State of Illinois
92nd General Assembly

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 1        AN ACT concerning drycleaners.

 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 40, 45, and 60 as
 6    follows:

 7        (415 ILCS 135/40)
 8        Sec. 40. Remedial action account.
 9        (a)  The  remedial  action  account  is  established   to
10    provide  reimbursement  to eligible claimants for drycleaning
11    solvent investigation, remedial action planning, and remedial
12    action   activities   for   existing   drycleaning    solvent
13    contamination discovered at their drycleaning facilities.
14        (b)  The following persons are eligible for reimbursement
15    from the remedial action account:
16             (1)  In  the  case  of  claimant who is the owner or
17        operator of an active drycleaning  facility  licensed  by
18        the Council under this Act at the time of application for
19        remedial  action  benefits  afforded  under the Fund, the
20        claimant is only eligible for reimbursement  of  remedial
21        action  costs  incurred in connection with a release from
22        that  drycleaning  facility,   subject   to   any   other
23        limitations under this Act.
24             (2)  In  the  case of a claimant who is the owner of
25        an inactive drycleaning facility and  was  the  owner  or
26        operator  of  the  drycleaning  facility  when it was  an
27        active  drycleaning  facility,  the  claimant   is   only
28        eligible  for    reimbursement  of  remedial action costs
29        incurred  in  connection  with   a   release   from   the
30        drycleaning  facility,  subject  to any other limitations
31        under this Act.
                            -2-                LRB9216017LBtm
 1        (c)  An eligible claimant requesting  reimbursement  from
 2    the remedial action  account shall meet all of the following:
 3             (1)  The  claimant  demonstrates  that the source of
 4        the release is from  the claimant's drycleaning facility.
 5             (2)  At the time the release was discovered  by  the
 6        claimant,  the claimant and the drycleaning facility were
 7        in compliance with the  Agency  reporting  and  technical
 8        operating requirements.
 9             (3)  The  claimant  reported the release in a timely
10        manner to  the Agency in accordance with State law.
11             (4)  The claimant applying for reimbursement has not
12        filed for bankruptcy on or after the date of his  or  her
13        discovery of the release.
14             (5)  If  the claimant is the owner or operator of an
15        active drycleaning facility, the claimant has provided to
16        the Council proof of implementation  and  maintenance  of
17        the following pollution prevention measures:
18                  (A)  That   all   drycleaning   solvent  wastes
19             generated at a drycleaning facility  be  managed  in
20             accordance  with  applicable  State waste management
21             laws and rules.
22                  (B)  A  prohibition   on   the   discharge   of
23             wastewater   from   drycleaning   machines   or   of
24             drycleaning solvent from drycleaning operations to a
25             sanitary  sewer  or septic tank or to the surface or
26             in groundwater.
27                  (C)  That every drycleaning facility:
28                       (I)  install a containment dike  or  other
29                  containment  structure  around each machine, or
30                  item of equipment, or  the  entire  drycleaning
31                  area, and portable waste container in which any
32                  drycleaning  solvent  is  utilized  or  stored,
33                  which  shall  be  capable  of containing leaks,
34                  spills, or releases any leak, spill, or release
                            -3-                LRB9216017LBtm
 1                  of drycleaning solvent from that machine, item,
 2                  or area, or container.  The containment dike or
 3                  other containment structure shall be capable of
 4                  at least the following:
 5                       (a)  containing a capacity of 110% of  the
 6                  drycleaning  solvent  in  the  largest  tank or
 7                  vessel within the machine;
 8                       (b)  containing 100%  of  the  drycleaning
 9                  solvent   of   each   item   of   equipment  or
10                  drycleaning area; and
11                       (c)  containing 100%  of  the  drycleaning
12                  solvent of the largest portable waste container
13                  or  at  least  10%  of  the total volume of the
14                  portable waste  containers  stored  within  the
15                  containment  dike  or  structure,  whichever is
16                  greater.
17                       Petroleum underground storage tank systems
18                  that are upgraded in accordance with the  USEPA
19                  upgrade  standards  in  40 CFR Part 280 for the
20                  tanks and related piping systems and use a leak
21                  detection system approved by the USEPA  or  the
22                  Agency   are   exempt   from   this   secondary
23                  containment requirement; and
24                       (II)  seal  or otherwise render impervious
25                  those portions of diked floor surfaces on which
26                  a  drycleaning  solvent  may  leak,  spill,  or
27                  otherwise be released.
28                  (D)  A requirement that all drycleaning solvent
29             shall be  delivered  to  drycleaning  facilities  by
30             means of closed, direct-coupled delivery systems.
31             (6)  An  active  drycleaning facility has maintained
32        continuous   financial   assurance   for    environmental
33        liability  coverage in the amount of at least $500,000 at
34        least since the date of  award  of  benefits  under  this
                            -4-                LRB9216017LBtm
 1        Section or July 1, 2000, whichever is earlier.
 2             (7)  The  release was discovered on or after July 1,
 3        1997 and before July 1, 2004.
 4        (d)  A claimant shall submit a completed application form
 5    provided by  the  Council.   The  application  shall  contain
 6    documentation   of   activities,   plans,   and  expenditures
 7    associated with the eligible costs incurred in response to  a
 8    release  of  drycleaning solvent from a drycleaning facility.
 9    Application for remedial  action  account  benefits  must  be
10    submitted to the Council on or before June 30, 2004.
11        (e)  Claimants   shall   be   subject  to  the  following
12    deductible requirements,  unless  modified  pursuant  to  the
13    Council's authority under Section 75:
14             (1)  An  eligible claimant submitting a claim for an
15        active drycleaning facility is responsible for the  first
16        $5,000  of eligible investigation costs and for the first
17        $10,000 of eligible remedial  action  costs  incurred  in
18        connection with the release from the drycleaning facility
19        and  is  only  eligible  for reimbursement for costs that
20        exceed those amounts, subject to any other limitations of
21        this Act.
22             (2)  An eligible claimant submitting a claim for  an
23        inactive  drycleaning  facility  is  responsible  for the
24        first $10,000 of eligible investigation costs and for the
25        first $10,000 of eligible remedial action costs  incurred
26        in  connection  with  the  release  from that drycleaning
27        facility, and is  only  eligible  for  reimbursement  for
28        costs  that  exceed  those  amounts, subject to any other
29        limitations of this Act.
30        (f)  Claimants are subject to the  following  limitations
31    on reimbursement:
32             (1)  Subsequent    to    meeting    the   deductible
33        requirements of  subsection  (e),  and  pursuant  to  the
34        requirements  of  Section  75,  reimbursement  shall  not
                            -5-                LRB9216017LBtm
 1        exceed:
 2                  (A)  $160,000  per  active drycleaning facility
 3             for which an eligible claim is submitted during  the
 4             program year beginning July 1, 1999;
 5                  (B)  $150,000  per  active drycleaning facility
 6             for which an eligible claim is submitted during  the
 7             program year beginning July 1, 2000;
 8                  (C)  $140,000  per  active drycleaning facility
 9             for which an eligible claim is submitted during  the
10             program year beginning July 1, 2001;
11                  (D)  $130,000  per  active drycleaning facility
12             for which an eligible claim is submitted during  the
13             program year beginning July 1, 2002;
14                  (E)  $120,000  per  active drycleaning facility
15             for which an eligible  claim is submitted during the
16             program year beginning July 1, 2003; or
17                  (F)  $50,000 per inactive drycleaning facility.
18             (2)  A contract in which one of the parties  to  the
19        contract is a claimant, for goods or services that may be
20        payable  or  reimbursable  from  the Council, is void and
21        unenforceable unless and until the Council has found that
22        the contract terms are within  the  range  of  usual  and
23        customary  rates  for  similar  or  equivalent  goods  or
24        services  within  this State and has found that the goods
25        or services are necessary for the claimant to comply with
26        Council  standards   or   other   applicable   regulatory
27        standards.
28             (3)  A  claimant may appoint the Council as an agent
29        for the purposes of negotiating contracts with  suppliers
30        of  goods  or  services  reimbursable  by  the Fund.  The
31        Council  may  select  another  contractor  for  goods  or
32        services other than the one offered by  the  claimant  if
33        the  scope  of  the  proposed  work or actual work of the
34        claimant's  offered  contractor  does  not  reflect   the
                            -6-                LRB9216017LBtm
 1        quality  of  workmanship  required  or  if  the costs are
 2        determined to be excessive, as determined by the Council.
 3             (4)  The Council may require a  claimant  to  obtain
 4        and  submit  3  bids  and  may require specific terms and
 5        conditions in a  contract subject to approval.
 6             (5)  The Council may enter into  a  contract  or  an
 7        exclusive contract with the supplier of goods or services
 8        required   by  a  claimant  or  class  of  claimants,  in
 9        connection with an expense reimbursable  from  the  Fund,
10        for  a specified good or service at a gross maximum price
11        or fixed rate, and may limit reimbursement accordingly.
12             (6)  Unless emergency conditions  exist,  a  service
13        provider  shall  obtain  the  Council's  approval  of the
14        budget for the remediation  work  before  commencing  the
15        work.   No  expense  incurred  that is above the budgeted
16        amount shall be paid unless the  Council  approves    the
17        expense  prior  to  its being incurred.  All invoices and
18        bills relating to the remediation work shall be submitted
19        with appropriate documentation, as  deemed  necessary  by
20        the  Council,  not  later than 30 days after the work has
21        been performed.
22             (7)  Neither the Council nor an eligible claimant is
23        responsible for payment for costs incurred that have  not
24        been  previously  approved  by  the  Council,  unless  an
25        emergency exists.
26             (8)  The   Council   may  determine  the  usual  and
27        customary costs of each item for which reimbursement  may
28        be awarded under this Section. The Council may revise the
29        usual and customary costs from time to time as necessary,
30        but costs submitted for reimbursement shall be subject to
31        the rates in effect at the time the costs were incurred.
32             (9)  If a claimant has pollution liability insurance
33        coverage  other  than  coverage provided by the insurance
34        account under this Act, that coverage shall  be  primary.
                            -7-                LRB9216017LBtm
 1        Reimbursement  from the remedial account shall be limited
 2        to the deductible amounts under the primary coverage  and
 3        the  amount that exceeds the policy limits of the primary
 4        coverage, subject to the deductible amounts of this  Act.
 5        If  there  is  a  dispute  between  the  claimant and the
 6        primary  insurance  provider,  reimbursement   from   the
 7        remedial action account may be made to the claimant after
 8        the  claimant  assigns all of his or her interests in the
 9        insurance coverage to the Council.
10        (g)  The source of funds for the remedial action  account
11    shall  be  moneys  allocated  to  the  account by the Council
12    according to the Fund budget approved by the Council.
13        (h)  A drycleaning facility will be classified as  active
14    or  inactive for purposes of  determining benefits under this
15    Section based on the status of the facility  on  the  date  a
16    claim is filed.
17        (i)  Eligible  claimants shall conduct remedial action in
18    accordance  with  the  Site  Remediation  Program  under  the
19    Environmental Protection Act and Part 740 of Title 35 of  the
20    Illinois  Administrative  Code  and  the  Tiered  Approach to
21    Cleanup Objectives under Part 742 of Title 35 of the Illinois
22    Administrative Code.
23    (Source: P.A. 90-502, eff. 8-19-97; 91-453, eff. 8-6-99.)

24        (415 ILCS 135/45)
25        Sec. 45. Insurance account.
26        (a)  The  insurance   account   shall   offer   financial
27    assurance for a qualified owner  or operator of a drycleaning
28    facility  under  the  terms and conditions provided for under
29    this Section. Coverage may be provided to either the owner or
30    the operator of a drycleaning facility. The  Council  is  not
31    required  to  resolve whether the owner or operator, or both,
32    are responsible for a release under the terms of an agreement
33    between the owner and operator.
                            -8-                LRB9216017LBtm
 1        (b)  The source of funds for the insurance account  shall
 2    be as follows:
 3             (1)  Moneys  appropriated  to  the Council or moneys
 4        allocated  to  the  insurance  account  by  the   Council
 5        according to the Fund budget approved by the Council.
 6             (2)  Moneys   collected  as  an  insurance  premium,
 7        including service fees, if any.
 8             (3)  Investment income attributed to  the  insurance
 9        account by the Council.
10        (c)  An  owner or operator may purchase coverage of up to
11    $500,000 per drycleaning facility subject to  the  terms  and
12    conditions  under  this  Section  and  those  adopted  by the
13    Council. Coverage shall be limited to remedial  action  costs
14    associated  with soil and groundwater contamination resulting
15    from  a  release  of  drycleaning  solvent  at   an   insured
16    drycleaning  facility,  including  third-party  liability for
17    soil and groundwater contamination.  Coverage is not provided
18    for a release that occurred before the date of coverage.
19        (d)  An  owner  or  operator,  subject  to   underwriting
20    requirements  and  terms  and conditions deemed necessary and
21    convenient by the Council, may  purchase  insurance  coverage
22    from  the  insurance  account  provided  that the drycleaning
23    facility to be insured meets the following conditions:
24             (1)  a site investigation designed to identify  soil
25        and  groundwater contamination resulting from the release
26        of a drycleaning solvent has been completed. The  Council
27        shall  determine  if  the site investigation is adequate.
28        This investigation must be completed by  June  30,  2004.
29        For  drycleaning  facilities  that  apply  for  insurance
30        coverage  become  active  after  June  30, 2004, the site
31        investigation must be  completed  prior  to  issuance  of
32        insurance coverage; and
33             (2)  the  drycleaning  facility  is participating in
34        and meets all requirements of  a  drycleaning  compliance
                            -9-                LRB9216017LBtm
 1        program approved by the Council.
 2        (e)  The annual premium for insurance coverage shall be:
 3             (1)  For  the  year  July  1,  1999 through June 30,
 4        2000, $250 per drycleaning facility.
 5             (2)  For the year July  1,  2000  through  June  30,
 6        2001, $375 per drycleaning facility.
 7             (3)  For  the  year  July  1,  2001 through June 30,
 8        2002, $500 per drycleaning facility.
 9             (4)  For the year July  1,  2002  through  June  30,
10        2003, $625 per drycleaning facility.
11             (5)  For  subsequent  years,  an  owner  or operator
12        applying   for   coverage    shall    pay    an    annual
13        actuarially-sound  insurance  premium for coverage by the
14        insurance account.  The Council may approve Fund coverage
15        through the  payment  of  a  premium  established  on  an
16        actuarially-sound  basis,  taking  into consideration the
17        risk to the insurance account presented by  the  insured.
18        Risk    factor    adjustments   utilized   to   determine
19        actuarially-sound insurance premiums should  reflect  the
20        range  of  risk  presented  by the variety of drycleaning
21        systems, monitoring  systems,  drycleaning  volume,  risk
22        management  practices, and other factors as determined by
23        the Council. As used in this item, "actuarially sound" is
24        not limited to Fund premium revenue equaling or exceeding
25        Fund expenditures for the  general  drycleaning  facility
26        population.   Actuarially-determined  premiums  shall  be
27        published  at  least  180  days  prior  to  the  premiums
28        becoming effective.
29        (f)  If coverage is purchased for any part of a year, the
30    purchaser shall pay the full annual premium.   The  insurance
31    premium  is  fully  earned  upon  issuance  of  the insurance
32    policy.
33        (g)  The insurance coverage  shall  be  provided  with  a
34    $10,000 deductible policy.
                            -10-               LRB9216017LBtm
 1        (h)  A  future repeal of this Section shall not terminate
 2    the  obligations under this Section or authority necessary to
 3    administer  the  obligations  until   the   obligations   are
 4    satisfied, including but not limited to the payment of claims
 5    filed  prior  to  the  effective  date  of  any future repeal
 6    against the insurance account until moneys in the account are
 7    exhausted.  Upon exhaustion of the moneys in the account, any
 8    remaining claims shall be invalid. If moneys  remain  in  the
 9    account  following satisfaction of the obligations under this
10    Section, the remaining moneys  and  moneys  due  the  account
11    shall  be  used to assist current insureds to obtain a viable
12    insuring mechanism as determined by the Council after  public
13    notice and opportunity for comment.
14    (Source: P.A. 90-502, eff. 8-19-97; 91-453, eff. 8-6-99.)

15        (415 ILCS 135/60)
16        (Section scheduled to be repealed on January 1, 2010)
17        Sec. 60. Drycleaning facility license.
18        (a)  On  and  after  January  1,  1998,  no  person shall
19    operate a  drycleaning  facility  in  this  State  without  a
20    license issued by the Council.
21        (b)  The  Council  shall  issue  an  initial  or  renewal
22    license  to  a  drycleaning  facility  on  submission  by  an
23    applicant  of  a completed form prescribed by the Council and
24    proof of payment of the required fee  to  the  Department  of
25    Revenue.
26        (c)  The annual fees for licensure are as follows:
27             (1)  $500  for a facility that purchases 140 gallons
28        or less of chlorine-based drycleaning  solvents  annually
29        or  1400 gallons or less of hydrocarbon-based drycleaning
30        solvents annually.
31             (2)  $1,000 for a facility that purchases more  than
32        140  gallons  but less than 360 gallons of chlorine-based
33        drycleaning solvents annually or more than  1400  gallons
                            -11-               LRB9216017LBtm
 1        but   less   than   3600   gallons  of  hydrocarbon-based
 2        drycleaning solvents annually.
 3             (3)  $1,500  for  a  facility  that  purchases   360
 4        gallons  or  more  of chlorine-based drycleaning solvents
 5        annually or 3600 gallons  or  more  of  hydrocarbon-based
 6        drycleaning solvents annually.
 7        For   purpose   of   this  subsection,  the  quantity  of
 8    drycleaning solvents purchased annually shall  be  determined
 9    as follows:
10             (1)  in  the  case  of  an  initial  applicant,  the
11        quantity  of  drycleaning  solvents  that  the  applicant
12        estimates  will be used during his or her initial license
13        year.  A fee assessed under this subdivision  is  subject
14        to audited adjustment for that year; or
15             (2)  in   the  case  of  a  renewal  applicant,  the
16        quantity of drycleaning solvents  actually  used  in  the
17        preceding license year.
18        The  Council  may adjust licensing fees annually based on
19    the published Consumer Price  Index  -  All  Urban  Consumers
20    ("CPI-U") or as otherwise determined by the Council.
21        (d)  A license issued under this Section shall expire one
22    year  after  the  date  of  issuance  and  may  be renewed on
23    reapplication to the  Council  and  submission  of  proof  of
24    payment  of  the appropriate fee to the Department of Revenue
25    in accordance with subsections (c) and (e).  At least 30 days
26    before payment of a renewal licensing fee is due, the Council
27    shall attempt to:
28             (1)  notify   the   operator   of   each    licensed
29        drycleaning  facility concerning the requirements of this
30        Section;  and
31             (2)  submit  a  license  fee  payment  form  to  the
32        licensed operator of each drycleaning facility.
33        (e)  An operator of a drycleaning facility  shall  submit
34    the appropriate application form provided by the Council with
                            -12-               LRB9216017LBtm
 1    the  license fee in the form of cash or guaranteed remittance
 2    to the Department of Revenue.  The license fee  payment  form
 3    and  the  actual license fee payment shall be administered by
 4    the  Department  of  Revenue  under  rules  adopted  by  that
 5    Department.
 6        (f)  The Department of Revenue shall  issue  a  proof  of
 7    payment  receipt  to  each operator of a drycleaning facility
 8    who has paid the appropriate fee in  cash  or  by  guaranteed
 9    remittance.   However,  the  Department  of Revenue shall not
10    issue a proof of payment receipt to  a  drycleaning  facility
11    that is liable to the Department of Revenue for a tax imposed
12    under  this  Act.  The original receipt shall be presented to
13    the Council by the operator of a drycleaning facility.
14        (f-5)  An operator of a  drycleaning  facility  shall  be
15    granted  a  90  day  grace period, beginning January 1, 2003,
16    within which to become licensed, to pay any  overdue  license
17    fees, to pay any unpaid floor taxes, and to pay any penalties
18    as  defined in subsection (g) of this Section up to a maximum
19    of $450, in order to become licensed without penalty.
20        (f-7)  An operator of a drycleaning facility who has paid
21    penalties in excess of $450 shall receive from the Council  a
22    refund of the amount of penalties in excess of $450 that were
23    paid  on  or  before  the last day of the 90-day grace period
24    established in subsection (f-5).
25        (g)  An operator  of  a  dry  cleaning  facility  who  is
26    required to pay a license fee under this Act and fails to pay
27    the  license  fee when the fee is due may shall be assessed a
28    penalty of $5 for each day after the license fee is  due  and
29    until the license fee is paid. The penalty shall be effective
30    for  license  fees due on or after July 1, 1999. Beginning on
31    the effective date of this amendatory Act of the 92nd General
32    Assembly, the Department of Revenue shall no  longer  collect
33    penalties  incurred  between the effective date of Drycleaner
34    Environmental Response Trust Fund Act and  January  1,  2001,
                            -13-               LRB9216017LBtm
 1    under  this subsection, but penalties already collected shall
 2    not be refunded.
 3        (h)  The Council and the Department of Revenue may  adopt
 4    rules  as  necessary to administer the licensing requirements
 5    of this Act.
 6    (Source: P.A. 90-502, eff. 8-19-97; 91-453, eff. 8-6-99.)

 7        Section 99.  Effective date.  This Act takes effect  upon
 8    becoming law.

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