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90_HB2588
415 ILCS 135/45
Amends the Drycleaner Environmental Response Trust Fund
Act. Makes a technical change in the Section concerning the
insurance account.
LRB9009292LDdv
LRB9009292LDdv
1 AN ACT to amend the Drycleaner Environmental Response
2 Trust Fund Act by changing Section 45.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Drycleaner Environmental Response Trust
6 Fund Act is amended by changing Section 45 as follows:
7 (415 ILCS 135/45)
8 Sec. 45. Insurance account.
9 (a) The insurance account shall offer financial
10 assurance for a qualified owner or operator of a drycleaning
11 facility under the terms and conditions provided for under
12 this Section. Coverage may be provided to either the owner or
13 the operator of a drycleaning facility. The Council is not
14 required to resolve whether the owner or operator, or both,
15 are responsible for a release under the terms of an agreement
16 between the owner and operator.
17 (b) The source of funds for the insurance account shall
18 be as follows:
19 (1) Moneys appropriated to the Council or moneys
20 allocated to the insurance account by the Council
21 according to the Fund budget approved by the Council.
22 (2) Moneys collected as an insurance premium,
23 including service fees, if any.
24 (3) Investment income attributed to the insurance
25 account by the Council.
26 (c) An owner or operator may purchase coverage of up to
27 $500,000 per drycleaning facility subject to the terms and
28 conditions under this Section and those adopted by the
29 Council. Coverage shall be limited to remedial action costs
30 associated with soil and groundwater contamination resulting
31 from a release of drycleaning solvent at an insured
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1 drycleaning facility, including third-party liability for
2 soil and groundwater contamination. Coverage is not provided
3 for a release that occurred before the date of coverage.
4 (d) An owner or operator, subject to underwriting
5 requirements and terms and conditions deemed necessary and
6 convenient by the Council, may purchase insurance coverage
7 from the insurance account if provided that the drycleaning
8 facility to be insured meets the following conditions:
9 (1) a site investigation designed to identify soil
10 and groundwater contamination resulting from the release
11 of a drycleaning solvent has been completed. The Council
12 shall determine if the site investigation is adequate.
13 This investigation must be completed by June 30, 2002.
14 For drycleaning facilities that become active after June
15 30, 2002, the site investigation must be completed prior
16 to issuance of insurance coverage; and
17 (2) the drycleaning facility is participating in
18 and meets all requirements of a drycleaning compliance
19 program approved by the Council.
20 (e) The annual premium for insurance coverage shall be:
21 (1) For the initial program year, $250 per
22 drycleaning facility.
23 (2) For the year July 1, 1998 through June 30,
24 1999, $375 per drycleaning facility.
25 (3) For the year July 1, 1999 through June 30,
26 2000, $500 per drycleaning facility.
27 (4) For the year July 1, 2000 through June 30,
28 2001, $625 per drycleaning facility.
29 (5) For subsequent years, an owner or operator
30 applying for coverage shall pay an annual
31 actuarially-sound insurance premium for coverage by the
32 insurance account. The Council may approve Fund coverage
33 through the payment of a premium established on an
34 actuarially-sound basis, taking into consideration the
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1 risk to the insurance account presented by the insured.
2 Risk factor adjustments utilized to determine
3 actuarially-sound insurance premiums should reflect the
4 range of risk presented by the variety of drycleaning
5 systems, monitoring systems, drycleaning volume, risk
6 management practices, and other factors as determined by
7 the Council. As used in this item, "actuarially sound" is
8 not limited to Fund premium revenue equaling or exceeding
9 Fund expenditures for the general drycleaning facility
10 population. Actuarially-determined premiums shall be
11 published at least 180 days prior to the premiums
12 becoming effective.
13 (f) If coverage is purchased for any part of a year, the
14 purchaser shall pay the full annual premium. The insurance
15 premium is fully earned upon issuance of the insurance
16 policy.
17 (g) The insurance coverage shall be provided with a
18 $10,000 deductible policy.
19 (h) A future repeal of this Section shall not terminate
20 the obligations under this Section or authority necessary to
21 administer the obligations until the obligations are
22 satisfied, including but not limited to the payment of claims
23 filed prior to the effective date of any future repeal
24 against the insurance account until moneys in the account are
25 exhausted. Upon exhaustion of the moneys in the account, any
26 remaining claims shall be invalid. If moneys remain in the
27 account following satisfaction of the obligations under this
28 Section, the remaining moneys and moneys due the account
29 shall be used to assist current insureds to obtain a viable
30 insuring mechanism as determined by the Council after public
31 notice and opportunity for comment.
32 (Source: P.A. 90-502, eff. 8-19-97.)