Bill Text: IL HB3349 | 2013-2014 | 98th General Assembly | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Amends the Drycleaner Environmental Response Trust Fund Act. Provides that, if the coverage of an owner or operator under the insurance account ceases for a reason other than the submittal of a claim on that account or the existence of an emergency or emergency action, then the owner or operator may reenroll in the program of coverage provided through the account by paying an annual premium calculated using the same risk basis as on the date that the owner or operator was last covered under the account. Effective immediately.

Spectrum: Slight Partisan Bill (Republican 2-1)

Status: (Passed) 2013-08-13 - Public Act . . . . . . . . . 98-0327 [HB3349 Detail]

Download: Illinois-2013-HB3349-Engrossed.html

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HB3349 Engrossed LRB098 09295 JDS 39435 b
AN ACT concerning safety.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Drycleaner Environmental Response Trust
Fund Act is amended by changing Section 45 as follows:
(415 ILCS 135/45)
Sec. 45. Insurance account.
(a) The insurance account shall offer financial assurance
for a qualified owner or operator of a drycleaning facility
under the terms and conditions provided for under this Section.
Coverage may be provided to either the owner or the operator of
a drycleaning facility. The Council is not required to resolve
whether the owner or operator, or both, are responsible for a
release under the terms of an agreement between the owner and
operator.
(b) The source of funds for the insurance account shall be
as follows:
(1) Moneys appropriated to the Council or moneys
allocated to the insurance account by the Council according
to the Fund budget approved by the Council.
(2) Moneys collected as an insurance premium,
including service fees, if any.
(3) Investment income attributed to the insurance

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account by the Council.
(c) An owner or operator may purchase coverage of up to
$500,000 per drycleaning facility subject to the terms and
conditions under this Section and those adopted by the Council.
Coverage shall be limited to remedial action costs associated
with soil and groundwater contamination resulting from a
release of drycleaning solvent at an insured drycleaning
facility, including third-party liability for soil and
groundwater contamination. Coverage is not provided for a
release that occurred before the date of coverage.
(d) An owner or operator, subject to underwriting
requirements and terms and conditions deemed necessary and
convenient by the Council, may purchase insurance coverage from
the insurance account provided that the drycleaning facility to
be insured meets the following conditions:
(1) a site investigation designed to identify soil and
groundwater contamination resulting from the release of a
drycleaning solvent has been completed. The Council shall
determine if the site investigation is adequate. This
investigation must be completed by June 30, 2006. For
drycleaning facilities that apply for insurance coverage
after June 30, 2006, the site investigation must be
completed prior to issuance of insurance coverage; and
(2) the drycleaning facility is participating in and
meets all requirements of a drycleaning compliance program
approved by the Council.

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(e) The annual premium for insurance coverage shall be:
(1) For the year July 1, 1999 through June 30, 2000,
$250 per drycleaning facility.
(2) For the year July 1, 2000 through June 30, 2001,
$375 per drycleaning facility.
(3) For the year July 1, 2001 through June 30, 2002,
$500 per drycleaning facility.
(4) For the year July 1, 2002 through June 30, 2003,
$625 per drycleaning facility.
(5) For subsequent years, an owner or operator applying
for coverage shall pay an annual actuarially-sound
insurance premium for coverage by the insurance account.
The Council may approve Fund coverage through the payment
of a premium established on an actuarially-sound basis,
taking into consideration the risk to the insurance account
presented by the insured. Risk factor adjustments utilized
to determine actuarially-sound insurance premiums should
reflect the range of risk presented by the variety of
drycleaning systems, monitoring systems, drycleaning
volume, risk management practices, and other factors as
determined by the Council. As used in this item,
"actuarially sound" is not limited to Fund premium revenue
equaling or exceeding Fund expenditures for the general
drycleaning facility population. Actuarially-determined
premiums shall be published at least 180 days prior to the
premiums becoming effective.

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(e-5) If the coverage of an active drycleaning facility
owner or operator under the insurance account ceases for a
reason other than the submittal of a claim on that account or
the existence of an emergency or emergency action, as defined
in Section 5 of this Act, then the active drycleaning facility
owner or operator may re-enroll in the program of coverage
provided through the account by paying the full annual premium
calculated using the same risk basis as on the date that the
owner or operator was last covered under the account and a 20%
late fee.
(f) If coverage is purchased for any part of a year, the
purchaser shall pay the full annual premium. The insurance
premium is fully earned upon issuance of the insurance policy.
(g) The insurance coverage shall be provided with a $10,000
deductible policy.
(h) A future repeal of this Section shall not terminate the
obligations under this Section or authority necessary to
administer the obligations until the obligations are
satisfied, including but not limited to the payment of claims
filed prior to the effective date of any future repeal against
the insurance account until moneys in the account are
exhausted. Upon exhaustion of the moneys in the account, any
remaining claims shall be invalid. If moneys remain in the
account following satisfaction of the obligations under this
Section, the remaining moneys and moneys due the account shall
be used to assist current insureds to obtain a viable insuring

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mechanism as determined by the Council after public notice and
opportunity for comment.
(Source: P.A. 93-201, eff. 1-1-04.)
Section 99. Effective date. This Act takes effect upon
becoming law.