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. Kimberly A. Lightford

Filed: 5/22/2013

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AMENDMENT TO HOUSE BILL 3349
AMENDMENT NO. ______. Amend House Bill 3349, AS AMENDED, by
replacing everything after the enacting clause with the
following:
"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.

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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,
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

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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.
Section 5. The Drycleaner Environmental Response Trust
Fund Act is amended by changing Section 45 and by adding
Section 27 as follows:
(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

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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
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

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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.
(g) This Section is repealed on January 1, 2016.
(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,

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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.
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

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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,
$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

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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
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, 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.
(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

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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
opportunity for comment.
(Source: P.A. 93-201, eff. 1-1-04.)
Section 99. Effective date. This Act takes effect upon
becoming law.".