Public Act 098-0327
 
HB3349 EnrolledLRB098 09295 JDS 39435 b


  
    AN ACT concerning safety.
  
 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:
  



 
 
    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.
    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 
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 
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 
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, 
    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 
    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 
    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 
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.