Full Text of HB3349 98th General Assembly
HB3349enr 98TH GENERAL ASSEMBLY |
| | HB3349 Enrolled | | LRB098 09295 JDS 39435 b |
|
| 1 | | AN ACT concerning safety.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 1. Legislative findings. In 1997, Public Act 90-502 | 5 | | established the Drycleaner Environmental Response Trust Fund | 6 | | (Trust Fund) in response to requests by operators of retail | 7 | | drycleaning facilities to have financial resources available | 8 | | to pay for the cleanup of spills and leaks from drycleaning | 9 | | machines and solvent storage units. | 10 | | The purpose of the Trust Fund is to pay for the remediation | 11 | | of soil and groundwater contamination at both inactive and | 12 | | active drycleaner sites, as well as prevent future spills and | 13 | | leaks of drycleaning solvent. | 14 | | The Trust Fund consists of three primary programs: a | 15 | | licensing program, an insurance program, and a remedial | 16 | | program. | 17 | | The Trust Fund is financed by an annual license fee on | 18 | | active drycleaning facilities; a solvent fee tax charged on | 19 | | each gallon of drycleaning solvent purchased; and insurance | 20 | | premiums for pollution liability insurance coverage. | 21 | | A private company currently provides third-party | 22 | | administrative services for the Trust Fund, including, but not | 23 | | limited to: receiving and processing license applications, | 24 | | receiving and processing applications for insurance coverage, |
| | | HB3349 Enrolled | - 2 - | LRB098 09295 JDS 39435 b |
|
| 1 | | receiving and processing claims, and furnishing other | 2 | | accounting and record-keeping services. | 3 | | Over the course of its operation, the Trust Fund has paid | 4 | | over $31 million for remedial action and insurance claims. | 5 | | The Trust Fund currently has a backlog of unpaid claims | 6 | | totaling $27 million. | 7 | | There are approximately 230 sites that still need to be | 8 | | remediated using moneys in the Trust Fund. | 9 | | Under the current system, the Trust Fund's existing funding | 10 | | sources will not be sufficient to keep up with projected costs | 11 | | and remedial action and insurance claims; thereby increasing | 12 | | the potential for drycleaning solvent releases to impact a | 13 | | larger number of drinking water supplies and threatening many | 14 | | others across the State. | 15 | | The most recent estimate of reimbursement fund balance | 16 | | reveals the Trust Fund is projected to have a deficit of $14 | 17 | | million by its sunset date of January 1, 2020. | 18 | | Most drycleaners are small, independently-owned | 19 | | businesses, and if the Trust Fund is not solvent, drycleaners | 20 | | may not be able to remediate solvent releases in a responsible | 21 | | manner. | 22 | | The General Assembly finds that it is necessary to form a | 23 | | Task Force to study the resource challenges and implementation | 24 | | issues that the Trust Fund currently faces. | 25 | | Section 5. The Drycleaner Environmental Response Trust |
| | | HB3349 Enrolled | - 3 - | LRB098 09295 JDS 39435 b |
|
| 1 | | Fund Act is amended by changing Section 45 and by adding | 2 | | Section 27 as follows: | 3 | | (415 ILCS 135/27 new) | 4 | | Sec. 27. Drycleaner Environmental Response Trust Fund Task | 5 | | Force. | 6 | | (a) There is created the Drycleaner Environmental Response | 7 | | Trust Fund Task Force ("Task Force"). The Task Force shall | 8 | | study the resource challenges and implementation issues that | 9 | | the Fund faces and make recommendations for adequately funding | 10 | | the Fund and for refining and improving the goals and | 11 | | implementation of the Trust Fund program. In conducting the | 12 | | study of the Trust Fund program, the Task Force shall consider | 13 | | appropriate changes to the existing program, including, but not | 14 | | limited to, the following: administration of the program, | 15 | | program eligibility, program goals, fee structures, | 16 | | administrative expenses, licensing requirements, benefits for | 17 | | participation, compliance assurance and continuing education | 18 | | standards, and sunset date. | 19 | | (b) The Council shall be composed of the following members: | 20 | | (1) Two members appointed by the Speaker of the House, | 21 | | one of whom shall be designated as co-chairperson of the | 22 | | Task Force; | 23 | | (2) Two members appointed by the Minority Leader of the | 24 | | House; | 25 | | (3) Two members appointed by the President of the |
| | | HB3349 Enrolled | - 4 - | LRB098 09295 JDS 39435 b |
|
| 1 | | Senate, one of whom shall be designated as co-chairperson | 2 | | of the Task Force; | 3 | | (4) Two members appointed by the Minority Leader of the | 4 | | Senate; | 5 | | (5) Seven members appointed by the Governor to | 6 | | represent the dry cleaning industry, including two members | 7 | | who represent a statewide dry cleaners' organization, | 8 | | three members who represent regional or major metropolitan | 9 | | dry cleaning associations, and two members representing an | 10 | | in-state wholesale distributor of dry cleaning agents; | 11 | | (6) One person appointed by the Governor to represent | 12 | | the Drycleaner Environmental Response Trust Fund Council; | 13 | | and | 14 | | (7) The Director of the Illinois Environmental | 15 | | Protection Agency, or his or her designee. | 16 | | (c) The members of the Task Force shall serve without | 17 | | compensation. | 18 | | (d) The Illinois Environmental Protection Agency shall | 19 | | provide administrative support to the Task Force. | 20 | | (e) In making its determinations, the Task Force must hold | 21 | | at least 3 public meetings in 3 separate metropolitan areas of | 22 | | the State. | 23 | | (f) The Task Force shall submit a report of its findings | 24 | | and recommendations, which shall include proposed legislation, | 25 | | to the Governor and to the General Assembly by no later than | 26 | | December 31, 2014. |
| | | HB3349 Enrolled | - 5 - | LRB098 09295 JDS 39435 b |
|
| 1 | | (g) This Section is repealed on January 1, 2016.
| 2 | | (415 ILCS 135/45)
| 3 | | Sec. 45. Insurance account.
| 4 | | (a) The insurance account shall offer financial assurance | 5 | | for a qualified
owner
or operator of a drycleaning facility | 6 | | under the terms and conditions provided
for under this Section. | 7 | | Coverage may be provided to either the owner or the
operator of | 8 | | a drycleaning facility. The
Council is not required to resolve | 9 | | whether the owner or operator, or both,
are responsible for a | 10 | | release under the terms of an agreement between
the owner and | 11 | | operator.
| 12 | | (b) The source of funds for the insurance account shall be | 13 | | as follows:
| 14 | | (1) Moneys appropriated to the Council or moneys | 15 | | allocated to the
insurance
account by the Council according | 16 | | to the Fund budget approved by the
Council.
| 17 | | (2) Moneys collected as an insurance premium, | 18 | | including service fees, if
any.
| 19 | | (3) Investment income attributed to the insurance | 20 | | account by the Council.
| 21 | | (c) An owner or operator may purchase
coverage of up to | 22 | | $500,000 per drycleaning facility subject to the terms and
| 23 | | conditions under this Section and those adopted by the Council. | 24 | | Coverage
shall be limited to remedial action costs associated | 25 | | with soil and
groundwater contamination resulting from a |
| | | HB3349 Enrolled | - 6 - | LRB098 09295 JDS 39435 b |
|
| 1 | | release of drycleaning solvent
at an insured drycleaning | 2 | | facility, including third-party liability for soil
and | 3 | | groundwater contamination. Coverage is not provided for a | 4 | | release
that occurred before the date of coverage.
| 5 | | (d) An
owner or operator, subject to underwriting | 6 | | requirements and terms
and conditions deemed necessary and | 7 | | convenient by the Council, may
purchase insurance coverage from | 8 | | the insurance account provided that
the drycleaning facility to | 9 | | be insured meets the following conditions:
| 10 | | (1) a site investigation designed to identify soil and
| 11 | | groundwater contamination resulting from the release
of a | 12 | | drycleaning solvent has been completed. The Council shall | 13 | | determine if the
site
investigation is adequate. This | 14 | | investigation must be completed by
June 30, 2006. For | 15 | | drycleaning facilities that
apply for insurance coverage | 16 | | after
June 30, 2006, the site investigation must be
| 17 | | completed prior to
issuance of insurance coverage; and
| 18 | | (2) the drycleaning facility
is participating in and | 19 | | meets all requirements of a
drycleaning compliance program | 20 | | approved by the Council.
| 21 | | (e) The annual premium for insurance coverage shall be:
| 22 | | (1) For the year July 1, 1999 through June 30,
2000, | 23 | | $250
per drycleaning facility.
| 24 | | (2) For the year July 1, 2000 through
June 30, 2001, | 25 | | $375
per drycleaning facility.
| 26 | | (3) For the year July 1, 2001 through
June 30, 2002, |
| | | HB3349 Enrolled | - 7 - | LRB098 09295 JDS 39435 b |
|
| 1 | | $500
per drycleaning facility.
| 2 | | (4) For the year July 1, 2002 through
June 30, 2003, | 3 | | $625
per drycleaning facility.
| 4 | | (5) For subsequent years, an owner or operator applying | 5 | | for
coverage shall pay an annual actuarially-sound | 6 | | insurance premium
for coverage by the insurance account. | 7 | | The Council may approve
Fund coverage through the payment | 8 | | of a premium established on
an actuarially-sound basis, | 9 | | taking into consideration the risk to the
insurance account | 10 | | presented by the insured.
Risk factor adjustments utilized | 11 | | to determine actuarially-sound
insurance premiums should | 12 | | reflect the range of risk presented by
the variety of | 13 | | drycleaning systems, monitoring systems, drycleaning
| 14 | | volume, risk management practices, and other factors as
| 15 | | determined by the Council. As used in this item, | 16 | | "actuarially sound" is not
limited to Fund premium revenue | 17 | | equaling or exceeding Fund
expenditures for the general | 18 | | drycleaning facility population.
Actuarially-determined | 19 | | premiums shall be published at least 180
days prior to the | 20 | | premiums becoming effective.
| 21 | | (e-5) If an insurer sends a second notice to an owner or | 22 | | operator demanding immediate payment of a past-due premium for | 23 | | insurance services provided pursuant to this Act, the demand | 24 | | for payment must offer a grace period of not less than 30 days | 25 | | during which the owner or operator shall be allowed to pay any | 26 | | premiums due. If payment is made during that period, coverage |
| | | HB3349 Enrolled | - 8 - | LRB098 09295 JDS 39435 b |
|
| 1 | | under this Act shall not be terminated for non-payment by the | 2 | | insurer. | 3 | | (e-6) If an insurer terminates an owner or operator's | 4 | | coverage under this Act, the insurer must send a written notice | 5 | | to the owner or operator to inform him or her of the | 6 | | termination of that coverage, and that notice must include | 7 | | instructions on how to seek reinstatement of coverage, as well | 8 | | as information concerning any premiums or penalties that might | 9 | | be due. | 10 | | (f) If coverage is purchased for any part of a year, the | 11 | | purchaser shall pay
the full annual premium. The insurance | 12 | | premium is fully earned upon issuance
of the insurance policy.
| 13 | | (g) The insurance coverage shall be provided with a
$10,000 | 14 | | deductible policy.
| 15 | | (h) A future repeal of this Section shall not terminate
the
| 16 | | obligations under this Section or authority necessary to | 17 | | administer the
obligations until the obligations are | 18 | | satisfied, including but not limited to
the payment of claims | 19 | | filed prior
to the effective date of any future repeal against | 20 | | the insurance account until
moneys in the account are | 21 | | exhausted. Upon exhaustion of the
moneys in the account, any | 22 | | remaining claims shall be invalid. If moneys remain
in the | 23 | | account following
satisfaction of the obligations under this | 24 | | Section,
the remaining moneys and moneys due the account shall | 25 | | be
used to assist current insureds to obtain a viable insuring | 26 | | mechanism as
determined by the Council after public notice and |
| | | HB3349 Enrolled | - 9 - | LRB098 09295 JDS 39435 b |
|
| 1 | | opportunity for
comment.
| 2 | | (Source: P.A. 93-201, eff. 1-1-04.)
| 3 | | Section 99. Effective date. This Act takes effect upon | 4 | | becoming law.
|
|