Sen. Pamela J. Althoff

Filed: 5/14/2013

 

 


 

 


 
09800HB3349sam002LRB098 09295 JDS 45892 a

1
AMENDMENT TO HOUSE BILL 3349

2    AMENDMENT NO. ______. Amend House Bill 3349 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Drycleaner Environmental Response Trust
5Fund 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
9for a qualified owner or operator of a drycleaning facility
10under the terms and conditions provided for under this Section.
11Coverage may be provided to either the owner or the operator of
12a drycleaning facility. The Council is not required to resolve
13whether the owner or operator, or both, are responsible for a
14release under the terms of an agreement between the owner and
15operator.
16    (b) The source of funds for the insurance account shall be

 

 

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1as follows:
2        (1) Moneys appropriated to the Council or moneys
3    allocated to the insurance account by the Council according
4    to the Fund budget approved by the Council.
5        (2) Moneys collected as an insurance premium,
6    including service fees, if any.
7        (3) Investment income attributed to the insurance
8    account by the Council.
9    (c) An owner or operator may purchase coverage of up to
10$500,000 per drycleaning facility subject to the terms and
11conditions under this Section and those adopted by the Council.
12Coverage shall be limited to remedial action costs associated
13with soil and groundwater contamination resulting from a
14release of drycleaning solvent at an insured drycleaning
15facility, including third-party liability for soil and
16groundwater contamination. Coverage is not provided for a
17release that occurred before the date of coverage.
18    (d) An owner or operator, subject to underwriting
19requirements and terms and conditions deemed necessary and
20convenient by the Council, may purchase insurance coverage from
21the insurance account provided that the drycleaning facility to
22be insured meets the following conditions:
23        (1) a site investigation designed to identify soil and
24    groundwater contamination resulting from the release of a
25    drycleaning solvent has been completed. The Council shall
26    determine if the site investigation is adequate. This

 

 

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1    investigation must be completed by June 30, 2006. For
2    drycleaning facilities that apply for insurance coverage
3    after June 30, 2006, the site investigation must be
4    completed prior to issuance of insurance coverage; and
5        (2) the drycleaning facility is participating in and
6    meets all requirements of a drycleaning compliance program
7    approved by the Council.
8    (e) The annual premium for insurance coverage shall be:
9        (1) For the year July 1, 1999 through June 30, 2000,
10    $250 per drycleaning facility.
11        (2) For the year July 1, 2000 through June 30, 2001,
12    $375 per drycleaning facility.
13        (3) For the year July 1, 2001 through June 30, 2002,
14    $500 per drycleaning facility.
15        (4) For the year July 1, 2002 through June 30, 2003,
16    $625 per drycleaning facility.
17        (5) For subsequent years, an owner or operator applying
18    for coverage shall pay an annual actuarially-sound
19    insurance premium for coverage by the insurance account.
20    The Council may approve Fund coverage through the payment
21    of a premium established on an actuarially-sound basis,
22    taking into consideration the risk to the insurance account
23    presented by the insured. Risk factor adjustments utilized
24    to determine actuarially-sound insurance premiums should
25    reflect the range of risk presented by the variety of
26    drycleaning systems, monitoring systems, drycleaning

 

 

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1    volume, risk management practices, and other factors as
2    determined by the Council. As used in this item,
3    "actuarially sound" is not limited to Fund premium revenue
4    equaling or exceeding Fund expenditures for the general
5    drycleaning facility population. Actuarially-determined
6    premiums shall be published at least 180 days prior to the
7    premiums becoming effective.
8    (e-5) If an insurer sends a second notice to an owner or
9operator demanding immediate payment of a past-due premium for
10insurance services provided pursuant to this Act, the demand
11for payment must offer a grace period of not less than 30 days
12during which the owner or operator shall be allowed to pay any
13premiums due. If payment is made during that period, coverage
14under this Act shall not be terminated for non-payment by the
15insurer.
16    (e-6) If an insurer terminates an owner or operator's
17coverage under this Act, the insurer must send a written notice
18to the owner or operator to inform him or her of the
19termination of that coverage, and that notice must include
20instructions on how to seek reinstatement of coverage, as well
21as information concerning any premiums or penalties that might
22be due.
23    (f) If coverage is purchased for any part of a year, the
24purchaser shall pay the full annual premium. The insurance
25premium is fully earned upon issuance of the insurance policy.
26    (g) The insurance coverage shall be provided with a $10,000

 

 

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1deductible policy.
2    (h) A future repeal of this Section shall not terminate the
3obligations under this Section or authority necessary to
4administer the obligations until the obligations are
5satisfied, including but not limited to the payment of claims
6filed prior to the effective date of any future repeal against
7the insurance account until moneys in the account are
8exhausted. Upon exhaustion of the moneys in the account, any
9remaining claims shall be invalid. If moneys remain in the
10account following satisfaction of the obligations under this
11Section, the remaining moneys and moneys due the account shall
12be used to assist current insureds to obtain a viable insuring
13mechanism as determined by the Council after public notice and
14opportunity for comment.
15(Source: P.A. 93-201, eff. 1-1-04.)
 
16    Section 99. Effective date. This Act takes effect upon
17becoming law.".