State of Illinois
90th General Assembly

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[ Introduced ][ House Amendment 001 ]


      New Act
      30 ILCS 105/5.449 new
      215 ILCS 5/2.5 new
          Creates the Drycleaner Environmental Response Trust  Fund
      Act  to  support  remediation of drycleaning solvent releases
      at drycleaning facilities through a reimbursement program for
      remediation of existing releases and an insurance program for
      prospective releases.   Creates the Drycleaner  Environmental
      Response  Trust  Fund  Council  to  administer the Act.  Sets
      forth a continuing appropriation of moneys in the Fund to the
      Council  to  make  disbursements  required  under  the   Act.
      Authorizes  civil  and  criminal  penalties.   Establishes  a
      quantity-based  drycleaning  solvent  fee  to be imposed on a
      person selling and  transferring  drycleaning  solvent  to  a
      person  operating  a  drycleaning  facility  for  use  at the
      facility. Imposes a one-time drycleaning solvent floor  stock
      fee  to  be  assessed  on January 1, 1998. Requires owners or
      operators of dry cleaning  facilities  to  obtain  a  license
      under  the  Act in order to be eligible for reimbursement and
      insurance benefits under the Act.  Repeals  the  license  fee
      and  sale  and  transfer  fee  provisions  on  July  1, 2007.
      Provides for a transfer of $375,000 from the General  Revenue
      Fund  to  the  Drycleaner  Environmental Response Trust Fund,
      which, after 6 months,  shall  be  transferred  back  to  the
      General Revenue Fund. Amends the State Finance Act to add the
      Drycleaner  Environmental  Response  Trust  Fund.  Amends the
      Illinois   Insurance   Code   to   exempt   the    Drycleaner
      Environmental  Response Trust Fund from the provisions of the
      Code. Effective immediately.
HB1271 Engrossed                              LRB9003709DPccC
 1        AN ACT to create the  Drycleaner  Environmental  Response
 2    Trust Fund Act, amending named Acts.
 3        Be  it  enacted  by  the People of the State of Illinois,
 4    represented in the General Assembly:
 5        Section 1. Short title. This Act  may  be  cited  as  the
 6    Drycleaner Environmental Response Trust Fund Act.
 7        Section 5. Definitions. As used in this Act:
 8        (a)  "Active  drycleaning  facility"  means a drycleaning
 9    facility  actively  engaged  in  drycleaning  operations  and
10    licensed under Section 60 of this Act.
11        (b)  "Agency" means the Illinois Environmental Protection
12    Agency.
13        (c)  "Claimant"  means  an  owner  or   operator   of   a
14    drycleaning  facility  who has applied for reimbursement from
15    the remedial account or who has  submitted a claim under  the
16    insurance account with respect to a release.
17        (d)  "Council"   means   the   Drycleaner   Environmental
18    Response Trust Fund  Council.
19        (e)  "Drycleaner  Environmental  Response  Trust Fund" or
20    "Fund" means the fund created under Section 10 of this Act.
21        (f)  "Drycleaning facility" means a facility  located  in
22    this  State  that  is  or  has  been  engaged  in drycleaning
23    operations for the general public, other than a:
24             (1)  facility located on a  United  States  military
25        base;
26             (2)  industrial   laundry,  commercial  laundry,  or
27        linen supply facility;
28             (3)  prison or other penal institution;
29             (4)  not-for-profit hospital or  other  health  care
30        facility; or a
31             (5)  facility located or formerly located on federal
HB1271 Engrossed            -2-               LRB9003709DPccC
 1        or State property.
 2        (g)  "Drycleaning   operations"   means   drycleaning  of
 3    apparel and household fabrics  for  the  general  public,  as
 4    described  in Standard Industrial Classification Industry No.
 5    7215 and No. 7216 in the Standard  Industrial  Classification
 6    Manual   (SIC)  by  the  Technical  Committee  on  Industrial
 7    Classification.
 8        (h)  "Drycleaning  solvent"  means  a  chlorine-based  or
 9    hydrocarbon-based formulation or product that is  used  as  a
10    primary cleaning agent in  drycleaning operations.
11        (i)  "Emergency"  or "emergency action" means a situation
12    or an immediate response to a  situation  to  protect  public
13    health  or safety. "Emergency" or "emergency action" does not
14    mean  removal  of    contaminated  soils,  recovery  of  free
15    product, or financial hardship. An "emergency" or  "emergency
16    action" would normally be  expected to be directly related to
17    a  sudden event or discovery and would  last until the threat
18    to public health is mitigated.
19        (j)  "Groundwater" means underground  water  that  occurs
20    within  the  saturated  zone and geologic materials where the
21    fluid pressure in the pore space is equal to or greater  than
22    the atmospheric pressure.
23        (k)  "Inactive  drycleaning facility" means a drycleaning
24    facility that is not being used  for  drycleaning  operations
25    and is not registered under this Act.
26        (l)  "No  Further  Remediation  Letter"  means  a  letter
27    provided  by  the  Agency  pursuant to Section 58.10 of Title
28    XVII of the Environmental Protection Act.
29        (m)  "Operator"  means  a  person  or  entity  holding  a
30    business license to  operate a licensed  drycleaning facility
31    or the business operation of  which the drycleaning  facility
32    is a part.
33        (n)  "Owner"   means   (1)  a  person  who  owns  or  has
34    possession or control of a drycleaning facility at the time a
HB1271 Engrossed            -3-               LRB9003709DPccC
 1    release is discovered, regardless of whether    the  facility
 2    remains  in  operation  or  (2)  a  parent corporation of the
 3    person under item (1) of this subdivision.
 4        (o)  "Parent corporation"  means  a  business  entity  or
 5    other  business    arrangement  that  has  elements of common
 6    ownership or control or that  uses  a  long-term  contractual
 7    arrangement with a person to avoid direct  responsibility for
 8    conditions at a drycleaning facility.
 9        (p)  "Person"  means  an  individual,  trust, firm, joint
10    stock company, corporation,  consortium,  joint  venture,  or
11    other commercial entity.
12        (q)  "Program  year" means the period beginning on July 1
13    and ending on the following June 30, except that the  initial
14    "program  year" means the period beginning on July 1, 1997 or
15    on the effective date of this Act  and  ending  on  June  30,
16    1998.
17        (r)  "Release"  means  any  spilling,  leaking, emitting,
18    discharging, escaping, leaching, or dispersing of drycleaning
19    solvents from a drycleaning facility to groundwater,  surface
20    water, or subsurface soils.
21        (s)  "Remedial  action" means activities taken to  comply
22    with Sections 58.6 and 58.7 of the  Environmental  Protection
23    Act  and  rules  adopted by the Pollution Control Board under
24    those Sections.
25        (t)  "Responsible party" means  an  owner,  operator,  or
26    other person financially responsible for costs of remediation
27    of  a  release  of  drycleaning  solvents  from a drycleaning
28    facility.
29        (u)  "Service  provider"  means  a  consultant,   testing
30    laboratory,    monitoring   well   installer,   soil   boring
31    contractor, other contractor, lender, or any other person who
32    provides  a  product  or  service  for  which  a  claim   for
33    reimbursement  has been or will be filed against the remedial
34    account or insurance account, or a subcontractor  of  such  a
HB1271 Engrossed            -4-               LRB9003709DPccC
 1    person.
 2        Section 10. Drycleaner Environmental Response Trust Fund.
 3        (a)  The  Drycleaner Environmental Response Trust Fund is
 4    created as a  special fund  in  the  State  Treasury.  Moneys
 5    deposited into the Fund shall be used solely for the purposes
 6    of    the  Council  as  provided  in this Act. The Fund shall
 7    include moneys credited to the Fund under this Act  and other
 8    moneys that by law may be credited to  the  Fund.  The  State
 9    Treasurer  may  invest  Funds  deposited into the Fund at the
10    direction  of  the  Council.  Interest,   income   from   the
11    investments,  and  other  income  earned by the Fund shall be
12    credited to and deposited into the Fund.
13        For the purpose  of  making  disbursements,  if  any,  in
14    accordance  with  this Act, and for the purpose of paying the
15    ordinary and contingent expenses of the  Council,  there  are
16    hereby   appropriated   from   the  Drycleaner  Environmental
17    Response Trust Fund to the Council on a continuing basis sums
18    equal to the then  current  value  of  all  disbursements  or
19    expenses  to  be  made  from time to time under this Act.  As
20    soon  as  may  be  practicable  after  June  30,  1997,   the
21    Comptroller  shall  order transferred and the Treasurer shall
22    transfer from the General  Revenue  Fund  to  the  Drycleaner
23    Environmental  Response  Trust Fund $375,000 for the ordinary
24    and contingent expenses of the Council.  As soon  as  may  be
25    practicable  after  December  31, 1997, the Comptroller shall
26    order transferred and the Treasurer shall transfer  from  the
27    Drycleaner  Environmental  Response Trust Fund to the General
28    Revenue Fund $375,000 plus interest at the  rate  of  6%  per
29    annum.
30        The  Fund  may  be  divided  into different accounts with
31    different depositories to fulfill the purposes of the Act  as
32    determined by the Council.
33        Moneys  in  the  Fund  at  the end of a State fiscal year
HB1271 Engrossed            -5-               LRB9003709DPccC
 1    shall be carried forward to the next fiscal  year  and  shall
 2    not revert to the General Revenue Fund.
 3        (b)  The  specific  purposes  of the Fund include but are
 4    not limited to the following:
 5             (1)  To establish an account to Fund remedial action
 6        of  drycleaning    solvent  releases   from   drycleaning
 7        facilities as provided by Section 40.
 8             (2)  To  establish an insurance account for insuring
 9        environmental  risks    from  releases  from  drycleaning
10        facilities within this State as provided by Section 45.
11        (c)  The State, the General Revenue Fund, and  any  other
12    Fund  of  the  State, other than the Drycleaner Environmental
13    Response Trust Fund, shall not be liable for a claim or cause
14    of action in connection with a drycleaning facility not owned
15    or operated by the State or an  agency  of  the  State.   All
16    expenses  incurred  by  the Fund shall be payable solely from
17    the Fund and no liability or obligation shall be imposed upon
18    the State. The State is not  liable  for  a  claim  presented
19    against the Fund.
20        (d)  The  liability  of the Fund is limited to the extent
21    of coverage provided by the account under which  a  claim  is
22    submitted,  subject  to  the  terms  and  conditions  of that
23    coverage.  The liability of the Fund is  further  limited  by
24    the moneys made available to the Fund, and no remedy shall be
25    ordered  that  would  require  the  Fund  to  exceed its then
26    current funding limitations to  satisfy  an  award  or  which
27    would restrict the availability of moneys for higher priority
28    sites.
29        (e)  Nothing  in  this  Act  shall be construed to limit,
30    restrict, or affect the authority and powers of the Agency or
31    another State agency or statute unless the  State  agency  or
32    statute  is  specifically  referenced  and  the limitation is
33    clearly set forth in this Act.
HB1271 Engrossed            -6-               LRB9003709DPccC
 1        Section 15. Creation of Council.
 2        (a)  The Drycleaner  Environmental  Response  Trust  Fund
 3    Council  is  established  and  shall consist of the following
 4    voting members to be appointed by the Governor:
 5             (1)  Three members who own or operate a  drycleaning
 6        facility.  Two  of  these  members must be members of the
 7        Illinois State Fabricare Association. These members shall
 8        serve 3 year terms, except that of  the  initial  members
 9        appointed, one shall be appointed for a term of one year,
10        one for a term of 2 years, and one for a term of 3 years.
11             (2)  One    member    who    represents    wholesale
12        distributors of  drycleaning solvents.  This member shall
13        serve for a term of 3 years.
14             (3)  One   member  who  represents  the  drycleaning
15        equipment    manufacturers  and  vendor  community.  This
16        member shall serve for a term of 3 years.
17             (4)  Two  members  with  experience   in   financial
18        markets  or  the  insurance industry. These members shall
19        serve  3-year  terms,  except   that   of   the   initial
20        appointments,  one  shall  be  appointed  for a term of 2
21        years, and one for a term of 3 years.
22        Each  member  shall  have  experience,   knowledge,   and
23    expertise relating to the subject matter of this Act.
24        (b)  Members  of  the  Council  are  entitled  to receive
25    reimbursement of actual expenses incurred in the discharge of
26    their duties within the limit of funds  appropriated  to  the
27    Council  or  made available to the Fund.  The governor  shall
28    appoint a chairperson of the Council from among  the  members
29    of the Council.
30        (c)  The  attorney general's office or its designee shall
31    provide legal counsel to  the Council.
32        Section 20. Council rules.
33        (a)  The Council may adopt rules in accordance  with  the
HB1271 Engrossed            -7-               LRB9003709DPccC
 1    emergency  rulemaking  provisions  of  Section  5-45  of  the
 2    Illinois  Administrative Procedure Act for one year after the
 3    effective date of this Act.  Thereafter,  the  Council  shall
 4    conduct  general  rulemaking  as  provided under the Illinois
 5    Administrative Procedure Act.
 6        (b)  The Council shall adopt rules regarding its practice
 7    and procedures for  investigating and  settling  claims  made
 8    against   the  Fund,  determining  reimbursement  guidelines,
 9    coordinating with the Agency, and otherwise implementing  and
10    administering the Fund under this Act.
11        (c)  The Council shall adopt rules regarding its practice
12    and  procedures to  develop underwriting standards, establish
13    insurance account coverage and risk  factors,  settle  claims
14    made  against  the  insurance  account of the Fund, determine
15    appropriate  deductibles  or  retentions  in   coverages   or
16    benefits  offered  under  the  insurance account of the Fund,
17    determine reimbursement guidelines, and  otherwise  implement
18    and administer the insurance account under this Act.
19        (d)  The  Council  shall  adopt  rules  necessary for the
20    implementation and  collection of  insurance account premiums
21    prior to offering insurance to an  owner  or  operator  of  a
22    drycleaning facility or other person.
23        (e)  The    Council   shall   adopt   rules   prescribing
24    requirements for the retention of  records  by  an  owner  or
25    operator  and  the  periods  for  which he or she must retain
26    those records.
27        (f)  All final Council  decisions  shall  be  subject  to
28    appeal  by the affected  parties. The Council shall determine
29    by rule persons who have standing  to  appeal  final  Council
30    decisions.  All  appeals  of final Council decisions shall be
31    presented to and    reviewed  by  an  administrative  hearing
32    officer.   An  appeal of the administrative hearing officer's
33    decision will be subject to  judicial  review  in  accordance
34    with the Administrative Review Law.
HB1271 Engrossed            -8-               LRB9003709DPccC
 1        The   Council   shall  adopt  rules  relating  to  appeal
 2    procedures that shall require the Council to  deliver  notice
 3    of  appeal  to the affected parties within 30 days of receipt
 4    of notice, require that the hearing be held within 180   days
 5    of  the filing of the petition unless good cause is shown for
 6    the delay, and require that a final  decision  be  issued  no
 7    later  than 120 days following the close of the hearing.  The
 8    time restrictions in this subsection may be waived by  mutual
 9    agreement of the parties.
10        Section 25. Council administration of Fund.
11        (a)  In  administering  the  Fund, the Council shall have
12    all of the general powers reasonably necessary and convenient
13    to carry out its  purposes  and  may  perform  the  following
14    functions,  subject  to  any express limitations contained in
15    this Act:
16             (1)  Take  actions   and   enter   into   agreements
17        necessary  to   reimburse claimants for eligible remedial
18        action expenses,  assist    the  Agency  to  protect  the
19        environment  from releases, reduce costs  associated with
20        remedial  actions,  and  establish   and   implement   an
21        insurance program.
22             (2)  Acquire  and  hold personal property to be used
23        for the purpose of  remedial action.
24             (3)  Purchase, construct, improve,  furnish,  equip,
25        lease,  option,  sell,  exchange, or otherwise dispose of
26        one or more improvements  under the terms it  determines.
27        The   Council  may  define  "improvements"  by  rule  for
28        purposes of this Act.
29             (4)  Grant a  lien,  pledge,  assignment,  or  other
30        encumbrance  on  one  or  more revenues, assets of right,
31        accounts, or funds established or received in  connection
32        with  the  fund,  including  revenues  derived  from fees
33        collected under this Act.
HB1271 Engrossed            -9-               LRB9003709DPccC
 1             (5)  Contract for the acquisition or construction of
 2        one  or  more  improvements  or  parts  of  one  or  more
 3        improvements or for the  leasing,  subleasing,  sale,  or
 4        other disposition of one or more improvements in a manner
 5        the Council determines.
 6             (6)  Cooperate with the Agency in the implementation
 7        and  administration  of  this Act to minimize unnecessary
 8        duplication of effort,  reporting, or  paperwork  and  to
 9        maximize  environmental  protection    within the funding
10        limits of this Act.
11             (7)  Except as otherwise provided  by  law,  inspect
12        any  document  in  the  possession of an owner, operator,
13        service provider, or any other person if the document  is
14        relevant  to a claim for reimbursement under this Section
15        or may inspect a drycleaning facility for which  a  claim
16        for benefits under this Act has been submitted.
17        (b)  The  Council  shall pre-approve, and the contracting
18    parties shall seek pre-approval for, a contract entered  into
19    under  this  Act if the cost of the contract exceeds $75,000.
20    The Council or its  designee  shall  review  and  approve  or
21    disapprove    all  contracts  entered  into  under  this Act.
22    However, review by the Council or its  designee shall not  be
23    required  when  an  emergency situation exists. All contracts
24    entered  into  by  the  Council  shall  be   awarded   on   a
25    competitive  basis  to the maximum extent practical. In those
26    situations  where  it  is  determined  that  bidding  is  not
27    practical,   the   basis    for    the    determination    of
28    impracticability  shall  be  documented by the Council or its
29    designee.
30        (c)  The Council may prioritize the expenditure of  funds
31    from  the remedial action account whenever it determines that
32    there are not sufficient funds to settle all current  claims.
33    In prioritizing, the Council may consider the following:
34             (1)  the degree to which human health is affected by
HB1271 Engrossed            -10-              LRB9003709DPccC
 1        the exposure  posed by the release;
 2             (2)  the  reduction  of risk to human health derived
 3        from   remedial  action  compared  to  the  cost  of  the
 4        remedial action;
 5             (3)  the  present  and  planned uses of the impacted
 6        property; and
 7             (4)  other factors as determined by the Council.
 8        Section  30. Independent contractors retained by Council.
 9        (a)  A contract entered into to retain a person to act as
10    the administrator of the Fund shall be subject to public bid.
11    The Council  may  enter  into  a  contract  or  an  agreement
12    authorized  under  this  Act  with  a person, the Agency, the
13    Department  of  Revenue,  other  departments,  agencies,   or
14    governmental  subdivisions  of  this State, another state, or
15    the United States, in connection with its  administration and
16    implementation of this Act.
17        (b)  The  Council  may  reimburse  a  public  or  private
18    contractor retained pursuant to  this  Section  for  expenses
19    incurred  in  the  execution  of  a  contract  or  agreement.
20    Reimbursable  expenses include the costs of performing duties
21    or powers specifically delegated by the Council.
22        Section 35. Illinois Insurance Code exemptions. The Fund,
23    including but not limited to insurance coverage offered under
24    the insurance account, is not subject to  the  provisions  of
25    the   Illinois  Insurance  Code.  Notwithstanding  any  other
26    provision of  law,  the  Fund  shall  not  be  considered  an
27    insurance  company or an insurer under the laws of this State
28    and shall not be a member of  nor  be  entitled  to  a  claim
29    against the Illinois Insurance Guaranty Fund.
30        Section 40. Remedial action account.
31        (a)  The   remedial  action  account  is  established  to
HB1271 Engrossed            -11-              LRB9003709DPccC
 1    provide reimbursement to eligible claimants  for  drycleaning
 2    solvent investigation, remedial action planning, and remedial
 3    action    activities   for   existing   drycleaning   solvent
 4    contamination discovered at their drycleaning facilities.
 5        (b)  The following persons are eligible for reimbursement
 6    from the remedial action account:
 7             (1)  In the case of claimant who  is  the  owner  or
 8        operator  of  an active drycleaning  facility licensed by
 9        the Council under this Act at the time of application for
10        remedial action benefits afforded  under  the  Fund,  the
11        claimant  is  only eligible for reimbursement of remedial
12        action costs incurred in connection with a  release  from
13        that   drycleaning   facility,   subject   to  any  other
14        limitations under this Act.
15             (2)  In the case of a claimant who is the  owner  of
16        an  inactive  drycleaning  facility and  was the owner or
17        operator of the drycleaning facility  when  it  was    an
18        active   drycleaning   facility,  the  claimant  is  only
19        eligible for   reimbursement  of  remedial  action  costs
20        incurred   in   connection   with   a  release  from  the
21        drycleaning facility, subject to  any  other  limitations
22        under this Act.
23        (c)  An  eligible  claimant requesting reimbursement from
24    the remedial action  account shall meet all of the following:
25             (1)  The claimant demonstrates that  the  source  of
26        the release is from  the claimant's drycleaning facility.
27             (2)  At  the  time the release was discovered by the
28        claimant, the claimant and the drycleaning facility  were
29        in  compliance  with  the  Agency reporting and technical
30        operating requirements.
31             (3)  The claimant reported the release in  a  timely
32        manner to  the Agency in accordance with State law.
33             (4)  The claimant applying for reimbursement has not
34        filed  for  bankruptcy on or after the date of his or her
HB1271 Engrossed            -12-              LRB9003709DPccC
 1        discovery of the release.
 2             (5)  If the claimant is the owner or operator of  an
 3        active drycleaning facility, the claimant has provided to
 4        the  Council  proof  of implementation and maintenance of
 5        the following pollution prevention measures:
 6                  (A)  That  all   drycleaning   solvent   wastes
 7             generated  at  a  drycleaning facility be managed in
 8             accordance with applicable  State  waste  management
 9             laws and rules.
10                  (B)  A   prohibition   on   the   discharge  of
11             wastewater   from   drycleaning   machines   or   of
12             drycleaning solvent from drycleaning operations to a
13             sanitary sewer or septic tank or to the  surface  or
14             in groundwater.
15                  (C)  That every drycleaning facility:
16                       (I)  install  a  containment dike or other
17                  containment structure around  each  machine  or
18                  item  of  equipment  or  the entire drycleaning
19                  area  in  which  any  drycleaning  solvent   is
20                  utilized,  which shall be capable of containing
21                  any leak,  spill,  or  release  of  drycleaning
22                  solvent from that machine, item, or area; and
23                       (II)  seal  or otherwise render impervious
24                  those portions of diked floor surfaces on which
25                  a  drycleaning  solvent  may  leak,  spill,  or
26                  otherwise be released.
27                  (D)  A requirement that all drycleaning solvent
28             shall be  delivered  to  drycleaning  facilities  by
29             means of closed, direct-coupled delivery systems.
30             (6)  An  active  drycleaning facility has maintained
31        continuous   financial   assurance   for    environmental
32        liability  coverage in the amount of at least $500,000 at
33        least since the date of  award  of  benefits  under  this
34        Section or July 1, 1998, whichever is earlier.
HB1271 Engrossed            -13-              LRB9003709DPccC
 1             (7)  The  release was discovered on or after July 1,
 2        1997 and before July 1, 2002.
 3        (d)  A claimant shall submit a completed application form
 4    provided by  the  Council.   The  application  shall  contain
 5    documentation   of   activities,   plans,   and  expenditures
 6    associated with the eligible costs incurred in response to  a
 7    release  of  drycleaning solvent from a drycleaning facility.
 8    Application for remedial  action  account  benefits  must  be
 9    submitted to the Council on or before June 30, 2002.
10        (e)  Claimants   shall   be   subject  to  the  following
11    deductible requirements,  unless  modified  pursuant  to  the
12    Council's authority under Section 75:
13             (1)  An  eligible claimant submitting a claim for an
14        active drycleaning facility is responsible for the  first
15        $5,000  of eligible investigation costs and for the first
16        $10,000 of eligible remedial  action  costs  incurred  in
17        connection with the release from the drycleaning facility
18        and  is  only  eligible  for reimbursement for costs that
19        exceed those amounts, subject to any other limitations of
20        this Act.
21             (2)  An eligible claimant submitting a claim for  an
22        inactive  drycleaning  facility  is  responsible  for the
23        first $10,000 of eligible investigation costs and for the
24        first $10,000 of eligible remedial action costs  incurred
25        in  connection  with  the  release  from that drycleaning
26        facility, and is  only  eligible  for  reimbursement  for
27        costs  that  exceed  those  amounts, subject to any other
28        limitations of this Act.
29        (f)  Claimants are subject to the  following  limitations
30    on reimbursement:
31             (1)  Subsequent    to    meeting    the   deductible
32        requirements of  subsection  (e),  and  pursuant  to  the
33        requirements  of  Section  75,  reimbursement  shall  not
34        exceed:
HB1271 Engrossed            -14-              LRB9003709DPccC
 1                  (A)  $160,000  per  active drycleaning facility
 2             for which an eligible claim is submitted during  the
 3             initial program year;
 4                  (B)  $150,000  per  active drycleaning facility
 5             for which an eligible claim is submitted during  the
 6             program year beginning July 1, 1998;
 7                  (C)  $140,000  per  active drycleaning facility
 8             for which an eligible claim is submitted during  the
 9             program year beginning July 1, 1999;
10                  (D)  $130,000  per  active drycleaning facility
11             for which an eligible claim is submitted during  the
12             program year beginning July 1, 2000;
13                  (E)  $120,000  per  active drycleaning facility
14             for which an eligible  claim is submitted during the
15             program year beginning July 1, 2001; or
16                  (F)  $50,000 per inactive drycleaning facility.
17             (2)  A contract in which one of the parties  to  the
18        contract is a claimant, for goods or services that may be
19        payable  or  reimbursable  from  the Council, is void and
20        unenforcable unless and until the Council has found  that
21        the  contract  terms  are  within  the range of usual and
22        customary  rates  for  similar  or  equivalent  goods  or
23        services within this State and has found that  the  goods
24        or services are necessary for the claimant to comply with
25        Council   standards   or   other   applicable  regulatory
26        standards.
27             (3)  A claimant may appoint the Council as an  agent
28        for  the purposes of negotiating contracts with suppliers
29        of goods or  services  reimbursable  by  the  Fund.   The
30        Council  may  select  another  contractor  for  goods  or
31        services  other  than  the one offered by the claimant if
32        the scope of the proposed work  or  actual  work  of  the
33        claimant's   offered  contractor  does  not  reflect  the
34        quality of workmanship  required  or  if  the  costs  are
HB1271 Engrossed            -15-              LRB9003709DPccC
 1        determined to be excessive, as determined by the Council.
 2             (4)  The  Council  may  require a claimant to obtain
 3        and submit 3 bids and  may  require  specific  terms  and
 4        conditions in a  contract subject to approval.
 5             (5)  The  Council  may  enter  into a contract or an
 6        exclusive contract with the supplier of goods or services
 7        required  by  a  claimant  or  class  of  claimants,   in
 8        connection  with  an  expense reimbursable from the Fund,
 9        for a specified good or service at a gross maximum  price
10        or fixed rate, and may limit reimbursement accordingly.
11             (6)  Unless  emergency  conditions  exist, a service
12        provider shall  obtain  the  Council's  approval  of  the
13        budget  for  the  remediation  work before commencing the
14        work.  No expense incurred that  is  above  the  budgeted
15        amount  shall  be  paid  unless the Council approves  the
16        expense prior to its being incurred.   All  invoices  and
17        bills relating to the remediation work shall be submitted
18        with  appropriate  documentation,  as deemed necessary by
19        the Council, not later than 30 days after  the  work  has
20        been performed.
21             (7)  Neither the Council nor an eligible claimant is
22        responsible  for payment for costs incurred that have not
23        been  previously  approved  by  the  Council,  unless  an
24        emergency exists.
25             (8)  The  Council  may  determine  the   usual   and
26        customary  costs of each item for which reimbursement may
27        be awarded under this Section. The Council may revise the
28        usual and customary costs from time to time as necessary,
29        but costs submitted for reimbursement shall be subject to
30        the rates in effect at the time the costs were incurred.
31             (9)  If a claimant has pollution liability insurance
32        coverage other than coverage provided  by  the  insurance
33        account  under  this Act, that coverage shall be primary.
34        Reimbursement from the remedial account shall be  limited
HB1271 Engrossed            -16-              LRB9003709DPccC
 1        to  the deductible amounts under the primary coverage and
 2        the amount that exceeds the policy limits of the  primary
 3        coverage,  subject to the deductible amounts of this Act.
 4        If there is  a  dispute  between  the  claimant  and  the
 5        primary   insurance   provider,  reimbursement  from  the
 6        remedial action account may be made to the claimant after
 7        the claimant  assigns all of his or her interests in  the
 8        insurance coverage to the Council.
 9        (g)  The  source of funds for the remedial action account
10    shall be moneys allocated  to  the  account  by  the  Council
11    according to the Fund budget approved by the Council.
12        (h)  A  drycleaning facility will be classified as active
13    or inactive for purposes of  determining benefits under  this
14    Section  based  on  the status of the facility  on the date a
15    claim is filed.
16        (i)  Eligible claimants shall conduct remedial action  in
17    accordance  with  the  Site  Remediation  Program  under  the
18    Environmental  Protection Act and Part 740 of Title 35 of the
19    Illinois Administrative  Code  and  the  Tiered  Approach  to
20    Cleanup Objectives under Part 742 of Title 35 of the Illinois
21    Administrative Code.
22        Section 45. Insurance account.
23        (a)  The   insurance   account   shall   offer  financial
24    assurance for a qualified owner  or operator of a drycleaning
25    facility under the terms and conditions  provided  for  under
26    this Section. Coverage may be provided to either the owner or
27    the  operator  of  a drycleaning facility. The Council is not
28    required to resolve whether the owner or operator,  or  both,
29    are responsible for a release under the terms of an agreement
30    between the owner and operator.
31        (b)  The  source of funds for the insurance account shall
32    be as follows:
33             (1)  Moneys appropriated to the  Council  or  moneys
HB1271 Engrossed            -17-              LRB9003709DPccC
 1        allocated   to  the  insurance  account  by  the  Council
 2        according to the Fund budget approved by the Council.
 3             (2)  Moneys  collected  as  an  insurance   premium,
 4        including service fees, if any.
 5             (3)  Investment  income  attributed to the insurance
 6        account by the Council.
 7        (c)  An owner or operator may purchase coverage of up  to
 8    $500,000  per  drycleaning  facility subject to the terms and
 9    conditions under  this  Section  and  those  adopted  by  the
10    Council.  Coverage  shall be limited to remedial action costs
11    associated with soil and groundwater contamination  resulting
12    from   a   release  of  drycleaning  solvent  at  an  insured
13    drycleaning facility,  including  third-party  liability  for
14    soil and groundwater contamination.  Coverage is not provided
15    for a release that occurred before the date of coverage.
16        (d)  An   owner  or  operator,  subject  to  underwriting
17    requirements and terms and conditions  deemed  necessary  and
18    convenient  by  the  Council, may purchase insurance coverage
19    from the insurance  account  provided  that  the  drycleaning
20    facility to be insured meets the following conditions:
21             (1)  a  site investigation designed to identify soil
22        and groundwater contamination resulting from the  release
23        of  a drycleaning solvent has been completed. The Council
24        shall determine if the site  investigation  is  adequate.
25        This  investigation  must  be completed by June 30, 2002.
26        For drycleaning facilities that become active after  June
27        30,  2002, the site investigation must be completed prior
28        to issuance of insurance coverage; and
29             (2)  the drycleaning facility  is  participating  in
30        and  meets  all  requirements of a drycleaning compliance
31        program approved by the Council.
32        (e)  The annual premium for insurance coverage shall be:
33             (1)  For  the  initial  program   year,   $250   per
34        drycleaning facility.
HB1271 Engrossed            -18-              LRB9003709DPccC
 1             (2)  For  the  year  July  1,  1998 through June 30,
 2        1999, $375 per drycleaning facility.
 3             (3)  For the year July  1,  1999  through  June  30,
 4        2000, $500 per drycleaning facility.
 5             (4)  For  the  year  July  1,  2000 through June 30,
 6        2001, $625 per drycleaning facility.
 7             (5)  For subsequent  years,  an  owner  or  operator
 8        applying    for    coverage    shall    pay   an   annual
 9        actuarially-sound insurance premium for coverage  by  the
10        insurance account.  The Council may approve Fund coverage
11        through  the  payment  of  a  premium  established  on an
12        actuarially-sound basis, taking  into  consideration  the
13        risk  to  the insurance account presented by the insured.
14        Risk   factor   adjustments   utilized    to    determine
15        actuarially-sound  insurance  premiums should reflect the
16        range of risk presented by  the  variety  of  drycleaning
17        systems,  monitoring  systems,  drycleaning  volume, risk
18        management practices, and other factors as determined  by
19        the Council. As used in this item, "actuarially sound" is
20        not limited to Fund premium revenue equaling or exceeding
21        Fund  expenditures  for  the general drycleaning facility
22        population.  Actuarially-determined  premiums  shall   be
23        published  at  least  180  days  prior  to  the  premiums
24        becoming effective.
25        (f)  If coverage is purchased for any part of a year, the
26    purchaser  shall  pay the full annual premium.  The insurance
27    premium is  fully  earned  upon  issuance  of  the  insurance
28    policy.
29        (g)  The  insurance  coverage  shall  be  provided with a
30    $10,000 deductible policy.
31        (h)  A future repeal of this Section shall not  terminate
32    the  obligations under this Section or authority necessary to
33    administer   the   obligations   until  the  obligations  are
34    satisfied, including but not limited to the payment of claims
HB1271 Engrossed            -19-              LRB9003709DPccC
 1    filed prior to  the  effective  date  of  any  future  repeal
 2    against the insurance account until moneys in the account are
 3    exhausted.  Upon exhaustion of the moneys in the account, any
 4    remaining  claims  shall  be invalid. If moneys remain in the
 5    account following satisfaction of the obligations under  this
 6    Section,  the  remaining  moneys  and  moneys due the account
 7    shall be used to assist current insureds to obtain  a  viable
 8    insuring  mechanism as determined by the Council after public
 9    notice and opportunity for comment.
10        Section 50.  Cost recovery; enforcement.
11        (a)  The Council may seek  recovery  from  a  potentially
12    responsible party liable for a release that is the subject of
13    a  remedial action and for which the Fund has expended moneys
14    for remedial action. The amount of  recovery  sought  by  the
15    Council shall be equal to all moneys expended by the Fund for
16    and  in  connection  with  the remediation, including but not
17    limited to reasonable attorneys fees and costs of  litigation
18    expended by the Fund in connection with the release.
19        (b)  Except as provided in subsections (c) and (d):
20             (1)  The   Council   shall  not  seek  recovery  for
21        expenses in connection with remedial action for a release
22        from a claimant eligible for reimbursement except for any
23        unpaid portion of the deductible.
24             (2)  A claimant's liability for a release for  which
25        coverage  is  admitted  under the insurance account shall
26        not exceed the amount of the  deductible, subject to  the
27        limits of insurance coverage.
28        (c)  Notwithstanding  subsection  (b), the liability of a
29    claimant to the Fund shall be the  total  costs  of  remedial
30    action  incurred by the Fund, as specified in subsection (a),
31    if the  claimant has  not  complied  with  the  Environmental
32    Protection Act and its rules or with this Act and its rules.
33        (d)  Notwithstanding  subsection  (b), the liability of a
HB1271 Engrossed            -20-              LRB9003709DPccC
 1    claimant to the Fund shall be the  total  costs  of  remedial
 2    action incurred by the Fund, as specified in  subsection (a),
 3    if  the claimant received reimbursement from the Fund through
 4    misrepresentation or fraud, and the claimant shall be  liable
 5    for the amount of the reimbursement.
 6        (e)  Upon  reimbursement by  the Fund for remedial action
 7    under this Act, the rights of the claimant to recover payment
 8    from a potentially  responsible  party  are  assumed  by  the
 9    Council  to  the  extent  the remedial action was paid by the
10    Fund.  A  claimant  is  precluded   from   receiving   double
11    compensation  for  the  same  injury. A claimant may elect to
12    permit the Council to pursue the claimant's cause  of  action
13    for  an  injury    not  compensated  by  the  Fund  against a
14    potentially responsible party, provided the Attorney  General
15    or  his  or  her designee determines the representation would
16    not be a conflict of interest.
17        (f)  This Section does not preclude, limit, or in any way
18    affect any of the provisions of or causes of action  pursuant
19    to Section 22.2 of the Environmental Protection Act.
20        Section 55. Limitation on actions; admissions.
21        (a)  An  award or reimbursement made by the Council under
22    this Act shall be the claimant's  exclusive  method  for  the
23    recovery of the costs of drycleaning facility remediation.
24        (b)  If  a person conducts a remedial action activity for
25    a release at a drycleaning facility site, whether or not  the
26    person  files a claim  under this Act, the claim and remedial
27    action activity conducted are  not evidence of  liability  or
28    an  admission  of  liability  for  any  potential  or  actual
29    environmental pollution or damage.
30        Section 60. Drycleaning facility license.
31        (a)  On and  after  January  1,  1998,  no  person  shall
32    operate  a  drycleaning  facility  in  this  State  without a
HB1271 Engrossed            -21-              LRB9003709DPccC
 1    license issued by the Council.
 2        (b)  The Council shall issue a license to  a  drycleaning
 3    facility  on  submission  by an applicant of a completed form
 4    prescribed by the Council and payment of the required fee.
 5        (c)  The annual fees for licensure are as follows:
 6             (1)  $500 for a facility that purchases 140  gallons
 7        or  less  of chlorine-based drycleaning solvents annually
 8        or 1400 gallons or less of hydrocarbon-based  drycleaning
 9        solvents annually.
10             (2)  $1,000  for a facility that purchases more than
11        140 gallons but less than 360 gallons  of  chlorine-based
12        drycleaning  solvents  annually or more than 1400 gallons
13        but  less  than   3600   gallons   of   hydrocarbon-based
14        drycleaning solvents annually.
15             (3)  $1,500   for  a  facility  that  purchases  360
16        gallons or more of  chlorine-based  drycleaning  solvents
17        annually  or  3600  gallons  or more of hydrocarbon-based
18        drycleaning solvents annually.
19        For  purpose  of  this  subsection,   the   quantity   of
20    drycleaning  solvents  purchased annually shall be determined
21    as follows:
22             (1)  in  the  case  of  an  initial  applicant,  the
23        quantity  of  drycleaning  solvents  that  the  applicant
24        estimates will be used during his or her initial  license
25        year. A fee assessed under this subdivision is subject to
26        audited adjustment for that year; or
27             (2)  in   the  case  of  a  renewal  applicant,  the
28        quantity of drycleaning solvents  actually  used  in  the
29        preceding license year.
30        The  Council  may adjust licensing fees annually based on
31    the published Consumer Price  Index  -  All  Urban  Consumers
32    ("CPI-U") or as otherwise determined by the Council.
33        (d)  A license issued under this Section shall expire one
34    year  after  the  date  of  issuance  and  may  be renewed on
HB1271 Engrossed            -22-              LRB9003709DPccC
 1    reapplication to the Council and payment of  the  appropriate
 2    fee  in  accordance  with  subsection  (c).  At least 30 days
 3    before payment of a renewal licensing fee is due, the Council
 4    shall attempt to:
 5             (1)  notify   the   operator   of   each    licensed
 6        drycleaning  facility concerning the requirements of this
 7        Section;  and
 8             (2)  submit  a  license  fee  payment  form  to  the
 9        licensed operator of each drycleaning facility.
10        (e)  An applicant for a license under this Section  shall
11    complete  an  application  form prescribed by the Council and
12    shall pay the required fee, as  determined  under  subsection
13    (c).
14        (f)  The Council shall provide a receipt to each operator
15    who  pays a license fee. The receipt or a copy of the receipt
16    must  be  produced  for  inspection  at  the  request  of  an
17    authorized representative of the Council.
18        (g)  An operator  of  a  dry  cleaning  facility  who  is
19    required to pay a license fee under this Act and fails to pay
20    the  license  fee  when  the  fee  is due shall be assessed a
21    penalty of $5 for each day after the license fee is  due  and
22    until the license fee is paid.
23        (h)  The   Council   may  adopt  rules  as  necessary  to
24    administer the licensing requirements of this Act.
25        Section 65. Drycleaning solvent fee.
26        (a)  On and after January 1, 1998, there is imposed  upon
27    a  seller  or  transferor  of drycleaning solvent to a person
28    operating a  drycleaning  facility  a  fee  on  the  sale  or
29    transfer  of the drycleaning solvent that is acquired for use
30    in a drycleaning facility. The fee imposed on the drycleaning
31    solvent shall be $3.50 per  gallon  of  perchloroethylene  or
32    other  chlorinated  drycleaning  solvents used in drycleaning
33    operations   and   $.35   per   gallon   of   petroleum-based
HB1271 Engrossed            -23-              LRB9003709DPccC
 1    drycleaning  solvent.   The  Council  shall have authority to
 2    determine  what  products  are  chlorine-based  solvents  and
 3    petroleum-based solvents.  All drycleaning solvents shall  be
 4    considered chlorinated solvents unless the Council determines
 5    that  the  solvents  are petroleum-based drycleaning solvents
 6    subject  to  the  lower  fee.  The   Council   shall   define
 7    "transferor" and "transfer" for purposes of this Section.
 8        (b)  Drycleaning  solvent that is not acquired for use in
 9    a drycleaning facility but which is  used  in  a  drycleaning
10    facility  shall  be  treated as acquired for use, and the fee
11    shall be due, when it is first used.
12        (c)  If,  in  connection  with  the  acquisition  of  the
13    drycleaning solvent, the operator did not receive a  bill  or
14    invoice  showing the amount of the fee imposed on the sale or
15    transfer to the  operator,  the  fee  must  be  paid  to  the
16    Department  of  Revenue  by  the processor of the drycleaning
17    solvent.
18        (d)  No fee shall be imposed under this  Section  on  the
19    sale or transfer of drycleaning solvent if, prior to the sale
20    or  transfer,  the  purchaser or transferee and the seller or
21    transferor certify that:
22             (1)  the drycleaning solvent will not be used  in  a
23        drycleaning facility;
24             (2)  the  purchaser or transferee does not operate a
25        drycleaning facility; or
26             (3)  a floor stock  fee  has  been  imposed  on  the
27        drycleaning solvent.
28        A  person  who  provides a false certification under this
29    subsection shall be liable for a civil penalty not to  exceed
30    $500  for a first violation and a civil penalty not to exceed
31    $5,000 for a second or subsequent violation.
32        (e)  On  January  1,  1998,  there  is  imposed  on  each
33    operator of a  drycleaning  facility  a  fee  on  drycleaning
34    solvent  held  by  the  operator  on  that  date for use in a
HB1271 Engrossed            -24-              LRB9003709DPccC
 1    drycleaning facility. The fee imposed shall be the  fee  that
 2    would  have  been  imposed  under    subsection  (a)  if  the
 3    drycleaning  solvent  held  by  the operator on that date had
 4    been sold or transferred to the  operator  during  the  first
 5    year of this Act.
 6        (f)  The  fees  imposed  by  this Section in any calendar
 7    quarter shall be due and payable on the 25th day of  the  1st
 8    month  following  the end of the calendar quarter. The fee on
 9    drycleaning solvents used in drycleaning facilities  and  the
10    floor  stock  fee  shall be reported on forms provided by the
11    Department of Revenue.
12        (g)  The fee on drycleaning solvents used in  drycleaning
13    facilities  and  the floor stock fee shall be administered by
14    the Department of  Revenue  under  rules  developed  by  that
15    Department.
16        (h)  A person who violates a provision of this Section is
17    subject  to  appropriate  penalty  provisions  of the Uniform
18    Penalty and Interest Act.
19        (i)  On and  after  January  1,  1998,  no  person  shall
20    knowingly sell or transfer drycleaning solvent to an operator
21    of a drycleaning facility that is not licensed by the Council
22    under  Section  60.  A person who violates this subsection is
23    liable for a civil penalty not to exceed  $500  for  a  first
24    violation  and  a  civil  penalty  not to exceed $5,000 for a
25    second or subsequent violation.
26        (j)  The  Department  of  Revenue  may  adopt  rules   as
27    necessary to implement this Section.
28        Section  70. Deposit of fees. Licensing fees collected by
29    the Council under Section 60  shall  be  deposited  into  the
30    Fund.  Fees  on  drycleaning  solvents  used  in  drycleaning
31    facilities  and  the  floor  stocks  fees  collected  by  the
32    Department  of  Revenue  under  Section 65 shall be deposited
33    into the Fund.
HB1271 Engrossed            -25-              LRB9003709DPccC
 1        Section 75. Adjustment  of  fees.  Beginning  January  1,
 2    1999, and annually after that date, the  Council shall adjust
 3    the copayment obligation of subsection (e) of Section 40, the
 4    drycleaning  solvent fees of Section 65, the license  fees of
 5    Section 60, or any combination of adjustment of  each,  after
 6    notice  and  opportunity  for  public  comment,  in  a manner
 7    determined necessary and appropriate to ensure  viability  of
 8    the   Fund.    Viability  of  the  Fund  shall  consider  the
 9    settlement of all current claims subject to prioritization of
10    benefits under subsection (c) of Section 25, consistent  with
11    the purposes of this Act.
12        Section  80. Repeal of fee provisions. Sections 60 and 65
13    of this Act are repealed on July 1, 2007.
14        Section 150. The State Finance Act is amended  by  adding
15    Section 5.449 as follows:
16        (30 ILCS 105/5.449 new)
17        Sec.  5.449.  The Drycleaner Environmental Response Trust
18    Fund.
19        Section 200. The Illinois Insurance Code  is  amended  by
20    adding Section 2.5 as follows:
21        (215 ILCS 5/2.5 new)
22        Sec.  2.5. Exemption. This Code shall not be construed to
23    apply to the administration of the  Drycleaner  Environmental
24    Response   Trust  Fund  under  the  Drycleaner  Environmental
25    Response Trust Fund Act.
26        Section 999. Effective date. This Act takes  effect  upon
27    becoming law.

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