BILL NUMBER: SB 1513	CHAPTERED  08/13/02

	CHAPTER  207
	FILED WITH SECRETARY OF STATE  AUGUST 13, 2002
	APPROVED BY GOVERNOR  AUGUST 12, 2002
	PASSED THE ASSEMBLY  JULY 3, 2002
	PASSED THE SENATE  MAY 23, 2002
	AMENDED IN SENATE  MAY 15, 2002

INTRODUCED BY   Senators Karnette and Perata
   (Coauthor:  Assembly Member Lowenthal)

                        FEBRUARY 20, 2002

   An act to amend Section 8670.37.58 of the Government Code,
relating to public resources.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1513, Karnette.  Public resources: oil spill contingency
planning:  financial responsibility.
   Existing law establishes in state government the office of
administrator for oil spill response and requires the administrator
to adopt and implement regulations and guidelines governing the
adequacy of oil spill contingency plans.
   Under existing law, a nontank vessel, as defined, that is required
to have a contingency plan may not enter marine waters of the state
unless the nontank vessel owner or operator has provided to the
administrator evidence of financial responsibility that demonstrates,
to the administrator's satisfaction, the ability to pay at least
$300,000,000 to cover damages caused by a spill, and the owner or
operator of the nontank vessel has obtained a certificate of
financial responsibility from the administrator for the nontank
vessel.  However, until January 1, 2003, the administrator is
authorized to establish a lower standard of financial responsibility
for a nontank vessel that has a carrying capacity of 6,500 barrels of
oil or less, or, if the nontank vessel is owned and operated by
California or a federal agency, a carrying capacity of 7,500 barrels
of oil or less.
   This bill would extend, until January 1, 2006, the expiration date
of the authority of the administrator to establish a lower standard
of financial responsibility for the specified nontank vessels.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 8670.37.58 of the Government Code, as added by
Section 35 of Chapter 748 of the Statutes of 2001, is amended to
read:
   8670.37.58.  (a) A nontank vessel, required to have a contingency
plan pursuant to this chapter, shall not enter marine waters of the
state unless the nontank vessel owner or operator has provided to the
administrator evidence of financial responsibility that
demonstrates, to the administrator's satisfaction, the ability to pay
at least three hundred million dollars ($300,000,000) to cover
damages caused by a spill, and the owner or operator of the nontank
vessel has obtained a certificate of financial responsibility from
the administrator for the nontank vessel.  The administrator may
charge a nontank vessel owner or operator a reasonable fee to
reimburse costs to verify and process an application for evidence of
financial responsibility.
   (b) Notwithstanding subdivision (a), the administrator may
establish a lower standard of financial responsibility for a nontank
vessel that has a carrying capacity of 6,500 barrels of oil or less,
or, if the nontank vessel is owned and operated by California or a
federal agency, a carrying capacity of 7,500 barrels of oil or less.
The standard shall be based upon the quantity of oil that can be
carried by the nontank vessel and the risk of an oil spill into
marine waters.  The administrator shall not set a standard that is
less than the expected cleanup costs and damages from an oil spill
into marine waters.
   (c) The administrator may adopt regulations to implement this
section.
   (d) This section shall remain in effect only until January 1,
2006, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2006, deletes or extends
that date.
  SEC. 2.  Section 8670.37.58 of the Government Code, as added by
Section 36 of Chapter 748 of the Statutes of 2001, is amended to
read:
   8670.37.58.  (a) A nontank vessel, required to have a contingency
plan pursuant to this chapter, shall not enter marine waters of the
state unless the nontank vessel owner or operator has provided to the
administrator evidence of financial responsibility that
demonstrates, to the administrator's satisfaction, the ability to pay
at least three hundred million dollars ($300,000,000) to cover
damages caused by a spill, and the owner or operator of the nontank
vessel has obtained a certificate of financial responsibility from
the administrator for the nontank vessel.  The administrator may
charge a nontank vessel owner or operator a reasonable fee to
reimburse costs to verify and process an application for evidence of
financial responsibility.
   (b) The administrator may adopt regulations to implement this
section.
   (c) This section shall become operative on January 1, 2006.