Public Act 93-0201

SB1000 Enrolled                      LRB093 03184 AMC 03201 b

    AN ACT in relation to environmental protection.

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

    Section  5.   The Drycleaner Environmental Response Trust
Fund Act is amended by changing Sections 5, 15, 25,  30,  40,
45, 60, 65, 75, and 85 as follows:

    (415 ILCS 135/5)
    Sec. 5. Definitions.  As used in this Act:
    (a)  "Active  drycleaning  facility"  means a drycleaning
facility  actively  engaged  in  drycleaning  operations  and
licensed under Section 60 of this Act.
    (b)  "Agency" means the Illinois Environmental Protection
Agency.
    (c)  "Claimant"  means  an  owner  or   operator   of   a
drycleaning  facility  who has applied for reimbursement from
the remedial account or who has  submitted a claim under  the
insurance account with respect to a release.
    (d)  "Council"   means   the   Drycleaner   Environmental
Response Trust Fund  Council.
    (e)  "Drycleaner  Environmental  Response  Trust Fund" or
"Fund" means the fund created under Section 10 of this Act.
    (f)  "Drycleaning facility" means a facility  located  in
this  State  that  is  or  has  been  engaged  in drycleaning
operations for the general public, other than a:
         (1)  facility located on a  United  States  military
    base;
         (2)  industrial   laundry,  commercial  laundry,  or
    linen supply facility;
         (3)  prison or other penal institution that  engages
    in  drycleaning only as part of a Correctional Industries
    program  to  provide  drycleaning  to  persons  who   are
    incarcerated  in  a  prison  or  penal  institution or to
    resident  patients  of  a  State-operated  mental  health
    facility;
         (4)  not-for-profit hospital or  other  health  care
    facility; or a
         (5)  facility located or formerly located on federal
    or State property.
    (g)  "Drycleaning   operations"   means   drycleaning  of
apparel and household fabrics  for  the  general  public,  as
described  in Standard Industrial Classification Industry No.
7215 and No. 7216 in the Standard  Industrial  Classification
Manual   (SIC)  by  the  Technical  Committee  on  Industrial
Classification.
    (h)  "Drycleaning solvent" means any and  all  nonaqueous
solvents,  including  but  not limited to a chlorine-based or
petroleum-based  hydrocarbon-based  formulation  or  product,
including green solvents, that  are  is  used  as  a  primary
cleaning agent in drycleaning operations.
    (i)  "Emergency"  or "emergency action" means a situation
or an immediate response to a  situation  to  protect  public
health  or safety. "Emergency" or "emergency action" does not
mean  removal  of    contaminated  soils,  recovery  of  free
product, or financial hardship. An "emergency" or  "emergency
action" would normally be  expected to be directly related to
a  sudden event or discovery and would  last until the threat
to public health is mitigated.
    (j)  "Groundwater" means underground  water  that  occurs
within  the  saturated  zone and geologic materials where the
fluid pressure in the pore space is equal to or greater  than
the atmospheric pressure.
    (k)  "Inactive  drycleaning facility" means a drycleaning
facility that is not being used  for  drycleaning  operations
and is not registered under this Act.
    (l)  "Maintaining  a  place of business in this State" or
any like term means (1) having  or  maintaining  within  this
State,   directly   or   through  a  subsidiary,  an  office,
distribution  facility,  distribution  house,  sales   house,
warehouse, or other place of business or (2) operating within
this  State  as  an agent or representative for a person or a
person's subsidiary engaged in the  business  of  selling  to
persons  within this State, irrespective of whether the place
of business or agent or other representative  is  located  in
this State permanently or temporary, or whether the person or
the person's subsidiary engages in the business of selling in
this State.
    (m)  "No  Further  Remediation  Letter"  means  a  letter
provided  by  the  Agency  pursuant to Section 58.10 of Title
XVII of the Environmental Protection Act.
    (n)  "Operator"  means  a  person  or  entity  holding  a
business license to  operate a licensed  drycleaning facility
or the business operation of  which the drycleaning  facility
is a part.
    (o)  "Owner"   means   (1)  a  person  who  owns  or  has
possession or control of a drycleaning facility at the time a
release is discovered, regardless of whether    the  facility
remains  in  operation  or  (2)  a  parent corporation of the
person under item (1) of this subdivision.
    (p)  "Parent corporation"  means  a  business  entity  or
other  business    arrangement  that  has  elements of common
ownership or control or that  uses  a  long-term  contractual
arrangement with a person to avoid direct  responsibility for
conditions at a drycleaning facility.
    (q)  "Person"  means  an  individual,  trust, firm, joint
stock company, corporation,  consortium,  joint  venture,  or
other commercial entity.
    (r)  "Program  year" means the period beginning on July 1
and ending on the following June 30.
    (s)  "Release" means  any  spilling,  leaking,  emitting,
discharging, escaping, leaching, or dispersing of drycleaning
solvents  from a drycleaning facility to groundwater, surface
water, or subsurface soils.
    (t)  "Remedial action" means activities taken to   comply
with  Sections  58.6 and 58.7 of the Environmental Protection
Act and rules adopted by the Pollution  Control  Board  under
those Sections.
    (u)  "Responsible  party"  means  an  owner, operator, or
other person financially responsible for costs of remediation
of a release  of  drycleaning  solvents  from  a  drycleaning
facility.
    (v)  "Service   provider"  means  a  consultant,  testing
laboratory,   monitoring   well   installer,   soil    boring
contractor, other contractor, lender, or any other person who
provides   a  product  or  service  for  which  a  claim  for
reimbursement has been or will be filed against the  remedial
account  or  insurance  account, or a subcontractor of such a
person.
    (w)  "Virgin facility" means a drycleaning facility  that
has  never  had chlorine-based or petroleum-based drycleaning
solvents stored or used at the property prior to it  becoming
a green solvent drycleaning facility.
(Source: P.A. 90-502, eff. 8-19-97; 91-453, eff. 8-6-99.)

    (415 ILCS 135/15)
    Sec. 15. Creation of Council.
    (a)  The  Drycleaner  Environmental  Response  Trust Fund
Council is established and shall  consist  of  the  following
voting members to be appointed by the Governor:
         (1)  Four   Three  members  who  own  or  operate  a
    drycleaning  facility.  Two  of  these  members  must  be
    members of  the  Illinois  State  Fabricare  Association.
    These  members  shall  serve 3 year terms, except that of
    the initial members appointed, one shall be appointed for
    a term of one year, one for a term of 2  years,  and  one
    for a term of 3 years.
         (2)  One    member    who    represents    wholesale
    distributors of  drycleaning solvents.  This member shall
    serve for a term of 3 years.
         (3)  One   member  who  represents  the  drycleaning
    equipment    manufacturers  and  vendor  community.  This
    member shall serve for a term of 3 years.
         (4)  One  member  Two  members  with  experience  in
    financial markets or the insurance industry. This  member
    These  members  shall  serve 3-year terms, except that of
    the initial appointments, one shall be  appointed  for  a
    term of 2 years, and one for a term of 3 years.
    Each   member   shall  have  experience,  knowledge,  and
expertise relating to the subject matter of this Act.
    (b)  The Governor may remove any member  of  the  Council
for  incompetency,  neglect of duty, or malfeasance in office
after service on him or her of a copy of the written  charges
against  him  or  her and after an opportunity to be publicly
heard in person or by counsel in his or her  own  defense  no
earlier  than  10 days after the Governor has provided notice
of the  opportunity  to  the  Council  member.   Evidence  of
incompetency,  neglect  of duty, or malfeasance in office may
be provided to the Governor by  the  Agency  or  the  Auditor
General following the annual audit described in Section 80.
    (c)  Members  of  the  Council  are  entitled  to receive
reimbursement of actual expenses incurred in the discharge of
their duties within the limit of funds  appropriated  to  the
Council  or  made  available to the Fund.  The Governor shall
appoint a chairperson of the Council from among  the  members
of the Council.
    (d)  The  Attorney General's office or its designee shall
provide legal counsel to  the Council.
(Source: P.A. 90-502, eff. 8-19-97.)
    (415 ILCS 135/25)
    Sec. 25. Powers and duties of the Council.
    (a)  The Council shall have all  of  the  general  powers
reasonably necessary and convenient to carry out its purposes
and  may  perform  the  following  functions,  subject to any
express limitations contained in this Act:
         (1)  Take  actions   and   enter   into   agreements
    necessary  to   reimburse claimants for eligible remedial
    action expenses,  assist    the  Agency  to  protect  the
    environment  from releases, reduce costs  associated with
    remedial  actions,  and  establish   and   implement   an
    insurance program.
         (2)  Acquire  and  hold personal property to be used
    for the purpose of  remedial action.
         (3)  Purchase, construct, improve,  furnish,  equip,
    lease,  option,  sell,  exchange, or otherwise dispose of
    one or more improvements  under the terms it  determines.
    The   Council  may  define  "improvements"  by  rule  for
    purposes of this Act.
         (4)  Grant a  lien,  pledge,  assignment,  or  other
    encumbrance  on  one  or  more revenues, assets of right,
    accounts, or funds established or received in  connection
    with  the  Fund,  including revenues derived from fees or
    taxes collected under this Act.
         (5)  Contract for the acquisition or construction of
    one  or  more  improvements  or  parts  of  one  or  more
    improvements or for the  leasing,  subleasing,  sale,  or
    other disposition of one or more improvements in a manner
    the Council determines.
         (6)  Cooperate with the Agency in the implementation
    and  administration  of  this Act to minimize unnecessary
    duplication of effort,  reporting, or  paperwork  and  to
    maximize  environmental  protection    within the funding
    limits of this Act.
         (7)  Except as otherwise provided  by  law,  inspect
    any  document  in  the  possession of an owner, operator,
    service provider, or any other person if the document  is
    relevant  to a claim for reimbursement under this Section
    or may inspect a drycleaning facility for which  a  claim
    for benefits under this Act has been submitted.
    (b)  The  Council  shall pre-approve, and the contracting
parties shall seek pre-approval for, a contract entered  into
under  this  Act if the cost of the contract exceeds $75,000.
The Council or its  designee  shall  review  and  approve  or
disapprove    all  contracts  entered  into  under  this Act.
However, review by the Council or its  designee shall not  be
required  when  an  emergency situation exists. All contracts
entered  into  by  the  Council  shall  be   awarded   on   a
competitive  basis  to the maximum extent practical. In those
situations  where  it  is  determined  that  bidding  is  not
practical,   the   basis    for    the    determination    of
impracticability  shall  be  documented by the Council or its
designee.
    (c)  The Council may prioritize the expenditure of  funds
from  the remedial action account whenever it determines that
there are not sufficient funds to settle all current  claims.
In prioritizing, the Council may consider the following:
         (1)  the degree to which human health is affected by
    the exposure  posed by the release;
         (2)  the  reduction  of risk to human health derived
    from   remedial  action  compared  to  the  cost  of  the
    remedial action;
         (3)  the  present  and  planned uses of the impacted
    property; and
         (4)  other factors as determined by the Council.
    (d)  The Council shall adopt rules  allowing  the  direct
payment   from   the   Fund  to  a  contractor  who  performs
remediation. The rules concerning the  direct  payment  shall
include  a  provision  that any applicable deductible must be
paid by the drycleaning facility prior to any direct  payment
from the Fund.
    (e)  The  Council  may  purchase  reinsurance coverage to
reduce the Fund's potential liability  for  reimbursement  of
remedial action costs.
(Source: P.A. 90-502, eff. 8-19-97.)

    (415 ILCS 135/30)
    Sec. 30.  Independent contractors retained by Council.
    (a)  A contract entered into to retain a person to act as
the administrator of the Fund shall be subject to public bid,
provided  that no such contract shall be entered into without
the review and approval of the Director of the  Agency.   The
Council  may enter into a contract or an agreement authorized
under this Act with a person, the Agency, the  Department  of
Revenue,   other   departments,   agencies,  or  governmental
subdivisions of this State,  another  state,  or  the  United
States,   in   connection   with   its    administration  and
implementation of this Act.
    (b)  The  Council  may  reimburse  a  public  or  private
contractor retained pursuant to  this  Section  for  expenses
incurred  in  the  execution  of  a  contract  or  agreement.
Reimbursable  expenses include the costs of performing duties
or powers specifically delegated by the Council.
(Source: P.A. 90-502, eff. 8-19-97.)

    (415 ILCS 135/40)
    Sec. 40. Remedial action account.
    (a)  The  remedial  action  account  is  established   to
provide  reimbursement  to eligible claimants for drycleaning
solvent investigation, remedial action planning, and remedial
action   activities   for   existing   drycleaning    solvent
contamination discovered at their drycleaning facilities.
    (b)  The following persons are eligible for reimbursement
from the remedial action account:
         (1)  In  the  case  of  claimant who is the owner or
    operator of an active drycleaning  facility  licensed  by
    the Council under this Act at the time of application for
    remedial  action  benefits  afforded  under the Fund, the
    claimant is only eligible for reimbursement  of  remedial
    action  costs  incurred in connection with a release from
    that  drycleaning  facility,   subject   to   any   other
    limitations under this Act.
         (2)  In  the  case of a claimant who is the owner of
    an inactive drycleaning facility and  was  the  owner  or
    operator  of  the  drycleaning  facility  when it was  an
    active  drycleaning  facility,  the  claimant   is   only
    eligible  for    reimbursement  of  remedial action costs
    incurred  in  connection  with   a   release   from   the
    drycleaning  facility,  subject  to any other limitations
    under this Act.
    (c)  An eligible claimant requesting  reimbursement  from
the remedial action  account shall meet all of the following:
         (1)  The  claimant  demonstrates  that the source of
    the release is from  the claimant's drycleaning facility.
         (2)  At the time the release was discovered  by  the
    claimant,  the claimant and the drycleaning facility were
    in compliance with the  Agency  reporting  and  technical
    operating requirements.
         (3)  The  claimant  reported the release in a timely
    manner to  the Agency in accordance with State law.
         (4)  The claimant applying for reimbursement has not
    filed for bankruptcy on or after the date of his  or  her
    discovery of the release.
         (5)  If  the claimant is the owner or operator of an
    active drycleaning facility, the claimant has provided to
    the Council proof of implementation  and  maintenance  of
    the following pollution prevention measures:
              (A)  That   all   drycleaning   solvent  wastes
         generated at a drycleaning facility  be  managed  in
         accordance  with  applicable  State waste management
         laws and rules.
              (B)  A  prohibition   on   the   discharge   of
         wastewater   from   drycleaning   machines   or   of
         drycleaning solvent from drycleaning operations to a
         sanitary  sewer  or septic tank or to the surface or
         in groundwater.
              (C)  That every drycleaning facility:
                   (I)  install a containment dike  or  other
              containment  structure  around each machine, or
              item of equipment, or  the  entire  drycleaning
              area, and portable waste container in which any
              drycleaning solvent is utilized, which shall be
              capable   of   containing   leaks,  spills,  or
              releases  any  leak,  spill,  or   release   of
              drycleaning solvent from that machine, item, or
              area,  or  container.   The containment dike or
              other containment structure shall be capable of
              at  least  the  following:  (i)  containing   a
              capacity  of 110% of the drycleaning solvent in
              the largest tank or vessel within the  machine;
              (ii) containing 100% of the drycleaning solvent
              of  each item of equipment or drycleaning area;
              and (iii) containing 100%  of  the  drycleaning
              solvent of the largest portable waste container
              or  at  least  10%  of  the total volume of the
              portable waste  containers  stored  within  the
              containment  dike  or  structure,  whichever is
              greater.
                   Petroleum underground storage tank systems
              that are  upgraded  in  accordance  with  USEPA
              upgrade  standards  pursuant to 40 CFR Part 280
              for the tanks and related  piping  systems  and
              use  a  leak  detection  system approved by the
              USEPA or IEPA are exempt  from  this  secondary
              containment requirement; and
                   (II)  seal  or otherwise render impervious
              those portions of diked floor surfaces on which
              a  drycleaning  solvent  may  leak,  spill,  or
              otherwise be released.
              (D)  A requirement that all drycleaning solvent
         shall be  delivered  to  drycleaning  facilities  by
         means of closed, direct-coupled delivery systems.
         (6)  An  active  drycleaning facility has maintained
    continuous   financial   assurance   for    environmental
    liability  coverage in the amount of at least $500,000 at
    least since the date of  award  of  benefits  under  this
    Section  or  July  1,  2000,  whichever  is  earlier.  An
    uninsured   drycleaning   facility   that  has  filed  an
    application for insurance with the  Fund  by  January  1,
    2004,  obtained  insurance  through that application, and
    maintained that insurance coverage continuously shall  be
    considered  to  have  conformed  with the requirements of
    this subdivision (6). To conform  with  this  requirement
    the  applicant  must  pay  the  equivalent  of  the total
    premiums due for  the  period  beginning  June  30,  2000
    through the date of application plus a 20% penalty of the
    total premiums due for that period.
         (7)  The  release was discovered on or after July 1,
    1997 and before July 1, 2006 2004.
    (d)  A claimant shall submit a completed application form
provided by  the  Council.   The  application  shall  contain
documentation   of   activities,   plans,   and  expenditures
associated with the eligible costs incurred in response to  a
release  of  drycleaning solvent from a drycleaning facility.
Application for remedial  action  account  benefits  must  be
submitted to the Council on or before June 30, 2005 2004.
    (e)  Claimants   shall   be   subject  to  the  following
deductible requirements,  unless  modified  pursuant  to  the
Council's authority under Section 75:
         (1)  An  eligible claimant submitting a claim for an
    active drycleaning facility is responsible for the  first
    $5,000  of eligible investigation costs and for the first
    $10,000 of eligible remedial  action  costs  incurred  in
    connection with the release from the drycleaning facility
    and  is  only  eligible  for reimbursement for costs that
    exceed those amounts, subject to any other limitations of
    this Act.
         (2)  An eligible claimant submitting a claim for  an
    inactive  drycleaning  facility  is  responsible  for the
    first $10,000 of eligible investigation costs and for the
    first $10,000 of eligible remedial action costs  incurred
    in  connection  with  the  release  from that drycleaning
    facility, and is  only  eligible  for  reimbursement  for
    costs  that  exceed  those  amounts, subject to any other
    limitations of this Act.
    (f)  Claimants are subject to the  following  limitations
on reimbursement:
         (1)  Subsequent    to    meeting    the   deductible
    requirements of  subsection  (e),  and  pursuant  to  the
    requirements  of  Section  75,  reimbursement  shall  not
    exceed  $300,000  per  active  drycleaning  facility  and
    $50,000 per inactive drycleaning facility.:
              (A)  $160,000  per  active drycleaning facility
         for which an eligible claim is submitted during  the
         program year beginning July 1, 1999;
              (B)  $150,000  per  active drycleaning facility
         for which an eligible claim is submitted during  the
         program year beginning July 1, 2000;
              (C)  $140,000  per  active drycleaning facility
         for which an eligible claim is submitted during  the
         program year beginning July 1, 2001;
              (D)  $130,000  per  active drycleaning facility
         for which an eligible claim is submitted during  the
         program year beginning July 1, 2002;
              (E)  $120,000  per  active drycleaning facility
         for which an eligible  claim is submitted during the
         program year beginning July 1, 2003; or
              (F)  $50,000 per inactive drycleaning facility.
         (2)  A contract in which one of the parties  to  the
    contract is a claimant, for goods or services that may be
    payable  or  reimbursable  from  the Council, is void and
    unenforceable unless and until the Council has found that
    the contract terms are within  the  range  of  usual  and
    customary  rates  for  similar  or  equivalent  goods  or
    services  within  this State and has found that the goods
    or services are necessary for the claimant to comply with
    Council  standards   or   other   applicable   regulatory
    standards.
         (3)  A  claimant may appoint the Council as an agent
    for the purposes of negotiating contracts with  suppliers
    of  goods  or  services  reimbursable  by  the Fund.  The
    Council  may  select  another  contractor  for  goods  or
    services other than the one offered by  the  claimant  if
    the  scope  of  the  proposed  work or actual work of the
    claimant's  offered  contractor  does  not  reflect   the
    quality  of  workmanship  required  or  if  the costs are
    determined to be excessive, as determined by the Council.
         (4)  The Council may require a  claimant  to  obtain
    and  submit  3  bids  and  may require specific terms and
    conditions in a  contract subject to approval.
         (5)  The Council may enter into  a  contract  or  an
    exclusive contract with the supplier of goods or services
    required   by  a  claimant  or  class  of  claimants,  in
    connection with an expense reimbursable  from  the  Fund,
    for  a specified good or service at a gross maximum price
    or fixed rate, and may limit reimbursement accordingly.
         (6)  Unless emergency conditions  exist,  a  service
    provider  shall  obtain  the  Council's  approval  of the
    budget for the remediation  work  before  commencing  the
    work.   No  expense  incurred  that is above the budgeted
    amount shall be paid unless the  Council  approves    the
    expense  prior  to  its being incurred.  All invoices and
    bills relating to the remediation work shall be submitted
    with appropriate documentation, as  deemed  necessary  by
    the  Council,  not  later than 30 days after the work has
    been performed.
         (7)  Neither the Council nor an eligible claimant is
    responsible for payment for costs incurred that have  not
    been  previously  approved  by  the  Council,  unless  an
    emergency exists.
         (8)  The   Council   may  determine  the  usual  and
    customary costs of each item for which reimbursement  may
    be awarded under this Section. The Council may revise the
    usual and customary costs from time to time as necessary,
    but costs submitted for reimbursement shall be subject to
    the rates in effect at the time the costs were incurred.
         (9)  If a claimant has pollution liability insurance
    coverage  other  than  coverage provided by the insurance
    account under this Act, that coverage shall  be  primary.
    Reimbursement  from the remedial account shall be limited
    to the deductible amounts under the primary coverage  and
    the  amount that exceeds the policy limits of the primary
    coverage, subject to the deductible amounts of this  Act.
    If  there  is  a  dispute  between  the  claimant and the
    primary  insurance  provider,  reimbursement   from   the
    remedial action account may be made to the claimant after
    the  claimant  assigns all of his or her interests in the
    insurance coverage to the Council.
    (g)  The source of funds for the remedial action  account
shall  be  moneys  allocated  to  the  account by the Council
according to the Fund budget approved by the Council.
    (h)  A drycleaning facility will be classified as  active
or  inactive for purposes of  determining benefits under this
Section based on the status of the facility  on  the  date  a
claim is filed.
    (i)  Eligible  claimants shall conduct remedial action in
accordance  with  the  Site  Remediation  Program  under  the
Environmental Protection Act and Part 740 of Title 35 of  the
Illinois  Administrative  Code  and  the  Tiered  Approach to
Cleanup Objectives under Part 742 of Title 35 of the Illinois
Administrative Code.
(Source: P.A. 90-502, eff. 8-19-97; 91-453, eff. 8-6-99.)

    (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
    2004.    For   drycleaning   facilities  that  apply  for
    insurance coverage become  active  after  June  30,  2006
    2004,  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.
    (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. 90-502, eff. 8-19-97; 91-453, eff. 8-6-99.)

    (415 ILCS 135/60)
    (Section scheduled to be repealed on January 1, 2010)
    Sec. 60. Drycleaning facility license.
    (a)  On and  after  January  1,  1998,  no  person  shall
operate  a  drycleaning  facility  in  this  State  without a
license issued by the Council.
    (b)  The  Council  shall  issue  an  initial  or  renewal
license  to  a  drycleaning  facility  on  submission  by  an
applicant of a completed form prescribed by the  Council  and
proof  of  payment  of  the required fee to the Department of
Revenue.
    (c)  On or after January 1, 2004,  the  annual  fees  for
licensure are as follows:
         (1)  $500  for a facility that uses (i) 50 purchases
    140  gallons  or  less   of   chlorine-based   or   green
    drycleaning  solvents  annually, (ii) 250 or less gallons
    annually of hydrocarbon-based drycleaning solvents  in  a
    drycleaning machine equipped with a solvent reclaimer, or
    (iii)    500   1400   gallons   or   less   annually   of
    hydrocarbon-based drycleaning solvents in  a  drycleaning
    machine without a solvent reclaimer annually.
         (2)  $500  $1,000  for  a  facility  that  uses  (i)
    purchases  more than 50 140 gallons but not more than 100
    less  than  360  gallons  of  chlorine-based   or   green
    drycleaning solvents annually, (ii) more than 250 gallons
    but  not  more  500 gallons annually of hydrocarbon-based
    solvents in a drycleaning machine equipped with a solvent
    reclaimer, or (iii) more than 500 1400  gallons  but  not
    more  than  1,000  less  than  3600  gallons  annually of
    hydrocarbon-based drycleaning solvents in  a  drycleaning
    machine without a solvent reclaimer annually.
         (3)  $500  $1,500  for a facility that uses (i) more
    than 100 purchases 360 gallons  but  not  more  than  150
    gallons  or  more  of chlorine-based or green drycleaning
    solvents annually, (ii) more than  500  gallons  but  not
    more  than  750  gallons  annually  of  hydrocarbon-based
    solvents in a drycleaning machine equipped with a solvent
    reclaimer,  or (iii) more than 1,000 gallons but not more
    than 1,500 gallons  annually  3600  gallons  or  more  of
    hydrocarbon-based  drycleaning  solvents in a drycleaning
    machine without a solvent reclaimer annually.
         (4)  $1,000 for a facility that uses (i)  more  than
    150   gallons   but   not   more   than  200  gallons  of
    chlorine-based or green  drycleaning  solvents  annually,
    (ii)  more  than  750  gallons  but  not  more than 1,000
    gallons  annually  of  hydrocarbon-based  solvents  in  a
    drycleaning machine equipped with a solvent reclaimer, or
    (iii) more than 1,500 gallons but  not  more  than  2,000
    gallons   annually   of   hydrocarbon-based   drycleaning
    solvents  in  a  drycleaning  machine  without  a solvent
    reclaimer.
         (5)  $1,000 for a facility that uses (i)  more  than
    200   gallons   but   not   more   than  250  gallons  of
    chlorine-based or green  drycleaning  solvents  annually,
    (ii)  more  than  1,000  gallons  but not more than 1,250
    gallons  annually  of  hydrocarbon-based  solvents  in  a
    drycleaning machine equipped with a solvent reclaimer, or
    (iii) more than 2,000 gallons but  not  more  than  2,500
    gallons   annually   of   hydrocarbon-based   drycleaning
    solvents  in  a  drycleaning  machine  without  a solvent
    reclaimer.
         (6)  $1,000 for a facility that uses (i)  more  than
    250   gallons   but   not   more   than  300  gallons  of
    chlorine-based or green  drycleaning  solvents  annually,
    (ii)  more  than  1,250  gallons  but not more than 1,500
    gallons  annually  of  hydrocarbon-based  solvents  in  a
    drycleaning machine equipped with a solvent reclaimer, or
    (iii) more than 2,500 gallons but  not  more  than  3,000
    gallons   annually   of   hydrocarbon-based   drycleaning
    solvents  in  a  drycleaning  machine  without  a solvent
    reclaimer.
         (7)  $1,000 for a facility that uses (i)  more  than
    300   gallons   but   not   more   than  350  gallons  of
    chlorine-based or green  drycleaning  solvents  annually,
    (ii)  more  than  1,500  gallons  but not more than 1,750
    gallons  annually  of  hydrocarbon-based  solvents  in  a
    drycleaning machine equipped with a solvent reclaimer, or
    (iii) more than 3,000 gallons but  not  more  than  3,500
    gallons   annually   of   hydrocarbon-based   drycleaning
    solvents  in  a  drycleaning  machine  without  a solvent
    reclaimer.
         (8)  $1,500 for a facility that uses (i)  more  than
    350   gallons   but   not   more   than  400  gallons  of
    chlorine-based or green  drycleaning  solvents  annually,
    (ii)  more  than  1,750  gallons  but not more than 2,000
    gallons  annually  of  hydrocarbon-based  solvents  in  a
    drycleaning machine equipped with a solvent reclaimer, or
    (iii) more than 3,500 gallons but  not  more  than  4,000
    gallons   annually   of   hydrocarbon-based   drycleaning
    solvents  in  a  drycleaning  machine  without  a solvent
    reclaimer.
         (9)  $1,500 for a facility that uses (i)  more  than
    400   gallons   but   not   more   than  450  gallons  of
    chlorine-based or green  drycleaning  solvents  annually,
    (ii)  more  than  2,000  gallons  but not more than 2,250
    gallons  annually  of  hydrocarbon-based  solvents  in  a
    drycleaning machine equipped with a solvent reclaimer, or
    (iii) more than 4,000 gallons but  not  more  than  4,500
    gallons   annually   of   hydrocarbon-based   drycleaning
    solvents  in  a  drycleaning  machine  without  a solvent
    reclaimer.
         (10)  $1,500 for a facility that uses (i) more  than
    450   gallons   but   not   more   than  500  gallons  of
    chlorine-based or green  drycleaning  solvents  annually,
    (ii)  more  than  2,250  gallons  but not more than 2,500
    gallons annually of hydrocarbon-based solvents used in  a
    drycleaning machine equipped with a solvent reclaimer, or
    (iii)  more  than  4,500  gallons but not more than 5,000
    gallons   annually   of   hydrocarbon-based   drycleaning
    solvents in  a  drycleaning  machine  without  a  solvent
    reclaimer.
         (11)  $1,500  for a facility that uses (i) more than
    500  gallons  but  not   more   than   550   gallons   of
    chlorine-based  or  green  drycleaning solvents annually,
    (ii) more than 2,500 gallons  but  not  more  than  2,750
    gallons  annually  of  hydrocarbon-based  solvents  in  a
    drycleaning machine equipped with a solvent reclaimer, or
    (iii)  more  than  5,000  gallons but not more than 5,500
    gallons   annually   of   hydrocarbon-based   drycleaning
    solvents in  a  drycleaning  machine  without  a  solvent
    reclaimer.
         (12)  $1,500  for a facility that uses (i) more than
    550  gallons  but  not   more   than   600   gallons   of
    chlorine-based  or  green  drycleaning solvents annually,
    (ii) more than 2,750 gallons  but  not  more  than  3,000
    gallons  annually  of  hydrocarbon-based  solvents  in  a
    drycleaning machine equipped with a solvent reclaimer, or
    (iii)  more  than  5,500  gallons but not more than 6,000
    gallons   annually   of   hydrocarbon-based   drycleaning
    solvents in  a  drycleaning  machine  without  a  solvent
    reclaimer.
         (13)  $1,500  for a facility that uses (i) more than
    600  gallons  of  chlorine-based  or  green   drycleaning
    solvents  annually,  (ii) more than 3,000 gallons but not
    more than 3,250  gallons  annually  of  hydrocarbon-based
    solvents in a drycleaning machine equipped with a solvent
    reclaimer,   or   (iii)   more   than  6,000  gallons  of
    hydrocarbon-based  drycleaning  solvents  annually  in  a
    drycleaning machine equipped without a solvent reclaimer.
         (14)  $1,500 for a  facility  that  uses  more  than
    3,250 gallons but not more than 3,500 gallons annually of
    hydrocarbon-based   solvents  in  a  drycleaning  machine
    equipped with a solvent reclaimer.
         (15)  $1,500 for a  facility  that  uses  more  than
    3,500 gallons but not more than 3,750 gallons annually of
    hydrocarbon-based  solvents used in a drycleaning machine
    equipped with a solvent reclaimer.
         (16)  $1,500 for a  facility  that  uses  more  than
    3,750 gallons but not more than 4,000 gallons annually of
    hydrocarbon-based   solvents  in  a  drycleaning  machine
    equipped with a solvent reclaimer.
         (17)  $1,500 for a  facility  that  uses  more  than
    4,000 gallons annually of hydrocarbon-based solvents in a
    drycleaning machine equipped with a solvent reclaimer.
    For   purpose   of   this  subsection,  the  quantity  of
drycleaning  solvents  used  purchased  annually   shall   be
determined as follows:
         (1)  in  the  case  of  an  initial  applicant,  the
    quantity  of  drycleaning  solvents  that  the  applicant
    estimates  will be used during his or her initial license
    year.  A fee assessed under this subdivision  is  subject
    to audited adjustment for that year; or
         (2)  in   the  case  of  a  renewal  applicant,  the
    quantity of drycleaning solvents  actually  used  in  the
    preceding license year.
    The  Council  may adjust licensing fees annually based on
the published Consumer Price  Index  -  All  Urban  Consumers
("CPI-U") or as otherwise determined by the Council.
    (d)  A license issued under this Section shall expire one
year  after  the  date  of  issuance  and  may  be renewed on
reapplication to the  Council  and  submission  of  proof  of
payment  of  the appropriate fee to the Department of Revenue
in accordance with subsections (c) and (e).  At least 30 days
before payment of a renewal licensing fee is due, the Council
shall attempt to:
         (1)  notify   the   operator   of   each    licensed
    drycleaning  facility concerning the requirements of this
    Section;  and
         (2)  submit  a  license  fee  payment  form  to  the
    licensed operator of each drycleaning facility.
    (e)  An operator of a drycleaning facility  shall  submit
the appropriate application form provided by the Council with
the  license fee in the form of cash or guaranteed remittance
to the Department of Revenue.  The license fee  payment  form
and  the  actual license fee payment shall be administered by
the  Department  of  Revenue  under  rules  adopted  by  that
Department.
    (f)  The Department of Revenue shall  issue  a  proof  of
payment  receipt  to  each operator of a drycleaning facility
who has paid the appropriate fee in  cash  or  by  guaranteed
remittance.   However,  the  Department  of Revenue shall not
issue a proof of payment receipt to  a  drycleaning  facility
that is liable to the Department of Revenue for a tax imposed
under  this  Act.  The original receipt shall be presented to
the Council by the operator of a drycleaning facility.
    (g)  An operator  of  a  dry  cleaning  facility  who  is
required to pay a license fee under this Act and fails to pay
the  license  fee when the fee is due may shall be assessed a
penalty of $5 for each day after the license fee is  due  and
until the license fee is paid. The penalty shall be effective
for license fees due on or after July 1, 1999.
    (h)  The  Council and the Department of Revenue may adopt
rules as necessary to administer the  licensing  requirements
of this Act.
(Source: P.A. 90-502, eff. 8-19-97; 91-453, eff. 8-6-99.)

    (415 ILCS 135/65)
    (Section scheduled to be repealed on January 1, 2010)
    Sec. 65. Drycleaning solvent tax.
    (a)  On  and after January 1, 1998, a tax is imposed upon
the use of drycleaning solvent by a  person  engaged  in  the
business of operating a drycleaning facility in this State at
the  rate  of  $3.50 per gallon of perchloroethylene or other
chlorinated  drycleaning   solvents   used   in   drycleaning
operations,   and   $0.35   per   gallon  of  petroleum-based
drycleaning solvent, and $1.75 per gallon of green  solvents,
unless  the  green  solvent  is used at a virgin facility, in
which case the rate is $0.35 per gallon.  The  Council  shall
determine   by   rule   which   products  are  chlorine-based
solvents, and which products  are  petroleum-based  solvents,
and  which  products  are  green  solvents.   All drycleaning
solvents shall be considered chlorinated solvents unless  the
Council  determines  that  the  solvents  are petroleum-based
drycleaning solvents or green solvents subject to  the  lower
tax.
    (b)  The  tax imposed by this Act shall be collected from
the purchaser at the time of sale by a seller of  drycleaning
solvents  maintaining  a  place of business in this State and
shall be remitted to the  Department  of  Revenue  under  the
provisions of this Act.
    (c)  The tax imposed by this Act that is not collected by
a  seller  of  drycleaning solvents shall be paid directly to
the Department of Revenue by the purchaser or end user who is
subject to the tax imposed by this Act.
    (d)  No tax shall be imposed upon the use of  drycleaning
solvent  if  the  drycleaning  solvent  will not be used in a
drycleaning facility or if a floor stock tax has been imposed
and paid on the drycleaning solvent.  Prior to  the  purchase
of  the  solvent,  the  purchaser shall provide a written and
signed certificate to the drycleaning solvent seller stating:
         (1)  the name and address of the purchaser;
         (2)  the purchaser's signature and date of  signing;
    and
         (3)  one of the following:
              (A)  that  the  drycleaning solvent will not be
         used in a drycleaning facility; or
              (B)  that a floor stock tax  has  been  imposed
         and paid on the drycleaning solvent.
    A  person  who  provides a false certification under this
subsection shall be liable for a civil penalty not to  exceed
$500  for a first violation and a civil penalty not to exceed
$5,000 for a second or subsequent violation.
    (e)  On  January  1,  1998,  there  is  imposed  on  each
operator of a  drycleaning  facility  a  tax  on  drycleaning
solvent  held  by  the  operator  on  that  date for use in a
drycleaning facility. The tax imposed shall be the  tax  that
would  have  been  imposed  under    subsection  (a)  if  the
drycleaning  solvent  held  by  the operator on that date had
been purchased by the operator during the first year of  this
Act.
    (f)  On or before the 25th day of the 1st month following
the  end  of  the  calendar  quarter, a seller of drycleaning
solvents who has collected a tax  pursuant  to  this  Section
during  the  previous calendar quarter, or a purchaser or end
user of drycleaning solvents required under subsection (c) to
submit the tax directly  to  the  Department,  shall  file  a
return  with  the Department of Revenue.  The return shall be
filed on a form prescribed by the Department of  Revenue  and
shall  contain  information  that  the  Department of Revenue
reasonably requires,  but  at  a  minimum  will  require  the
reporting  of  the volume of drycleaning solvent sold to each
licensed drycleaner. The Department of Revenue  shall  report
quarterly  to  the  Council the volume of drycleaning solvent
purchased for the quarter by each licensed drycleaner.   Each
seller of drycleaning solvent maintaining a place of business
in  this  State  who is required or authorized to collect the
tax imposed by this Act  shall  pay  to  the  Department  the
amount  of  the tax at the time when he or she is required to
file his or her return for the period during  which  the  tax
was  collected.   Purchasers  or  end users remitting the tax
directly to the Department under subsection (c) shall file  a
return  with  the  Department  of  Revenue and pay the tax so
incurred by the purchaser or end user  during  the  preceding
calendar quarter.
    (g)  The  tax on drycleaning solvents used in drycleaning
facilities and the floor stock tax shall be  administered  by
Department of Revenue under rules adopted by that Department.
    (h)  On  and  after  January  1,  1998,  no  person shall
knowingly sell or transfer drycleaning solvent to an operator
of a drycleaning facility that is not licensed by the Council
under Section 60. A person who violates  this  subsection  is
liable  for  a  civil  penalty not to exceed $500 for a first
violation and a civil penalty not  to  exceed  $5,000  for  a
second or subsequent violation.
    (i)  The   Department  of  Revenue  may  adopt  rules  as
necessary to implement this Section.
(Source: P.A. 90-502, eff. 8-19-97.)
    (415 ILCS 135/75)
    Sec. 75. Adjustment of fees and taxes. Beginning  January
1,  2000,  and  annually  after that date, the  Council shall
adjust the copayment obligation of subsection (e) of  Section
40,  the drycleaning solvent taxes of Section 65, the license
fees of Section 60, or any combination of adjustment of each,
after notice and opportunity for public comment, in a  manner
determined  necessary  and appropriate to ensure viability of
the Fund  and  to  encourage  the  owner  or  operator  of  a
drycleaning facility to use green solvents.  Viability of the
Fund  shall  consider  the  settlement  of all current claims
subject to prioritization of benefits under subsection (c) of
Section 25, consistent with the purposes of this Act.
(Source: P.A. 90-502, eff. 8-19-97; 91-453, eff. 8-6-99.)

    (415 ILCS 135/85)
    Sec. 85. Repeal of fee and tax  provisions.  Sections  60
and 65 of this Act are repealed on January 1, 2020 2010.
(Source: P.A. 90-502, eff. 8-19-97; 91-453, eff. 8-6-99.)