Section 0400-15-03-.03 - REGISTRATION, FEES AND SURCHARGES, CERTIFICATE ISSUANCE(1) The purpose of this rule is to establish a system and schedule for registration and collection of fees.(2) This rule applies to the following:(a) All operators of drycleaning facilities conducting or intending to conduct drycleaning operations;(b) All operators of in-state wholesale distribution facilities;(c) Current or prior owners or operators of abandoned drycleaning facilities;(d) All wholesale distributors who sell, transfer, or supply drycleaning solvents and supplies to Tennessee drycleaning facilities; and(e) Impacted third parties.(3) Annual Registration Fees(a) Duty to Register 1. Each year, every facility must be registered with the Department by one of the persons described in subparagraphs (2)(a), (b), or (d) of this rule.2. Persons registering a facility shall respond to all inquiries on the registration form completely and truthfully. On any registration form submitted after October 15, 1997, any material misrepresentation on, or omission from, the registration form may be deemed willful noncompliance with this chapter and may serve as sufficient basis for the Commissioner's denial of an application for entry into the DCERP, for revocation or non-renewal of a registration issued in reliance on the submitted registration form, or for a denial or withdrawal of a grant for entry into the DCERP.3. Initial registration with the DCERP for active drycleaning facilities and in-state wholesale distribution facilities shall include a certification that all BMPs of Rule 0400-15-03-.04 have been implemented.4. Any registered active drycleaning facility or in-state wholesale distribution facility that ceases operation for a period of 12 consecutive months or longer, and then resumes operations must re-register with DCERP. Such re-registration is considered an initial registration. A facility inspection may be required for the purpose of ensuring compliance. The inspection shall be done according to a format and schedule determined by the Commissioner.5. Out-of-state wholesale distributors that supply Tennessee drycleaning facilities must be registered with the Department, but are not required to pay the registration fee.(b) Current or prior owners or operators of abandoned drycleaning facilities may register the abandoned drycleaning facility in accordance with T.C.A. § 68-217-106(b). The interest payable shall be in accordance with Article XI, Section 7 of the Constitution of the State of Tennessee.(c)1. Beginning in calendar year 2011, each facility owner or operator shall pay an annual per-facility registration fee as follows:(i) Each year the number of active drycleaner facilities will be divided by the Commissioner into quintiles (groups of 20%) by type of solvent (light or dense) and according to their solvent usage, from lowest to highest;(ii) The Commissioner shall determine the solvent usage of an active drycleaner facility by determining the quantity of solvent purchased including what was reported on the quarterly reports submitted in accordance with subparagraph (6)(b) of this rule for the Department's fiscal year from when the annual per-facility registration fee is due;(iii) The fee for each solvent group shall be $500, $1,000, $1,500, $2,000, and $2,500, respectively; and(iv) The registration fees of subparts (i) through (iii) of this part shall be suspended for facility owners or operators that use light non-aqueous drycleaning solvent or product and shall be replaced with a registration fee of $500 per year provided Department records indicate that dense non-aqueous drycleaning solvent or product has never been used at the facility premises or by the operator and provided that the operator will certify to the best of the operator's knowledge and belief, that dense non-aqueous drycleaning solvent or product has never been used at the facility. Should dense non-aqueous drycleaning solvent or product subsequently be discovered to have been used at the facility, the operator shall pay the amount equal to the net amount of suspended registration fees that would have been assessed if the owner or operator had reported the use of dense non-aqueous drycleaning solvent or product plus penalties and interest. The interest payable shall be in accordance with Article XI, Section 7 of the Constitution of the State of Tennessee.2. Current or prior owners or operators of abandoned facilities shall pay an annual registration fee of $2,500 per year.3. All active facilities shall be classified in one of the quintile ranges in accordance with part 1. of this subparagraph. If a facility falls into two different quintile ranges, based on the amounts of dense and light solvent that the facility uses, the higher fee will apply.4. The initial registration fee for all new drycleaning facilities, regardless of solvent type used, shall be $500. For the purpose of this part, "new drycleaning facilities" include those facilities that have ceased operation for 12 months or longer and then resume operations.5. Current or prior owners or operators of abandoned wholesale distributor facilities shall pay an annual registration fee of $5,500 per year.6. The proceeds from all facilities registered in the DCERP shall be deposited into the DCERF.(d) All wholesale distributors who supply solvent to Tennessee drycleaners shall register with the Commissioner. Each in-state wholesale distributor shall pay an annual registration fee equal to the highest fee paid by a registered drycleaning facility or $5,500, whichever is higher. In-state and out-of-state wholesale distributors shall pay solvent surcharge fees for all solvent sold to Tennessee drycleaners in accordance with paragraph (6) of this rule.(e) The Department shall attempt to notify and submit a registration fee payment form to each facility registered in the DCERP at least 30 days before the payment of the registration fee is due. Any failure of the Department to do so is not justification to withhold payment of any registration fee and will not affect the generally applicable due date for fee payment.(f) Beginning with the calendar year 2001 registration, the registration fee shall be due on October 31 of the preceding year. The registrant shall submit the appropriate registration form and pay the registration fee on or before the due date.(g) A registration form and other required documents shall be submitted to the Department at least two weeks prior to commencing operations. A revised registration form shall be submitted within 30 days of a change in information that requires filing a revised registration. A change in information that requires filing a revised registration form includes the following: a change in ownership, operation, or management of the facility or real property or a change in the facility name previously reported to the Department. The form shall be submitted by one of the persons described in subparagraphs (2)(a), (b), or (d) of this rule.(h) An impacted third party that petitions for entry into the DCERP must ensure that all applicable registration fees for the drycleaning or in-state wholesale distribution facility are paid. The registration fee for an impacted third party shall be the same as the drycleaning or in-state wholesale distribution facility would be, provided the facility is currently operating. If a drycleaning or in-state wholesale distribution facility is not currently operating at the property, the impacted third party would pay the abandoned drycleaning facility registration fee, subject to the provisions of subparagraph (4)(d) of Rule 0400-15-03-.05. This subparagraph does not affect any penalties or other liabilities incurred pursuant to the Act or this chapter, except that there shall be no double recovery of registration fees by the Department.(4) Issuance of Registration Certificates (a) Certificates of Registration for each facility will be issued to the person who demonstrates compliance with the Act and this chapter to the satisfaction of the Department, including but not limited to implementation of applicable BMPs; submits a completed registration form; pays the annual registration fee; and timely submits quarterly solvent reports. The certificate will contain the facility identification number, facility name, and the facility address. The issuance of a certificate does not imply DCERF eligibility or compliance with other regulations.(b) Beginning with the calendar year 2001, the certificates will be effective for one year, from January 1 through December 31, unless otherwise terminated under this chapter.(c) It shall be unlawful to sell or transfer drycleaning solvent to any person owning or operating a drycleaning facility unless the operator of the drycleaning facility has conspicuously posted at the facility a valid certificate evidencing registration of the drycleaning facility. Violators of this provision shall be subject to the penalties identified in T.C.A. § 68-217-106(d).(5) Revocation and Non-renewal of Registration(a) The Commissioner may issue an order to revoke a facility owner or operator's Certificate of Registration for a drycleaning facility or withhold re-issuance due to violations of the Act or this chapter. Such revocation or non-renewal shall be conducted in accordance with the following procedures:1. If the Commissioner determines cause exists and tentatively decides to revoke the authorization to operate, the Commissioner will, pursuant to T.C.A. § 4-5-320, give the person notice by mail of facts or conduct that warrant the intended action and will give the person an opportunity to show compliance with this paragraph;2. After completing all requirements of T.C.A. § 4-5-320, the Commissioner will decide whether or not to revoke, or not renew, the authorization to operate by issuing an order to the person; and3. The Commissioner's decision to revoke or not to renew the authorization to operate may be challenged as set forth in T.C.A. § 4-5-320.(b) The order to revoke or not renew a registration will state the grounds for the decision, its effective date, and a requirement to surrender the Certificate of Registration.(c) A person whose registration is revoked shall not be entitled to any refund on the paid registration fee.(d) After the revocation of a facility's registration, the operator shall surrender the Certificate of Registration, and the Commissioner may notify wholesale distributors of the revocation.(e) Following revocation or non-renewal of a registration, a person may reapply for registration by submitting a complete and truthful registration form; paying all outstanding fees, surcharges, penalties, and interest; submitting a new registration fee; demonstrating, to the satisfaction of the Commissioner, the ability to maintain compliance with the Act and this chapter; and meeting any other requirements for registration.(f) Any person receiving an order, in accordance with subparagraph (a) of this paragraph, may appeal by filing a written petition in accordance with Rule 0400-15-03-.10.(6) Solvent Surcharge Fees (a) The surcharge fee applies to the purchase or transfer of drycleaning solvent. The surcharge fee is $15 for each gallon of dense non-aqueous solvent or product and $1.50 for each gallon of light non-aqueous solvent or product obtained by a drycleaning facility. There will be no solvent surcharge fee on CO2.(b) The surcharge fee shall be collected by the wholesale distributor and forwarded with completed forms (provided by the Department) to the Department on a quarterly basis for the previous calendar quarter. Each active drycleaning facility shall submit (on forms provided by the Department) quarterly reports of solvent received. Both the wholesale distributor's quarterly solvent sales reports and fees and the active drycleaning facility's solvent reports are due by the end of the month following the reporting quarter. For the reports required by this subparagraph, the date reported shall be the date the solvent is delivered to the facility. Solvent Sales/Purchase Period | Reporting Deadline |
January - March | April 30 |
April - June | July 31 |
July -September | October 31 |
October - December | January 31 |
All proceeds from the collection of solvent surcharges shall be deposited into the DCERF.
(c) The operator of a drycleaning facility shall purchase solvent from a wholesale distributor that collects surcharge fees. Where a wholesale distributor fails to collect the surcharge fee on a sale of solvent, the owner or operator shall bring to the attention of the wholesale distributor its obligation pursuant to the Act to collect the surcharge fees. If the wholesale distributor still refuses to collect and remit the surcharge fees to the Department, then the owner or operator shall report such facts to the Department within 72 hours and, if the sale is consummated, shall remit the surcharge fee directly to the Department within 30 days of the sale. Failure of the drycleaner to follow this procedure shall subject it to the penalties prescribed in T.C.A. § 68-217-108 for failure to pay a surcharge fee. This subparagraph does not otherwise affect any penalties or other liabilities incurred by a wholesale distributor pursuant to the Act or this chapter by failing to collect or remit surcharge fees, except that there shall be no double recovery of surcharge fees by the Commissioner.(d) A sale or transfer of solvent between owner or operators shall require that the purchasing owner or operator collect the surcharge for remittance to the Department, if a surcharge has not already been collected on the sale or transfer of solvent as part of a prior transaction, and if the purchasing owner or operator is subject to the reporting requirements of subparagraph (b) of this paragraph.(e) Every person responsible for collecting or holding surcharges under the Act has the obligation to hold the collected surcharges in trust for the DCERF until the collected surcharges are paid to the DCERF according to the Act and this chapter. The person holding the collected surcharges shall defend and protect, at the person's own expense, the collected surcharges from all losses and expenses of whatever nature, including but not limited to those occasioned by suits, levies, garnishments, and all other actions, losses, and expenses of whatever description, including all banking fees and charges or similar expenses. The person holding the collected surcharges shall promptly notify the Commissioner of any action or circumstance which causes or threatens the collected surcharges with any loss or diminishment, including the person's insolvency or filing for protection under federal bankruptcy law. All surcharges are the property of the DCERF, and the person has no equitable right or claim to the surcharges. Any use of the surcharges or failure to defend the surcharges from loss or diminishment shall be deemed a violation of the trust relationship and this chapter. The person holding the collected surcharge shall be liable to the DCERF for all losses or diminishment of surcharges, including failure to collect. Surcharges should be deposited in a separate account used only for the purposes of this trust, or in the alternative, the surcharges should be clearly identified as trust property in the records and accounts of the person collecting the surcharge.(7) Failure to Pay the Annual Registration or the Solvent Surcharge Fees(a) Failure or refusal to pay a lawfully levied registration fee or solvent surcharge fee or any part of that registration fee or solvent surcharge will subject the person responsible for such payment to the provisions of T.C.A. § 68-217-108 and result in the denial of DCERF access and the inability to receive DCERF reimbursement.(b) The Department shall not issue a Certificate of Registration to an owner or operator who has any facility for which fees, surcharges, penalties, or interest lawfully levied by the Department under this chapter have not been paid.Tenn. Comp. R. & Regs. 0400-15-03-.03
Original rule filed June 19, 2012; effective September 17, 2012. Rule was renumbered from 1200-01-17 which was repealed. Amendments filed February 28, 2024; effective 5/28/2024.Authority: T.C.A. §§ 4-5-201, et seq., and 68-217-101, et seq.