Bill Text: CT SB01113 | 2011 | General Assembly | Introduced

Connecticut Senate Bill 1113 (Prior Session Legislation)

Introduced

Bill Title: An Act Establishing A Connecticut Commercial Tank Insurance Account.

Spectrum: Committee Bill

Status: (Introduced - Dead) 2011-03-03 - Public Hearing 03/07 [SB01113 Detail]

Download: Connecticut-2011-SB01113-Introduced.html


General Assembly		*Raised Bill No. 1113*
*January Session, 2011*		LCO No. 4109
		04109_______ENV
Referred to Committee on Environment
Introduced by:
(ENV)

AN ACT ESTABLISHING A CONNECTICUT COMMERCIAL TANK INSURANCE ACCOUNT.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Section 22a-449a of the general statutes is amended by adding subdivision (8) as follows (Effective October 1, 2011):

(NEW) (8) "Oil terminal facility" means: (A) Any facility and related appurtenances, located in, on or under the surface of any land or water, including submerged lands, that is used or capable of being used for the purpose of transferring, processing, refining or storing oil, and (B) any vessel that travels to or from a facility described in subparagraph (A) of this subdivision with a permanently fixed location and that engages in a vessel-to-vessel transfer of oil. "Oil terminal facility" does not include any vessel engaged in oil spill response activities, any facility that stores or has a capacity to store sixty-three thousand gallons or less of oil, or any facility that is not used for the transfer of oil to or from the waters of this state.

Sec. 2. (NEW) (Effective October 1, 2011) (a) There is established an account within the General Fund to be known as the Connecticut Commercial Tank Insurance account. Said account shall be used by the Commissioner of Environmental Protection to: (1) Assist owners of commercial underground petroleum storage tanks to meet the federal requirements to possess evidence of financial responsibility, the ability to demonstrate the financial ability to clean-up discharges and compensate third parties for damages sustained as a result of discharges from underground petroleum storage tanks, as required by 42 USC 6991b, and (2) for carrying out the purposes described in this section. Said account shall contain not more than twenty million dollars. The commissioner shall deposit in said account all assessments, fees and charges required pursuant to this section. The commissioner shall issue payment from such fund for all expenses as described in subsection (h) of this section. Funds in said account may only be used for the purposes specified in this section and may not be diverted for any other use by the department, the Governor or the General Assembly.

(b) Any funds in the Connecticut Commercial Tank Insurance account that are not needed to meet the current obligations of the department in the exercise of its responsibilities pursuant to this section may be invested in accordance with any other provision of state or federal law. Any interest earned on such investments shall be deposited in said account by the commissioner.

(c) There is established a fee of forty-two cents for each barrel of gasoline that the owner or operator of an oil terminal facility in this state transfers to another facility in this state and for each barrel of gasoline that any person transports into this state. Such fee shall not be assessed on any petroleum product that is exported from this state. Such fees shall be paid once per month and such payment shall be certified to the commissioner. Any such fee shall be deposited in the Connecticut Commercial Tank Insurance account established pursuant to subsection (a) of this section.

(d) Each owner or operator of any underground oil storage facility that stores motor fuel or that is used in the marketing and distribution of oil shall pay an annual fee of one hundred fifty dollars for each such tank. Such fee shall be paid to the commissioner who shall deposit such fee in the Connecticut Commercial Tank Insurance account established pursuant to subsection (a) of this section.

(e) Anytime the balance in said account is projected by the commissioner to be twenty million dollars or more, the fees described in subsection (c) of this section shall be suspended. The commissioner shall provide a notice of such suspension not later than fifteen days prior to any such suspension. Such fees shall not be reinstated by the commissioner until said account is projected to contain ten million dollars or less. The commissioner shall provide not less than fifteen days notice prior to reinstating such fees.

(f) Any fee assessed by the commissioner pursuant to subsection (c) of this section shall be due on or before the last day of the month immediately following the month in which such oil was transferred or transported into the state. Any person who fails to pay any such fee by said date shall pay a penalty of ten per cent of the amount of such fee. The commissioner may waive such penalty for good cause shown. For the purposes of this section, good cause may include, without limitation, any event that may not be reasonably anticipated or events that were not under the control of such person.

(g) Any person who pays a fee pursuant to subsection (c) of this section on petroleum products that were exported from this state shall receive reimbursement from the commissioner upon presentation to the commissioner of documentation of such payment and exportation.

(h) Funds in the Connecticut Commercial Tank Insurance account may be disbursed by the commissioner for the following purposes: (1) Administrative expenses, personal services and equipment costs of the department related to the administration and enforcement of this section, provided total disbursements for such personal services may not exceed one million dollars per fiscal year, (2) all costs involved in the payment of approved claims pursuant to this section, (3) all costs related to hearings, independent hearing examiners and independent claims adjusters for any claim paid pursuant to this section, (4) all costs of insurance incurred by the state to extend or implement the benefits of the account, and (5) all payments to or on behalf of claimants eligible for coverage pursuant to subsection of this section, for expenses greater than any applicable deductible.

(i) Whenever the potential liabilities of said account exceed projected income for the account, the commissioner shall notify the joint standing committee of the General Assembly having cognizance of matters relating to insurance not later than thirty days after determining that a shortfall will occur and shall submit recommendations for keeping said account actuarially sound and in compliance with 42 USC 6991b.

(j) The commissioner shall seek recovery of any sum of one million dollars or more per occurrence that is paid from the fund, pursuant to this section, in connection with any prohibited discharge. Such recovery shall seek interest on such sum at the rate of fifteen per cent per year from the date of expenditure unless the commissioner otherwise determines such interest should not be sought. If a request for reimbursement to the fund is not paid within thirty days of demand, the commissioner shall refer the request to the Attorney General for collection of such reimbursement.

(k) Upon petition of any responsible party, the commissioner may, after a hearing in accordance with chapter 54 of the general statutes, waive the right to reimbursement to the fund if the commissioner finds that the occurrence was the result of an act of war or an act of God.

(l) Any person who suffers property damage or actual economic damages, including, but not limited to, loss of income and medical expenses directly or indirectly caused by the discharge of oil from an underground oil storage facility or an above-ground oil storage facility may apply to the commissioner not later than two years after the occurrence of such discharge or the discovery of such injury or damage, whichever date is later. Such application shall state the amount of damage that such claimant suffered as a result of such discharge. Such application shall be on a form as prescribed by the commissioner. The commissioner, upon petition and for good cause shown, may waive such two-year limitation. Any such claim shall state all claimed damages in one such application. Any damages omitted from any claim at the time an award is made shall be waived unless such damage was not known at the time such claim is made. No such claim shall include expenditures for the preparation and prosecution of such claim, including, but not limited to, legal fees or real estate appraisal fees.

(m) The commissioner may contract with insurance professionals to process any claim received pursuant to subsection (l) of this section.

(n) When the party responsible for any damage that is the subject of a claim filed pursuant to subsection (l) of this section is known, the commissioner shall send such responsible party, by certified mail, notice of such claim and include written notice of the right to join the claims proceeding as an interested party. Such responsible party shall provide the commissioner with written notification of intent to join such claims proceeding not later than ten business days after receipt of such notice. If such responsible party joins as an interested party and formally agrees in writing to the amount of the damages claimed, such amount shall be binding on the responsible party for any amount of reimbursement to the account that is sought by the commissioner. Absent any such agreement by the responsible party to pay such claimed damages and following the commissioner's reasonable efforts to determine the responsible party, the commissioner and the claimant may agree as to the amount of damages to be paid to the claimant from the account. Such agreed upon amount shall be certified by the commissioner and the State Treasurer shall pay such amount to the claimant from said account. In the event the commissioner and the claimant are unable to agree as to the amount of damages to be paid to the claimant, the claim shall be referred to an independent hearing examiner as described in subsection (v) of this section.

(o) Any claimant shall take all reasonable measures to prevent and minimize damages suffered by such claimant as a result of a discharge of oil. Such reasonable measures shall include, but not be limited to, title searches and site assessments for the acquisition of commercial or industrial properties.

(p) No claim described in subsection (l) of this section shall include any amount the claimant recovered or seeks to recover through settlement or institution of a civil action against the party responsible for such discharge. Any court that awards damages to a claimant as a result of a discharge as described in this section shall reduce such award by any amounts received by the claimant from said account to the extent such amounts would compensate the claimant twice for the same damage or injury.

(q) No award for damages issued by the commissioner pursuant to subsection (l) of this section shall exceed two hundred thousand dollars.

(r) No award issued by the commissioner pursuant to subsection (l) of this section that includes damages for harm to real property shall include any damages for the devaluation of such real property that is based on the loss of a water supply if the commissioner finds that a public or private water supply is available and the property owner did not agree to be served by that public or private water supply.

(s) A claimant shall not be eligible for compensation under this subsection for costs, expenses or damages related to a discharge if the commissioner determines that the claimant is a responsible party.

(t) The commissioner may dismiss a claim filed pursuant to subsection (l) of this section if such claim is untimely or for failure of the claimant to provide any information necessary to process such claim not later than sixty days after such claimant receives written notice that such information is required. Any such dismissal may be appealed to the Superior Court in accordance with section 4-183 of the general statutes.

(u) Whenever the commissioner learns of a possible claimant, as described in subsection (l) of this section, the commissioner shall send a letter by certified mail to inform such person of the claim procedures described in this section. Such letter shall contain the name and telephone number of a contact person at the department available to explain such claims procedures.

(v) The commissioner shall establish a disputed claims process within the department for the handling of claims filed pursuant to subsection (l) of this section that are not agreed upon by the claimant and the commissioner. Such process shall consist of the following: (1) The hearing of such disputed claims by an independent hearing examiner appointed by the commissioner, (2) to the extent practicable, the hearing of all claims arising from or related to a common discharge by the same independent hearing examiner, (3) hearings that are informal and for which the rules of evidence shall not apply, and (4) authority for the independent hearing examiner to administer oath, require by subpoena the attendance and testimony of witnesses and the production of books, records and other evidence relevant to the issues presented to the independent hearing examiner for determination.

(w) Any determination made by the independent hearing examiner pursuant to subsection (v) of this section shall be final for purposes of appeal to the Superior Court in accordance with section 4-183 of the general statutes.

(x) There shall be a rebuttable presumption that any determination made by the independent hearing examiner pursuant to subsection (v) of this section is valid in any subsequent reimbursement action pursued by the commissioner pursuant to this section.

(y) The commissioner shall certify any damage award issued by the independent hearing examiner pursuant to subsection (v) of this section. Such award shall be paid to the claimant by the State Treasurer from said account.

(z) The commissioner may adopt regulations in accordance with the provisions of chapter 54 of the general statutes to implement the provisions of this section.

Sec. 3. Subsection (b) of section 22a-449d of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2011):

(b) The board shall consist of the Commissioners of [Environmental Protection] Economic and Community Development and Revenue Services, the Secretary of the Office of Policy and Management and the State Fire Marshal, or their designees; one member representing the Connecticut Petroleum Council, appointed by the speaker of the House of Representatives; one member representing the Service Station Dealers Association, appointed by the majority leader of the Senate; one member of the public, appointed by the majority leader of the House of Representatives; one member representing the Independent Connecticut Petroleum Association, appointed by the president pro tempore of the Senate; one member representing the Gasoline and Automotive Service Dealers of America, Inc., appointed by the minority leader of the House of Representatives; one member representing a municipality with a population greater than one hundred thousand, appointed by the Governor; one member representing a municipality with a population of less than one hundred thousand, appointed by the minority leader of the Senate; one member representing a small manufacturing company which employs fewer than seventy-five persons, appointed by the speaker of the House of Representatives; one member experienced in the delivery, installation, and removal of residential underground petroleum storage tanks and remediation of contamination from such tanks, appointed by the president pro tempore of the Senate; and one member who is an environmental professional licensed under section 22a-133v and is experienced in investigating and remediating contamination attributable to underground petroleum storage tanks, appointed by the Governor. The board shall annually elect one of its members to serve as chairperson.


This act shall take effect as follows and shall amend the following sections:
Section 1	October 1, 2011	22a-449a
Sec. 2	October 1, 2011	New section
Sec. 3	October 1, 2011	22a-449d(b)

Statement of Purpose:

To establish a Connecticut Commercial Tank Insurance account and attendant claims procedures for certain oil discharges.

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]