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Public Act 098-0327
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| HB3349 Enrolled | LRB098 09295 JDS 39435 b |
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AN ACT concerning safety.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 1. Legislative findings. In 1997, Public Act 90-502 |
established the Drycleaner Environmental Response Trust Fund |
(Trust Fund) in response to requests by operators of retail |
drycleaning facilities to have financial resources available |
to pay for the cleanup of spills and leaks from drycleaning |
machines and solvent storage units. |
The purpose of the Trust Fund is to pay for the remediation |
of soil and groundwater contamination at both inactive and |
active drycleaner sites, as well as prevent future spills and |
leaks of drycleaning solvent. |
The Trust Fund consists of three primary programs: a |
licensing program, an insurance program, and a remedial |
program. |
The Trust Fund is financed by an annual license fee on |
active drycleaning facilities; a solvent fee tax charged on |
each gallon of drycleaning solvent purchased; and insurance |
premiums for pollution liability insurance coverage. |
A private company currently provides third-party |
administrative services for the Trust Fund, including, but not |
limited to: receiving and processing license applications, |
receiving and processing applications for insurance coverage, |
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receiving and processing claims, and furnishing other |
accounting and record-keeping services. |
Over the course of its operation, the Trust Fund has paid |
over $31 million for remedial action and insurance claims. |
The Trust Fund currently has a backlog of unpaid claims |
totaling $27 million. |
There are approximately 230 sites that still need to be |
remediated using moneys in the Trust Fund. |
Under the current system, the Trust Fund's existing funding |
sources will not be sufficient to keep up with projected costs |
and remedial action and insurance claims; thereby increasing |
the potential for drycleaning solvent releases to impact a |
larger number of drinking water supplies and threatening many |
others across the State. |
The most recent estimate of reimbursement fund balance |
reveals the Trust Fund is projected to have a deficit of $14 |
million by its sunset date of January 1, 2020. |
Most drycleaners are small, independently-owned |
businesses, and if the Trust Fund is not solvent, drycleaners |
may not be able to remediate solvent releases in a responsible |
manner. |
The General Assembly finds that it is necessary to form a |
Task Force to study the resource challenges and implementation |
issues that the Trust Fund currently faces.
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Section 5. The Drycleaner Environmental Response Trust |
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Fund Act is amended by changing Section 45 and by adding |
Section 27 as follows:
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(415 ILCS 135/27 new) |
Sec. 27. Drycleaner Environmental Response Trust Fund Task |
Force. |
(a) There is created the Drycleaner Environmental Response |
Trust Fund Task Force ("Task Force"). The Task Force shall |
study the resource challenges and implementation issues that |
the Fund faces and make recommendations for adequately funding |
the Fund and for refining and improving the goals and |
implementation of the Trust Fund program. In conducting the |
study of the Trust Fund program, the Task Force shall consider |
appropriate changes to the existing program, including, but not |
limited to, the following: administration of the program, |
program eligibility, program goals, fee structures, |
administrative expenses, licensing requirements, benefits for |
participation, compliance assurance and continuing education |
standards, and sunset date. |
(b) The Council shall be composed of the following members: |
(1) Two members appointed by the Speaker of the House, |
one of whom shall be designated as co-chairperson of the |
Task Force; |
(2) Two members appointed by the Minority Leader of the |
House; |
(3) Two members appointed by the President of the |
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Senate, one of whom shall be designated as co-chairperson |
of the Task Force; |
(4) Two members appointed by the Minority Leader of the |
Senate; |
(5) Seven members appointed by the Governor to |
represent the dry cleaning industry, including two members |
who represent a statewide dry cleaners' organization, |
three members who represent regional or major metropolitan |
dry cleaning associations, and two members representing an |
in-state wholesale distributor of dry cleaning agents; |
(6) One person appointed by the Governor to represent |
the Drycleaner Environmental Response Trust Fund Council; |
and |
(7) The Director of the Illinois Environmental |
Protection Agency, or his or her designee. |
(c) The members of the Task Force shall serve without |
compensation. |
(d) The Illinois Environmental Protection Agency shall |
provide administrative support to the Task Force. |
(e) In making its determinations, the Task Force must hold |
at least 3 public meetings in 3 separate metropolitan areas of |
the State. |
(f) The Task Force shall submit a report of its findings |
and recommendations, which shall include proposed legislation, |
to the Governor and to the General Assembly by no later than |
December 31, 2014. |
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(g) This Section is repealed on January 1, 2016.
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(415 ILCS 135/45)
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Sec. 45. Insurance account.
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(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.
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(b) The source of funds for the insurance account shall be |
as follows:
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(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.
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(2) Moneys collected as an insurance premium, |
including service fees, if
any.
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(3) Investment income attributed to the insurance |
account by the Council.
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(c) An owner or operator may purchase
coverage of up to |
$500,000 per drycleaning facility subject to the terms and
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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 |
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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.
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(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:
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(1) a site investigation designed to identify soil and
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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
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completed prior to
issuance of insurance coverage; and
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(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:
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(1) For the year July 1, 1999 through June 30,
2000, |
$250
per drycleaning facility.
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(2) For the year July 1, 2000 through
June 30, 2001, |
$375
per drycleaning facility.
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(3) For the year July 1, 2001 through
June 30, 2002, |
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$500
per drycleaning facility.
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(4) For the year July 1, 2002 through
June 30, 2003, |
$625
per drycleaning facility.
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(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
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volume, risk management practices, and other factors as
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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 an insurer sends a second notice to an owner or |
operator demanding immediate payment of a past-due premium for |
insurance services provided pursuant to this Act, the demand |
for payment must offer a grace period of not less than 30 days |
during which the owner or operator shall be allowed to pay any |
premiums due. If payment is made during that period, coverage |
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under this Act shall not be terminated for non-payment by the |
insurer. |
(e-6) If an insurer terminates an owner or operator's |
coverage under this Act, the insurer must send a written notice |
to the owner or operator to inform him or her of the |
termination of that coverage, and that notice must include |
instructions on how to seek reinstatement of coverage, as well |
as information concerning any premiums or penalties that might |
be due. |
(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.
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(g) The insurance coverage shall be provided with a
$10,000 |
deductible policy.
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(h) A future repeal of this Section shall not terminate
the
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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 |
mechanism as
determined by the Council after public notice and |