Full Text of HB4488 97th General Assembly
HB4488 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 HB4488 Introduced 1/31/2012, by Rep. Michael W. Tryon SYNOPSIS AS INTRODUCED: |
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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.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| 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 5. The Drycleaner Environmental Response Trust | 5 | | Fund Act is amended by changing Section 45 as follows:
| 6 | | (415 ILCS 135/45)
| 7 | | Sec. 45. Insurance account.
| 8 | | (a) The insurance account shall offer financial assurance | 9 | | for a qualified
owner
or operator of a drycleaning facility | 10 | | under the terms and conditions provided
for under this Section. | 11 | | Coverage may be provided to either the owner or the
operator of | 12 | | a drycleaning facility. The
Council is not required to resolve | 13 | | whether the owner or operator, or both,
are responsible for a | 14 | | release under the terms of an agreement between
the owner and | 15 | | operator.
| 16 | | (b) The source of funds for the insurance account shall be | 17 | | as follows:
| 18 | | (1) Moneys appropriated to the Council or moneys | 19 | | allocated to the
insurance
account by the Council according | 20 | | to the Fund budget approved by the
Council.
| 21 | | (2) Moneys collected as an insurance premium, | 22 | | including service fees, if
any.
| 23 | | (3) Investment income attributed to the insurance |
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| 1 | | account by the Council.
| 2 | | (c) An owner or operator may purchase
coverage of up to | 3 | | $500,000 per drycleaning facility subject to the terms and
| 4 | | conditions under this Section and those adopted by the Council. | 5 | | Coverage
shall be limited to remedial action costs associated | 6 | | with soil and
groundwater contamination resulting from a | 7 | | release of drycleaning solvent
at an insured drycleaning | 8 | | facility, including third-party liability for soil
and | 9 | | groundwater contamination. Coverage is not provided for a | 10 | | release
that occurred before the date of coverage.
| 11 | | (d) An
owner or operator, subject to underwriting | 12 | | requirements and terms
and conditions deemed necessary and | 13 | | convenient by the Council, may
purchase insurance coverage from | 14 | | the insurance account provided that
the drycleaning facility to | 15 | | be insured meets the following conditions:
| 16 | | (1) a site investigation designed to identify soil and
| 17 | | groundwater contamination resulting from the release
of a | 18 | | drycleaning solvent has been completed. The Council shall | 19 | | determine if the
site
investigation is adequate. This | 20 | | investigation must be completed by
June 30, 2006. For | 21 | | drycleaning facilities that
apply for insurance coverage | 22 | | after
June 30, 2006, the site investigation must be
| 23 | | completed prior to
issuance of insurance coverage; and
| 24 | | (2) the drycleaning facility
is participating in and | 25 | | meets all requirements of a
drycleaning compliance program | 26 | | approved by the Council.
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| 1 | | (e) The annual premium for insurance coverage shall be:
| 2 | | (1) For the year July 1, 1999 through June 30,
2000, | 3 | | $250
per drycleaning facility.
| 4 | | (2) For the year July 1, 2000 through
June 30, 2001, | 5 | | $375
per drycleaning facility.
| 6 | | (3) For the year July 1, 2001 through
June 30, 2002, | 7 | | $500
per drycleaning facility.
| 8 | | (4) For the year July 1, 2002 through
June 30, 2003, | 9 | | $625
per drycleaning facility.
| 10 | | (5) For subsequent years, an owner or operator applying | 11 | | for
coverage shall pay an annual actuarially-sound | 12 | | insurance premium
for coverage by the insurance account. | 13 | | The Council may approve
Fund coverage through the payment | 14 | | of a premium established on
an actuarially-sound basis, | 15 | | taking into consideration the risk to the
insurance account | 16 | | presented by the insured.
Risk factor adjustments utilized | 17 | | to determine actuarially-sound
insurance premiums should | 18 | | reflect the range of risk presented by
the variety of | 19 | | drycleaning systems, monitoring systems, drycleaning
| 20 | | volume, risk management practices, and other factors as
| 21 | | determined by the Council. As used in this item, | 22 | | "actuarially sound" is not
limited to Fund premium revenue | 23 | | equaling or exceeding Fund
expenditures for the general | 24 | | drycleaning facility population.
Actuarially-determined | 25 | | premiums shall be published at least 180
days prior to the | 26 | | premiums becoming effective.
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| 1 | | (e-5) If the coverage of an owner or operator under the | 2 | | insurance account ceases for a reason other than the submittal | 3 | | of a claim on that account or the existence of an emergency or | 4 | | emergency action, as defined in Section 5 of this Act, then the | 5 | | owner or operator may reenroll in the program of coverage | 6 | | provided through the account by paying an annual premium | 7 | | calculated using the same risk basis as on the date that the | 8 | | owner or operator was last covered under the account. | 9 | | (f) If coverage is purchased for any part of a year, the | 10 | | purchaser shall pay
the full annual premium. The insurance | 11 | | premium is fully earned upon issuance
of the insurance policy.
| 12 | | (g) The insurance coverage shall be provided with a
$10,000 | 13 | | deductible policy.
| 14 | | (h) A future repeal of this Section shall not terminate
the
| 15 | | obligations under this Section or authority necessary to | 16 | | administer the
obligations until the obligations are | 17 | | satisfied, including but not limited to
the payment of claims | 18 | | filed prior
to the effective date of any future repeal against | 19 | | the insurance account until
moneys in the account are | 20 | | exhausted. Upon exhaustion of the
moneys in the account, any | 21 | | remaining claims shall be invalid. If moneys remain
in the | 22 | | account following
satisfaction of the obligations under this | 23 | | Section,
the remaining moneys and moneys due the account shall | 24 | | be
used to assist current insureds to obtain a viable insuring | 25 | | mechanism as
determined by the Council after public notice and | 26 | | opportunity for
comment.
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| 1 | | (Source: P.A. 93-201, eff. 1-1-04.)
| 2 | | Section 99. Effective date. This Act takes effect upon | 3 | | becoming law.
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