State of Illinois
92nd General Assembly
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92_HB1690

 
                                               LRB9206355ACks

 1        AN ACT concerning environmental safety.

 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 5, 10, 40, 60, 65,
 6    75, 80, and 85 and by adding Sections 16, 21, 22, 23, and  61
 7    as follows:

 8        (415 ILCS 135/5)
 9        Sec. 5. Definitions.  As used in this Act:
10        (a)  "Active  drycleaning  facility"  means a drycleaning
11    facility  actively  engaged  in  drycleaning  operations  and
12    licensed under Section 60 of this Act.
13        "Advisory Committee" means the  Drycleaner  Environmental
14    Response Trust Fund Advisory Committee.
15        (b)  "Agency" means the Illinois Environmental Protection
16    Agency.
17        (c)  "Claimant"   means   an   owner  or  operator  of  a
18    drycleaning facility who has applied for  reimbursement  from
19    the  remedial account or who has  submitted a claim under the
20    insurance account with respect to a release.
21        (d)  "Council"   means   the   Drycleaner   Environmental
22    Response Trust Fund  Council.
23        (e)  "Drycleaner Environmental Response  Trust  Fund"  or
24    "Fund" means the fund created under Section 10 of this Act.
25        (f)  "Drycleaning  facility"  means a facility located in
26    this State  that  is  or  has  been  engaged  in  drycleaning
27    operations for the general public, other than a:
28             (1)  facility  located  on  a United States military
29        base;
30             (2)  industrial  laundry,  commercial  laundry,   or
31        linen supply facility;
 
                            -2-                LRB9206355ACks
 1             (3)  prison  or other penal institution that engages
 2        in drycleaning only as part of a Correctional  Industries
 3        program   to  provide  drycleaning  to  persons  who  are
 4        incarcerated in a  prison  or  penal  institution  or  to
 5        resident  patients  of  a  State-operated  mental  health
 6        facility;
 7             (4)  not-for-profit  hospital  or  other health care
 8        facility; or a
 9             (5)  facility located or formerly located on federal
10        or State property.
11        (g)  "Drycleaning  operations"   means   drycleaning   of
12    apparel  and  household  fabrics  for  the general public, as
13    described in Standard Industrial Classification Industry  No.
14    7215  and  No. 7216 in the Standard Industrial Classification
15    Manual  (SIC)  by  the  Technical  Committee  on   Industrial
16    Classification.
17        (h)  "Drycleaning  solvent"  means  a  chlorine-based  or
18    hydrocarbon-based  formulation  or  product that is used as a
19    primary cleaning agent in  drycleaning operations.
20        (i)  "Emergency" or "emergency action" means a  situation
21    or  an  immediate  response  to a situation to protect public
22    health or safety. "Emergency" or "emergency action" does  not
23    mean  removal  of    contaminated  soils,  recovery  of  free
24    product,  or financial hardship. An "emergency" or "emergency
25    action" would normally be  expected to be directly related to
26    a sudden event or discovery and would  last until the  threat
27    to public health is mitigated.
28        (j)  "Groundwater"  means  underground  water that occurs
29    within the saturated zone and geologic  materials  where  the
30    fluid  pressure in the pore space is equal to or greater than
31    the atmospheric pressure.
32        (k)  "Inactive drycleaning facility" means a  drycleaning
33    facility  that  is  not being used for drycleaning operations
34    and is not registered under this Act.
 
                            -3-                LRB9206355ACks
 1        (l)  "Maintaining a place of business in this  State"  or
 2    any  like  term  means  (1) having or maintaining within this
 3    State,  directly  or  through  a   subsidiary,   an   office,
 4    distribution   facility,  distribution  house,  sales  house,
 5    warehouse, or other place of business or (2) operating within
 6    this State as an agent or representative for a  person  or  a
 7    person's  subsidiary  engaged  in  the business of selling to
 8    persons within this State, irrespective of whether the  place
 9    of  business  or  agent or other representative is located in
10    this State permanently or temporary, or whether the person or
11    the person's subsidiary engages in the business of selling in
12    this State.
13        (m)  "No  Further  Remediation  Letter"  means  a  letter
14    provided by the Agency pursuant to  Section  58.10  of  Title
15    XVII of the Environmental Protection Act.
16        (n)  "Operator"  means  a  person  or  entity  holding  a
17    business license to  operate a licensed  drycleaning facility
18    or  the business operation of  which the drycleaning facility
19    is a part.
20        (o)  "Owner"  means  (1)  a  person  who  owns   or   has
21    possession or control of a drycleaning facility at the time a
22    release  is  discovered,  regardless of whether  the facility
23    remains in operation or  (2)  a  parent  corporation  of  the
24    person under item (1) of this subdivision.
25        (p)  "Parent  corporation"  means  a  business  entity or
26    other business   arrangement  that  has  elements  of  common
27    ownership  or  control  or that  uses a long-term contractual
28    arrangement with a person to avoid direct  responsibility for
29    conditions at a drycleaning facility.
30        (q)  "Person" means an  individual,  trust,  firm,  joint
31    stock  company,  corporation,  consortium,  joint venture, or
32    other commercial entity.
33        (r)  "Program year" means the period beginning on July  1
34    and ending on the following June 30.
 
                            -4-                LRB9206355ACks
 1        (s)  "Release"  means  any  spilling,  leaking, emitting,
 2    discharging, escaping, leaching, or dispersing of drycleaning
 3    solvents from a drycleaning facility to groundwater,  surface
 4    water, or subsurface soils.
 5        (t)  "Remedial  action" means activities taken to  comply
 6    with Sections 58.6 and 58.7 of the  Environmental  Protection
 7    Act  and  rules  adopted by the Pollution Control Board under
 8    those Sections.
 9        (u)  "Responsible party" means  an  owner,  operator,  or
10    other person financially responsible for costs of remediation
11    of  a  release  of  drycleaning  solvents  from a drycleaning
12    facility.
13        (v)  "Service  provider"  means  a  consultant,   testing
14    laboratory,    monitoring   well   installer,   soil   boring
15    contractor, other contractor, lender, or any other person who
16    provides  a  product  or  service  for  which  a  claim   for
17    reimbursement  has been or will be filed against the remedial
18    account or insurance account, or a subcontractor  of  such  a
19    person.
20    (Source: P.A. 90-502, eff. 8-19-97; 91-453, eff. 8-6-99.)

21        (415 ILCS 135/10)
22        Sec. 10. Drycleaner Environmental Response Trust Fund.
23        (a)  The  Drycleaner Environmental Response Trust Fund is
24    created as a  special fund  in  the  State  Treasury.  Moneys
25    deposited  into  the Fund shall be used by the Agency for the
26    investigation  and  cleanup  of  drycleaning  facilities   as
27    provided  in this Act and to settle any debts associated with
28    transferring administration of  the  program  to  the  Agency
29    solely for the purposes of the Council and for other purposes
30    as  provided  in  this  Act.  The  Fund  shall include moneys
31    credited to the Fund under this Act  and other moneys that by
32    law may be credited to the  Fund.  The  State  Treasurer  may
33    invest  Funds deposited into the Fund at the direction of the
 
                            -5-                LRB9206355ACks
 1    Agency Council. Interest, income from  the  investments,  and
 2    other  income  earned  by  the  Fund shall be credited to and
 3    deposited into the Fund.
 4        Pursuant to appropriation, all moneys in  the  Drycleaner
 5    Environmental  Response  Trust Fund shall be disbursed by the
 6    Agency  to  the   Council   for   the   purpose   of   making
 7    disbursements,  if  any,  in accordance with this Act and for
 8    the purpose of paying the ordinary and contingent expenses of
 9    the Council. After June 30, 1999,  Pursuant to appropriation,
10    all moneys in the  Drycleaner  Environmental  Response  Trust
11    Fund  may  be  used by the Agency for the enforcement of this
12    Act Council for the purpose of making disbursements, if  any,
13    in accordance with this Act and for the purpose of paying the
14    ordinary and contingent expenses of the Council.
15        The  Fund  may  be  divided  into different accounts with
16    different depositories to fulfill the purposes of the Act  as
17    determined by the Agency Council.
18        Moneys  in  the  Fund  at  the end of a State fiscal year
19    shall be carried forward to the next fiscal  year  and  shall
20    not revert to the General Revenue Fund.
21        (b)  The  specific  purposes  of the Fund include but are
22    not limited to the following:
23             (1)  To establish an account to fund remedial action
24        of  drycleaning    solvent  releases   from   drycleaning
25        facilities as provided by Section 40.
26             (2)  (Blank)  To  establish an insurance account for
27        insuring  environmental  risks     from   releases   from
28        drycleaning  facilities  within this State as provided by
29        Section 45.
30        (c)  The State, the General Revenue Fund, and  any  other
31    Fund  of  the  State, other than the Drycleaner Environmental
32    Response Trust Fund, shall not be liable for a claim or cause
33    of action in connection with a drycleaning facility not owned
34    or operated by the State or an  agency  of  the  State.   All
 
                            -6-                LRB9206355ACks
 1    expenses  incurred  by  the Fund shall be payable solely from
 2    the Fund and no liability or obligation shall be imposed upon
 3    the State. The State is not  liable  for  a  claim  presented
 4    against the Fund.
 5        (d)  The  liability  of the Fund is limited to the extent
 6    of coverage provided by the account under which  a  claim  is
 7    submitted,  subject  to  the  terms  and  conditions  of that
 8    coverage.  The liability of the Fund is  further  limited  by
 9    the moneys made available to the Fund, and no remedy shall be
10    ordered  that  would  require  the  Fund  to  exceed its then
11    current funding limitations to  satisfy  an  award  or  which
12    would restrict the availability of moneys for higher priority
13    sites.
14        (e)  Nothing  in  this  Act  shall be construed to limit,
15    restrict, or affect the authority and powers of the Agency or
16    another State agency or statute unless the  State  agency  or
17    statute  is  specifically  referenced  and  the limitation is
18    clearly set forth in this Act.
19    (Source: P.A. 90-502, eff. 8-19-97; 91-453, eff. 8-6-99.)

20        (415 ILCS 135/16 new)
21        Sec. 16. Creation of Advisory Committee.
22        (a)  The Drycleaner  Environmental  Response  Trust  Fund
23    Advisory  Committee  is  established  and  shall consist of 7
24    members who own or operate  a  drycleaning  facility,  to  be
25    appointed  by  the  Governor.  The membership of the Advisory
26    Committee should reasonably refect  representation  from  the
27    geographic areas of the State.
28        Each   member   shall  have  experience,  knowledge,  and
29    expertise relating to the subject matter of this Act.
30        Of the 7 initial members, 2 shall be appointed for a term
31    of 1 year, 2 shall be appointed for a term of 2 years, and  3
32    shall be appointed for a term of 3 years.  Subsequent members
33    shall serve for a term of 3 years.
 
                            -7-                LRB9206355ACks
 1        (b)  The  Governor  may remove any member of the Advisory
 2    Committee for incompetency, neglect of duty,  or  malfeasance
 3    in  office  after  service  on  him  or  her of a copy of the
 4    written charges against him or her and after  an  opportunity
 5    to  be  publicly  heard in person or by counsel in his or her
 6    own defense no earlier than 10 days after  the  Governor  has
 7    provided  notice of the opportunity to the Advisory Committee
 8    member.   Evidence  of  incompetency,  neglect  of  duty,  or
 9    malfeasance in office may be provided to the Governor by  the
10    Agency  or  the  Auditor  General  following the annual audit
11    described in Section 80.
12        (c)  Members of the Advisory Committee  are  entitled  to
13    receive  reimbursement  of  actual  expenses  incurred in the
14    discharge  of  their  duties  within  the  limit   of   funds
15    appropriated  to  the Advisory Committee.  The Governor shall
16    appoint a chairperson of the Advisory  Committee  from  among
17    its members.
18        (d)  The  Attorney General's Office or its designee shall
19    provide legal counsel to  the Advisory Committee.

20        (415 ILCS 135/21 new)
21        Sec. 21.  Agency rules.  The Agency may adopt  any  rules
22    necessary for the implementation of this Act.

23        (415 ILCS 135/22 new)
24        Sec.  22.  Powers  and  duties of the Advisory Committee.
25    The Advisory Committee shall have all of the  general  powers
26    reasonably necessary and convenient to carry out its purposes
27    and  may  perform  the  following  functions,  subject to any
28    express limitations contained in this Act:
29             (1)  Advise  the  Agency  on  matters  relating   to
30        regulations    and   standards   that   affect   Illinois
31        drycleaners.
32             (2)  Review  the  status  of  the   Fund   and   its
 
                            -8-                LRB9206355ACks
 1        administration  and provide a report with recommendations
 2        to the Governor's Office and the Agency.
 3             (3)  Approve any changes to  the  solvent  tax,  the
 4        environmental surcharge fee, and the license fee.
 5             (4)  Hold  meetings  as  needed  to communicate with
 6        drycleaners and the public regarding progress, the status
 7        of the Fund, and any need for change.

 8        (415 ILCS 135/23 new)
 9        Sec. 23.   Powers and duties of the Agency.   The  Agency
10    shall have all of the general powers reasonably necessary and
11    convenient  to  carry  out  its  purposes and may perform the
12    following  functions,  subject  to  any  express  limitations
13    contained in this Act:
14             (1)  Utilize  the  Fund  money  to  administer   the
15        program,  pay  for consultants and contractors, and cover
16        the review fees of the Site Remediation Program.
17             (2)  Award contracts with consultants for  the  fast
18        site evaluation of all drycleaners.
19             (3)  Set  priorities  for  performing  complete site
20        characterization studies, based mostly on field screening
21        conclusions and availability of money in the Fund.
22             (4)  Work  all  active  sites   through   its   Site
23        Remediation Program.
24             (5)  Develop  remedial  action  plans  for  the most
25        contaminated sites first and issue a  moratorium  on  any
26        enforcement  actions for lower priority sites and provide
27        liability protection for the drycleaner.
28             (6)  Contract directly with consultants  and  manage
29        site investigations.
30             (7)  Advise drycleaners and property owners of plans
31        and  results  of investigations and obtain concurrence on
32        site cleanup activities.
33             (8)  Manage  the  Fund  in  conjunction   with   the
 
                            -9-                LRB9206355ACks
 1        Department of Revenue.

 2        (415 ILCS 135/40)
 3        Sec. 40. Remedial action account.
 4        (a)  The   remedial  action  account  is  established  to
 5    provide the Agency with the necessary funding to investigate,
 6    plan, and remediate contamination  from  drycleaning  solvent
 7    reimbursement  to  eligible claimants for drycleaning solvent
 8    investigation, remedial action planning, and remedial  action
 9    activities  for  existing  drycleaning  solvent contamination
10    discovered at their drycleaning facilities.
11        (b)  The Agency shall determine by rule which drycleaning
12    facilities are  subject  to  investigation  and  entitled  to
13    cleanup by the Agency. The following persons are eligible for
14    reimbursement from the remedial action account:
15             (1)  In  the  case  of  claimant who is the owner or
16        operator of an active drycleaning  facility  licensed  by
17        the Council under this Act at the time of application for
18        remedial  action  benefits  afforded  under the Fund, the
19        claimant is only eligible for reimbursement  of  remedial
20        action  costs  incurred in connection with a release from
21        that  drycleaning  facility,   subject   to   any   other
22        limitations under this Act.
23             (2)  In  the  case of a claimant who is the owner of
24        an inactive drycleaning facility and  was  the  owner  or
25        operator  of  the  drycleaning  facility  when it was  an
26        active  drycleaning  facility,  the  claimant   is   only
27        eligible  for    reimbursement  of  remedial action costs
28        incurred  in  connection  with   a   release   from   the
29        drycleaning  facility,  subject  to any other limitations
30        under this Act.
31        (c)  A  drycleaning  facility  shall  be   eligible   for
32    participation   in  the  program  if  all  of  the  following
33    conditions are met:
 
                            -10-               LRB9206355ACks
 1        (1)  payment of all fees;
 2        (2)  possession of the necessary license;
 3        (3)  full compliance with  all  Environmental  Protection
 4    Agency environmental regulations; and
 5        (4)  implementation of all pollution prevention measures.
 6    An   eligible  claimant  requesting  reimbursement  from  the
 7    remedial action  account shall meet all of the following:
 8             (1)  The claimant demonstrates that  the  source  of
 9        the release is from  the claimant's drycleaning facility.
10             (2)  At  the  time the release was discovered by the
11        claimant, the claimant and the drycleaning facility  were
12        in  compliance  with  the  Agency reporting and technical
13        operating requirements.
14             (3)  The claimant reported the release in  a  timely
15        manner to  the Agency in accordance with State law.
16             (4)  The claimant applying for reimbursement has not
17        filed  for  bankruptcy on or after the date of his or her
18        discovery of the release.
19             (5)  If the claimant is the owner or operator of  an
20        active drycleaning facility, the claimant has provided to
21        the  Council  proof  of implementation and maintenance of
22        the following pollution prevention measures:
23                  (A)  That  all   drycleaning   solvent   wastes
24             generated  at  a  drycleaning facility be managed in
25             accordance with applicable  State  waste  management
26             laws and rules.
27                  (B)  A   prohibition   on   the   discharge  of
28             wastewater   from   drycleaning   machines   or   of
29             drycleaning solvent from drycleaning operations to a
30             sanitary sewer or septic tank or to the  surface  or
31             in groundwater.
32                  (C)  That every drycleaning facility:
33                       (I)  install  a  containment dike or other
34                  containment structure around  each  machine  or
 
                            -11-               LRB9206355ACks
 1                  item  of  equipment  or  the entire drycleaning
 2                  area  in  which  any  drycleaning  solvent   is
 3                  utilized,  which shall be capable of containing
 4                  any leak,  spill,  or  release  of  drycleaning
 5                  solvent from that machine, item, or area; and
 6                       (II)  seal  or otherwise render impervious
 7                  those portions of diked floor surfaces on which
 8                  a  drycleaning  solvent  may  leak,  spill,  or
 9                  otherwise be released.
10                  (D)  A requirement that all drycleaning solvent
11             shall be  delivered  to  drycleaning  facilities  by
12             means of closed, direct-coupled delivery systems.
13             (6)  An  active  drycleaning facility has maintained
14        continuous   financial   assurance   for    environmental
15        liability  coverage in the amount of at least $500,000 at
16        least since the date of  award  of  benefits  under  this
17        Section or July 1, 2000, whichever is earlier.
18             (7)  The  release was discovered on or after July 1,
19        1997 and before July 1, 2004.
20        (d)  Applications for participation in the program  shall
21    be made in a manner and on forms as provided by the Agency. A
22    claimant  shall  submit a completed application form provided
23    by the Council.  The application shall contain  documentation
24    of  activities,  plans,  and expenditures associated with the
25    eligible  costs  incurred  in  response  to  a   release   of
26    drycleaning solvent from a drycleaning facility.  Application
27    for remedial action account benefits must be submitted to the
28    Council on or before June 30, 2004.
29        (e)  (Blank). Claimants shall be subject to the following
30    deductible  requirements,  unless  modified  pursuant  to the
31    Council's authority under Section 75:
32             (1)  An eligible claimant submitting a claim for  an
33        active  drycleaning facility is responsible for the first
34        $5,000 of eligible investigation costs and for the  first
 
                            -12-               LRB9206355ACks
 1        $10,000  of  eligible  remedial  action costs incurred in
 2        connection with the release from the drycleaning facility
 3        and is only eligible for  reimbursement  for  costs  that
 4        exceed those amounts, subject to any other limitations of
 5        this Act.
 6             (2)  An  eligible claimant submitting a claim for an
 7        inactive drycleaning  facility  is  responsible  for  the
 8        first $10,000 of eligible investigation costs and for the
 9        first  $10,000 of eligible remedial action costs incurred
10        in connection with  the  release  from  that  drycleaning
11        facility,  and  is  only  eligible  for reimbursement for
12        costs that exceed those amounts,  subject  to  any  other
13        limitations of this Act.
14        (f)  The  Agency  may  fund  90% of all cleanup costs for
15    drycleaning  facilities  determined  to   be   eligible   for
16    participation  in  the program.  The Agency shall provide the
17    owner or operator of the drycleaning  facility  participating
18    in  the program with an invoice detailing costs and outlining
19    the 10% of the  costs  that  is  the  responsibility  of  the
20    drycleaner.  The  Agency shall pay its share of cleanup costs
21    under this Section from any appropriations to it out  of  the
22    General  Revenue  Fund  for  that  purpose.   If  the General
23    Revenue Fund appropriation is insufficient,  then  the  costs
24    shall  be paid, subject to appropriation, from the Drycleaner
25    Environmental Response Trust Fund.  The  Agency  may  use  no
26    more  than $800,000 per year from the General Revenue Fund to
27    pay costs  of  investigations  and  cleanups.  Claimants  are
28    subject to the following limitations 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:
33                  (A)  $160,000  per  active drycleaning facility
34             for which an eligible claim is submitted during  the
 
                            -13-               LRB9206355ACks
 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, 2002;
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
 
                            -14-               LRB9206355ACks
 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
 
                            -15-               LRB9206355ACks
 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)  (Blank).  The  source  of  funds  for  the  remedial
 8    action  account  shall  be moneys allocated to the account by
 9    the Council according to the  Fund  budget  approved  by  the
10    Council.
11        (h)  (Blank).   A drycleaning facility will be classified
12    as active or inactive for purposes of   determining  benefits
13    under  this  Section  based on the status of the facility  on
14    the date a claim is filed.
15        (i)  The Agency Eligible claimants shall conduct remedial
16    action in accordance with the Site Remediation Program  under
17    the  Environmental Protection Act and Part 740 of Title 35 of
18    the Illinois Administrative Code and the Tiered  Approach  to
19    Cleanup Objectives under Part 742 of Title 35 of the Illinois
20    Administrative Code.
21    (Source: P.A. 90-502, eff. 8-19-97; 91-453, eff. 8-6-99.)

22        (415 ILCS 135/60)
23        (Section scheduled to be repealed on January 1, 2010)
24        Sec. 60. Drycleaning facility license.
25        (a)  On  and  after  January  1,  1998,  no  person shall
26    operate a  drycleaning  facility  in  this  State  without  a
27    license issued by the Agency Council.
28        (b)  The Agency Council shall issue an initial or renewal
29    license  to  a  drycleaning  facility  on  submission  by  an
30    applicant  of  a  completed  form  prescribed  by  the Agency
31    Council and proof of payment  of  the  required  fee  to  the
32    Department of Revenue.
33        (c)  The annual fees for licensure are as follows:
 
                            -16-               LRB9206355ACks
 1             (1)  $500  for a facility that purchases 140 gallons
 2        or less of chlorine-based drycleaning  solvents  annually
 3        or  1400 gallons or less of hydrocarbon-based drycleaning
 4        solvents annually.
 5             (2)  $1,000 for a facility that purchases more  than
 6        140  gallons  but less than 360 gallons of chlorine-based
 7        drycleaning solvents annually or more than  1400  gallons
 8        but   less   than   3600   gallons  of  hydrocarbon-based
 9        drycleaning solvents annually.
10             (3)  $1,500  for  a  facility  that  purchases   360
11        gallons  or  more  of chlorine-based drycleaning solvents
12        annually or 3600 gallons  or  more  of  hydrocarbon-based
13        drycleaning solvents annually.
14        For   purpose   of   this  subsection,  the  quantity  of
15    drycleaning solvents purchased annually shall  be  determined
16    as follows:
17             (1)  in  the  case  of  an  initial  applicant,  the
18        quantity  of  drycleaning  solvents  that  the  applicant
19        estimates  will be used during his or her initial license
20        year.  A fee assessed under this subdivision  is  subject
21        to audited adjustment for that year; or
22             (2)  in   the  case  of  a  renewal  applicant,  the
23        quantity of drycleaning solvents  actually  used  in  the
24        preceding license year.
25        The  Agency  Council  may  adjust licensing fees annually
26    based on the published  Consumer  Price  Index  -  All  Urban
27    Consumers  ("CPI-U") or as otherwise determined by the Agency
28    Council.
29        (d)  A license issued under this Section shall expire one
30    year after the  date  of  issuance  and  may  be  renewed  on
31    reapplication  to  the Agency Council and submission of proof
32    of payment of  the  appropriate  fee  to  the  Department  of
33    Revenue in accordance with subsections (c) and (e).  At least
34    30 days before payment of a renewal licensing fee is due, the
 
                            -17-               LRB9206355ACks
 1    Agency Council shall attempt to:
 2             (1)  notify    the   operator   of   each   licensed
 3        drycleaning facility concerning the requirements of  this
 4        Section;  and
 5             (2)  submit  a  license  fee  payment  form  to  the
 6        licensed operator of each drycleaning facility.
 7        (e)  An  operator  of a drycleaning facility shall submit
 8    the appropriate  application  form  provided  by  the  Agency
 9    Council  with  the  license fee in the form of cash, business
10    check, or guaranteed remittance to the Department of Revenue.
11    The license fee payment  form  and  the  actual  license  fee
12    payment  shall  be  administered by the Department of Revenue
13    under rules adopted by that Department.
14        (f)  The Department of Revenue shall  issue  a  proof  of
15    payment  receipt  to  each operator of a drycleaning facility
16    who has paid the appropriate fee in  cash  or  by  guaranteed
17    remittance.   However,  the  Department  of Revenue shall not
18    issue a proof of payment receipt to  a  drycleaning  facility
19    that is liable to the Department of Revenue for a tax imposed
20    under  this  Act.  The original receipt shall be presented to
21    the Council by the operator of a drycleaning facility.
22        (g)  An operator  of  a  dry  cleaning  facility  who  is
23    required to pay a license fee under this Act and fails to pay
24    the  license  fee  when  the  fee  is due shall be assessed a
25    penalty of $5 for each day after the license fee is  due  and
26    until the license fee is paid. The penalty shall be effective
27    for license fees due on or after July 1, 1999.
28        (h)  The Agency Council and the Department of Revenue may
29    adopt   rules   as  necessary  to  administer  the  licensing
30    requirements of this Act.
31    (Source: P.A. 90-502, eff. 8-19-97; 91-453, eff. 8-6-99.)

32        (415 ILCS 135/61 new)
33        Sec. 61.  Environmental surcharge.  Beginning on  January
 
                            -18-               LRB9206355ACks
 1    1,  2002,  the Agency may assess a surcharge based upon 2% of
 2    the gross sales at each drycleaning establishment,  including
 3    drop  stores.    The  surcharge  shall  be  remitted  to  the
 4    Department of Revenue annually in a manner determined by rule
 5    of   the   Department   and  deposited  into  the  Drycleaner
 6    Environmental Response Trust Fund for use by  the  Agency  in
 7    the  investigation  and  cleanup  of  drycleaning  facilities
 8    pursuant  to  this  Act.  This surcharge must be added to the
 9    cost of each customer's drycleaning and specifically shown on
10    the customer receipt as an environmental surcharge.

11        (415 ILCS 135/65)
12        (Section scheduled to be repealed on January 1, 2010)
13        Sec. 65. Drycleaning solvent tax.
14        (a)  On and after January 1, 1998, a tax is imposed  upon
15    the  use  of  drycleaning  solvent by a person engaged in the
16    business of operating a drycleaning facility in this State at
17    the rate of $3.50 per gallon of  perchloroethylene  or  other
18    chlorinated   drycleaning   solvents   used   in  drycleaning
19    operations   and  $0.35   per   gallon   of   petroleum-based
20    drycleaning  solvent.   The Agency Council shall determine by
21    rule which  products are chlorine-based  solvents  and  which
22    products   are  petroleum-based  solvents.   All  drycleaning
23    solvents shall be considered chlorinated solvents unless  the
24    Agency    Council    determines   that   the   solvents   are
25    petroleum-based drycleaning solvents  subject  to  the  lower
26    tax.
27        (b)  The  tax imposed by this Act shall be collected from
28    the purchaser at the time of sale by a seller of  drycleaning
29    solvents  maintaining  a  place of business in this State and
30    shall be remitted to the  Department  of  Revenue  under  the
31    provisions of this Act.
32        (c)  The tax imposed by this Act that is not collected by
33    a  seller  of  drycleaning solvents shall be paid directly to
 
                            -19-               LRB9206355ACks
 1    the Department of Revenue by the purchaser or end user who is
 2    subject to the tax imposed by this Act.
 3        (d)  No tax shall be imposed upon the use of  drycleaning
 4    solvent  if  the  drycleaning  solvent  will not be used in a
 5    drycleaning facility or if a floor stock tax has been imposed
 6    and paid on the drycleaning solvent.  Prior to  the  purchase
 7    of  the  solvent,  the  purchaser shall provide a written and
 8    signed certificate to the drycleaning solvent seller stating:
 9             (1)  the name and address of the purchaser;
10             (2)  the purchaser's signature and date of  signing;
11        and
12             (3)  one of the following:
13                  (A)  that  the  drycleaning solvent will not be
14             used in a drycleaning facility; or
15                  (B)  that a floor stock tax  has  been  imposed
16             and paid on the drycleaning solvent.
17        A  person  who  provides a false certification under this
18    subsection shall be liable for a civil penalty not to  exceed
19    $500  for a first violation and a civil penalty not to exceed
20    $5,000 for a second or subsequent violation.
21        (e)  On  January  1,  1998,  there  is  imposed  on  each
22    operator of a  drycleaning  facility  a  tax  on  drycleaning
23    solvent  held  by  the  operator  on  that  date for use in a
24    drycleaning facility. The tax imposed shall be the  tax  that
25    would  have  been  imposed  under    subsection  (a)  if  the
26    drycleaning  solvent  held  by  the operator on that date had
27    been purchased by the operator during the first year of  this
28    Act.
29        (f)  On or before the 25th day of the 1st month following
30    the  end  of  the  calendar  quarter, a seller of drycleaning
31    solvents who has collected a tax  pursuant  to  this  Section
32    during  the  previous calendar quarter, or a purchaser or end
33    user of drycleaning solvents required under subsection (c) to
34    submit the tax directly  to  the  Department,  shall  file  a
 
                            -20-               LRB9206355ACks
 1    return  with  the Department of Revenue.  The return shall be
 2    filed on a form prescribed by the Department of  Revenue  and
 3    shall  contain  information  that  the  Department of Revenue
 4    reasonably requires.   Each  seller  of  drycleaning  solvent
 5    maintaining a place of business in this State who is required
 6    or  authorized  to  collect the tax imposed by this Act shall
 7    pay to the Department the amount of the tax at the time  when
 8    he  or  she  is  required  to  file his or her return for the
 9    period during which the tax was collected.  Purchasers or end
10    users remitting the tax  directly  to  the  Department  under
11    subsection  (c)  shall  file  a return with the Department of
12    Revenue and pay the tax so incurred by the purchaser  or  end
13    user during the preceding calendar quarter.
14        (g)  The  tax on drycleaning solvents used in drycleaning
15    facilities and the floor stock tax shall be  administered  by
16    Department of Revenue under rules adopted by that Department.
17        (h)  On  and  after  January  1,  1998,  no  person shall
18    knowingly sell or transfer drycleaning solvent to an operator
19    of a drycleaning facility that is not licensed by the  Agency
20    Council   under  Section  60.  A  person  who  violates  this
21    subsection is liable for a civil penalty not to  exceed  $500
22    for  a  first  violation  and  a  civil penalty not to exceed
23    $5,000 for a second or subsequent violation.
24        (i)  The  Department  of  Revenue  may  adopt  rules   as
25    necessary to implement this Section.
26    (Source: P.A. 90-502, eff. 8-19-97.)

27        (415 ILCS 135/75)
28        Sec.  75. Adjustment of fees and taxes. Beginning January
29    1, 2000, and annually after that  date,  the  Agency  Council
30    shall  adjust  the  copayment obligation of subsection (e) of
31    Section 40, the drycleaning solvent taxes of Section 65,  the
32    license  fees of Section 60, or any combination of adjustment
33    of  each, after notice and opportunity for public comment and
 
                            -21-               LRB9206355ACks
 1    after obtaining  the  advice  and  support  of  the  Advisory
 2    Committee,  in  a manner determined necessary and appropriate
 3    to ensure viability of the Fund.  Viability of the Fund shall
 4    consider the settlement of  all  current  claims  subject  to
 5    prioritization  of   benefits under subsection (c) of Section
 6    25, consistent with the purposes of this Act.
 7    (Source: P.A. 90-502, eff. 8-19-97; 91-453, eff. 8-6-99.)

 8        (415 ILCS 135/80)
 9        Sec. 80.  Audits and reports.
10        (a)  The accounts, books, and other financial records  of
11    the   Agency  Council,  including  but  not  limited  to  its
12    receipts,  disbursements,  contracts,   and   other   matters
13    relating  to  its  finance,  operation, and affairs, shall be
14    examined and audited  annually  by  the  Auditor  General  in
15    accordance  with the audit standards under the Illinois State
16    Auditing Act.  This audit shall be provided to the Agency for
17    review.
18        (b)  Upon request by  the  Auditor  General,  the  Agency
19    Council  shall  retain a firm of certified public accountants
20    to examine and audit  the  Agency  Council  as  described  in
21    subsection (a) on behalf of the Auditor General.
22        (c)  The  accounts, books, and other financial records of
23    the Agency Council shall be maintained in accordance with the
24    State  Records  Act   and   accepted   accounting   practices
25    established by the State.
26    (Source: P.A. 90-502, eff. 8-19-97; 91-453, eff. 8-6-99.)

27        (415 ILCS 135/85)
28        Sec.  85.  Repeal of fee and tax provisions. On or before
29    January 1, 2022, the Agency, in conjunction with the Advisory
30    Committee, shall study the necessity of continuing to  impose
31    the  taxes  and  fees established in Sections 60, 61, and 65.
32    Upon conclusion of the study, the  Agency  shall  report  its
 
                            -22-               LRB9206355ACks
 1    findings and recommendations to the General Assembly Sections
 2    60 and 65 of this Act are repealed on January 1, 2010.
 3    (Source: P.A. 90-502, eff. 8-19-97; 91-453, eff. 8-6-99.)

 4        (215 ILCS 5/2.5 rep.)
 5        Section  10.   The  Illinois Insurance Code is amended by
 6    repealing Section 2.5.

 7        (415 ILCS 135/15 rep.)
 8        (415 ILCS 135/20 rep.)
 9        (415 ILCS 135/25 rep.)
10        (415 ILCS 135/30 rep.)
11        (415 ILCS 135/35 rep.)
12        (415 ILCS 135/45 rep.)
13        (415 ILCS 135/50 rep.)
14        (415 ILCS 135/55 rep.)
15        Section 15.  The Environmental Response Trust Fund Act is
16    amended by repealing Sections 15, 20, 25, 30, 35, 45, 50, and
17    55.

18        Section 99.  Effective date.  This Act takes effect  upon
19    becoming law.
 
                            -23-               LRB9206355ACks
 1                                INDEX
 2               Statutes amended in order of appearance
 3                              SEE INDEX
 4    415 ILCS 135/5
 5    415 ILCS 135/10
 6    415 ILCS 135/16 new
 7    415 ILCS 135/21 new
 8    415 ILCS 135/22 new
 9    415 ILCS 135/23 new
10    415 ILCS 135/40
11    415 ILCS 135/60
12    415 ILCS 135/61 new
13    415 ILCS 135/65
14    415 ILCS 135/75
15    415 ILCS 135/80
16    415 ILCS 135/85
17    215 ILCS 5/2.5 rep.
18    415 ILCS 135/15 rep.
19    415 ILCS 135/20 rep.
20    415 ILCS 135/25 rep.
21    415 ILCS 135/30 rep.
22    415 ILCS 135/35 rep.
23    415 ILCS 135/45 rep.
24    415 ILCS 135/50 rep.
25    415 ILCS 135/55 rep.

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