SB 0661 - Fiscal Note

Fiscal Note - SB 0661 - The petroleum storage tank insurance fund

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO. 2707-01

BILL NO. Perfected SB 661

SUBJECT: Petroleum Storage Tank Board

TYPE: Original

DATE: March 3, 1998

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FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
None	$0	$0	$0
Total Estimated Net Effect on All State Funds	$0	$0	$0

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
None	$0	$0	$0
Total Estimated Net Effect on All Federal Funds	$0	$0	$0

ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
Local Government	$0	$0	$0

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 3 pages.

FISCAL ANALYSIS

ASSUMPTION

The Department of Revenue and the Office of the Attorney General assumes they would not be fiscally impacted by this proposal.

The Department of Natural Resources (DNR) assumes the proposed legislation provides that petroleum storage tank owners who wish to participate in the Petroleum Storage Insurance Fund and brought into service after August 28, 1998 submit the $100 one-time tank fee to the board. The Petroleum Storage Tank Insurance Fund Board and the department assume that any tank brought into service after the dates in the existing statutes but before the proposed August 28, 1998 date that has not submitted the one-time tank fee would still be responsible for payment of the $100 fee.

The proposed legislation also changes the one-time tank fee from a mandatory fee to an elective fee. The department and the board assume this revision only impacts those new businesses declining to join the PSTIF. The DNR and the board assume this reduction of revenues to be minimal. In addition, since the one-time tank fee is mandated in the existing statutes, the board and DNR assume that any corresponding revenues collected prior to the effective date of this legislation would not be subject to refunds from those tank owners who declined to participate in the insurance fund.

Revising the collection point of the one-time tank fee from the MDNR to the PSTIF board of trustees results in a minimal reduction of the department's workload. It should be noted a contractor is responsible for the collection of the annual participation fees; therefore, revising the collection point of these fees does not fiscally impact the department.

FISCAL IMPACT - State Government	FY 1999	FY 2000	FY 2001
	(10 Mo.)
	$0	$0	$0
FISCAL IMPACT - Local Government	FY 1999	FY 2000	FY 2001
	(10 Mo.)
	$0	$0	$0
FISCAL IMPACT - Small Business

This proposal is not expected to impact small businesses.

DESCRIPTION

This act revises some provisions of the "Petroleum Storage Tank Insurance Fund".

Persons owning or operating an underground storage tank and who wish to participate in the Petroleum Storage Tank Insurance Fund and whose tank comes into service after August 28, 1998 (previously August 28, 1989) must pay one hundred dollars per tank. This fee is a one-time payment and is in addition to the annual payments required by Section 319.133, RSMo. The same fee provisions will apply to above ground storage tanks. At the present time the fees are remitted to the Department of Natural Resources within thirty days of the tank's initial use. This act requires tank owners or operators to send the fees to the Board of Trustees of the Petroleum Storage Tank Insurance Fund with the initial application of the owner or operator.

This act also provides that the fund will provide the defense of eligible third-party claims, including the negotiation of any settlement.

At the present time the Petroleum Storage Tank Insurance Fund will expire on December 31, 1998. This is extended until December 31, 2003.

This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.

SOURCES OF INFORMATION

Department of Revenue

Department of Natural Resources

Office of the Attorney General

Jeanne Jarrett, CPA

Director

March 3, 1998