Bill Text: CA AB480 | 2011-2012 | Regular Session | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Insurance: solid waste facilities.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2012-09-28 - Chaptered by Secretary of State - Chapter 713, Statutes of 2012. [AB480 Detail]
Download: California-2011-AB480-Amended.html
Bill Title: Insurance: solid waste facilities.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2012-09-28 - Chaptered by Secretary of State - Chapter 713, Statutes of 2012. [AB480 Detail]
Download: California-2011-AB480-Amended.html
BILL NUMBER: AB 480 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 30, 2012
AMENDED IN SENATE JUNE 23, 2011
AMENDED IN SENATE JUNE 10, 2011
AMENDED IN SENATE JUNE 2, 2011
INTRODUCED BY Assembly Member Solorio
FEBRUARY 15, 2011
An act to amend , repeal, and add Section 1760 of the
Insurance Code , and to amend, repeal, and add Section 43601 of
the Public Resources Code , relating to insurance.
LEGISLATIVE COUNSEL'S DIGEST
AB 480, as amended, Solorio. Insurance: solid waste facilities.
Existing law regulates solid waste facilities and requires that
any person owning or operating a solid waste landfill submit evidence
of financial ability to provide for the cost of closure and
postclosure maintenance, except as specified. Existing law provides
that if the evidence of financial ability for closure, postclosure,
or corrective action is demonstrated by use of insurance, either
through an independent insurer or where the insurance carrier is
established by a solid waste facility operator to meet the financial
assurance obligations of that operator, the insurance mechanism may
be approved by the Department of Resources Recycling and
Recovery if the insurance carrier meets specified requirements.
This bill would specify that , until January 1,
2017, an insurance carrier established by a solid waste
facility operator to meet the financial assurance obligations of that
operator that meets all of those specified requirements shall be
eligible to provide that insurance and shall not be required to be a
California admitted insurer nor be required to provide the insurance
through a surplus line broker. The bill would ad d as
a requirement for approval of a solid waste facility operator
meeting its financial assurance obligations by establishing an
insurance carrier that the insurance mechanism not provide in excess
of 75% of the financial assurance obligation that the solid waste
facility operator is required to meet in the state.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 1760 of the
Insurance Code is amended to read:
1760. (a) (1) A home state insured, as
defined in subdivision (f) of Section 1760.1, may negotiate and
effect insurance to protect himself, herself, or itself against loss,
damage, or liability with any nonadmitted insurer.
(2) Notwithstanding any other law, an issuer of an insurance
policy that meets all of the requirements of paragraph (2) of
subdivision (e) of Section 43601 of the Public Resources Code shall
be eligible to provide the insurance described in that subdivision.
An issuer of an insurance policy pursuant to this section shall not
be required to be a California admitted insurer, nor be required to
provide the insurance through a surplus line broker.
(b) Every home state insured that effects insurance governed by
this chapter shall pay the tax imposed by Part 7.5 (commencing with
Section 13201) of Division 2 of the Revenue and Taxation Code.
(c) This section shall remain in effect only until January 1,
2017, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2017, deletes or extends
that date.
SEC. 2. Section 1760 is added to the
Insurance Code , to read:
1760. (a) A home state insured, as defined in subdivision (f) of
Section 1760.1, may negotiate and effect insurance to protect
himself, herself, or itself against loss, damage, or liability with
any nonadmitted insurer.
(b) Every home state insured that effects insurance governed by
this chapter shall pay the tax imposed by Part 7.5 (commencing with
Section 13201) of Division 2 of the Revenue and Taxation Code.
(c) This section shall become operative on January 1, 2017.
SEC. 3. Section 43601 of the Public
Resources Code is amended to read:
43601. (a) The evidence of financial ability shall be sufficient
to meet the closure and postclosure maintenance costs when needed.
(b) The owner or operator of a solid waste landfill shall provide
evidence of financial ability through the use of any of the
mechanisms set forth in Part 258 (commencing with Section 258.1) of
Title 40 of the Code of Federal Regulations or through the use of any
other mechanisms approved by the board
department . However, the board
department may adopt regulations that reasonably condition the
use of one or more of those mechanisms to ensure adequate protection
of public health and safety and the environment, but shall not
exclude the use of any mechanism permitted under federal law. In
addition, the evidence of financial ability submitted pursuant to
Section 43600 shall provide that funds shall be available to the
regional water boards upon the issuance of any order under Chapter 5
(commencing with Section 13300) of Division 7 of the Water Code to
implement closure and postclosure activities.
(c) The state water board or the appropriate regional water board
shall have access to the financial assurance funds for closure and
postclosure activities, and to financial assurance funds for
corrective action, as necessary, to address water quality problems,
if the owner or operator of the solid waste landfill has failed to
implement the required closure and postclosure activities or
corrective action activities.
(d) The owner or operator may request disbursement for
expenditures to conduct closure, postclosure maintenance, or
corrective actions from the financial assurance mechanism established
for that activity. Requests for disbursement shall be granted by the
board department only if sufficient
funds are remaining in the financial assurance mechanism to cover the
remaining approved total costs of closure, postclosure maintenance,
or corrective actions, as appropriate.
(e) If the evidence of financial ability for closure, postclosure,
or corrective action is demonstrated by use of insurance, the
board department may approve the
insurance mechanism if it is in compliance with either paragraph (1)
or (2) as follows:
(1) The issuer of the insurance policy is either:
(A) Licensed by the Department of Insurance to transact the
business of insurance in the State of California as an admitted
carrier.
(B) Eligible to provide insurance as an excess and surplus lines
insurer in California through a surplus lines broker currently
licensed under the regulations of the Department of Insurance and
upon the terms and conditions prescribed by the Department of
Insurance.
(2) If the insurance carrier is established by a solid waste
facility operator to meet the financial assurance obligations of that
operator, insurance may be approved by the board
department that meets all of the following requirements:
(A) The insurance mechanism is in full compliance with the
requirements for insurance that are specified in subdivision (d) of
Section 258.74 of Title 40 of the Code of Federal Regulations.
(B) The insurance carrier is an insurer domiciled in the United
States and licensed in its state of domicile to write that insurance.
(C) The insurance carrier only provides financial assurance to the
operator that has established the insurance carrier as a form of
self-insurance and does not engage in the business of marketing,
brokering, or providing insurance coverage to other parties.
(D) The insurance carrier shall maintain a rating of A- or better
by A.M. Best, or other equivalent rating by any other agency
acceptable to the board department .
(E) If requested by the board department
, an independent financial audit report evaluating the assets
and liabilities of the insurance carrier and confirming compliance
with the statutory and regulatory requirements of the state of
domicile and an independent actuarial opinion on the independence and
financial soundness of the insurance carrier by an actuary in good
standing with the Casualty Actuarial Society or the American Academy
of Actuaries regarding the adequacy of the loss reserves maintained
by the insurance carrier shall be submitted to the board
department upon application and annually
thereafter.
(F) The insurance mechanism does not provide in excess of 75
percent of the financial assurance obligation that the solid waste
facility operator is required to meet in the state.
(f) A solid waste facility operator using or proposing to use an
insurance company to demonstrate financial assurance may be required
by the board department to pay a fee
for the actual and necessary cost of reviewing information submitted
by the operator pursuant to paragraph (2) of subdivision (e) up to an
amount not to exceed ten thousand dollars ($10,000), unless a higher
amount is mutually agreed to by the operator and the board
department .
(g) The funds collected pursuant to subdivision (f) shall be
deposited in the Integrated Waste Management Account and shall be
available, upon appropriation by the Legislature, for expenditure by
the board department to fund the review
specified in subdivision (f).
(h) This section shall remain in effect only until January 1,
2017, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2017, deletes or extends
that date.
SEC. 4. Section 43601 is added to the
Public Resources Code , to read:
43601. (a) The evidence of financial ability shall be sufficient
to meet the closure and postclosure maintenance costs when needed.
(b) The owner or operator of a solid waste landfill shall provide
evidence of financial ability through the use of any of the
mechanisms set forth in Part 258 (commencing with Section 258.1) of
Title 40 of the Code of Federal Regulations or through the use of any
other mechanisms approved by the department. However, the department
may adopt regulations that reasonably condition the use of one or
more of those mechanisms to ensure adequate protection of public
health and safety and the environment, but shall not exclude the use
of any mechanism permitted under federal law. In addition, the
evidence of financial ability submitted pursuant to Section 43600
shall provide that funds shall be available to the regional water
boards upon the issuance of any order under Chapter 5 (commencing
with Section 13300) of Division 7 of the Water Code to implement
closure and postclosure activities.
(c) The state water board or the appropriate regional water board
shall have access to the financial assurance funds for closure and
postclosure activities, and to financial assurance funds for
corrective action, as necessary, to address water quality problems,
if the owner or operator of the solid waste landfill has failed to
implement the required closure and postclosure activities or
corrective action activities.
(d) The owner or operator may request disbursement for
expenditures to conduct closure, postclosure maintenance, or
corrective actions from the financial assurance mechanism established
for that activity. Requests for disbursement shall be granted by the
department only if sufficient funds are remaining in the financial
assurance mechanism to cover the remaining approved total costs of
closure, postclosure maintenance, or corrective actions, as
appropriate.
(e) If the evidence of financial ability for closure, postclosure,
or corrective action is demonstrated by use of insurance, the
department may approve the insurance mechanism if it is in compliance
with either paragraph (1) or (2) as follows:
(1) The issuer of the insurance policy is either:
(A) Licensed by the Department of Insurance to transact the
business of insurance in the State of California as an admitted
carrier.
(B) Eligible to provide insurance as an excess and surplus lines
insurer in California through a surplus lines broker currently
licensed under the regulations of the Department of Insurance and
upon the terms and conditions prescribed by the Department of
Insurance.
(2) If the insurance carrier is established by a solid waste
facility operator to meet the financial assurance obligations of that
operator, insurance may be approved by the department that meets all
of the following requirements:
(A) The insurance mechanism is in full compliance with the
requirements for insurance that are specified in subdivision (d) of
Section 258.74 of Title 40 of the Code of Federal Regulations.
(B) The insurance carrier is an insurer domiciled in the United
States and licensed in its state of domicile to write that insurance.
(C) The insurance carrier only provides financial assurance to the
operator that has established the insurance carrier as a form of
self-insurance and does not engage in the business of marketing,
brokering, or providing insurance coverage to other parties.
(D) The insurance carrier shall maintain a rating of A- or better
by A.M. Best, or other equivalent rating by any other agency
acceptable to the department.
(E) If requested by the department, an independent financial audit
report evaluating the assets and liabilities of the insurance
carrier and confirming compliance with the statutory and regulatory
requirements of the state of domicile and an independent actuarial
opinion on the independence and financial soundness of the insurance
carrier by an actuary in good standing with the Casualty Actuarial
Society or the American Academy of Actuaries regarding the adequacy
of the loss reserves maintained by the insurance carrier shall be
submitted to the department upon application and annually thereafter.
(f) A solid waste facility operator using or proposing to use an
insurance company to demonstrate financial assurance may be required
by the department to pay a fee for the actual and necessary cost of
reviewing information submitted by the operator pursuant to paragraph
(2) of subdivision (e) up to an amount not to exceed ten thousand
dollars ($10,000), unless a higher amount is mutually agreed to by
the operator and the department.
(g) The funds collected pursuant to subdivision (f) shall be
deposited in the Integrated Waste Management Account and shall be
available, upon appropriation by the Legislature, for expenditure by
the department to fund the review specified in subdivision (f).
(h) This section shall become operative on January 1, 2017.
SECTION 1. Section 1760 of the Insurance Code
is amended to read:
1760. (a) (1) A home state insured, as defined in subdivision (f)
of Section 1760.1, may negotiate and effect insurance to protect
himself, herself, or itself against loss, damage, or liability with
any nonadmitted insurer.
(2) Notwithstanding any other law, an issuer of an insurance
policy that meets all of the requirements of paragraph (2) of
subdivision (e) of Section 43601 of the Public Resources Code shall
be eligible to provide the insurance described in that subdivision.
An issuer of an insurance policy pursuant to this section shall not
be required to be a California admitted insurer, nor be required to
provide the insurance through a surplus line broker.
(b) Every home state insured that effects insurance governed by
this chapter shall pay the tax imposed by Part 7.5 (commencing with
Section 13201) of Division 2 of the Revenue and Taxation Code.
