ASSEMBLY COMMITTEE SUBSTITUTE FOR
ASSEMBLY, No. 186
STATE OF NEW JERSEY
ADOPTED FEBRUARY 10, 1997
Sponsored by Assemblyman ROONEY
An Act concerning dry cleaning businesses and the use of perchloroethylene, and supplementing P.L.1954, c.212 (C.26:2C-1 et seq.), P.L.1966, c.30 (C.54:32B-1 et seq.), and Titles 34 and 58 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. This act shall be known and may be cited as the "New Jersey Dry Cleaning Business Assistance Act."
2. The Legislature finds and declares that dry cleaners are some of the most industrious and productive small businesses in the State providing a commonplace but important service to the residents of the State; that the use of perchloroethylene and other hazardous substances is a necessary part of the operation of these small businesses but has resulted in a prevalence of site contamination from perchloroethylene and other hazardous substances that can result in the contamination of surface and ground waters, including potable water supplies, which poses a potential threat to the health of State residents; that the cost of remediation of this contamination is exorbitant and could often bankrupt the average small business owner; and that the use of perchloroethylene has also raised health concerns for employees and clients of dry cleaners even though the technology currently exists in the industry to virtually eliminate any of these concerns through the upgrade of the machines used by dry cleaners in the State.
The Legislature therefore determines that it is in the public interest to establish a fund, financed by a tax on perchloroethylene and registration fees imposed on distributors of perchloroethylene, dry cleaners and related businesses, and manufacturers of dry cleaning machinery that use perchloroethylene, to be used to fund the remediation of sites contaminated with perchloroethylene from dry cleaning businesses.
The Legislature also determines that it is in the public interest for the State to establish a loan fund and guarantee program for owners of dry cleaning businesses who require financial assistance to purchase and install "Generation 4 dry cleaning equipment" or more advanced equipment in order to minimize the public's exposure to perchloroethylene emissions caused by the operation of such machinery; that while "Generation 4 dry cleaning equipment" incorporates several advanced features that substantially reduce the amount of such releases, the cost of purchasing and installing this equipment makes it impractical for many small business owners to finance the purchase and installation thereof without financial assistance; that the funding of a financial assistance program by the New Jersey Economic Development Authority is an appropriate use of monies available to the authority; and that such a program will assist ongoing efforts to reduce the public's exposure to the levels of perchloroethylene emissions.
3. For the purposes of this act:
"Area source dry cleaner" means any sole proprietorship, partnership or corporation that operates one or more dry cleaning facilities, including, but not limited to facilities with owner-operated dry cleaning machines or coin-operated dry cleaning machines operated by customers;
"Authority" means the New Jersey Economic Development Authority established pursuant to section 4 of P.L.1974, c.80 (C.34:1B-4);
"Commissioner" means the Commissioner of Environmental Protection;
"Contamination" or "contaminated" means perchloroethylene contamination at levels that require remediation of the site pursuant to State law;
"Control apparatus" means any device or machine which prevents or controls the emission of any air contaminant directly or indirectly into the outdoor atmosphere;
"Department" means the Department of Environmental Protection;
"Director" means the Director of the Division of Taxation in the Department of the Treasury;
"Drop store" means an establishment that offers dry cleaning services for a fee and receives clothing, other fabrics or materials to be cleaned but sends the clothing, other fabrics or materials to be cleaned to a dry cleaning facility and does not clean the clothing, other fabrics or materials on the premises;
"Dry cleaning" means the process of cleaning clothing, garments, textiles, fabrics, leather goods, and the like, using nonaqueous substances such as perchloroethylene;
"Dry cleaning facility" means a commercial establishment operated on a specific site that is engaged primarily in the business of cleaning clothing, other fabrics or materials on the premises by a process that involves the use of perchloroethylene, including but not limited to, an individual establishment owned by a sole proprietor, partnership or corporation, or one of a number of commercial establishments owned by a sole proprietor, or by a partnership or corporation, that operates as an area source dry cleaner;
"Dry cleaning machinery manufacturer" means any person, business or company in the business of designing, developing, manufacturing or testing machinery used for dry cleaning that requires the person, business or company designing, developing, manufacturing or testing the machinery to use perchloroethylene in the process of designing, developing, manufacturing or testing the machinery;
"Dry cleaning machinery manufacturer facility" means the premises on which a dry cleaning machinery manufacturer designs, develops, manufacturers or tests the machinery used for dry cleaning that uses perchloroethylene;
"Dry cleaning solvents" means any and all nonaqueous substances used in the cleaning of clothing, other fabrics or materials, including, but not limited to perchloroethylene;
"Generation 1 dry cleaning equipment" means dry cleaning equipment that is transfer equipment that uses a cold washer and dryer, is composed of a cleaning machine and a reclaimer with a fresh air damper, and is designed to vent during door openings and the aeration cycle of the dry cleaning process;
"Generation 2 dry cleaning equipment" means dry cleaning equipment that is open dry-to-dry equipment with a water cooled condenser, is composed of a dry-to-dry machine with fresh air intake, and is designed to vent during the aeration cycle of the dry cleaning process;
"Generation 3 dry cleaning equipment" means dry cleaning equipment that is non-vented refrigerated dry-to-dry equipment that is composed of a dry-to-dry refrigerated closed loop machine with or without a door fan;
"Generation 4 dry cleaning equipment" means dry cleaning equipment that is non-vented refrigerated dry-to-dry equipment that is composed of a dry-to-dry refrigerated completely enclosed machine with an integral carbon adsorber, drying sensor and spill containment, and has a reduction of the level of perchloroethylene left in the drum of the machine to 300 parts per million or less before the machine is unloaded at the end of the dry cleaning process;
"In-State distributor" means any business, company, corporation or person engaged in selling perchloroethylene or recycled perchloroethylene, at wholesale or retail, to any area source dry cleaner or dry cleaning facility in the State, and that is based in the State and owns property in the State that is, or may become, eligible for remediation pursuant to this act;
"Out-of-State distributor" means any business, company, corporation or person selling perchloroethylene or recycled perchloroethylene, at wholesale or retail, to any area source dry cleaner or dry cleaning facility in the State, that is based out of State and owns no property in the State that is, or may become, eligible for remediation pursuant to sections 5 and 7 of this act;
"Perchloroethylene" means perchloroethylene, tetrachloroethylene, their chemical equivalents and their breakdown products, that are commonly used for dry cleaning;
"Perchloroethylene emissions" means any gaseous or vaporous releases of perchloroethylene, whether released into the indoor environment or outdoor atmosphere;
"Registrant" means an in-State distributor, an owner of a dry cleaning facility or a dry cleaning machinery manufacturer, or an owner of contaminated property, who can establish that the property was previously the site of an in-State distributor, a dry cleaning facility or dry cleaning machinery manufacturer facility, who has properly registered pursuant to section 4 of this act and has paid in full all fees and taxes required pursuant to sections 4 and 6 of this act;
"Remediation" means remediation as defined under section 23 of P.L.1993, c.139 (C.58:10B-1) and in accordance with the standards and procedures established pursuant to P.L.1993, c.139 (C.58:10B-1 et seq.) and the rules or regulations adopted pursuant thereto;
"Route operator" means a person or the manager of a group of persons who provides dry cleaning services by operating a route of customers from which clothing, other fabrics or materials are picked up, delivered to dry cleaning facilities not owned by the route operator, cleaned, and returned to the customers on the route for a fee. The term "route operator" shall include, but need not be limited to, persons known as "bobtailers."
4. a. The Department of Environmental Protection shall establish a registration program for all in-State and out-of-State distributors, drop stores, dry cleaning facilities, dry cleaning machinery manufacturers, and route operators doing business in the State. Every in-State distributor, out-of-State distributor, drop store, dry cleaning facility, dry cleaning machinery manufacturer and route operator shall register with the department on January 1 immediately following the date of enactment of this act, and annually on January 1 thereafter. Within 60 days after the effective date of this act and prior to January 1 immediately following the effective date of this act, the department shall notify all area source dry cleaners, in-State and out-of-State distributors and dry cleaning machinery manufacturers of the registration requirements pursuant to this section and shall direct all area source dry cleaners and dry cleaning machinery manufacturers to notify each of their dry cleaning facilities and in-State and out-of-State distributors that supply them with perchloroethylene of the registration requirements. The department shall collect the following registration and renewal fees and shall require the following information as part of each registration and renewal application:
(1) From in-State distributors, a registration and annual renewal fee of $5,000 and documentation of the destination of all perchloroethylene distributed, with delivery dates and amount of perchloroethylene delivered per destination for the year preceding the registration or the renewal thereof, the name and address of each dry cleaning facility supplied and the number of gallons of perchloroethylene supplied to each dry cleaning facility per month per facility for the year preceding the registration or the renewal thereof;
(2) From out-of-State distributors, a registration and annual renewal fee of $2,500 and documentation of the destination of all perchloroethylene distributed, with delivery dates and amount of perchloroethylene delivered per destination for the year preceding the registration or the renewal thereof, the name and address of each dry cleaning facility supplied and the number of gallons of perchloroethylene supplied to each dry cleaning facility per month per facility for the year preceding the registration or the renewal thereof;
(3) From dry cleaning facilities, a registration and annual renewal fee of $1,500 and documentation of the number of machines operated and the number of gallons of perchloroethylene used per month for the year preceding the registration or the renewal thereof;
(4) From dry cleaning machinery manufacturers, a registration and annual renewal fee of $5,000 and documentation of the number of machines manufactured and the number of gallons of perchloroethylene purchased per month for the year preceding the registration or the renewal thereof;
(5) From every drop store owned by an area source dry cleaner, a registration and annual renewal fee of $500; and
(6) From every drop store that is not owned by an area source dry cleaner and every route operator who is not an area source dry cleaner, a registration fee and annual renewal fee of $750.
b. Any owner of contaminated property, who can establish that the property was previously the site of an in-State distributor, a dry cleaning facility or dry cleaning machinery manufacturer facility, may register with the department in order to be eligible for remediation by the fund established pursuant to section 5 of this act. Each owner of contaminated property who chooses to register shall do so on January 1 immediately following the date of enactment of this act and annually on January 1 thereafter. The department shall collect a registration fee of $1 per square foot of the contaminated property and as a renewal fee each year thereafter until the site is remediated. An owner of contaminated property, who can establish that the property was previously the site of an in-State distributor, a dry cleaning facility or dry cleaning machinery manufacturer facility, but was not aware of the contamination on January 1 immediately following the date of enactment of this act, may register within six months after the contamination was discovered.
c. The department shall deposit all moneys collected pursuant to this section into the Dry Cleaner Site Remediation Fund established pursuant to section 5 of this act.
d. The department shall compile the information required pursuant to subsections a. and b. of this section and a list of all in-State and out-of-State distributors, drop stores, dry cleaning facilities, dry cleaning machinery manufacturers, route operators and owners of contaminated sites opting to participate in the remediation program established pursuant to this act and shall transmit the information and list to the Director of the Division of Taxation in the Department of the Treasury on January 1 of the year next following the date of enactment of this act, provided that the department may update the list more frequently as it deems appropriate.
e. The director shall utilize the list compiled by the Department of Environmental Protection to notify the owners or operators of the facilities thereon that they may be liable for the tax levied pursuant to section 6 of this act. The director may use the information compiled by the department for the purposes of enforcing subsection f. of this section and section 6 of this act.
f. Any person who fails to comply with the requirements of this section or falsifies any documentation or information required pursuant to this section shall be subject to a fine of not less than $2,500 for the first offense, not more than $5,000 for the second offense and not more than $10,000 for a third or subsequent offense, in addition to any penalties imposed pursuant to subsection e. of section 6 of this act. Any moneys collected pursuant to this subsection shall be deposited into the "Dry Cleaner Site Remediation Fund," established pursuant to section 5 of this act.
5. a. The "Dry Cleaner Site Remediation Fund," hereinafter referred to as "the fund," is established as a special nonlapsing revolving fund. The fund shall be administered by the Department of Environmental Protection, and shall be credited with all fees and taxes collected pursuant to this act. Interest received on moneys in the fund shall be credited to the fund. The department shall not obligate funds in excess of the amount available in the fund.
b. The fund shall be strictly liable, without regard to fault, for the remediation of the sites eligible for remediation pursuant to this section and section 7 of this act, for all cleanup and removal costs and for all direct and indirect damages no matter by whom sustained, except as otherwise provided in section 7 of this act.
c. All available moneys in the fund shall be appropriated annually solely for the following purposes:
(1) Remediation of contaminated in-State distributor, dry cleaning facility, or dry cleaning machinery manufacturing facility sites or sites that were formerly the site of an in-State distributor, dry cleaning facility or dry cleaning machinery manufacturing facility and are now contaminated and owned by an owner who has opted to participate in the remediation program established by this act by registering with the department pursuant to subsection b. of section 4 of this act, provided that the department has determined the parties responsible for the site have properly paid all required registration fees and taxes that have been assessed pursuant to this act. The remediation shall be done in accordance with the remediation standards, procedures and requirements established by P.L.1993, c.139 (C.58:10B-1, et seq.), except that nothing in this subsection shall be construed to authorize the use of moneys in the fund for the payment of any remediation costs that are not associated with the remediation of in-State distributor, dry cleaning facility, or dry cleaning machinery manufacturing facility sites or sites that were previously the site of an in-State distributor, dry cleaning facility or dry cleaning machinery manufacturing facility. The remediation permitted pursuant to this subsection shall include contamination across property lines if the contamination is attributed to the operation of an in-State distributor, dry cleaning facility or dry cleaning machinery manufacturer facility on a nearby property currently or historically on the property;
(2) Remediation of contamination caused by the transport of perchloroethylene to or from an in-State distributor, dry cleaning facility or dry cleaning machinery manaufacturer facility if the contamination occurs within 200 feet of the property line of an in-State distributor, dry cleaning facility or dry cleaning machinery manaufacturer facility to or from which the dry cleaning solvents were transported;
(3) Maintenance and monitoring of contaminated in-State distributor, dry cleaning facility or dry cleaning machinery manufacturer facility sites; and
(4) Payment of any other reasonable costs associated with the remediation of sites eligible for remediation funding pursuant to this act, as determined by the department, including the administrative expenses of the department incurred implementing the requirements and purposes of this act, except that in no fiscal year shall the amount transferred from the fund to the department for administrative expenses exceed 10% of the moneys collected in that fiscal year and available in the fund.
d. No moneys in the fund shall be used for the following purposes:
(1) Remediation of sites contaminated by dry cleaning solvents where the contamination at the sites did not result from the operation of an in-State distributor, dry cleaning facility or dry cleaning machinery manufacturer facility;
(2) Remediation of sites that are contaminated by the transport of dry cleaning solvents to or from an in-State distributor, dry cleaning facility or dry cleaning machinery manufacturer facility, except as provided in paragraph (2) of subsection c. of this section;
(3) Remediation of an in-State distributor, dry cleaning facility or dry cleaning machinery manufacturer facility site where the area source dry cleaner, in-State distributor, or dry cleaning machinery manufacturer is not a registrant pursuant to this act because the area source dry cleaner, in-State distributor, or dry cleaning machinery manufacturer did not pay the proper registration fees or taxes assessed pursuant to this act; and
(4) Payment of any costs associated with any fine, penalty, or action brought against a dry cleaning facility owner or operator or wholesale supply facility under local, state or federal law.
6. a. There is hereby levied upon each in-State distributor and out-of-State distributor selling perchloroethylene in the State, including but not limited to the owner or operator of a wholesale supply facility selling perchloroethylene in the State, a tax to fund the remediation of any property in the State that is eligible for remediation pursuant to sections 5 and 7 of this act. For any dry cleaning facility or dry cleaning machinery manufacturer that buys perchloroethylene outside of the State or from a source not registered with the department as an in-State distributor or an out-of-State distributor, or if it cannot be ascertained that the perchloroethylene purchased by the dry cleaning facility or dry cleaning machinery manufacturer has been properly taxed, the tax shall be levied on the dry cleaning facility or the dry cleaning machinery manufacturer that purchased the perchloroethylene. The tax shall also be levied on any in-State and out-of-State distributors of recycled perchloroethylene in the State, and on any dry cleaning facility or any dry cleaning machinery manufacturer that buys recycled perchloroethylene if it is bought from a source that is not registered with the department. Where such person has failed to file a return or pay the tax imposed by this section, within 60 days after the due date thereof, the Director of the Division of Taxation shall forthwith take appropriate steps to collect the tax from the owner of the dry cleaning facility or dry cleaning machinery manufacturer facility supplied by the in-State or out-of-State distributor.
b. The tax shall be $10 per gallon of perchloroethylene sold to dry cleaning facilities in the State. Upon receipt of the tax payment, the director shall authorize the transfer and deposit of the moneys received into the "Dry Cleaner Site Remediation Fund," established pursuant to section 5 of this act. Interest received on moneys in the fund shall be credited to the fund.
c. Every person subject to the tax imposed pursuant to this section shall on or before the 20th day of the month following the close of each tax period render a return under oath to the director on such forms as may be prescribed by the director indicating the number of gallons of perchloroethylene sold and the taxpayer shall pay the full amount of the tax due.
d. If a return required by this section is not filed, or if a return when filed is incorrect or insufficient in the opinion of the director, the amount of tax due shall be determined by the director from such information as may be available. Notice of such determination shall be given to the taxpayer liable for the payment of the tax. Such determination shall finally and irrevocably fix the tax unless the person against whom it is assessed, within 30 days after receiving notice of such determination, shall apply to the director for a hearing, or unless the director on his own motion shall redetermine the same. After such hearing the director shall give notice of his determination to the person to whom the tax is assessed.
e. Any taxpayer who shall fail to file his return when due or to pay any tax when the same becomes due, as herein provided, shall be subject to such penalties and interest as provided in the "State Tax Uniform Procedure Law," R.S.54:48-1 et seq. If the Division of Taxation determines that the failure to comply with any provision of this section was excusable under the circumstances, it may remit such part or all of the penalty as shall be appropriate under such circumstances.
f. In addition to the other powers granted to the director in this section, the director is hereby authorized and empowered:
(1) To delegate to any officer or employee of the division powers and duties assigned to the director that the director may deem necessary to carry out efficiently the provisions of this section, and the person or persons to whom such power has been delegated shall possess and may exercise all of the powers and perform all of the duties delegated by the director;
(2) To prescribe and distribute all necessary forms for the implementation of this section.
g. The tax imposed by this section shall be governed in all respects by the provisions of the "State Tax Uniform Procedure Law," R.S.54:48-1 et seq., except only to the extent that a specific provision of this act may be in conflict therewith.
h. The director shall notify the department quarterly as to the status of taxpayers required to pay the tax levied pursuant to this section and shall provide a list of taxpayers who have failed to comply with the requirements of this section.
7. a. Notwithstanding the provisions of the "Spill Compensation and Control Act," P.L.1976, c.141 (C.58:10-23.11 et seq.), any rule or regulation adopted pursuant thereto, or any other law, or any rule or regulation adopted pursuant thereto, to the contrary, registrants owning property eligible for remediation pursuant to subsection c. of section 5 of this act shall not be liable for the remediation of the property, except as provided in subsection e. of this section.
b. The Department of Environmental Protection shall administer the fund established pursuant to section 5 of this act and shall remediate the sites for which the fund is liable in accordance with the standards, procedures and requirements of section 35 of P.L.1993, c.139 (C.58:10B-12) and any rules or regulations adopted pursuant thereto.
c. The department shall establish the criteria for prioritizing and remediating the sites, giving highest priority to sites that severely threaten to contaminate public and private water supplies and ranking the priority of the remediation of these sites based on the severity of the threat of contamination of public and private water supplies, the distance from public and private water supply wells, the threat to aquifers and other public health considerations. The department shall give second priority to any site subject to sale by the owner. The department shall evaluate the sites based on the criteria established pursuant to this subsection and shall devise a priority project list of the contaminated sites in the State eligible for remediation funded by the "Dry Cleaner Site Remediation Fund," established pursuant to section 5 of this act.
d. Prior to the commencement of the remediation of a site, the department shall determine that the site is eligible for remediation pursuant to this act and that the owner of or operator of the facility on the site is a registrant pursuant to this act. The department shall assess against and collect from the registrant owning the property to be remediated pursuant to this act, at the time of commencement of remediation, the appropriate deductible in accordance with the following schedule:
(1) For registrants whose initial registration with the State was made in the year after the effective date of this act, $1,000;
(2) For registrants whose initial registration with the State was made within the second year through the fifth year after the effective date of this act, $5,000;
(3) For registrants whose initial registration with the State was made within the second five-year period after the effective date of this act, $5,000;
(4) For registrants whose initial registration with the State was made within the third five-year period after the effective date of this act, $10,000;
(5) For registrants whose initial registration with the State was made within the fourth five-year period after the effective date of this act, $15,000; and
(6) For registrants whose initial registration with the State was made within the fifth five-year period after the effective date of this act, $20,000.
All moneys collected pursuant to this subsection shall be deposited in the fund.
e. Prior to remediation of a site, the department shall determine if the registrant owning the site or any operator of a facility on the site or employees of the operator engaged in practices in violation of federal and State law, or any rule or regulation adopted pursuant thereto, at the time of the contamination, and if the practices caused the contamination. If the department determines that such practices were engaged in at the time of the contamination and that the practices caused the contamination, the registrant shall be liable for remediation of the registrant's property where these practices were implemented.
8. a. The annual appropriations act for each State fiscal year shall, without other conditions, limitations or restrictions on the following:
(1) credit amounts paid to the State Treasurer, if any, in payment of taxes collected pursuant to section 6 of P.L. , c. (C. )(now before the Legislature as this bill), to the "Dry Cleaner Site Remediation Fund," established pursuant to section 5 of P.L. , c. (C. )(now before the Legislature as this bill);
(2) credit amounts paid to the Department of Environmental Protection, if any, in payment of fees collected pursuant to section 4 of P.L. , c. (C. )(now before the Legislature as this bill), and in payment of any fines or penalties collected pursuant to P.L. , c. (C. )(now before the Legislature as this bill), to the "Dry Cleaner Site Remediation Fund," established pursuant to section 5 of P.L. , c. (C. )(now before the Legislature as this bill); and
(3) appropriate the balance of the "Dry Cleaner Site Remediation Fund," established pursuant to section 5 of P.L. , c. (C. )(now before the Legislature as this bill), for the purposes of that fund.
b. If the requirements of subsection a. of this section are not met on the effective date of an annual appropriations act for the State fiscal year, or if amendment or supplement to an annual appropriations act for the State fiscal year should violate any of the requirements of subsection a. of this section, the Director of the Division of Budget and Accounting in the Department of the Treasury shall, not later than five days after the enactment of the annual appropriations act, or an amendment or supplement thereto, that violates any of the requirements of subsection a. of this section, certify to the Director of the Division of Taxation and the Commissioner of Environmental Protection that the requirements of subsection a. of this section have not been met.
c. Sections 4, 5 and 6, and subsections b. through f. of section 7 of P.L. , c. (C. )(now before the Legislature as this bill), shall be without effect on and after the tenth day following a certification by the Director of the Division of Budget and Accounting in the Department of the Treasury pursuant to subsection b. of this section. On and after the tenth day following the certification, the Department of Environmental Protection shall assume full liability for the remediation of the sites eligible for remediation pursuant to P.L. , c. (C. )(now before the Legislature as this bill), as defined in section 5 of P.L. , c. (C. )(now before the Legislature as this bill), and the remediation of any further contamination or damage to natural resources or property resulting from delay of the remediation of the eligible sites. Any moneys and interest on moneys remaining in the fund on the date of the appropriations act that violated the requirements of subsection a. of this section shall be appropriated to the department from the General Fund for the purposes of the remediation required by this section. All moneys collected pursuant to this subsection shall be deposited in the fund.
9. a. There is established, in but not of the Department of Environmental Protection, the Dry Cleaner Site Remediation Advisory Board comprising one representative of the Neighborhood Cleaners Association, International; one representative of the Korean Dry Cleaners Association of New Jersey; and one representative of the New Jersey Dry Cleaning Legislative Coalition; to be appointed by the Governor with the advice of the leadership of the respective organizations represented. The advisory board shall offer information concerning the dry cleaning industry to the department and shall consult with the department concerning the implementation of this act. The department shall notify the board quarterly of the status of the "Dry Cleaner Site Remediation Fund," established pursuant to section 5 of this act, and the remediations funded by the moneys therein, and provide other information to the board necessary for the membership of the represented organizations to comply with the requirements of federal and State law.
b. The Dry Cleaner Site Remediation Advisory Board shall organize as soon as practicable following the appointment of its members and shall serve as an advisory board to the department until the organizations represented on the board determine that the board is no longer necessary.
10. The commissioner, the State Treasurer and the director, respectively, are authorized to adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), any rules and regulations as they may deem necessary to implement the provisions of this act.
11. a. The commissioner shall prepare and submit an annual report to the Governor and the Legislature, which shall describe the quantity of remediation efforts and the quality of the remediation, the costs and damages paid by and recovered for the fund, and the economic and environmental impacts on the State as a result of the administration of this act.
b. The department shall annually submit a written report to the Senate Environment Committee, the Assembly Agriculture and Waste Management Committee, and the Assembly Environment, Science and Technology Committee, or their successors, which shall include the information required pursuant to subsection a. of this section as well as the list transmitted to the Director of the Division of Taxation in the Department of the Treasury pursuant to subsection d. of section 4 of this act.
12. If the Congress of the United States enacts legislation providing compensation for the remediation of sites contaminated with perchloroethylene, the commissioner shall determine to what degree that legislation provides the needed protection for the public health, businesses and the environment and shall make the appropriate recommendations to the Legislature for amendments to this act.
13. The New Jersey Economic Development Authority shall provide financing assistance for the purchase and retrofitting of equipment required pursuant to section 16 of P.L. , c. (C. )(now before the Legislature as this bill) to area source dry cleaners and owners of dry cleaning facilities who meet the requirements of the direct lending and loan guarantee programs of the authority, including, but not limited to, the Statewide Loan Pool for Business program, except that, notwithstanding any law, or rule or regulation adopted pursuant thereto, to the contrary, the authority shall use the moneys for financing assistance directed by this section to guarantee 50% of each direct loan approved for an area source dry cleaner or owner of a dry cleaning facility for the purchase of equipment required pursuant to section 16 of P.L. , c. (C. )(now before the Legislature as this bill). The guarantee required by this section shall not affect the eligibility of an area source dry cleaner or owner of a dry cleaning facility to obtain a loan through the direct lending and loan guarantee programs of the authority.
14. In addition to the duties of the authority required under section 6 of P.L.1983, c.303 (C.52:27H-65), the authority shall, in consultation with the Department of Commerce and Economic Development, prepare a report within one year following the effective date of P.L. , c. (C. )(now before the Legislature as this bill). The report shall include, but not be limited to, a description of the demand for financing assistance from area source dry cleaners and owners of dry cleaning facilities, the efforts made by the authority to meet the demand, the total amount of loans or loan guarantees issued by the authority pursuant to section 13 of P.L. , c. (C. ) (now before the Legislature as this bill), and an assessment of the effectiveness of the financing assistance provided in meeting the goals of P.L. , c. (C. ) (now before the Legislature as this bill). The authority shall submit its report to the Governor and the Legislature, along with any recommendations for legislation to improve the effectiveness of the program.
15. The authority and the Department of Commerce and Economic Development may jointly adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations as may be necessary to implement the provisions of P.L. , c. (C. )(now before the Legislature as this bill) including, but not limited to, the making of loans, and the issuance of loan guarantees, pursuant to sections 13 and 14 of P.L. , c. (C. )(now before the Legislature as this bill).
16. a. Any person establishing a new area source dry cleaner or dry cleaning facility on and after the effective date of P.L. , c. (C. )(now before the Legislature as this bill) shall install or equip the facility with Generation 4 dry cleaning equipment or a subsequent generation of equipment that is completely enclosed with equivalent or higher reductions of perchloroethylene in the drum at the end of the dry cleaning cycle.
b. On and after the effective date of P.L. , c. (C. )(now before the Legislature as this bill), any person installing or replacing dry cleaning equipment and machines, or expanding an existing area source dry cleaner into new locations or within an existing dry cleaning facility, shall install or equip the facility with Generation 4 dry cleaning equipment or a subsequent generation of equipment that is completely enclosed with equivalent or higher reductions of perchloroethylene in the drum at the end of the dry cleaning cycle.
c. Within two years following the effective date of P.L. , c. (C. )(now before the Legislature as this bill), all owners of an area source dry cleaner operating Generation 1 equipment shall replace their dry cleaning equipment with Generation 4 or a subsequent generation of equipment that is completely enclosed with equivalent or higher reductions of perchloroethylene in the drum at the end of the dry cleaning cycle. Within three years following the effective date of P.L. , c. (C. )(now before the Legislature as this bill), all owners of an area source dry cleaner operating Generation 2 equipment shall replace their dry cleaning equipment with Generation 4 or a subsequent generation of equipment that is completely enclosed with equivalent or higher reductions of perchloroethylene in the drum at the end of the dry cleaning cycle. Within four years following the effective date of P.L. , c. (C. )(now before the Legislature as this bill), all owners of an area source dry cleaner operating Generation 3 dry cleaning equipment shall replace their dry cleaning equipment with Generation 4 equipment, or to the extent permissible by federal law and any rules or regulations adopted pursuant thereto, retrofit the equipment with a carbon adsorber and an inward door fan which directs perchloroethylene emissions into the carbon adsorber at the rate of 100 feet per minute.
d. After seven years following the effective date of P.L. , c. (C. )(now before the Legislature as this bill), no person shall operate an area source dry cleaner in a residential building with a ventilation system for the facility that releases into the outdoor atmosphere perchloroethylene emissions greater than 50 parts per million. Area source dry cleaners shall maintain the perchloroethylene found in the ambient air of the dry cleaning facility at levels no greater than 50 parts per million.
e. Any person required to purchase, upgrade or retrofit equipment pursuant to this section may apply to the New Jersey Economic Development Authority for financial assistance pursuant to section 13 of P.L. , c. (C. )(now before the Legislature as this bill). Only applicants who have applied for financial assistance from the New Jersey Economic Development Authority and have been denied assistance shall be exempt from the requirements of subsections a. through d. of this section. No area source dry cleaner or owner of a dry cleaning facility shall be required to comply with the provisions of subsections b. through d. of this section unless the area source dry cleaner or owner of the dry cleaning facility has received moneys from the New Jersey Economic Development Authority pursuant to section 13 of P.L. , c. (C. )(now before the Legislature as this bill). Any area source dry cleaner or owner of a dry cleaning facility who does not receive moneys from the New Jersey Economic Development Authority and voluntarily complies with the requirements of subsections b. through d. of this section shall be entitled to the sales tax exemption provided pursuant to section 21 of P.L. , c. (C. )(now before the Legislature as this bill).
17. a. Within one year after the effective date of P.L. , c. (C. )(now before the Legislature as this bill), the Department of Environmental Protection shall certify certain trade organizations or educational institutions that it determines qualified to train distributors and area source dry cleaners concerning proper hazardous waste disposal, air pollution concerns, employee rights and workplace standards, prevention of groundwater contamination, and federal and State law and regulation affecting the dry cleaning industry in the State. The department shall determine the minimum qualifications for certification and shall notify each in-State distributor and area source dry cleaner of the certified trade organizations or educational institutions in the State. Any trade organization or educational institution that wishes to be certified by the State may contact the department, request information concerning the qualifications for certification and apply for certification by the State.
b. If no trade organization or educational institution in the State can be certified within one year after the effective date of P.L. , c. (C. )(now before the Legislature as this bill) pursuant to subsection a. of this section, the department may meet with representatives of trade organizations and educational institutions to develop an adequate training program for distributors and area source dry cleaners.
c. No distributor or area source dry cleaner, or employee thereof, shall be required to be trained until a trade organization or educational institution in the State has been certified pursuant to subsection a. of this section. Upon department certification of training courses, each in-State distributor or area source dry cleaner, or employee thereof, shall be required to complete the certified course within two years after the department's notification of certification of training courses, and shall complete the course required pursuant this subsection at their own expense. The department shall issue a dry cleaning operator certificate to any person who submits documentation verifying that the certified training courses have been satisfactorily completed.
d. On January 1 following the two-year period for training established in subsection b. of this section and thereafter, no person may operate an in-State distributor, dry cleaning facility or dry cleaning machinery manufacturing facility unless the on-premises operator supervising the facility has obtained a dry cleaning owner/manager certificate pursuant to this section and the employees of the facility have been properly trained as required by the department.
18. a. Within 180 days after the effective date of P.L. , c. (C. )(now before the Legislature as this bill), the Department of Environmental Protection shall establish registration and certification procedures for persons and manufacturers installing and servicing dry cleaning equipment in the State to become authorized dry cleaner service and equipment providers. The department shall require every authorized dry cleaner service and equipment provider to provide for certification:
(1) Documentation of independent third-party testing of any equipment being certified that indicates the equipment can be certified as performing in compliance with standards set by the department;
(2) A detailed description of the dry cleaning system, and a description of the capabilities and procedures for the installation, use, maintenance, repair, and tune-up of the system, including a description of any lockout systems employed;
(3) A description of how program updates and modifications will be made in any microprocessor software, if applicable;
(4) A copy of the dry cleaning warranty and service contracts that the dry cleaning equipment shall achieve compliance with all applicable federal and State laws, including a description of the servicing network and parts availability to be established to serve dry cleaning facilities within the State, and wherever possible, a five-year warranty on all parts, equipment and on-site service shall be provided, and wherever that is not possible, a description of why a five-year warranty is not provided and why the provided warranty is considered sufficient;
(5) A detailed description of the proposed training program to be conducted on-site at the dry cleaning facility for the owners, operators and employees that are required to operate machinery or supervise the operation of machinery in the dry cleaning facility, and the program shall include a minimum of four hours of instruction;
(6) A copy of the operator's manual, written in plain language, covering use, maintenance, and parts and service information, that must be provided with the dry cleaning equipment;
(7) Documentation that the manufacturer or vendor of dry cleaning equipment shall maintain calibration servicing to the user facility for at least five years for any sensors or integral measuring devices that the department determines to be crucial to compliance with federal and State law; and
(8) Other materials or information required by the department.
b. Every manufacturer, vendor or person involved in the sale or installation of dry cleaning equipment in the State shall register with and receive certification from the department as an authorized dry cleaner service and equipment provider. No person or manufacturer may sell, offer for sale, cause to be offered for sale, lease or represent Generation 4 dry cleaning equipment or any other apparatus or equipment the installation of which is required to comply with the provisions of P.L. , c. (C. )(now before the Legislature as this bill) unless that person or manufacturer has registered with, and been certified by, the department as an authorized dry cleaner service and equipment provider.
c. Within 90 days following the receipt of an application for certification, the department shall notify the applicant for certification as a dry cleaner service and equipment provider of certification approval or denial. If approved, the department shall notify the approved applicant at that time when a certificate shall be forwarded to the approved applicant. If denied, the department shall notify the denied applicant of the reasons for denial and the deficiencies in the certification application. A dry cleaner service and equipment provider certificate shall be valid from the date of notification of application approval.
19. Within one year after the effective date of P.L. , c. (C. )(now before the Legislature as this bill), the Department of Environmental Protection shall adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations establishing a random inspection program for area source dry cleaners. These rules and regulations shall provide for the monitoring and supervision of conversion and retrofitting of equipment, enforcement of the standards and requirements set forth in P.L. , c. (C. )(now before the Legislature as this bill), and penalties for violations of the standards and requirements. The rules and regulations may also include any other provisions deemed necessary by the department for the implementation and enforcement of P.L. , c. (C. )(now before the Legislature as this bill). The department may charge and collect a reasonable fee, not to exceed $300, for each inspection performed under the random inspection program, but shall charge and collect no other fees for the random inspection program.
20. Nothing in P.L. , c. (C. )(now before the Legislature as this bill) shall be construed to supersede or otherwise interfere with the department's issuance of operating permits or its implementation of any federal program establishing national perchloroethylene air emission standards for dry cleaning facilities, except that, if the implementation of the program requires area source dry cleaners to retrofit or replace equipment or machines, the department shall require the area source dry cleaner to comply with the requirements of P.L. , c. (C. )(now before the Legislature as this bill), and in the event that emissions standards vary, the department shall enforce the most stringent standard for perchloroethylene emissions.
21. a. Receipts from sales of Generation 4 dry cleaning equipment, as defined in section 3 of P.L. , c. (C. )(now before the Legislature as this bill), or a subsequent generation of equipment that is completely enclosed with equivalent or higher reductions of perchloroethylene in the drum at the end of the dry cleaning cycle, or equipment and apparatus necessary to convert or retrofit existing dry cleaning equipment, for use directly and exclusively for the control or elimination of perchloroethylene emissions, or the reduction of such emissions to levels specified, pursuant to section 16 of P.L. , c. (C. )(now before the Legislature as this bill), are exempt from the tax imposed under the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32-B-1 et seq.) for seven years after the effective date of P.L. , c. (C. )(now pending before the Legislature as this bill). This exemption shall not apply to tools or supplies used in connection with the installation or maintenance of equipment or apparatus described in this subsection.
b. The director, in conjunction with the Commissioner of Environmental Protection, shall adopt rules and regulations, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), to specifically identify, or to provide guidelines for the identification of, the equipment and apparatus that shall qualify for the exemption from taxation provided by P.L. , c. (C. )(now before the Legislature as this bill). In addition, the director shall adopt any other rules and regulations as are deemed necessary and appropriate for the administration of P.L. , c. (C. )(now before the Legislature as this bill).
22. This act shall take effect on the first day of January following the date of enactment.
The "New Jersey Dry Cleaning Business Assistance Act."