71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 2197
 
                         House Bill 2857
 
Sponsored by COMMITTEE ON BUSINESS, LABOR, AND CONSUMER AFFAIRS
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
 
  Eliminates option of quarterly payment of fees to Dry Cleaner
Environmental Response Account. Modifies deductible amount for
dry cleaning facilities. Changes fee structure for amounts paid
into Dry Cleaner Environmental Response Account. Lowers fee on
retail sale or transfer of dry cleaning solvents. Eliminates
automatic fee increase on retail sale or transfer of dry cleaning
solvents.
 
                        A BILL FOR AN ACT
Relating to the Dry Cleaner Environmental Response Account;
  amending ORS 465.510, 465.517 and 465.520.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 465.510 is amended to read:
  465.510. (1) The Dry Cleaner Environmental Response Account is
established separate and distinct from the General Fund in the
State Treasury. All moneys collected under ORS 465.517 to
465.523, all account expenditures recovered or otherwise received
and all interest earned on moneys in the account shall be
credited to the account.
  (2) All moneys in the Dry Cleaner Environmental Response
Account are continuously appropriated to the Department of
Environmental Quality and, except as provided under this section,
shall be expended solely for the following purposes:
  (a) Remedial action costs incurred by the department as a
result of a release at or from a dry cleaning facility;
  (b) Preapproved remedial action costs incurred by a person
performing removal or remedial action as a result of a release at
or from a dry cleaning facility under a department order or
agreement expressly authorizing reimbursement from the account;
  (c) The department's costs of program development,
administration, enforcement and cost recovery; and
  (d) The department's indirect costs attributable to removal or
remedial action due to a release at or from a dry cleaning
facility.
  (3) The department may expend Dry Cleaner Environmental
Response Account moneys only for those remedial action costs
defined in ORS 465.200 (23) that are reasonable in the
department's judgment. The department shall consider at least the
following factors, to the extent relevant information is
available, in determining the order in which removals or remedial
actions shall receive funding and the amount of funding:
  (a) The dry cleaning facility's risk to public health and the
environment. Each facility's risk shall be evaluated relative to
the risk posed by other facilities.
  (b) The need for removal or remedial action at the dry cleaning
facility relative to account availability and the need for
removal or remedial actions at other facilities.
  (c) The nature of the activities for which expenditures are
necessary, in the following order of preference:
  (A) Direct cost of cleanup, provided that adequate technical
investigation has been completed;
  (B) Direct cost of technical investigation and remedy
evaluation;
  (C) Administrative and indirect costs; and
  (D) Enforcement, cost recovery and legal costs.
  (4) If the department takes action at a facility, location or
area where hazardous substances have been released as a result of
both dry cleaning operations and other activities, including but
not limited to laundry operations, account moneys shall be used
only for that portion of the removal or remedial action
determined by the department to be necessitated by the release of
dry cleaning solvent by the dry cleaning facility.
    { - (5) Beginning October 1, 1998, and annually thereafter,
the retail sale or transfer fee otherwise applicable for that
year under ORS 465.520 shall be increased by $4 if fees paid
under ORS 465.517 to 465.523 fail to generate $1 million or more
during the preceding 12-month period. - }
    { - (6) - }   { + (5) + } Moneys in the account expended for
remedial action costs shall be expended solely for costs in
excess of the following deductible amounts:
    { - (a) For release from a dry cleaning facility employing
four or fewer individuals at the time of release, including any
dry cleaning owner, dry cleaning operator or part-time employee,
$5,000; and - }
    { - (b) For a release from a dry cleaning facility employing
more than four individuals at the time of release, including any
dry cleaning owner, dry cleaning operator or part-time employee,
$10,000. - }
   { +  (a) For a release from an inactive dry cleaning facility,
$20,000; and
  (b) For a release from an active dry cleaning facility, $1,000
per employee, to a maximum of $10,000 per facility. For purposes
of this paragraph, the number of employees of a facility is the
average number of employees  + }  { +  of the facility,  + }
 { +  including dry cleaning operators, dry cleaning owners and
full-time or part-time workers, during each payroll period in the
six months prior to the expenditure of moneys under this
section. + }
    { - (7) - }   { + (6) + } The dry cleaning owner or dry
cleaning operator of the facility   { - shall be - }   { + is + }
responsible for paying the deductible amount.  { + The owner or
operator of the facility may pay the deductible over a four-year
period, subject to an interest rate established by the
department.
  (7) + } The department may bring a civil action to recover any
moneys expended from the account in payment of costs properly
payable under this   { - subsection - }   { + section + } by the
dry cleaning owner or dry cleaning operator.
  (8) No moneys shall be expended out of the Dry Cleaner
Environmental Response Account for the payment of any claim or
judgment against the state or its agencies for loss of business,
damage or destruction of property or personal injury arising from
removal or remedial action undertaken under ORS 465.500 to
465.510.
  SECTION 2. ORS 465.517 is amended to read:
  465.517. (1) In addition to any other tax or fee imposed by
law,   { - there is imposed on the privilege of - }   { + a
person + } operating an active dry cleaning facility   { - within
this state - }   { + that sells $25,000 or more of dry cleaning
services shall pay + } an annual fee  { +  composed + } of { +
the following + }:
    { - (a) $500 for each dry store selling $50,000 or more of
dry cleaning services annually; and - }
    { - (b) $1,000 for each dry cleaning facility. - }
   { +  (a) A base fee of $500;
  (b) A prior exposure fee of the highest one of the following:
  (A) If the facility used perchloroethylene prior to July 1,
1998, $500;
  (B) If the facility used perchloroethylene on or after July 1,
1998, $250; or
  (C) If the facility ever used any other solvent, $250; and
  (c) A future exposure fee of the higher of the following:
  (A) If the facility currently uses perchloroethylene, $500.
  (B) If the facility currently uses any other solvent, $250. + }
  (2) The fee shall be due on the first day of each calendar year
that the facility operates as a dry cleaning facility and shall
be prorated for partial year operation.
  (3) The fee imposed under this section may be paid in a single
payment, payable on January 1  { - , or in four installments
payable on January 1, April 1, July 1 and October 1. For
installment payments, the Department of Revenue may establish by
rule an additional fee to recover the costs to the department of
processing the installment payments - } .
  SECTION 3. ORS 465.520 is amended to read:
  465.520. (1) In addition to any other tax or fee imposed by
law, a fee is imposed on the retail sale or transfer within this
state of dry cleaning solvent on or after January 1, 1996. The
fee shall be paid by the seller or transferor.
  (2) The fee on each gallon of dry cleaning solvent is the
result obtained from multiplying the solvent factor of the dry
cleaning solvent by   { - the following rate: - }
    { - (a) $12 - }   { + $20 + } for any retail sale or transfer
 { - in 1996 - } .
    { - (b) For any retail sale or transfer after 1996, 103
percent of the sale or transfer fee rate applicable for the prior
year, rounded to the nearest cent. However, if the rate
applicable to the prior year was increased by $4 under ORS
465.510 (5), the 103 percent shall be calculated based upon the
rate that would have applied without the $4 increase. - }
  (3) The solvent factor for each dry cleaning solvent is the
amount listed in the following table:
_________________________________________________________________
 
____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
 
Dry Cleaning SolSolvent Factor
 
____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
 
Perchloroethylene    1.00
Any other solvent    0.20
____________________________________________________________
END OF POSSIBLE IRREGULAR TABULAR TEXT
____________________________________________________________
_________________________________________________________________
  (4) Notwithstanding subsections (1) and (2) of this section, no
fee shall be imposed on the retail sale or transfer of any dry
cleaning solvent if, prior to the retail sale or transfer, the
purchaser or transferee provides the seller or transferor with a
certificate stating that:
  (a) The dry cleaning solvent will not be used in a dry cleaning
facility; or
  (b) The purchaser or transferee does not operate a dry cleaning
facility.
                         ----------