Illinois General Assembly - Full Text of HB3348
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Full Text of HB3348  98th General Assembly

HB3348 98TH GENERAL ASSEMBLY

  
  

 


 
98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB3348

 

Introduced , by Rep. Michael W. Tryon

 

SYNOPSIS AS INTRODUCED:
 
415 ILCS 135/45

    Amends the Drycleaner Environmental Response Trust Fund Act. Provides that 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 the 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. Provides that if payment is made during that period, coverage under the Act shall not be terminated for non-payment by the insurer. Effective immediately.


LRB098 10606 JDS 40872 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3348LRB098 10606 JDS 40872 b

1    AN ACT concerning safety.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
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
17as 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
4conditions under this Section and those adopted by the Council.
5Coverage shall be limited to remedial action costs associated
6with soil and groundwater contamination resulting from a
7release of drycleaning solvent at an insured drycleaning
8facility, including third-party liability for soil and
9groundwater contamination. Coverage is not provided for a
10release that occurred before the date of coverage.
11    (d) An owner or operator, subject to underwriting
12requirements and terms and conditions deemed necessary and
13convenient by the Council, may purchase insurance coverage from
14the insurance account provided that the drycleaning facility to
15be 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 an insurer sends a second notice to an owner or
2operator demanding immediate payment of a past-due premium for
3insurance services provided pursuant to this Act, the demand
4for payment must offer a grace period of not less than 30 days
5during which the owner or operator shall be allowed to pay any
6premiums due. If payment is made during that period, coverage
7under this Act shall not be terminated for non-payment by the
8insurer.
9    (e-6) If an insurer terminates an owner or operator's
10coverage under this Act and sends a written notice to the owner
11or operator to inform him or her of the termination of that
12coverage, that notice must include instructions on how to seek
13reinstatement of coverage, as well as information concerning
14any premiums or penalties that might be due.
15    (f) If coverage is purchased for any part of a year, the
16purchaser shall pay the full annual premium. The insurance
17premium is fully earned upon issuance of the insurance policy.
18    (g) The insurance coverage shall be provided with a $10,000
19deductible policy.
20    (h) A future repeal of this Section shall not terminate the
21obligations under this Section or authority necessary to
22administer the obligations until the obligations are
23satisfied, including but not limited to the payment of claims
24filed prior to the effective date of any future repeal against
25the insurance account until moneys in the account are
26exhausted. Upon exhaustion of the moneys in the account, any

 

 

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1remaining claims shall be invalid. If moneys remain in the
2account following satisfaction of the obligations under this
3Section, the remaining moneys and moneys due the account shall
4be used to assist current insureds to obtain a viable insuring
5mechanism as determined by the Council after public notice and
6opportunity for comment.
7(Source: P.A. 93-201, eff. 1-1-04.)
 
8    Section 99. Effective date. This Act takes effect upon
9becoming law.