BILL NUMBER: AB 291 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 27, 2011
AMENDED IN ASSEMBLY APRIL 12, 2011
INTRODUCED BY Assembly Member Wieckowski
FEBRUARY 8, 2011
An act to amend Section 25299.52 of
Sections 25299.43 and 25299.117 of, to add Section
25299.51.3 to, and to repeal Article 9 (commencing with Section
25299.81) of Chapter 6.75 of Division 20 of, the Health and
Safety Code, relating to underground storage tanks.
LEGISLATIVE COUNSEL'S DIGEST
AB 291, as amended, Wieckowski. Underground storage tanks:
petroleum: corrective action claims. act
extension: charges.
Under
(1) Under the existing Barry Keene
Underground Storage Tank Cleanup Trust Fund Act of 1989, which
is repealed on January 1, 2016, every owner of an underground
storage tank is required to pay a storage fee for each gallon of
petroleum placed in the tank. The act, among other things,
requires the owners and operators of those tanks to establish and
maintain evidence of financial responsibility and authorizes the
State Water Resources Control Board, a California regional water
quality control board, or a local agency to take
corrective action with regard to a release from those tanks. The act
requires certain information to be submitted by tank owners or
operators under penalty of perjury. The fees are required to be
deposited in the Underground Storage Tank Cleanup Fund and the
State Water Resources Control Board board
is authorized to expend the moneys in the fund, upon
appropriation by the Legislature, for various purposes, including the
payment of claims to aid owners and operators of petroleum
underground storage tanks who take corrective action to clean up
unauthorized releases from those tanks . The board is
required to award the claims in accordance with a specified priority
ranking, which provides for 4 categories of priority ,
corrective actions undertaken by the board, a California
regional water quality control board, or a local agency, the cleanup
and oversight of unauthorized releases at abandoned tank sites, and
grants to small businesses to retrofit certain hazardous substance
underground storage tanks .
This bill would require the board to allocate 25 percent of the
funds authorized to be expended for claims filed for the 2nd and 3rd
priority rankings based upon the environmental risk priority of the
claims.
Existing law provides for an increase in fee at a rate of $0.006
per gallon of petroleum between January 1, 2010, and December 31,
2011, and terminates that increase on January 1, 2012.
This bill would delete the repeal of the act, thereby continuing
indefinitely the operation of that act, including the requirement for
the payment of the fee and the criminal penalties concerned within.
The bill would also continue the requirement to pay that increased
amount of $0.006 per gallon until January 1, 2014. By operation of
existing law, the revenue resulting from the fee would be required to
be deposited in the fund and be available, upon appropriation, for
expenditure for the purposes authorized under existing law for money
in the fund. This bill would constitute a change in state statute
that would result in a taxpayer paying a higher tax within the
meaning of Section 3 of Article XIII A of the California
Constitution, and thus would require for passage the approval of 2/3
of the membership of each house of the Legislature.
By continuing the operation of the criminal penalties of the act,
the bill would impose a state-mandated local program.
(2) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority 2/3 . Appropriation:
no. Fiscal committee: yes. State-mandated local program: no
yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 25299.43 of the
Health and Safety Code is amended to read:
25299.43. (a) To implement the changes to this chapter made by
Chapter 1191 of the Statutes of 1994, and consistent with Section
25299.40, effective January 1, 1995, every owner subject to Section
25299.41 shall pay a storage fee of one mill ($0.001) for each gallon
of petroleum placed in an underground storage tank that the person
owns, in addition to the fee required by Section 25299.41.
(b) On and after January 1, 1996, the storage fee imposed under
subdivision (a) shall be increased by two mills ($0.002) for each
gallon of petroleum placed in an underground storage tank.
(c) On and after January 1, 1997, the storage fee increased under
subdivision (b) shall be increased by an additional three mills
($0.003) for each gallon of petroleum placed in an underground
storage tank.
(d) On and after January 1, 2005, the storage fee increased under
subdivision (c) shall be increased by an additional one mill ($0.001)
for each gallon of petroleum placed in an underground storage tank.
(e) On and after January 1, 2006, the storage fee increased under
subdivision (d) shall be increased by an additional one mill ($0.001)
for each gallon of petroleum placed in an underground storage tank.
(f) On and after January 1, 2010, the storage fee increased under
subdivision (e) shall be increased by an additional six mills
($0.006) for each gallon of petroleum placed in an underground
storage tank. The increase provided for in this subdivision shall be
effective until January 1, 2012 2014 ,
at which time, the fee shall revert back to the fee pursuant to
subdivision (e).
(g) The fee imposed under this section shall be paid to the State
Board of Equalization under Part 26 (commencing with Section 50101)
of Division 2 of the Revenue and Taxation Code in the same manner as,
and consistent with, the fees imposed under Section 24299.41.
(h) The State Board of Equalization shall amend the regulations
adopted under Section 25299.41 to carry out this section.
SEC. 2. Section 25299.51.3 is added to the
Health and Safety Code , to read:
25299.51.3. The board shall continuously post and update on its
Internet Web site, but at a minimum, annually on or before September
30, information that describes the status of the fund and shall make
recommendations, when appropriate, to improve the efficiency of the
program.
SEC. 3. Article 9 (commencing with Section
25299.81) of Chapter 6.75 of Division 20 of the Health and
Safety Code is repealed.
SEC. 4. Section 25299.117 of the Health
and Safety Code is amended to read:
25299.117. This (a)
Except as provided in subdivision (b) , this
chapter shall remain in effect only until January 1, 2016,
and as of that date is repealed as of January 1, 2016
, unless a later enacted statute that is enacted on or
before January 1, 2016, deletes or extends that date.
(b) The repeal of this chapter does not terminate any of the
following rights, obligations, or authorities, or any provision
necessary to carry out either of the following rights and
obligations:
(1) The repayment of loans, outstanding as of January 1, 2016, due
and payable to the board.
(2) (A) The payment of loans and grants, consistent with the terms
of agreements that were effective prior to January 1, 2016, from the
Underground Storage Tank Cleanup Fund, pursuant to this chapter or
the Petroleum Underground Storage Tank Financing Account pursuant to
this chapter.
(B) The amount of money disbursed for grants and loans pursuant to
this chapter shall not exceed the sum of the following:
(i) The amount that reverts to the Underground Storage Tank
Cleanup Fund pursuant to Section 25299.111.
(ii) Amounts recovered through the repayment of loans granted
pursuant to this chapter.
(iii) The resolution of any cost recovery action filed prior to
January 1, 2016, or the initiation of an action or other collection
process to recover defaulted loan moneys due to the board or to
recover money paid to a grant or loan recipient pursuant to this
chapter to which the recipient is not entitled.
SEC. 5. No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.
SECTION 1. Section 25299.52 of the Health and
Safety Code is amended to read:
25299.52. (a) The board shall adopt a priority ranking list at
least annually for awarding claims pursuant to Section 25299.57 or
25299.58. Any owner or operator eligible for payment of a claim
pursuant to Section 25299.54 shall file an application with the board
within a reasonable period, to be determined by the board, prior to
adoption of the priority ranking list.
(b) Except as provided in subdivision (c), in awarding claims
pursuant to Section 25299.57 or 25299.58, the board shall pay claims
in accordance with the following order of priority:
(1) Owners of tanks who are eligible to file a claim pursuant to
subdivision (e) of Section 25299.54.
(2) (A) Owners and operators of tanks that are either of the
following:
(i) An owner or operator of a tank that is a small business, by
meeting the requirements of subdivision (d) of Section 14837 of the
Government Code. An owner or operator that meets that definition of
small business, but who is domiciled or has its principal office
outside of the state, shall be classified in this category if the
owner or operator otherwise meets the requirements of subdivision (d)
of Section 14837 of the Government Code with regard to the number of
employees and the total annual revenues received.
(ii) An owner or operator that is a city, county, district, or
nonprofit organization that receives total annual revenues of not
more than seven million dollars ($7,000,000). In determining the
amount of a nonprofit organization's annual revenues, the board shall
calculate only those revenues directly attributable to the
particular site at which the tank or tanks for which the claim is
submitted are located.
(B) The board shall rank the environmental risk priority for
purposes of paragraph (3) of subdivision (c) of the claims that are
subject to this paragraph.
(3) (A) Owners or operators of tanks that are either of the
following:
(i) The owner or operator owns and operates a business that
employs fewer than 500 full-time and part-time employees, is
independently owned and operated, and is not dominant in its field of
operation.
(ii) The owner or operator is a city, county, district, or
nonprofit organization that employs fewer than 500 full-time and
part-time employees. In determining the number of employees employed
by a nonprofit organization, the board shall calculate only those
employees employed at the particular site at which a tank for which
the claim is being submitted is located.
(B) The board shall rank the environmental risk priority for
purposes of paragraph (3) of subdivision (c) of the claims subject to
this paragraph.
(4) All other tank owners and operators.
(c) (1) Except as provided in paragraph (3), in any year in which
the board is not otherwise authorized to award at least 15 percent of
the total amount of funds committed for that year to tank owners or
operators in those categories set forth in paragraph (3) or (4) of
subdivision (b) due to the priority ranking list award limitations
set forth in subdivision (b), the board shall allocate between 14 and
16 percent of the total amount of funds committed for that year to
each category that is not otherwise entitled to at least that level
of committed funding for that year.
(2) If the total amount of claims outstanding in one or more of
the priority categories specified in paragraph (3) or (4) of
subdivision (b) is less than 15 percent of the total amount annually
appropriated from the fund for the purpose of awarding claims, the
board shall reserve for making claims in that category only the
amount that is necessary to satisfy the outstanding claims in that
category.
(3) Notwithstanding paragraphs (1) and (2), the board shall
annually allocate 25 percent of the total amount of funds committed
for that year for claims filed pursuant to Section 25299.57 by owners
and operators in the categories set forth in paragraphs (2) and (3)
of subdivision (b) based upon the environmental risk priority of the
claim.
(d) The board shall give priority to a claim that is filed before
September 24, 1993, by a city, county, or district that is eligible
for payment pursuant to Section 25299.54 in the following manner:
(1) The board shall determine whether the priority category
specified for a city, county, or district pursuant to subparagraph
(B) of paragraph (2), or pursuant to subparagraph (B) of paragraph
(3), of subdivision (b) requires that the priority ranking of the
claim be changed.
(2) If the priority ranking of the claim is changed and the claim
is placed into either the priority category specified in subparagraph
(B) of paragraph (2), or specified in subparagraph (B) of paragraph
(3), of subdivision (b), the board shall pay all other claims that
were assigned to that priority category prior to January 1, 2000,
before paying the claim of the city, county, or district.
(e) The board may, to carry out the intent specified in paragraph
(1) of subdivision (b) of Section 25299.10 and to expedite the
processing and awarding of claims pursuant to Sections 25299.57 and
25299.58, implement the contracting procedures required by Chapter 10
(commencing with Section 4525) of Division 5 of Title 1 of the
Government Code, as may be necessary, to alleviate the claims
processing and award backlog. If, at the conclusion of any fiscal
year, 25 percent or more of the funds appropriated annually for
awards to claimants during that year have not actually been obligated
by the board, the board shall, at its next regularly scheduled
meeting, determine, in a public hearing, whether, given the
circumstances of the awards backlog, it is appropriate to implement
those contracting procedures for some, or all, of the claims filed
with the board.
(f) For purposes of this section, the following definitions shall
apply:
(1) "Nonprofit organization" means a nonprofit public benefit
organization incorporated pursuant to Part 2 (commencing with Section
5110) of Division 2 of Title 1 of the Corporations Code.
(2) "Annual revenue," with respect to public entities, means the
total annual general purpose revenues, excluding all restricted
revenues over which the governing agency has no discretion, as
reported in the Annual Report of Financial Transactions submitted to
the Controller, for the latest fiscal year ending prior to the date
the fund application was filed.
(3) "Annual revenue," with respect to nonprofit organizations,
means the total annual revenues, as shown in an annual fiscal report
filed with the Registry of Charitable Trusts of state and federal tax
records, based on the latest fiscal year ending prior to the date
the fund application was filed.
(4) "General purpose revenues," as used in paragraph (2), means
revenues consisting of all of the following: secured and unsecured
revenues; less than countywide funds, secured and unsecured; prior
year secured and unsecured penalties and delinquent taxes; sales and
use taxes; transportation taxes (nontransit); property transfer
taxes; transient lodging taxes; timber yield taxes; aircraft taxes;
franchise taxes; fines, forfeitures, and penalties; revenues from use
of money and property; motor vehicle in-lieu taxes; trailer coach
in-lieu taxes; homeowner property tax relief; open-space tax relief;
and cigarette taxes.