Illinois General Assembly - Full Text of HB3524
Illinois General Assembly

Previous General Assemblies

Full Text of HB3524  93rd General Assembly

HB3524 93rd General Assembly


093_HB3524

 
                                     LRB093 08997 AMC 09229 b

 1        AN ACT concerning the environment.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:


 4        Section  5.  The  Drycleaner Environmental Response Trust
 5    Fund Act is amended by changing Sections 15, 20, 25, 40,  45,
 6    60, 65, 70, 75, and 85 as follows:

 7        (415 ILCS 135/15)
 8        Sec. 15. Creation of Council.
 9        (a)  The  Drycleaner  Environmental  Response  Trust Fund
10    Council is established and shall  consist  of  the  following
11    voting  members  to  be  appointed  by  the Governor with the
12    advice and consent of the Senate:
13             (1)  Five  Three  members  who  own  or  operate   a
14        drycleaning  facility.  Two  of  these  members  must  be
15        members  of  the  Illinois  State  Fabricare Association.
16        These members shall serve 3 year terms,  except  that  of
17        the initial members appointed, one shall be appointed for
18        a  term  of  one year, one for a term of 2 years, and one
19        for a term of 3 years.
20             (2)  One    member    who    represents    wholesale
21        distributors of drycleaning solvents.  This member  shall
22        serve for a term of 3 years.
23             (3)  One   member  who  represents  the  drycleaning
24        equipment    manufacturers  and  vendor  community.  This
25        member shall serve for a term of 3 years.
26             (4)  Two  members  with  experience   in   financial
27        markets  or  the  insurance industry. These members shall
28        serve  3-year  terms,  except   that   of   the   initial
29        appointments,  one  shall  be  appointed  for a term of 2
30        years, and one for a term of 3 years.
 
                            -2-      LRB093 08997 AMC 09229 b
 1        Each  member  shall  have  experience,   knowledge,   and
 2    expertise relating to the subject matter of this Act.
 3        A  member of the Illinois Environmental Protection Agency
 4    shall be allowed to attend all Council  meetings,  but  shall
 5    not have a vote on any matters before the Council.
 6        Members  of  the Council serving on January 1, 2004 shall
 7    serve the remainder of their terms, notwithstanding that  the
 8    Senate has not consented to their appointment.
 9        (b)  The  Governor  may  remove any member of the Council
10    for incompetency, neglect of duty, or malfeasance  in  office
11    after  service on him or her of a copy of the written charges
12    against him or her and after an opportunity  to  be  publicly
13    heard  in  person  or by counsel in his or her own defense no
14    earlier than 10 days after the Governor has  provided  notice
15    of  the  opportunity  to  the  Council  member.   Evidence of
16    incompetency, neglect of duty, or malfeasance in  office  may
17    be  provided  to  the  Governor  by the Agency or the Auditor
18    General following the annual audit described in  Section  80.
19    The  Governor  shall  promptly  appoint  a person to fill any
20    vacancy on the Council for the unexpired term.
21        (c)  Members of  the  Council  are  entitled  to  receive
22    reimbursement of actual expenses incurred in the discharge of
23    their  duties  within  the limit of funds appropriated to the
24    Council or made available to the Fund.   The  Governor  shall
25    appoint  a  chairperson of the Council from among the members
26    of the Council.
27        (d)  The Attorney General's office or its designee  shall
28    provide legal counsel to  the Council.
29    (Source: P.A. 90-502, eff. 8-19-97.)

30        (415 ILCS 135/20)
31        Sec. 20. Council rules.
32        (a)  The  Council  may adopt rules in accordance with the
33    emergency  rulemaking  provisions  of  Section  5-45  of  the
 
                            -3-      LRB093 08997 AMC 09229 b
 1    Illinois Administrative Procedure Act for one year after  the
 2    effective  date  of  this  Act. Thereafter, the Council shall
 3    conduct general rulemaking as  provided  under  the  Illinois
 4    Administrative Procedure Act.
 5        (b)  The Council shall adopt rules regarding its practice
 6    and  procedures  for   investigating and settling claims made
 7    against  the  Fund,  determining  reimbursement   guidelines,
 8    coordinating  with the Agency, and otherwise implementing and
 9    administering the Fund under this Act.
10        (c)  The Council shall adopt rules regarding its practice
11    and procedures to  develop underwriting standards,  establish
12    insurance  account  coverage  and risk factors, settle claims
13    made against the insurance account  of  the  Fund,  determine
14    appropriate   deductibles   or  retentions  in  coverages  or
15    benefits offered under the insurance  account  of  the  Fund,
16    determine  reimbursement  guidelines, and otherwise implement
17    and administer the insurance account under this Act.
18        (d)  The Council shall  adopt  rules  necessary  for  the
19    implementation and  collection of  insurance account premiums
20    prior  to  offering  insurance  to an  owner or operator of a
21    drycleaning facility or other person.
22        (e)  The   Council   shall   adopt   rules    prescribing
23    requirements  for  the  retention  of  records by an owner or
24    operator and the periods for which  he  or  she  must  retain
25    those records.
26        (f)  The  Council shall adopt rules describing the manner
27    in which all disbursed moneys received from the Agency  shall
28    be  deposited  with a bank or savings and loan association to
29    be approved by the Council.  For purposes of this subsection,
30    the  Council  shall  be  considered  a  public  agency   and,
31    therefore,  no  bank  or  savings  and loan association shall
32    receive public funds from the Council, and the Council  shall
33    not  make  any  investments,  unless  in  accordance with the
34    Public Funds Investment Act.
 
                            -4-      LRB093 08997 AMC 09229 b
 1        (f-5)  The Council,  in  consultation  with  the  Agency,
 2    shall   define  the  terms  "drycleaning  drop-off  facility"
 3    "drycleaning solvents dealer", and "green solvent"  no  later
 4    than January 1, 2004.
 5        (g)  All  final  Council  decisions regarding the Fund or
 6    any reimbursement from the Fund and any  decision  concerning
 7    the   classification  of  drycleaning  solvents  pursuant  to
 8    subsection (a) of Section 65 of this Act shall be subject  to
 9    appeal  by the affected  parties. The Council shall determine
10    by rule persons who have standing  to  appeal  final  Council
11    decisions.  All  appeals  of final Council decisions shall be
12    presented to and  reviewed by  the  Council's  administrative
13    hearing  officer.   An  appeal  of the administrative hearing
14    officer's decision will be  subject  to  judicial  review  in
15    accordance with the Administrative Review Law.
16        The   Council   shall  adopt  rules  relating  to  appeal
17    procedures that shall require the Council to  deliver  notice
18    of  appeal  to the affected parties within 30 days of receipt
19    of notice, require that the hearing be held within 180   days
20    of  the filing of the petition unless good cause is shown for
21    the delay, and require that a final  decision  be  issued  no
22    later  than 120 days following the close of the hearing.  The
23    time restrictions in this subsection may be waived by  mutual
24    agreement of the parties.
25    (Source: P.A. 90-502, eff. 8-19-97.)

26        (415 ILCS 135/25)
27        Sec. 25. Powers and duties of the Council; Agency duties.
28        (a)  The  Council  shall  have  all of the general powers
29    reasonably necessary and convenient to carry out its purposes
30    and may perform  the  following  functions,  subject  to  any
31    express limitations contained in this Act:
32             (1)  Take   actions   and   enter   into  agreements
33        necessary to  reimburse claimants for  eligible  remedial
 
                            -5-      LRB093 08997 AMC 09229 b
 1        action  expenses,  assist    the  Agency  to  protect the
 2        environment from releases, reduce costs  associated  with
 3        remedial   actions,   and   establish  and  implement  an
 4        insurance program.
 5             (2)  Acquire and hold personal property to  be  used
 6        for the purpose of  remedial action.
 7             (3)  Purchase,  construct,  improve, furnish, equip,
 8        lease, option, sell, exchange, or  otherwise  dispose  of
 9        one  or more improvements  under the terms it determines.
10        The  Council  may  define  "improvements"  by  rule   for
11        purposes of this Act.
12             (4)  Grant  a  lien,  pledge,  assignment,  or other
13        encumbrance on one or more  revenues,  assets  of  right,
14        accounts,  or funds established or received in connection
15        with the Fund, including revenues derived  from  fees  or
16        taxes collected under this Act.
17             (5)  Contract for the acquisition or construction of
18        one  or  more  improvements  or  parts  of  one  or  more
19        improvements  or  for  the  leasing, subleasing, sale, or
20        other disposition of one or more improvements in a manner
21        the Council determines.
22             (6)  Cooperate with the Agency in the implementation
23        and administration of  this Act to  minimize  unnecessary
24        duplication  of  effort,   reporting, or paperwork and to
25        maximize environmental protection    within  the  funding
26        limits of this Act.
27             (7)  Except  as  otherwise  provided by law, inspect
28        any document in the possession  of  an  owner,  operator,
29        service  provider, or any other person if the document is
30        relevant to a claim for reimbursement under this  Section
31        or  may  inspect a drycleaning facility for which a claim
32        for benefits under this Act has been submitted.
33        (b)  The Council shall pre-approve, and  the  contracting
34    parties  shall seek pre-approval for, a contract entered into
 
                            -6-      LRB093 08997 AMC 09229 b
 1    under this Act if the cost of the contract  exceeds  $75,000.
 2    The  Council  or  its  designee  shall  review and approve or
 3    disapprove   all  contracts  entered  into  under  this  Act.
 4    However,  review by the Council or its  designee shall not be
 5    required when an emergency situation  exists.  All  contracts
 6    entered   into   by   the  Council  shall  be  awarded  on  a
 7    competitive basis to the maximum extent practical.  In  those
 8    situations  where  it  is  determined  that  bidding  is  not
 9    practical,    the    basis    for    the   determination   of
10    impracticability shall be documented by the  Council  or  its
11    designee.
12        (c)  The  Council may prioritize the expenditure of funds
13    from the remedial action account whenever it determines  that
14    there  are not sufficient funds to settle all current claims.
15    In prioritizing, the Council may consider the following:
16             (1)  the degree to which human health is affected by
17        the exposure  posed by the release;
18             (2)  the reduction of risk to human  health  derived
19        from    remedial  action  compared  to  the  cost  of the
20        remedial action;
21             (3)  the present and planned uses  of  the  impacted
22        property; and
23             (4)  other factors as determined by the Council.
24        The  Council  shall  submit  to the Agency for review any
25    prioritization of remediation sites.  The Agency shall advise
26    the Council of any additional sites potentially eligible  for
27    remediation  that have been identified through programs other
28    than this Act and shall comment on the appropriateness of the
29    Council's overall prioritization.
30        The Council may issue a letter to a drycleaning  facility
31    that  is  eligible  for  prioritization but that has not been
32    prioritized and that meets all applicable federal  and  State
33    requirements  for  remediation on a continuous basis, stating
34    that the site  is  prioritized  for  clean-up  and  shall  be
 
                            -7-      LRB093 08997 AMC 09229 b
 1    remediated   as   long   as   applicable  federal  and  State
 2    requirements continue to be met.
 3        (d)  The Council must submit to the Agency notice of  any
 4    proposed  environmental  action at least 2 weeks prior to the
 5    date of the meeting  at  which  the  contemplated  action  is
 6    expected to be taken.
 7        (e)  Agencies including, but not limited to, the Illinois
 8    Department  of Transportation, the Department of Commerce and
 9    Community Affairs, and the Illinois Environmental  Protection
10    Agency  shall  submit  to  the  Council information regarding
11    contractors that  have  previously  been  approved  by  those
12    agencies  for  performance of environmental remediation.  The
13    Council shall provide information regarding those contractors
14    to  drycleaners.      Reimbursement   from   the   Fund   for
15    environmental  remediation  shall  not  be  limited solely to
16    those contractors that have received this prior  approval  by
17    the  agencies.  The Council shall adopt rules allowing direct
18    payment  from  the  Fund  of  a   contractor   who   performs
19    remediation.   The  rules  concerning  direct  payment  shall
20    include  a  provision  that any applicable deductible must be
21    paid by the drycleaning facility prior to any direct  payment
22    from the Fund.
23    (Source: P.A. 90-502, eff. 8-19-97.)

24        (415 ILCS 135/40)
25        Sec. 40. Remedial action account.
26        (a)  The   remedial  action  account  is  established  to
27    provide reimbursement to eligible claimants  for  drycleaning
28    solvent investigation, remedial action planning, and remedial
29    action    activities   for   existing   drycleaning   solvent
30    contamination discovered at their drycleaning facilities.
31        (b)  The following persons are eligible for reimbursement
32    from the remedial action account:
33             (1)  In the case of claimant who  is  the  owner  or
 
                            -8-      LRB093 08997 AMC 09229 b
 1        operator  of  an active drycleaning  facility licensed by
 2        the  Agency  Council  under  this  Act  at  the  time  of
 3        application for remedial action benefits  afforded  under
 4        the Fund, the claimant is only eligible for reimbursement
 5        of  remedial  action  costs incurred in connection with a
 6        release from that drycleaning facility,  subject  to  any
 7        other limitations under this Act.
 8             (2)  In  the  case of a claimant who is the owner of
 9        an inactive drycleaning facility and  was  the  owner  or
10        operator  of  the  drycleaning  facility  when it was  an
11        active  drycleaning  facility,  the  claimant   is   only
12        eligible  for    reimbursement  of  remedial action costs
13        incurred  in  connection  with   a   release   from   the
14        drycleaning  facility,  subject  to any other limitations
15        under this Act.
16             (3)  In the case of a claimant who is the  owner  or
17        operator  of a licensed drycleaning drop-off facility and
18        who was  not  the  owner  or  operator  of  the  licensed
19        drycleaning  drop-off  facility  when  it  was  an active
20        drycleaning facility, the claimant is only  eligible  for
21        reimbursement of remedial action costs in connection with
22        a  release  from the drycleaning facility, subject to the
23        payment  of  solvent  taxes  under  subsection  (h-7)  of
24        Section 65 of this Act and to any other limitation  under
25        this Act.
26        (c)  An  eligible  claimant requesting reimbursement from
27    the remedial action  account shall meet all of the following:
28             (1)  The claimant demonstrates that  the  source  of
29        the release is from  the claimant's drycleaning facility.
30             (2)  At  the  time the release was discovered by the
31        claimant, the claimant and the drycleaning facility  were
32        in  compliance  with  the  Agency reporting and technical
33        operating requirements.
34             (3)  The claimant reported the release in  a  timely
 
                            -9-      LRB093 08997 AMC 09229 b
 1        manner to  the Agency in accordance with State law.
 2             (4)  The claimant applying for reimbursement has not
 3        filed  for  bankruptcy on or after the date of his or her
 4        discovery of the release.
 5             (5)  If the claimant is the owner or operator of  an
 6        active drycleaning facility, the claimant has provided to
 7        the  Council  proof  of implementation and maintenance of
 8        the following pollution prevention measures:
 9                  (A)  That  all   drycleaning   solvent   wastes
10             generated  at  a  drycleaning facility be managed in
11             accordance with applicable  State  waste  management
12             laws and rules.
13                  (B)  A   prohibition   on   the   discharge  of
14             wastewater   from   drycleaning   machines   or   of
15             drycleaning solvent from drycleaning operations to a
16             sanitary sewer or septic tank or to the  surface  or
17             in groundwater.
18                  (C)  That every drycleaning facility:
19                       (I)  install  a  containment dike or other
20                  containment structure around each  machine,  or
21                  item  of  equipment,  or the entire drycleaning
22                  area, and portable waste container in which any
23                  drycleaning  solvent  is  utilized  or  stored,
24                  which shall be  capable  of  containing  leaks,
25                  spills, any leak, spill, or releases release of
26                  drycleaning solvent from that machine, item, or
27                  area,  or  container.   The containment dike or
28                  other containment structure shall be capable of
29                  at least the following:
30                            (a)  containing a capacity of 110% of
31                       the drycleaning  solvent  in  the  largest
32                       tank or vessel within the machine; and
33                            (b)  containing     100%    of    the
34                       drycleaning  solvent  of  each   item   of
 
                            -10-     LRB093 08997 AMC 09229 b
 1                       equipment or drycleaning area; and
 2                            (c)  containing     100%    of    the
 3                       drycleaning   solvent   of   the   largest
 4                       portable waste container or at  least  10%
 5                       of  the total volume of the portable waste
 6                       containers stored within  the  containment
 7                       dike or structure, whichever is greater.
 8                       Petroleum underground storage tank systems
 9                  that  are  upgraded in accordance with the U.S.
10                  EPA upgrade standards for the tanks and related
11                  piping systems and use a leak detection  system
12                  approved  by  U.S.  or  Illinois EPA are exempt
13                  from this  secondary  containment  requirement;
14                  and
15                       (II)  seal  or otherwise render impervious
16                  those portions of diked floor surfaces on which
17                  a  drycleaning  solvent  may  leak,  spill,  or
18                  otherwise be released.
19                  (D)  A requirement that all drycleaning solvent
20             shall be  delivered  to  drycleaning  facilities  by
21             means of closed, direct-coupled delivery systems.
22             (6)  An  active  drycleaning facility has maintained
23        continuous   financial   assurance   for    environmental
24        liability  coverage in the amount of at least $500,000 at
25        least since the date of  award  of  benefits  under  this
26        Section  or  July  1,  2000,  whichever  is  earlier.  An
27        uninsured   drycleaning   facility   that  has  filed  an
28        application for insurance with the Fund by April 1, 2004,
29        obtained  insurance   through   that   application,   and
30        maintained  that insurance coverage continuously shall be
31        considered to have conformed  with  the  requirements  of
32        this subdivision (6).
33             (7)  The  release was discovered on or after July 1,
34        1997 and before July 1, 2016 2004.
 
                            -11-     LRB093 08997 AMC 09229 b
 1        (d)  A claimant shall submit a completed application form
 2    provided by  the  Council.   The  application  shall  contain
 3    documentation   of   activities,   plans,   and  expenditures
 4    associated with the eligible costs incurred in response to  a
 5    release  of  drycleaning solvent from a drycleaning facility.
 6    Application for remedial  action  account  benefits  must  be
 7    submitted to the Council on or before June 30, 2016 2004.
 8        (e)  Claimants   shall   be   subject  to  the  following
 9    deductible requirements,  unless  modified  pursuant  to  the
10    Council's authority under Section 75:
11             (1)  An  eligible claimant submitting a claim for an
12        active drycleaning facility is responsible  for  10%  the
13        first  $5,000 of eligible investigation costs and 10% for
14        the first  $10,000  of  eligible  remedial  action  costs
15        incurred   in   connection  with  the  release  from  the
16        drycleaning   facility   and   is   only   eligible   for
17        reimbursement  for  costs  that  exceed  those   amounts,
18        subject to any other limitations of this Act.
19             (2)  An  eligible claimant submitting a claim for an
20        inactive drycleaning facility is responsible for 10%  the
21        first $10,000 of eligible investigation costs and for 10%
22        the  first  $10,000  of  eligible  remedial  action costs
23        incurred  in  connection  with  the  release  from   that
24        drycleaning   facility,   and   is   only   eligible  for
25        reimbursement  for  costs  that  exceed  those   amounts,
26        subject to any other limitations of this Act.
27        (f)  Claimants  are  subject to the following limitations
28    on reimbursement:
29             (1)  Subsequent   to    meeting    the    deductible
30        requirements  of  subsection  (e),  and  pursuant  to the
31        requirements  of  Section  75,  reimbursement  shall  not
32        exceed $300,000 per drycleaning facility.:
33                  (A)  $160,000 per active  drycleaning  facility
34             for  which an eligible claim is submitted during the
 
                            -12-     LRB093 08997 AMC 09229 b
 1             program year beginning July 1, 1999;
 2                  (B)  $150,000 per active  drycleaning  facility
 3             for  which an eligible claim is submitted during the
 4             program year beginning July 1, 2000;
 5                  (C)  $140,000 per active  drycleaning  facility
 6             for  which an eligible claim is submitted during the
 7             program year beginning July 1, 2001;
 8                  (D)  $130,000 per active  drycleaning  facility
 9             for  which an eligible claim is submitted during the
10             program year beginning July 1, 2004;
11                  (E)  $120,000 per active  drycleaning  facility
12             for which an eligible  claim is submitted during the
13             program year beginning July 1, 2003; or
14                  (F)  $50,000 per inactive drycleaning facility.
15             (2)  A  contract  in which one of the parties to the
16        contract is a claimant, for goods or services that may be
17        payable or reimbursable from the  Council,  is  void  and
18        unenforceable unless and until the Council has found that
19        the  contract  terms  are  within  the range of usual and
20        customary  rates  for  similar  or  equivalent  goods  or
21        services within this State and has found that  the  goods
22        or services are necessary for the claimant to comply with
23        Council   standards   or   other   applicable  regulatory
24        standards.
25             (3)  A claimant may appoint the Council as an  agent
26        for  the purposes of negotiating contracts with suppliers
27        of goods or  services  reimbursable  by  the  Fund.   The
28        Council  may  select  another  contractor  for  goods  or
29        services  other  than  the one offered by the claimant if
30        the scope of the proposed work  or  actual  work  of  the
31        claimant's   offered  contractor  does  not  reflect  the
32        quality of workmanship  required  or  if  the  costs  are
33        determined to be excessive, as determined by the Council.
34             (4)  The  Council  may  require a claimant to obtain
 
                            -13-     LRB093 08997 AMC 09229 b
 1        and submit 3 bids and  may  require  specific  terms  and
 2        conditions in a  contract subject to approval.
 3             (5)  The  Council  may  enter  into a contract or an
 4        exclusive contract with the supplier of goods or services
 5        required  by  a  claimant  or  class  of  claimants,   in
 6        connection  with  an  expense reimbursable from the Fund,
 7        for a specified good or service at a gross maximum  price
 8        or fixed rate, and may limit reimbursement accordingly.
 9             (6)  Unless  emergency  conditions  exist, a service
10        provider shall  obtain  the  Council's  approval  of  the
11        budget  for  the  remediation  work before commencing the
12        work.  No expense incurred that  is  above  the  budgeted
13        amount  shall  be  paid  unless the Council approves  the
14        expense prior to its being incurred.   All  invoices  and
15        bills relating to the remediation work shall be submitted
16        with  appropriate  documentation,  as deemed necessary by
17        the Council, not later than 30 days after  the  work  has
18        been performed.
19             (7)  Neither the Council nor an eligible claimant is
20        responsible  for payment for costs incurred that have not
21        been  previously  approved  by  the  Council,  unless  an
22        emergency exists.
23             (8)  The  Council  may  determine  the   usual   and
24        customary  costs of each item for which reimbursement may
25        be awarded under this Section. The Council may revise the
26        usual and customary costs from time to time as necessary,
27        but costs submitted for reimbursement shall be subject to
28        the rates in effect at the time the costs were incurred.
29             (9)  If a claimant has pollution liability insurance
30        coverage other than coverage provided  by  the  insurance
31        account  under  this Act, that coverage shall be primary.
32        Reimbursement from the remedial account shall be  limited
33        to  the deductible amounts under the primary coverage and
34        the amount that exceeds the policy limits of the  primary
 
                            -14-     LRB093 08997 AMC 09229 b
 1        coverage,  subject to the deductible amounts of this Act.
 2        If there is  a  dispute  between  the  claimant  and  the
 3        primary   insurance   provider,  reimbursement  from  the
 4        remedial action account may be made to the claimant after
 5        the claimant  assigns all of his or her interests in  the
 6        insurance coverage to the Council.
 7        (g)  The  source of funds for the remedial action account
 8    shall be moneys allocated  to  the  account  by  the  Council
 9    according to the Fund budget approved by the Council.
10        (h)  A  drycleaning facility will be classified as active
11    or inactive for purposes of  determining benefits under  this
12    Section  based  on  the status of the facility  on the date a
13    claim is filed.
14        (i)  Eligible claimants shall conduct remedial action  in
15    accordance  with  the  Site  Remediation  Program  under  the
16    Environmental  Protection Act and Part 740 of Title 35 of the
17    Illinois Administrative  Code  and  the  Tiered  Approach  to
18    Cleanup Objectives under Part 742 of Title 35 of the Illinois
19    Administrative Code.
20    (Source: P.A. 90-502, eff. 8-19-97; 91-453, eff. 8-6-99.)

21        (415 ILCS 135/45)
22        Sec. 45. Insurance account.
23        (a)  The   insurance   account   shall   offer  financial
24    assurance for a qualified owner  or operator of a drycleaning
25    facility under the terms and conditions  provided  for  under
26    this Section. Coverage may be provided to either the owner or
27    the  operator  of  a drycleaning facility. The Council is not
28    required to resolve whether the owner or operator,  or  both,
29    are responsible for a release under the terms of an agreement
30    between the owner and operator.
31        (a-1)  By  April  1, 2004, an active drycleaning facility
32    must obtain and maintain  environmental  pollution  liability
33    insurance.   Each  active drycleaning facility is required to
 
                            -15-     LRB093 08997 AMC 09229 b
 1    purchase and maintain insurance  from  the  Fund  until  that
 2    facility  has  been issued a No Further Remediation Letter or
 3    letter  issued  under  Section  4(y)  of  the   Environmental
 4    Protection  Act  by  the  Agency.   After  receipt  of the No
 5    Further Remediation Letter or  letter  issued  under  Section
 6    4(y)  of  the Environmental Protection Act from the Agency, a
 7    drycleaner may obtain insurance either from the Fund or  from
 8    a private insurer.
 9        (a-2)  Drycleaning  facilities  that  exclusively  use or
10    adopt the exclusive use of "green" solvents,  as  defined  by
11    the  Council,  may  obtain  insurance either from the Fund or
12    from a private insurer.
13        (b)  The source of funds for the insurance account  shall
14    be as follows:
15             (1)  Moneys  appropriated  to  the Council or moneys
16        allocated  to  the  insurance  account  by  the   Council
17        according to the Fund budget approved by the Council.
18             (2)  Moneys   collected  as  an  insurance  premium,
19        including service fees, if any.
20             (3)  Investment income attributed to  the  insurance
21        account by the Council.
22        (c)  An  owner or operator may purchase coverage of up to
23    $500,000 per drycleaning facility subject to  the  terms  and
24    conditions  under  this  Section  and  those  adopted  by the
25    Council. Coverage shall be limited to remedial  action  costs
26    associated  with soil and groundwater contamination resulting
27    from  a  release  of  drycleaning  solvent  at   an   insured
28    drycleaning  facility,  including  third-party  liability for
29    soil and groundwater contamination.  Coverage is not provided
30    for a release that occurred before the date of coverage.
31        (d)  An  owner  or  operator,  subject  to   underwriting
32    requirements  and  terms  and conditions deemed necessary and
33    convenient by the Council, may  purchase  insurance  coverage
34    from  the  insurance  account  provided  that the drycleaning
 
                            -16-     LRB093 08997 AMC 09229 b
 1    facility to be insured meets the following conditions:
 2             (1)  a site investigation designed to identify  soil
 3        and  groundwater contamination resulting from the release
 4        of a drycleaning solvent has been completed. The  Council
 5        shall  determine  if  the site investigation is adequate.
 6        This investigation must be completed  by  June  30,  2016
 7        2004.    For   drycleaning   facilities  that  apply  for
 8        insurance coverage become active after June 30, 2004, the
 9        site investigation must be completed prior to issuance of
10        insurance coverage; and
11             (2)  the drycleaning facility  is  participating  in
12        and  meets  all  requirements of a drycleaning compliance
13        program approved by the Council.
14        (e)  The annual premium for insurance coverage shall be:
15             (1)  For the year July  1,  1999  through  June  30,
16        2000, $250 per drycleaning facility.
17             (2)  For  the  year  July  1,  2000 through June 30,
18        2001, $375 per drycleaning facility.
19             (3)  For the year July  1,  2001  through  June  30,
20        2002, $500 per drycleaning facility.
21             (4)  For  the  year  July  1,  2002 through June 30,
22        2003, $625 per drycleaning facility.
23             (5)  For years beginning July 1, 2003 or thereafter,
24        $500 per drycleaning facility.  For subsequent years,  an
25        owner  or  operator  applying  for  coverage shall pay an
26        annual actuarially-sound insurance premium  for  coverage
27        by  the  insurance account.  The Council may approve Fund
28        coverage through the payment of a premium established  on
29        an actuarially-sound basis, taking into consideration the
30        risk  to  the insurance account presented by the insured.
31        Risk   factor   adjustments   utilized    to    determine
32        actuarially-sound  insurance  premiums should reflect the
33        range of risk presented by  the  variety  of  drycleaning
34        systems,  monitoring  systems,  drycleaning  volume, risk
 
                            -17-     LRB093 08997 AMC 09229 b
 1        management practices, and other factors as determined  by
 2        the Council. As used in this item, "actuarially sound" is
 3        not limited to Fund premium revenue equaling or exceeding
 4        Fund  expenditures  for  the general drycleaning facility
 5        population.  Actuarially-determined  premiums  shall   be
 6        published  at  least  180  days  prior  to  the  premiums
 7        becoming effective.
 8        (f)  If coverage is purchased for any part of a year, the
 9    purchaser  shall  pay the full annual premium.  The insurance
10    premium is  fully  earned  upon  issuance  of  the  insurance
11    policy.
12        (g)  The  insurance  coverage  shall  be  provided with a
13    $10,000 deductible policy.
14        (g-5)  By January 1, 2007, the Council  shall  adopt  the
15    financial  and accounting procedures necessary to ensure that
16    insurance premiums paid to the Fund are segregated  from  all
17    other sources of Fund income.
18        (h)  A  future repeal of this Section shall not terminate
19    the  obligations under this Section or authority necessary to
20    administer  the  obligations  until   the   obligations   are
21    satisfied, including but not limited to the payment of claims
22    filed  prior  to  the  effective  date  of  any future repeal
23    against the insurance account until moneys in the account are
24    exhausted.  Upon exhaustion of the moneys in the account, any
25    remaining claims shall be invalid. If moneys  remain  in  the
26    account  following satisfaction of the obligations under this
27    Section, the remaining moneys  and  moneys  due  the  account
28    shall  be  used to assist current insureds to obtain a viable
29    insuring mechanism as determined by the Council after  public
30    notice and opportunity for comment.
31    (Source: P.A. 90-502, eff. 8-19-97; 91-453, eff. 8-6-99.)

32        (415 ILCS 135/60)
33        (Section scheduled to be repealed on January 1, 2010)
 
                            -18-     LRB093 08997 AMC 09229 b
 1        Sec.   60.  Drycleaning  facility,  drycleaning  drop-off
 2    facility, or drycleaning solvents dealer license.
 3        (a)  On and after January 1, 1998, On and  after  January
 4    1,  2004, no person shall operate a drycleaning facility or a
 5    drycleaning drop-off facility in this State without a license
 6    issued by the Agency Council.
 7        (a-5)  On and after January  1,  2004,  no  person  shall
 8    operate  as  a  dealer  of drycleaning solvents in this State
 9    without obtaining a license issued by the Agency.
10        (b)  On and after January  1,  2004  the  Agency  Council
11    shall  issue  an  initial or renewal license to a drycleaning
12    facility,  drycleaning  drop-off  facility,  or   drycleaning
13    solvents  dealer on submission by an applicant of a completed
14    form prescribed by the Agency Council and proof of payment of
15    the required fee to the Department of Revenue.
16        (c)  On and after January 1, 2004, the  annual  fee  fees
17    for  licensure  of  drycleaning  facilities  and  drycleaning
18    solvent dealers is $750. are as follows: Drycleaning drop-off
19    facilities  owned  by  a licensed active drycleaning facility
20    shall pay an annual fee for licensure  of  $150.   All  other
21    drycleaning  drop-off  facilities shall pay an annual fee for
22    licensure of $750.   If  the  license  fees  paid  by  active
23    drycleaning  drop-off  facilities  do  not  yield  a total of
24    $750,000 in any year, the Council may adjust,  by  rule,  the
25    annual  license  fee  paid  by  active  drycleaning  drop-off
26    facilities  owned by a licensed active drycleaner facility up
27    to a maximum of $750 or to the amount of the  annual  license
28    fee  applicable  to  an  active drycleaning drop-off facility
29    that is not owned by an active licensed drycleaning facility,
30    whichever is greater.
31             (1)  $500 for a facility that purchases 140  gallons
32        or  less  of chlorine-based drycleaning solvents annually
33        or 1400 gallons or less of hydrocarbon-based  drycleaning
34        solvents annually.
 
                            -19-     LRB093 08997 AMC 09229 b
 1             (2)  $1,000  for a facility that purchases more than
 2        140 gallons but less than 360 gallons  of  chlorine-based
 3        drycleaning  solvents  annually or more than 1400 gallons
 4        but  less  than   3600   gallons   of   hydrocarbon-based
 5        drycleaning solvents annually.
 6             (3)  $1,500  for  a  facility  that  purchases   360
 7        gallons or more of  chlorine-based  drycleaning  solvents
 8        annually  or  3600  gallons  or more of hydrocarbon-based
 9        drycleaning solvents annually.
10        For  purpose  of  this  subsection,   the   quantity   of
11    drycleaning  solvents  purchased annually shall be determined
12    as follows:
13             (1)  in  the  case  of  an  initial  applicant,  the
14        quantity  of  drycleaning  solvents  that  the  applicant
15        estimates will be used during his or her initial  license
16        year.   A  fee assessed under this subdivision is subject
17        to audited adjustment for that year; or
18             (2)  in  the  case  of  a  renewal  applicant,   the
19        quantity  of  drycleaning  solvents  actually used in the
20        preceding license year.
21        The Council may adjust licensing fees annually  based  on
22    the  published  Consumer  Price  Index  - All Urban Consumers
23    ("CPI-U") or as otherwise determined by the Council.
24        (d)  A license issued under this Section shall expire one
25    year after the  date  of  issuance  and  may  be  renewed  on
26    reapplication  to  the Agency Council and submission of proof
27    of payment of  the  appropriate  fee  to  the  Department  of
28    Revenue  in  accordance with subsections (c) and (e).  On and
29    after January 1, 2004, at least 30 days before payment  of  a
30    renewal  licensing  fee  is  due,  the  Agency  Council shall
31    attempt to:
32             (1)  notify   the   operator   of   each    licensed
33        drycleaning  facility,  the  operator  of  each  licensed
34        drycleaning  drop-off  facility, and each licensed dealer
 
                            -20-     LRB093 08997 AMC 09229 b
 1        of drycleaning solvents concerning  the  requirements  of
 2        this Section; and
 3             (2)  submit  a  license  fee  payment  form  to  the
 4        licensed  operator  of each drycleaning facility and each
 5        licensed  drycleaning  drop-off  facility  and  to   each
 6        licensed dealer of drycleaning solvents.
 7        (e)  On  and  after  January  1,  2004,  an operator of a
 8    drycleaning facility, an  operator  of  drycleaning  drop-off
 9    facility,  and  a dealer of drycleaning solvents shall submit
10    the appropriate  application  form  provided  by  the  Agency
11    Council  with  the  license  fee  in  the  form  of  cash  or
12    guaranteed  remittance  to  the  Department  of Revenue.  The
13    license fee payment form and the actual license  fee  payment
14    shall  be  administered  by  the  Department of Revenue under
15    rules adopted by that Department.
16        (f)  On and after January  1,  2004,  the  Department  of
17    Revenue shall provide issue a proof of payment receipt to the
18    Agency  who  shall  then  issue  an  annual  license  to each
19    operator of  a  drycleaning  facility,  each  operator  of  a
20    drycleaning drop-off facility, and each dealer of drycleaning
21    solvents  who  has  paid  the  appropriate  fee in cash or by
22    guaranteed remittance.  However, the  Department  of  Revenue
23    shall  not  issue a proof of payment receipt to a drycleaning
24    facility that is liable to the Department of  Revenue  for  a
25    tax  imposed  under  this Act.  The original receipt shall be
26    presented to the Council by the  operator  of  a  drycleaning
27    facility.
28        (f-3)  A  penalty  of  no  more  than  $500  per  day, as
29    determined by the Agency, shall be  assessed  by  the  Agency
30    against any operator of a drycleaning facility or drycleaning
31    drop-off  facility  or any dealer of drycleaning solvents who
32    fails to obtain a valid license by the date required in  this
33    Section.
34        (f-5)  An   operator   of   a   drycleaning  facility  or
 
                            -21-     LRB093 08997 AMC 09229 b
 1    drycleaning drop-off facility  or  a  dealer  of  drycleaning
 2    solvents shall be granted a 90 day grace period, beginning on
 3    January  1, 2004, within which to become licensed, to pay any
 4    overdue license fees, to pay any unpaid floor taxes,  and  to
 5    pay  any  penalties  as  defined  in  subsection  (g) of this
 6    Section up to a maximum of $450, in order to become  licensed
 7    without penalty.
 8        (f-7)  A  operator  of a licensed drycleaning facility, a
 9    operator of a licensed drycleaning drop-off  facility,  or  a
10    dealer   of   licensed  drycleaning  solvents  who  has  paid
11    penalties in excess of $450 shall receive from the Council  a
12    refund of the amount of  the penalties in excess of $450 that
13    were  paid  on  or  before  the  last day of the 90-day grace
14    period established in subsection (f-5).
15        (g)  An  operator  of  a   dry   cleaning   facility   or
16    drycleaning  drop-off  facility  or  a dealer of dry cleaning
17    solvents who is required to pay a license fee under this  Act
18    prior  to the end of the 90 day grace period and fails to pay
19    the license fee when the fee  is  due  shall  be  assessed  a
20    penalty  of  $5 for each day after the license fee is due and
21    until  the  license  fee  is  paid.   The  penalty  shall  be
22    effective for license fees due on or after July 1, 1999.
23        (g-5)  Any drycleaning facility or  drycleaning  drop-off
24    facility required under Section 45 to be insured must pay the
25    premium  or  the Agency may revoke the drycleaning facility's
26    license or the drycleaning drop-off facility's license.
27        (h)  The Agency Council and the Department of Revenue may
28    adopt  rules  as  necessary  to  administer   the   licensing
29    requirements of this Act.
30        (i)  Where this Section allows for the payment of license
31    fees  by  cash  or  guaranteed remittance, the Department may
32    adopt rules allowing for payment  of  the  license  fees  due
33    under this Act by credit card only when the Department is not
34    required  to  pay  a  discount fee charged by the credit card
 
                            -22-     LRB093 08997 AMC 09229 b
 1    issuer.
 2    (Source: P.A. 90-502, eff. 8-19-97; 91-453, eff. 8-6-99.)

 3        (415 ILCS 135/65)
 4        (Section scheduled to be repealed on January 1, 2010)
 5        Sec. 65. Drycleaning solvent tax.
 6        (a)  On and after January 1, 2004, On and  after  January
 7    1, 1998, a tax is imposed upon the use of drycleaning solvent
 8    by   a   person  engaged  in  the  business  of  operating  a
 9    drycleaning facility in this State  at  the  rate  of  $14.00
10    $3.50  per  gallon  of perchloroethylene or other chlorinated
11    drycleaning solvents used in drycleaning operations and $1.40
12    $0.35 per gallon of petroleum-based drycleaning solvent.  The
13    Council  shall  determine  by   rule   which   products   are
14    chlorine-based  drycleaning  solvents, and which products are
15    petroleum-based drycleaning solvents, and which products  are
16    "green"  drycleaning solvents. All drycleaning solvents shall
17    be considered chlorinated  drycleaning  solvents  unless  the
18    Council  determines  that  the  solvents  are petroleum-based
19    drycleaning solvents subject to the lower tax.
20        (b)  The tax imposed by this Act shall be collected  from
21    the  purchaser at the time of sale by a seller of drycleaning
22    solvents maintaining a place of business in  this  State  and
23    shall  be  remitted  to  the  Department of Revenue under the
24    provisions of this Act.
25        (c)  The tax imposed by this Act that is not collected by
26    a seller of drycleaning solvents shall be  paid  directly  to
27    the Department of Revenue by the purchaser or end user who is
28    subject to the tax imposed by this Act.
29        (d)  No  tax shall be imposed upon the use of drycleaning
30    solvent if the drycleaning solvent will  not  be  used  in  a
31    drycleaning facility or if a floor stock tax has been imposed
32    and  paid  on the drycleaning solvent.  Prior to the purchase
33    of the solvent, the purchaser shall  provide  a  written  and
 
                            -23-     LRB093 08997 AMC 09229 b
 1    signed certificate to the drycleaning solvent seller stating:
 2             (1)  the name and address of the purchaser;
 3             (2)  the  purchaser's signature and date of signing;
 4        and
 5             (3)  one of the following:
 6                  (A)  that the drycleaning solvent will  not  be
 7             used in a drycleaning facility; or
 8                  (B)  that  a  floor  stock tax has been imposed
 9             and paid on the drycleaning solvent.
10        A person who provides a false  certification  under  this
11    subsection  shall be liable for a civil penalty not to exceed
12    $500 for a first violation and a civil penalty not to  exceed
13    $5,000 for a second or subsequent violation.
14        (e)  On  January  1,  1998,  there  is  imposed  on  each
15    operator  of  a  drycleaning  facility  a  tax on drycleaning
16    solvent held by the operator  on  that  date  for  use  in  a
17    drycleaning  facility.  The tax imposed shall be the tax that
18    would  have  been  imposed  under   subsection  (a)  if   the
19    drycleaning  solvent  held  by  the operator on that date had
20    been purchased by the operator during the first year of  this
21    Act.
22        (f)  On or before the 25th day of the 1st month following
23    the  end  of  the  calendar  quarter, a seller of drycleaning
24    solvents who has collected a tax  pursuant  to  this  Section
25    during  the  previous calendar quarter, or a purchaser or end
26    user of drycleaning solvents required under subsection (c) to
27    submit the tax directly  to  the  Department,  shall  file  a
28    return  with  the Department of Revenue.  The return shall be
29    filed on a form prescribed by the Department of  Revenue  and
30    shall  contain  information  that  the  Department of Revenue
31    reasonably requires.
32        Each seller of drycleaning solvent maintaining a place of
33    business in this State  who  is  required  or  authorized  to
34    collect  the  tax  imposed  by  this  Act  shall  pay  to the
 
                            -24-     LRB093 08997 AMC 09229 b
 1    Department the amount of the tax at the time when he  or  she
 2    is  required  to file his or her return for the period during
 3    which  the  tax  was  collected.   Purchasers  or  end  users
 4    remitting the tax directly to the Department under subsection
 5    (c) shall file a return with the Department  of  Revenue  and
 6    pay  the  tax so incurred by the purchaser or end user during
 7    the preceding calendar quarter.
 8        (g)  The tax on drycleaning solvents used in  drycleaning
 9    facilities  and  the floor stock tax shall be administered by
10    Department of Revenue under rules adopted by that Department.
11        (h)  On and  after  January  1,  1998,  no  person  shall
12    knowingly sell or transfer drycleaning solvent to an operator
13    of  a drycleaning facility that is not licensed by the Agency
14    Council  under  Section  60.   A  person  who  violates  this
15    subsection is liable for a civil penalty not to  exceed  $500
16    for  a  first  violation  and  a  civil penalty not to exceed
17    $5,000 for a second or subsequent violation.
18        (h-5)  Drycleaning    facilities    exclusively     using
19    drycleaning   solvents   designated   by   rule   as  "green"
20    drycleaning solvents shall pay an annual solvent  tax  in  an
21    amount equal to that imposed on consumption of 100 gallons of
22    chlorine-based drycleaning solvents in that calendar year.
23        (h-7)  A  claimant who is eligible for reimbursement from
24    the remedial action account under subsection (b)(2) or (b)(3)
25    of Section 40 shall pay solvent taxes in an amount  equal  to
26    the total amount imposed on annual consumption of 100 gallons
27    of chlorine-based solvent from the effective date of this Act
28    to the date of becoming licensed.
29        (i)  The   Department  of  Revenue  may  adopt  rules  as
30    necessary to implement this Section.
31    (Source: P.A. 90-502, eff. 8-19-97.)

32        (415 ILCS 135/70)
33        Sec. 70.  Deposit of fees and taxes. On and after January
 
                            -25-     LRB093 08997 AMC 09229 b
 1    1,  2004,  all  license  fees  and  taxes  collected  by  the
 2    Department of Revenue under this Act shall be deposited  into
 3    the Fund, except:
 4             (1)  less 2% 4% of the moneys collected, which shall
 5        be   deposited  by  the  State  Treasurer  into  the  Tax
 6        Compliance and Administration Fund  and  shall  be  used,
 7        subject to appropriation, by the Department of Revenue to
 8        cover  the  costs  of  the  Department  in collecting the
 9        license fees and taxes under this Act;
10             (2)  , and less  an  amount  sufficient  to  provide
11        refunds under this Act; and
12             (3)  $150 of each license fee collected, which shall
13        be  forwarded  to  the Agency to be used for the costs of
14        the administration of this Act.
15    (Source: P.A. 90-502, eff. 8-19-97.)

16        (415 ILCS 135/75)
17        Sec. 75. Adjustment of fees and taxes. Beginning  January
18    1,  2004  beginning  January 1, 2000, and annually after that
19    date, the  Council  may  adopt  rules  to  shall  adjust  the
20    copayment  obligation  of  subsection  (e) of Section 40, the
21    drycleaning solvent taxes of Section 65, the license  fees of
22    Section 60, the insurance premiums  in  Section  45,  or  any
23    combination   of   adjustment   of  each,  after  notice  and
24    opportunity  for  public  comment,  in  a  manner  determined
25    necessary and appropriate to ensure viability  of  the  Fund.
26    Viability  of  the  Fund shall consider the settlement of all
27    current claims subject to prioritization of   benefits  under
28    subsection (c) of Section 25, consistent with the purposes of
29    this Act.
30    (Source: P.A. 90-502, eff. 8-19-97; 91-453, eff. 8-6-99.)

31        (415 ILCS 135/85)
32        Sec.  85.  Repeal of fee and tax provisions.  Sections 60
 
                            -26-     LRB093 08997 AMC 09229 b
 1    and 65 of this Act are repealed on January 1, 2022 2010.
 2    (Source: P.A. 90-502, eff. 8-19-97; 91-453, eff. 8-6-99.)

 3        Section 99.  Effective date.  This Act  takes  effect  on
 4    January  1,  2004,  except  that this Section and the changes
 5    made to Sections 20 and 45 of  the  Drycleaner  Environmental
 6    Response Trust Fund Act take effect upon becoming law.