competent
court. The Rate Adjustment Fund shall be deposited the same as
are State funds and any interest accruing thereon shall be
added thereto every 6 months. It shall be subject to audit the
same as State funds and accounts and shall be protected by the
general bond given by the State Treasurer. It is considered
always appropriated for the purposes of disbursements as
provided in paragraphs (f) and (g) of Section 8 of this Act and
shall be paid out and disbursed as therein provided and shall
not at any time be appropriated or diverted to any other use or
		HB5228 Enrolled	- 58 -	LRB104 20014 SPS 33465 b
purpose. Within 5 days after December 7, 1990 (the effective
date of Public Act 86-1448), the Comptroller and the State
Treasurer shall transfer $1,000,000 from the General Revenue
Fund to the Rate Adjustment Fund. By February 15, 1991, the
Comptroller and the State Treasurer shall transfer $1,000,000
from the Rate Adjustment Fund to the General Revenue Fund. The
Comptroller and Treasurer are authorized to make transfers at
the request of the Chairman up to a total of $19,000,000 from
the Second Injury Fund, the General Revenue Fund, and the
Workers' Compensation Benefit Trust Fund to the Rate
Adjustment Fund to the extent that there is insufficient money
in the Rate Adjustment Fund to pay claims and obligations.
Amounts may be transferred from the General Revenue Fund only
if the funds in the Second Injury Fund or the Workers'
Compensation Benefit Trust Fund are insufficient to pay claims
and obligations of the Rate Adjustment Fund. All amounts
transferred from the Second Injury Fund, the General Revenue
Fund, and the Workers' Compensation Benefit Trust Fund shall
be repaid from the Rate Adjustment Fund within 270 days of a
transfer, together with interest at the rate earned by moneys
on deposit in the Fund or Funds from which the moneys were
transferred.
    Upon a finding by the Commission, after reasonable notice
and hearing, that any employer has willfully and knowingly
failed to pay the proper amounts into the Second Injury Fund or
the Rate Adjustment Fund required by this Section or if such
		HB5228 Enrolled	- 59 -	LRB104 20014 SPS 33465 b
payments are not made within the time periods prescribed by
this Section, the employer shall, in addition to such
payments, pay a penalty of 20% of the amount required to be
paid or $2,500, whichever is greater, for each year or part
thereof of such failure to pay. This penalty shall only apply
to obligations of an employer to the Second Injury Fund or the
Rate Adjustment Fund accruing after December 18, 1989 (the
effective date of Public Act 86-998). All or part of such a
penalty may be waived by the Commission for good cause shown.
    Any obligations of an employer to the Second Injury Fund
and Rate Adjustment Fund accruing prior to December 18, 1989
(the effective date of Public Act 86-998) shall be paid in full
by such employer within 5 years of December 18, 1989 (the
effective date of Public Act 86-998), with at least one-fifth
of such obligation to be paid during each year following
December 18, 1989 (the effective date of Public Act 86-998).
If the Commission finds, following reasonable notice and
hearing, that an employer has failed to make timely payment of
any obligation accruing under the preceding sentence, the
employer shall, in addition to all other payments required by
this Section, be liable for a penalty equal to 20% of the
overdue obligation or $2,500, whichever is greater, for each
year or part thereof that obligation is overdue. All or part of
such a penalty may be waived by the Commission for good cause
shown.
    The Chairman of the Illinois Workers' Compensation
		HB5228 Enrolled	- 60 -	LRB104 20014 SPS 33465 b
Commission shall, annually, furnish to the Director of the
Department of Insurance a list of the amounts paid into the
Second Injury Fund and the Rate Adjustment Fund by each
insurance company on behalf of their insured employers. The
Director shall verify to the Chairman that the amounts paid by
each insurance company are accurate as best as the Director
can determine from the records available to the Director. The
Chairman shall verify that the amounts paid by each
self-insurer are accurate as best as the Chairman can
determine from records available to the Chairman. The Chairman
may require each self-insurer to provide information
concerning the total compensation payments made upon which
contributions to the Second Injury Fund and the Rate
Adjustment Fund are predicated and any additional information
establishing that such payments have been made into these
funds. Any deficiencies in payments noted by the Director or
Chairman shall be subject to the penalty provisions of this
Act.
    The State Treasurer, or his duly authorized
representative, shall be named as a party to all proceedings
in all cases involving claim for the loss of, or the permanent
and complete loss of the use of one eye, one foot, one leg, one
arm or one hand.
    The State Treasurer or his duly authorized agent shall
have the same rights as any other party to the proceeding,
including the right to petition for review of any award. The
		HB5228 Enrolled	- 61 -	LRB104 20014 SPS 33465 b
reasonable expenses of litigation, such as medical
examinations, testimony, and transcript of evidence, incurred
by the State Treasurer or his duly authorized representative,
shall be borne by the Second Injury Fund.
    If the award is not paid within 30 days after the date the
award has become final, the Commission shall proceed to take
judgment thereon in its own name as is provided for other
awards by paragraph (g) of Section 19 of this Act and take the
necessary steps to collect the award.
    Any person, corporation or organization who has paid or
become liable for the payment of burial expenses of the
deceased employee may in his or its own name institute
proceedings before the Commission for the collection thereof.
    For the purpose of administration, receipts and
disbursements, the Special Fund provided for in paragraph (f)
of this Section shall be administered jointly with the Special
Fund provided for in paragraph (f) of Section 7 of the Workers'
Occupational Diseases Act.
    (g) All compensation, except for burial expenses provided
in this Section to be paid in case accident results in death,
shall be paid in installments equal to the percentage of the
average earnings as provided for in paragraph (b) of Section 8
of this Act, at the same intervals at which the wages or
earnings of the employees were paid. If this is not feasible,
then the installments shall be paid weekly. Such compensation
may be paid in a lump sum upon petition as provided in Section
		HB5228 Enrolled	- 62 -	LRB104 20014 SPS 33465 b
9 of this Act. However, in addition to the benefits provided by
Section 9 of this Act where compensation for death is payable
to the deceased's widow, widower or to the deceased's widow,
widower and one or more children, and where a partial lump sum
is applied for by such beneficiary or beneficiaries within 18
months after the deceased's death, the Commission may, in its
discretion, grant a partial lump sum of not to exceed 100 weeks
of the compensation capitalized at their present value upon
the basis of interest calculated at 3% per annum with annual
rests, upon a showing that such partial lump sum is for the
best interest of such beneficiary or beneficiaries.
    (h) In case the injured employee is under 16 years of age
at the time of the accident and is illegally employed, the
amount of compensation payable under paragraphs (a), (b), (c),
(d), and (f) of this Section shall be increased 50%.
    Nothing herein contained repeals or amends the provisions
of the Child Labor Law of 2024 relating to the employment of
minors under the age of 16 years.
    However, where an employer has on file an employment
certificate issued pursuant to the Child Labor Law of 2024 or
work permit issued pursuant to the Federal Fair Labor
Standards Act, as amended, or a birth certificate properly and
duly issued, such certificate, permit or birth certificate is
conclusive evidence as to the age of the injured minor
employee for the purposes of this Section only.
    (i) Whenever the dependents of a deceased employee are
		HB5228 Enrolled	- 63 -	LRB104 20014 SPS 33465 b
noncitizens not residing in the United States, Mexico or
Canada, the amount of compensation payable is limited to the
beneficiaries described in paragraphs (a), (b), and (c) of
this Section and is 50% of the compensation provided in
paragraphs (a), (b), and (c) of this Section, except as
otherwise provided by treaty.
    In a case where any of the persons who would be entitled to
compensation is living at any place outside of the United
States, then payment shall be made to the personal
representative of the deceased employee. The distribution by
such personal representative to the persons entitled shall be
made to such persons and in such manner as the Commission
orders.
(Source: P.A. 103-590, eff. 6-5-24; 103-721, eff. 1-1-25;
104-417, eff. 8-15-25.)
    (820 ILCS 305/8.7)
    Sec. 8.7. Utilization review programs.
    (a) As used in this Section:
    "Utilization review" means the evaluation of proposed or
provided health care services to determine the appropriateness
of both the level of health care services medically necessary
and the quality of health care services provided to a patient,
including evaluation of their efficiency, efficacy, and
appropriateness of treatment, hospitalization, or office
visits based on medically accepted standards. The evaluation
		HB5228 Enrolled	- 64 -	LRB104 20014 SPS 33465 b
must be accomplished by means of a system that identifies the
utilization of health care services based on standards of care
of nationally recognized peer review guidelines as well as
nationally recognized treatment guidelines and evidence-based
medicine based upon standards as provided in this Act.
Utilization techniques may include prospective review, second
opinions, concurrent review, discharge planning, peer review,
independent medical examinations, and retrospective review
(for purposes of this sentence, retrospective review shall be
applicable to services rendered on or after July 20, 2005).
Nothing in this Section applies to prospective review of
necessary first aid or emergency treatment.
    (b) No person may conduct a utilization review program for
workers' compensation services in this State unless once every
2 years the person registers the utilization review program
with the Department of Insurance and certifies compliance with
the Workers' Compensation Utilization Management standards or
Health Utilization Management Standards of URAC sufficient to
achieve URAC accreditation or submits evidence of
accreditation by URAC for its Workers' Compensation
Utilization Management Standards or Health Utilization
Management Standards. Nothing in this Act shall be construed
to require an employer or insurer or its subcontractors to
become URAC accredited.
    (c) In addition, the Director of Insurance may certify
alternative utilization review standards of national
		HB5228 Enrolled	- 65 -	LRB104 20014 SPS 33465 b
accreditation organizations or entities in order for plans to
comply with this Section. Any alternative utilization review
standards shall meet or exceed those standards required under
subsection (b).
    (d) This registration shall include submission of all of
the following information regarding utilization review program
activities:
        (1) The name, address, and telephone number of the
    utilization review programs.
        (2) The organization and governing structure of the
    utilization review programs.
        (3) The number of lives for which utilization review
    is conducted by each utilization review program.
        (4) Hours of operation of each utilization review
    program.
        (5) Description of the grievance process for each
    utilization review program.
        (6) Number of covered lives for which utilization
    review was conducted for the previous calendar year for
    each utilization review program.
        (7) Written policies and procedures for protecting
    confidential information according to applicable State and
    federal laws for each utilization review program.
    (e) A utilization review program shall have written
procedures to ensure that patient-specific information
obtained during the process of utilization review will be:
		HB5228 Enrolled	- 66 -	LRB104 20014 SPS 33465 b
        (1) kept confidential in accordance with applicable
    State and federal laws; and
        (2) shared only with the employee, the employee's
    designee, and the employee's health care provider, and
    those who are authorized by law to receive the
    information. Summary data shall not be considered
    confidential if it does not provide information to allow
    identification of individual patients or health care
    providers.
    Only a health care professional may make determinations
regarding the medical necessity of health care services during
the course of utilization review. Any adverse determination 
shall be made by a physician if the health care services are to 
be delivered or recommended by a physician. The reviewing 
physician shall have:
        (1) a current and valid nonrestricted license in any 
    United States jurisdiction and a current certification by 
    a recognized American medical specialty board in the area 
    or areas appropriate to the subject of the review; and
        (2) experience treating and managing patients with the 
    medical condition or disease for which the health care 
    service is being requested.
    Notwithstanding the provisions of this subsection, a 
licensed health care professional who satisfies the 
requirements of this subsection may make an adverse 
determination of a service request submitted by a health care 
		HB5228 Enrolled	- 67 -	LRB104 20014 SPS 33465 b
professional licensed in the same profession.
    When making retrospective reviews, utilization review
programs shall base reviews solely on the medical information
available to the attending physician or ordering provider at
the time the health care services were provided.
    (f) If the Department of Insurance finds that a
utilization review program is not in compliance with this
Section, the Department shall issue a corrective action plan
and allow a reasonable amount of time for compliance with the
plan. If the utilization review program does not come into
compliance, the Department may issue a cease and desist order.
Before issuing a cease and desist order under this Section,
the Department shall provide the utilization review program
with a written notice of the reasons for the order and allow a
reasonable amount of time to supply additional information
demonstrating compliance with the requirements of this Section
and to request a hearing. The hearing notice shall be sent by
certified mail, return receipt requested, and the hearing
shall be conducted in accordance with the Illinois
Administrative Procedure Act.
    (g) A utilization review program subject to a corrective
action may continue to conduct business until a final decision
has been issued by the Department.
    (h) The Department of Insurance may by rule establish a
registration fee for each person conducting a utilization
review program.
		HB5228 Enrolled	- 68 -	LRB104 20014 SPS 33465 b
    (i) Upon receipt of written notice that the employer or
the employer's agent or insurer wishes to invoke the
utilization review process, the provider of medical, surgical,
or hospital services shall submit to the utilization review,
following accredited procedural guidelines.
        (1) The provider shall make reasonable efforts to
    provide timely and complete reports of clinical
    information needed to support a request for treatment. If
    the provider fails to make such reasonable efforts, the
    charges for the treatment or service may not be
    compensable nor collectible by the provider or claimant
    from the employer, the employer's agent, or the employee.
    The reporting obligations of providers shall not be
    unreasonable or unduly burdensome.
        (2) Written notice of utilization review decisions,
    including the clinical rationale for certification or
    non-certification and references to applicable standards
    of care or evidence-based medical guidelines, shall be
    furnished to the provider and employee. The certification 
    shall be valid for the 3 months immediately after the date 
    on which the employee and health care provider receive the 
    certification or for the length of treatment as determined 
    by the employee's health care provider. If the 
    certification is for a proposed surgery, it shall be 
    inclusive of 3 months of postoperative health care 
    services as clinically indicated by the treating health 
		HB5228 Enrolled	- 69 -	LRB104 20014 SPS 33465 b
    care professional or for the length of treatment as 
    determined by the petitioner's treating health care 
    professional, completed by a licensed health care 
    professional.
        (2-5) A non-certification may be appealed. All appeals 
    shall be reviewed by a physician if the health care 
    services are to be delivered or recommended by a 
    physician. The reviewing physician shall have:
            (A) a current and valid nonrestricted license in 
        any United States jurisdiction and a current 
        certification by a recognized American medical 
        specialty board and, where applicable, subspecialty 
        board in the area or areas appropriate to the subject 
        of the review; and
            (B) experience treating and managing patients with 
        the medical condition or disease for which the health 
        care service is being requested.
        Notwithstanding the provisions of this paragraph, a 
    licensed health care professional who satisfies the 
    requirements of this subsection may make an adverse 
    determination of a service request submitted by a health 
    care professional licensed in the same profession.
        (3) An employer may only deny payment of or refuse to
    authorize payment of medical services rendered or proposed
    to be rendered on the grounds that the extent and scope of
    medical treatment is excessive and unnecessary in
		HB5228 Enrolled	- 70 -	LRB104 20014 SPS 33465 b
    compliance with an accredited utilization review program
    under this Section.
        (4) When a payment for medical services has been
    denied or not authorized by an employer or when
    authorization for medical services is denied pursuant to
    utilization review, the employee has the burden of proof
    to show by a preponderance of the evidence that a variance
    from the standards of care used by the person or entity
    performing the utilization review pursuant to subsection
    (a) is reasonably required to cure or relieve the effects
    of his or her injury.
        (5) The medical professional responsible for review in
    the final stage of utilization review or appeal must be
    available in this State for interview or deposition; or
    must be available for deposition by telephone, video
    conference, or other remote electronic means. A medical
    professional who works or resides in this State or outside
    of this State may comply with this requirement by making
    himself or herself available for an interview or
    deposition in person or by making himself or herself
    available by telephone, video conference, or other remote
    electronic means. The remote interview or deposition shall
    be conducted in a fair, open, and cost-effective manner.
    The expense of interview and the deposition method shall
    be paid by the employer. The deponent shall be in the
    presence of the officer administering the oath and
		HB5228 Enrolled	- 71 -	LRB104 20014 SPS 33465 b
    recording the deposition, unless otherwise agreed by the
    parties. Any exhibits or other demonstrative evidence to
    be presented to the deponent by any party at the
    deposition shall be provided to the officer administering
    the oath and all other parties within a reasonable period
    of time prior to the deposition. Nothing shall prohibit
    any party from being with the deponent during the
    deposition, at that party's expense; provided, however,
    that a party attending a deposition shall give written
    notice of that party's intention to appear at the
    deposition to all other parties within a reasonable time
    prior to the deposition.
    An admissible utilization review shall be considered by
the Commission, along with all other evidence and in the same
manner as all other evidence, and must be addressed along with
all other evidence in the determination of the reasonableness
and necessity of the medical bills or treatment. Nothing in
this Section shall be construed to diminish the rights of
employees to reasonable and necessary medical treatment or
employee choice of health care provider under Section 8(a) or
the rights of employers to medical examinations under Section
12.
    (j) When an employer denies payment of or refuses to
authorize payment of first aid, medical, surgical, or hospital
services under Section 8(a) of this Act, if that denial or
refusal to authorize complies with a utilization review
		HB5228 Enrolled	- 72 -	LRB104 20014 SPS 33465 b
program registered under this Section and complies with all
other requirements of this Section, then there shall be a
rebuttable presumption that the employer shall not be
responsible for payment of additional compensation pursuant to
Section 19(k) of this Act and if that denial or refusal to
authorize does not comply with a utilization review program
registered under this Section and does not comply with all
other requirements of this Section, then that will be
considered by the Commission, along with all other evidence
and in the same manner as all other evidence, in the
determination of whether the employer may be responsible for
the payment of additional compensation pursuant to Section
19(k) of this Act.
    The changes to this Section made by this amendatory Act of
the 97th General Assembly apply only to health care services
provided or proposed to be provided on or after September 1,
2011.
(Source: P.A. 97-18, eff. 6-28-11.)
    (820 ILCS 305/12)  (from Ch. 48, par. 138.12)
    Sec. 12. An employee entitled to receive disability
payments shall be required, if requested by the employer, to
submit himself, at the expense of the employer, for
examination to a duly qualified medical practitioner or
surgeon selected by the employer, at any time and place
reasonably convenient for the employee, either within or
		HB5228 Enrolled	- 73 -	LRB104 20014 SPS 33465 b
without the State of Illinois, for the purpose of determining
the nature, extent and probable duration of the injury
received by the employee, and for the purpose of ascertaining
the amount of compensation which may be due the employee from
time to time for disability according to the provisions of
this Act. An employee may also be required to submit himself
for examination by medical experts under subsection (c) of
Section 19.
    If an employer asks a medical practitioner for an 
examination of the reasonableness and necessity of the medical 
services proposed or provided under subsection (a) of Section 
8, instead of a utilization review under Section 8.7, the 
examination required under this Section and the report of the 
examination shall be provided by the medical practitioner to 
the employee or the employee's representative and the 
employee's treating health care professional within 90 days 
after receipt of the request for the examination of the 
reasonableness and necessity of treatment. The 90-day period 
begins when the employer receives the medical records from the 
treating health care professional requesting the medical 
service. The employer or the employer's representative shall 
exercise due diligence in requesting and collecting the 
employee's medical records in accordance with all applicable 
laws. The medical practitioner who performs the examination to 
determine the reasonableness and necessity of treatment shall 
be board certified in the same specialty as the treating 
		HB5228 Enrolled	- 74 -	LRB104 20014 SPS 33465 b
health care professional. If the employer fails to comply with 
this paragraph after receiving the medical records from the 
treating health care professional requesting the medical 
service, there is a rebuttable presumption that the employer 
shall be responsible for the payment of additional 
compensation under Section 16 and subsection (l) of Section 
19. This paragraph applies to the failure to authorize or 
approve treatment as well as the failure to pay for treatment.
    An employer requesting such an examination, of an employee
residing within the State of Illinois, shall deliver to the
employee with the notice of the time and place of examination
sufficient money to defray the necessary expense of travel by
the most convenient means to and from the place of
examination, and the cost of meals necessary during the trip,
and if the examination or travel to and from the place of
examination causes any loss of working time on the part of the
employee, the employer shall reimburse him for such loss of
wages upon the basis of his average daily wage. Such
examination shall be made in the presence of a duly qualified
medical practitioner or surgeon provided and paid for by the
employee, if such employee so desires.
    In all cases where the examination is made by a surgeon
engaged by the employer, and the injured employee has no
surgeon present at such examination, it shall be the duty of
the surgeon making the examination at the instance of the
employer to deliver to the injured employee, or his
		HB5228 Enrolled	- 75 -	LRB104 20014 SPS 33465 b
representative, a statement in writing of the condition and
extent of the injury to the same extent that said surgeon
reports to the employer and the same shall be an exact copy of
that furnished to the employer, said copy to be furnished the
employee, or his representative as soon as practicable but not
later than 48 hours before the time the case is set for
hearing. Such delivery shall be made in person either to the
employee or his representative, or by registered mail to
either, and the receipt of either shall be proof of such
delivery. If such surgeon refuses to furnish the employee with
such statement to the same extent as that furnished the
employer said surgeon shall not be permitted to testify at the
hearing next following said examination.
    If the employee refuses so to submit himself to
examination or unnecessarily obstructs the same, his right to
compensation payments shall be temporarily suspended until
such examination shall have taken place, and no compensation
shall be payable under this Act for such period.
    It shall be the duty of surgeons treating an injured
employee who is likely to die, and treating him at the instance
of the employer, to have called in another surgeon to be
designated and paid for by either the injured employee or by
the person or persons who would become his beneficiary or
beneficiaries, to make an examination before the death of such
injured employee.
    In all cases where the examination is made by a surgeon
		HB5228 Enrolled	- 76 -	LRB104 20014 SPS 33465 b
engaged by the injured employee, and the employer has no
surgeon present at such examination, it shall be the duty of
the surgeon making the examination at the instance of the
employee, to deliver to the employer, or his representative, a
statement in writing of the condition and extent of the injury
to the same extent that said surgeon reports to the employee
and the same shall be an exact copy of that furnished to the
employee, said copy to be furnished the employer, or his
representative, as soon as practicable but not later than 48
hours before the time the case is set for hearing. Such
delivery shall be made in person either to the employer, or his
representative, or by registered mail to either, and the
receipt of either shall be proof of such delivery. If such
surgeon refuses to furnish the employer with such statement to
the same extent as that furnished the employee, said surgeon
shall not be permitted to testify at the hearing next
following said examination.
(Source: P.A. 94-277, eff. 7-20-05.)
    Section 99. Effective date. This Act takes effect upon
becoming law.

Reinserts the provisions of the engrossed bill with the following changes. Amends the Illinois Insurance Code. Provides that, on or before July 1, 2026 or 15 days after the effective date of the amendatory Act, whichever is later, and on or before July 1 of each year thereafter, in addition to the amount required, the Director shall charge an amount to be included in a company's obligation to pay the annual Illinois Workers' Compensation Commission Operations Fund Surcharge. Sets forth provisions concerning the process for calculating the additional amount and notice requirements for the Department of Insurance before collecting the additional amount. Provides that the additional amount shall be deposited into the Illinois Workers' Compensation Commission Operations Fund. Establishes procedures for determining the additional amount if a company survives or was formed by a merger, consolidation, reorganization, or reincorporation. Further amends the Workers' Compensation Act. In provisions concerning the amount of compensation which shall be paid for an accidental injury to the employee resulting in death, provides that the sum of $10,000 (rather than $8,000) for burial expenses shall be paid by the employer to the widow or widower, other dependent, next of kin or to the person or persons incurring the expense of burial. Sets forth provisions concerning the development of standards to be used as part of the utilization review process. Provides that any adverse determination made during the utilization review process shall be made by a physician if the health care services are to be delivered or are recommended by a physician. Provides that certification made under the utilization review process shall be valid for the 3 months immediately after the date on which the employee and health care provider receive the certification or for the length of treatment as determined by the employee's health care provider. Sets forth procedures for the appeal of a non-certification. Provides that, if an employer asks a medical practitioner for an examination of the reasonableness and necessity of the medical services proposed or provided, instead of a utilization review, the examination and the report of the examination shall be provided by the medical practitioner to the employee or the employee's representative and the employee's treating health care professional within 90 days after receipt of the request for the examination of the reasonableness and necessity of treatment. Makes other changes. Effective immediately.

Sponsors

Rep. Jay Hoffman (D) sponsors HB 5228, and 2 members have co-sponsored it.

Committees

HB 5228 went before 5 committees: Rules, Labor & Commerce, Assignments, Judiciary and Executive.

Rules
Rules
Referred to · Feb 10, 2026 · 5,290 Bills
Labor & Commerce
Labor & Commerce
Referred to · Mar 18, 2026
Assignments
Assignments
Referred to · Apr 21, 2026
Judiciary
Judiciary
Referred to · Apr 28, 2026
Executive
Executive
Referred to · May 29, 2026

History

HB 5228 has taken 56 actions since Feb 5, 2026, the latest on Aug 7, 2026.

ChamberAction
Aug 7, 2026
House
Governor Approved
Aug 7, 2026
House
Effective Date August 7, 2026
Aug 7, 2026
House
Public Act . . . . . . . . . 104-0792
Jun 26, 2026
House
Sent to the Governor
May 31, 2026
House
Senate Floor Amendment No. 2 Motion to Concur Recommends Be Adopted Labor & Commerce Committee; 018-010-000

Votes

HB 5228 went to 6 roll calls across both chambers, the latest on May 31, 2026 at 18–10.

ChamberQuestion
Yea
Nay
May 31, 2026
House
House Labor & Commerce Committee
18
10
May 31, 2026
House
House Concurrence
89
27
May 30, 2026
Senate
Senate Third Reading
39
19
May 29, 2026
Senate
Senate Executive Committee
9
4
Apr 17, 2026
House
House Third Reading
76
24

Source: ilga.gov · legiscan.com