Brief ⁽¹⁾

SB 183 would extend the sunset on the Underground Petroleum Storage Tank Release Trust Fund and the Aboveground Petroleum Storage Tank Release Trust Fund from the current July 1, 2004 until July 1, 2014.

In addition, the bill would amend the section of law that requires the Commissioner of Insurance to adopt a plan of third party liability insurance for tank owners. The bill would require that the surplus of premiums earned be refunded back to the insureds rather than transferred to the Underground Petroleum Storage Tank Release Trust Fund as is the case under current law.

Background

This bill was introduced at the request of a spokesperson from the Kansas Department of Health and Environment (KDHE). A spokesperson from KDHE appeared before the Committee and expressed support for the bill. A spokesperson from the Petroleum Marketers and Convenience Store Association of Kansas also appeared in support of the bill. This conferee also proposed to amend the bill to allow for a return of unused premiums back to tank owners. An explanation of the third party liability insurance program administered by the Insurance Commissioner was provided.

The House Committee on Environment amended the bill to provide that the surplus premiums be refunded to storage tank insureds.

The fiscal note on the original bill indicates no impact.

1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/fulltext.cgi