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  H.B. No. 1956
 
 
 
 
AN ACT
  relating to the financial responsibility requirements applicable
  to owners or operators of underground storage tanks.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 26.352, Water Code, is amended by
  amending Subsections (d), (e), and (f) and adding Subsections
  (e-1), (e-2), (g), (h), and (i) to read as follows:
         (d)  A [An owner or operator of an underground storage tank
  may submit the] registration certificate issued by the commission
  [to the owner or operator] under Section 26.346:
               (1)  may be submitted by an owner or operator of an
  underground storage tank [of this code] to the United States
  Environmental Protection Agency as evidence of the owner's or
  operator's eligibility for funds for any expense for corrective
  action incurred for confirmed releases initially discovered and
  reported to the commission on or before December 22, 1998; and
               (2)  is not acceptable evidence of financial
  responsibility for:
                     (A)  an underground storage tank that contains a
  petroleum substance other than:
                           (i)  a petroleum product; or
                           (ii)  spent oil or hydraulic fluid if the
  tank is located at a vehicle service and fueling facility and is
  used as part of the operations of that facility; or
                     (B)  any expenses for corrective action for
  confirmed releases initially discovered and reported to the
  commission after December 22, 1998.
         (e)  An owner or operator of an underground storage tank used
  for storing petroleum products shall submit annually with the
  compliance certification form required by Section 26.346 proof that
  the owner or operator maintains evidence of financial
  responsibility as required by Subsection (a) [A registration
  certificate issued under Section 26.346 is not acceptable evidence
  of financial responsibility for:
               [(1)     an underground storage tank that contains a
  petroleum substance other than:
                     [(A)  a petroleum product; or
                     [(B)     spent oil or hydraulic fluid if the tank is
  located at a vehicle service and fueling facility and is used as
  part of the operations of that facility; or
               [(2)     any expenses for corrective action for confirmed
  releases initially discovered and reported to the commission after
  December 22, 1998].
         (e-1)  An insurance company or other entity that provides
  insurance coverage or another form of financial assurance to an
  owner or operator of an underground storage tank for purposes of
  this section shall notify the commission if the insurance coverage
  or other financial assurance is canceled or not renewed.  The
  insurance company or other entity shall mail, fax, or e-mail notice
  not later than the 30th day after the date the coverage terminates.  
  The Texas Department of Insurance shall adopt rules to implement
  and enforce this subsection.
         (e-2)  The owner or operator of a tank for which insurance
  coverage or other financial assurance has terminated shall dispose
  of any regulated substance in the tank at a properly licensed
  facility not later than the 90th day after the coverage terminates,
  unless the owner or operator provides the commission proof that the
  owner or operator maintains evidence of financial responsibility as
  required under Subsection (a).
         (f)  The commission shall enforce this section and may impose
  administrative and civil penalties on the owners or operators of
  underground storage tanks if acceptable evidence of financial
  responsibility is not maintained. The amount of an administrative
  or civil penalty imposed under this subsection may not be less than
  the annual cost, as estimated by the commission, of maintaining the
  minimum insurance coverage required for the tank as determined
  under Subsection (c).
         (g)  An owner or operator commits an offense if the owner or
  operator operates an underground storage tank knowing that
  acceptable evidence of financial responsibility does not exist and
  is subject to criminal prosecution as provided by Subchapter F.
         (h)  The commission may seek injunctive relief in the
  district courts of Travis County to force the temporary or
  permanent closure of an underground storage tank for which
  acceptable evidence of financial responsibility is not maintained.
         (i)  The commission may order an owner or operator of an
  underground storage tank that fails to maintain acceptable evidence
  of financial responsibility to place the tank out of service in the
  same manner that the commission may issue such an order under
  Section 26.3475(e).
         SECTION 2.  Section 26.352(e), Water Code, as amended by
  this Act, applies only to a compliance certification form submitted
  to the Texas Commission on Environmental Quality on or after the
  effective date of this Act. A compliance certification form
  submitted before the effective date of this Act is governed by the
  law in effect at the time the form was submitted, and that law is
  continued in effect for that purpose.
         SECTION 3.  The change in law made by Section 26.352(e-1),
  Water Code, as added by this Act, applies only to an insurance
  policy or other form of financial assurance that is terminated on or
  after January 1, 2008. A policy or other form of financial
  insurance that is terminated before that date is governed by the law
  in effect at the time the policy or other financial assurance is
  terminated, and that law is continued in effect for that purpose.
         SECTION 4.  Section 26.352(f), Water Code, as amended by
  this Act, and Section 26.352(i), Water Code, as added by this Act,
  apply only to a failure to maintain evidence of financial
  responsibility that occurs on or after the effective date of this
  Act. A failure to maintain evidence of financial responsibility
  that occurs before the effective date of this Act is governed by the
  law in effect at the time the failure occurred, and that law is
  continued in effect for that purpose.
         SECTION 5.  This Act takes effect September 1, 2007.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 1956 was passed by the House on April
  12, 2007, by the following vote:  Yeas 143, Nays 0, 1 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 1956 was passed by the Senate on May
  9, 2007, by the following vote:  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor