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

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.

Sponsorship: Slight Partisan Bill (Republican 2-1)

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

Download: Illinois-2013-HB3349-Amended.html

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Sen. Pamela J. Althoff

Filed: 5/9/2013

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AMENDMENT TO HOUSE BILL 3349
AMENDMENT NO. ______. Amend House Bill 3349 by replacing
everything after the enacting clause with the following:
"Section 5. The Drycleaner Environmental Response Trust
Fund Act is amended by changing Sections 20 and 45 as follows:
(415 ILCS 135/20)
Sec. 20. Council rules.
(a) The Council may adopt rules in accordance with the
emergency rulemaking provisions of Section 5-45 of the Illinois
Administrative Procedure Act for one year after the effective
date of this Act. Thereafter, the Council shall conduct general
rulemaking as provided under the Illinois Administrative
Procedure Act.
(b) The Council shall adopt rules regarding its practice
and procedures for investigating and settling claims made
against the Fund, determining reimbursement guidelines,

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coordinating with the Agency, and otherwise implementing and
administering the Fund under this Act.
(c) The Council shall adopt rules regarding its practice
and procedures to develop underwriting standards, establish
insurance account coverage and risk factors, settle claims made
against the insurance account of the Fund, determine
appropriate deductibles or retentions in coverages or benefits
offered under the insurance account of the Fund, determine
reimbursement guidelines, and otherwise implement and
administer the insurance account under this Act.
(c-1) Within 90 days after the effective date of this
amendatory Act of the 98th General Assembly, the Council shall
amend its rules to allow access to registration materials by
electronic means.
(d) The Council shall adopt rules necessary for the
implementation and collection of insurance account premiums
prior to offering insurance to an owner or operator of a
drycleaning facility or other person.
(e) The Council shall adopt rules prescribing requirements
for the retention of records by an owner or operator and the
periods for which he or she must retain those records.
(f) The Council shall adopt rules describing the manner in
which all disbursed moneys received from the Agency shall be
deposited with a bank or savings and loan association to be
approved by the Council. For purposes of this subsection, the
Council shall be considered a public agency and, therefore, no

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bank or savings and loan association shall receive public funds
from the Council, and the Council shall not make any
investments, unless in accordance with the Public Funds
Investment Act.
(g) All final Council decisions regarding the Fund or any
reimbursement from the Fund and any decision concerning the
classification of drycleaning solvents pursuant to subsection
(a) of Section 65 of this Act and any notice of the assessment
of civil penalties under Section 69 of this Act shall be
subject to appeal to the Administrator of the Council, by the
affected parties, within 60 days after the final decision. The
Council shall determine by rule persons who have standing to
appeal final Council decisions. Any written decision by the
Administrator may be appealed to the Council within 60 days
after the Administrator's final decision. Any decision by the
Council may be appealed to the Council's administrative law
judge within 60 days after the Council's final decision. Notice
of any hearing provided for by this Act shall be given not less
than 7 days before the day fixed for the hearing. An appeal of
the administrative law judge's decision will be subject to
judicial review in accordance with the Administrative Review
Law.
Any decision not timely appealed shall become a final
administrative decision without the necessity of a final
administrative decision being issued and shall be deemed to be
a final administrative decision.

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The Council shall adopt rules relating to appeal
procedures.
The Council may designate an attorney, employed by the
Council or privately employed, to act as an administrative law
judge to preside at any administrative hearing resulting from
the appeal of a Council decision. The Council and the
Department of Revenue are authorized to enter into an agreement
whereby an administrative law judge employed by the Department
may be assigned to preside at the administrative hearings.
Proof of the Council's administrative decision may be made
at any administrative or legal proceeding by a reproduced copy
of the Council's record relating to the decision under the
certificate of the Council. A reproduced copy shall, without
further proof, be admitted into evidence and shall be prima
facie proof of the decision.
The provisions of the Administrative Review Law, and any
rules adopted under the Administrative Review law by the
Council, shall govern all proceedings for the judicial review
of final administrative decisions of the Council. The term
"administrative decision" has the same meaning as it does in
Section 3-101 of the Code of Civil Procedure.
Venue for an administrative review action challenging the
results of an administrative hearing upholding an
administrative decision issued by the Council shall be proper
in the Circuit Court of the county where the plaintiff has its
principal place of business, or Sangamon County if the

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plaintiff's principal place of business is located outside
Illinois.
(Source: P.A. 96-774, eff. 1-1-10.)
(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
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.

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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.
(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,

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$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.
(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

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during which the owner or operator shall be allowed to pay any
premiums due. If payment is made during that period, coverage
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 and sends a written notice to the owner
or operator to inform him or her of the termination of that
coverage, 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.
(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.".