Z-0215.3  _______________________________________________

                          HOUSE BILL 1007

          _______________________________________________

State of Washington      55th Legislature     1997 Regular Session

By Representatives L. Thomas and Wolfe; by request of Pollution Liability Insurance Agency

Read first time 01/13/97.  Referred to Committee on Financial Institutions & Insurance.

Expanding the duties of the director of the Washington state pollution liability insurance agency.

    AN ACT Relating to heating oil pollution liability protection;  amending RCW 70.149.040 and 70.149.070; and providing an expiration date.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

    Sec. 1.  RCW 70.149.040 and 1995 c 20 s 4 are each amended to read as follows:

    The director shall:

    (1) Design a program for providing pollution liability insurance for heating oil tanks that provides sixty thousand dollars per occurrence coverage and aggregate limits, and protects the state of Washington from unwanted or unanticipated liability for accidental release claims;

    (2) Administer, implement, and enforce the provisions of this chapter.  To assist in administration of the program, the director is authorized to appoint up to two employees who are exempt from the civil service law, chapter 41.06 RCW, and who shall serve at the pleasure of the director;

    (3) Administer the heating oil pollution liability trust account, as established under RCW 70.149.070;

    (4) Employ and discharge, at his or her discretion, agents, attorneys, consultants, companies, organizations, and employees as deemed necessary, and to prescribe their duties and powers, and fix their compensation;

    (5) Adopt rules under chapter 34.05 RCW as necessary to carry out the provisions of this chapter;

    (6) Design and from time to time revise a reinsurance contract providing coverage to an insurer or insurers meeting the requirements of this chapter.  The director is authorized to provide reinsurance through the pollution liability insurance ((agency)) program trust account;

    (7) Solicit bids from insurers and select an insurer to provide pollution liability insurance for third-party bodily injury and property damage, and corrective action to owners and operators of heating oil tanks;

    (8) Register, and design a means of accounting for, operating heating oil tanks;

(9) Implement a program to provide informal advice and technical assistance to owners and operators of active and abandoned heating oil tanks if contamination from a heating oil tank is suspected.  Informal advice and assistance regarding administrative and technical requirements may include observation of testing or site assessment and review of the results of reports.  If the director finds that contamination is not present or that the contamination is apparently minor and not a threat to human health or the environment, the director may provide written opinions on the results of the investigation to heating oil tank owners and operators.  Such advice or assistance is advisory only and is not binding on other state or local government entities.  The agency is authorized to collect, from persons requesting advice and assistance, the costs incurred by the agency in providing such advice and assistance.  The costs may include travel costs and expenses associated with review of reports and preparation of written opinions.  Funds from cost reimbursement must be deposited in the heating oil pollution liability trust account.  The state of Washington, the pollution liability insurance agency, and its officers and employees are immune from all liability, and no cause of action arises from any act or omission in providing, or failing to provide, such advice, opinion, or assistance; and

(10) Establish a public information program to publish information regarding liability, technical, and environmental requirements associated with heating oil tanks.

    Sec. 2.  RCW 70.149.070 and 1995 c 20 s 7 are each amended to read as follows:

    (1) The heating oil pollution liability trust account is created in the custody of the state treasurer.  All receipts from the pollution liability insurance fee collected under RCW 70.149.080 and reinsurance premiums shall be deposited into the account.  Expenditures from the account may be used only for the purposes set out under this chapter.  Only the director or the director's designee may authorize expenditures from the account.  The account is subject to allotment procedures under chapter 43.88 RCW, but no appropriation is required for expenditures.  Any residue in the account shall be transferred at the end of the biennium to the pollution liability insurance ((agency)) program trust account.

    (2) Money in the account may be used by the director for the following purposes:

    (a) Corrective action costs;

    (b) Third-party liability claims;

    (c) Costs associated with claims administration;

    (d) Purchase of an insurance policy to cover all registered heating oil tanks, and reinsurance of the policy; and

    (e) Administrative expenses of the program, including personnel, equipment, ((and)) supplies, and providing informal advice and technical assistance.

NEW SECTION. Sec. 3.  This act expires June 1, 2001.

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