South Carolina General Assembly
112th Session, 1997-1998

Bill 631


Indicates Matter Stricken
Indicates New Matter


                    Current Status

Bill Number:                       631
Type of Legislation:               General Bill GB
Introducing Body:                  Senate
Introduced Date:                   19970409
Primary Sponsor:                   Leventis 
All Sponsors:                      Leventis 
Drafted Document Number:           jic\6016ac.97
Companion Bill Number:             3771
Residing Body:                     Senate
Current Committee:                 Medical Affairs Committee 13
                                   SMA
Subject:                           Superb Account and Superb
                                   Financial Responsibility,
                                   underground storage tanks, Fuel,
                                   Petroleum



History


Body    Date      Action Description                       Com     Leg Involved
______  ________  _______________________________________  _______ ____________
Senate  19970409  Introduced, read first time,             13 SMA
                  referred to Committee

View additional legislative information at the LPITS web site.


(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

A BILL

TO AMEND SECTION 44-2-40, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE PURPOSES AND USES OF THE SUPERB ACCOUNT AND THE SUPERB FINANCIAL RESPONSIBILITY FUND SO AS TO CLARIFY THAT THE SUPERB FINANCIAL RESPONSIBILITY FUND CAN PAY CLAIMS DIRECTLY, TO REQUIRE THAT THE DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL'S INTERVENTION COSTS NOT AFFECT THE PER OCCURRENCE COVERAGE AMOUNTS, AND TO CLARIFY THAT, AS ACCOUNT AND FUND ADMINISTRATORS, THE STATE AND DEPARTMENT DO NOT ASSUME ADDITIONAL LIABILITY WHEN FUNDING IS INSUFFICIENT; TO AMEND SECTION 44-2-50, AS AMENDED, RELATING TO UNDERGROUND STORAGE TANK REQUIREMENTS SO AS TO CLARIFY THAT ANY LENDER LIABILITY EXEMPTION IS EXTENDED ONLY TO OWNERS OF PETROLEUM PRODUCT TANKS, TO AMEND SECTION 44-2-60, AS AMENDED, RELATING TO REGISTRATION OF UNDERGROUND STORAGE TANKS, SO AS TO REQUIRE AN ANNUAL REGISTRATION FEE FOR REGULATED TANKS, TO AUTHORIZE THE DEPARTMENT TO ASSESS PENALTIES FOR LATE FEES AND TO PROHIBIT THE DEPARTMENT FROM DISBURSING MONIES FROM THE SUPERB ACCOUNT OR SUPERB FINANCIAL RESPONSIBILITY FUND TO OWNERS OR OPERATORS WHO OWE FEES OR PENALTIES; TO AMEND SECTION 44-2-80, AS AMENDED, RELATING TO RELEASE OF REGULATED SUBSTANCES, SO AS TO CLARIFY THAT ANY LENDER LIABILITY EXEMPTION IS EXTENDED ONLY TO OWNERS OF PETROLEUM PRODUCT TANKS; AND TO AMEND SECTION 44-2-140, RELATING TO ENFORCEMENT OF THE STATE UNDERGROUND PETROLEUM ENVIRONMENTAL RESPONSE BANK ACT, SO AS TO CLARIFY THE DEPARTMENT'S AUTHORITY TO ENFORCE THE ACT AND TO AUTHORIZE THE DEPARTMENT TO SUSPEND THE DISPENSING OF A PETROLEUM PRODUCT FROM TANKS THAT POSE AN IMMINENT HAZARD.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1. Section 44-2-40(C) and (D) of the 1976 Code, as last amended by Section 80D, Part II, Act 497 of 1994, is further amended to read:

"(C) The Superb Financial Responsibility Fund must be used to reimburse owners or operators who compensate third parties or compensate third parties directly, only for bodily injury and property damages caused by releases from underground storage tanks containing petroleum or petroleum products, exclusive of any legal costs of the parties. The department shall make payment to owners or operators who have paid, and only when there are judgments, settlements, alternative dispute resolution outcomes, or consent orders for damages for bodily injury or and property damage that are approved by a court of competent jurisdiction within the State of South Carolina. To seek payment from the Superb Financial Responsibility Fund, the owner or operator must notify the department in writing by registered mail within sixty days of receipt of the third party claim or suit and must defend in good faith against the claim or suit. At its discretion, the department may intervene in the claim or suit to protect the Superb Financial Responsibility Fund. Intervention includes, but is not limited to, defending the claim, approving the claim, or participating in the settlement of the claim.

The costs of claim or suit intervention by the department must be recoverable from the Superb Financial Responsibility Fund. These intervention costs must not affect the per occurrence assurance amounts provided by the Superb Account or the Superb Financial Responsibility Fund.

The Superb Financial Responsibility Fund is not liable for any claims where no owner or operator exists.

The amount of money in the Superb Financial Responsibility Fund, the method of collection, or information regarding the administration of the fund is not admissible as evidence in a trial for damages potentially payable by the Superb Financial Responsibility Fund.

(D) The Superb Account and the Superb Financial Responsibility Fund shall provide combined coverage for site rehabilitation and third party claims, respectively, not to exceed one million dollars per occurrence. The estimated cost of site rehabilitation must be reserved from the combined coverage before reimbursing owners or operators for payment of third party claims.

The underground storage tank owner or operator must be responsible for the first twenty-five thousand dollars per occurrence for releases of petroleum and petroleum products from underground storage tanks reported to the department subsequent to July 1, 1993.

Nothing in this chapter establishes or creates any liability or responsibility on the part of the department or the State as administrators of the Superb Account and the Superb Financial Responsibility Fund to pay any costs for site rehabilitation or third party claims from any source other than the Superb Account and the Superb Financial Responsibility Fund created by this chapter, and the department and the State as administrators of the Superb Account and the Superb Financial Responsibility Fund have no liability or responsibility to make payments for cleanup costs or third party claims if the funds are insufficient. However, the State and department are not exempt from liability if the State or department is the tank owner or operator. If the funds are insufficient to make the payments at the time the claim is filed, these claims must be paid in the order of filing at such time as monies accrue in each account, respectively.

The one hundred dollar underground storage tank registration and annual renewal fee may be used by the department for the administration of the underground storage tank program established by this chapter and its activities as trustees of the Superb Account and the Superb Financial Responsibility Fund, exclusive of legal costs outlined in subsection (C)."

SECTION 2. Section 44-2-50(A)(5) of the 1976 Code, as last amended by Act 146 of 1995, is further amended to read:

"(5) requirements for taking corrective action in response to a release from an underground storage tank. The requirements mandated by this item, other than necessary abatement actions to eliminate any imminent threat to human health, safety, or the environment a release may pose, do not apply to a person who, without participating in the management of an a petroleum or petroleum product underground storage tank and is otherwise not engaged in petroleum production, refining, and marketing, holds indicia of ownership primarily to protect that person's security interest in the tank. The indicia of ownership do not include exemption includes persons who acquire title to the property through foreclosure or other means necessary to enforce the security interests and who, without participating in the management, are otherwise not engaged in petroleum production, refining, and marketing; and"

SECTION 3. Section 44-2-60(A) of the 1976 Code, as last amended by Section 2K, Part II, Act 145 of 1995, is further amended to read:

"(A) The owner or operator of an underground storage tank which stores or is intended to store petroleum or petroleum products a regulated substance shall register the tank with the department. The owner or operator of the tank shall display a registration certificate listing all registered tanks at a facility and in plain view in the office or the kiosk of the facility where the tanks are registered. Upon application for a registration certificate, the owner or operator shall pay to the department an initial registration fee of one hundred dollars a tank and ; however, the department may prorate the initial registration fees on a daily basis for underground storage tanks installed on or after July 1, 1997. The owner or operator shall pay to the department an annual renewal fee of one hundred dollars a tank a year. No person may place petroleum or petroleum products a regulated substance and no owner or operator may cause petroleum or petroleum products to be placed into an underground storage tank for which the owner or operator does not hold a currently valid registration. The department may not issue a registration certificate until all past and present fees and penalties owed on a tank are paid. The department may not issue a registration certificate to any owner or operator who has not complied with all terms of a consent or final administrative order issued under Section 44-2-140.

All fees are due to the department within thirty days of billing. The department shall issue a late notice, with no penalty due, to an underground storage tank owner or operator who has unpaid fees thirty days after billing. An owner or operator who fails to pay the fees within sixty days of the initial billing must pay a ten percent penalty in addition to the ten percent penalty for any fees remaining unpaid ninety days after the initial billing. An owner or operator with unpaid fees ninety days after the initial billing is subject to additional enforcement action as provided for in Section 44-2-140.

The department may not disburse Superb Account or Superb Financial Fund monies to any person or persons for the rehabilitation of a petroleum or petroleum product release from any underground storage tank or underground storage tank system where all past and present fees and penalties owed on the applicable tank have not been paid.

The funds generated by the registration fee and late penalty fees may be used by the department for administration of the provisions of this chapter and for administration of the underground storage tank regulatory program established by this chapter. The amount used for administration may not exceed three million dollars a year."

SECTION 4. Section 44-2-80(B) of the 1976 Code, as last amended by Section 8C, of Act 146 of 1995, is further amended to read:

"(B) The requirement to conduct site rehabilitation actions other than necessary abatement actions to eliminate any imminent threat to human health, safety, or the environment a release may pose, does not apply to a person who, without participating in the management of an a petroleum or petroleum product underground storage tank and is otherwise not engaged in petroleum production, refining, and marketing, holds indicia of ownership primarily to protect that person's security interest in the tank. The indicia of ownership do not include exemption includes persons who acquire title to the property through foreclosure or other means necessary to enforce the security interests and who, without participating in the management, are otherwise not engaged in petroleum production, refining, and marketing."

SECTION 5. Section 44-2-140(A) of the 1976 Code, as added by Act 486 of 1988, is amended to read:

"(A) Whenever the department finds that any person is in violation of any provision of this chapter, or any regulation promulgated hereunder, under this chapter, or prior order of the department, the department may issue an order requiring the person to comply with the provision, or regulation, or prior order, or the department may bring civil action for injunctive relief in an appropriate court of competent jurisdiction. An order issued by the department or court may include civil penalties as provided for in this chapter. The department immediately may suspend an underground storage tank permit to operate or registration certificate or may order other action as may be necessary and proper when it is determined that the operation of the underground storage tank constitutes an imminent hazard to human health or the environment. Following immediate permit or registration certificate suspension, all dispensing from the underground storage tank upon which this action was taken shall cease and the owner or operator shall properly empty the tank."

SECTION 6. This act takes effect July 1, 1997.

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