319.129. Petroleum storage tank insurance fund created--lapse into general revenue prohibited--fee paid by all owners per tank to board--state treasurer may deposit funds where, interest credited to f - Missouri Statutes

Petroleum storage tank insurance fund created--lapse into generalrevenue prohibited--fee paid by all owners per tank toboard--state treasurer may deposit funds where, interest creditedto fund--administration of fund--board of trustees created,members, meetings--expires when--continuation after expiration,when.

319.129. 1. There is hereby created a special trust fund to be knownas the "Petroleum Storage Tank Insurance Fund" within the state treasurywhich shall be the successor to the underground storage tank insurancefund. Moneys in such special trust fund shall not be deemed to be statefunds. Notwithstanding the provisions of section 33.080, RSMo, to thecontrary, moneys in the fund shall not be transferred to general revenue atthe end of each biennium.

2. The owner or operator of any underground storage tank, includingthe state of Missouri and its political subdivisions and publictransportation systems, in service on August 28, 1989, shall submit to thedepartment a fee of one hundred dollars per tank on or before December 31,1989. The owner or operator of any underground storage tank who seeks toparticipate in the petroleum storage tank insurance fund, including thestate of Missouri and its political subdivisions and public transportationsystems, and whose underground storage tank is brought into service afterAugust 28, 1998, shall transmit one hundred dollars per tank to the boardwith his or her initial application. Such amount shall be a one-timepayment, and shall be in addition to the payment required by section319.133. The owner or operator of any aboveground storage tank regulatedby this chapter, including the state of Missouri and its politicalsubdivisions and public transportation systems, who seeks to participate inthe petroleum storage tank insurance fund, shall transmit one hundreddollars per tank to the board with his or her initial application. Suchamount shall be a one-time payment and shall be in addition to the paymentrequired by section 319.133. Moneys received pursuant to this sectionshall be transmitted to the director of revenue for deposit in thepetroleum storage tank insurance fund.

3. The state treasurer may deposit moneys in the fund in any of thequalified depositories of the state. All such deposits shall be secured ina manner and upon the terms as are provided by law relative to statedeposits. Interest earned shall be credited to the petroleum storage tankinsurance fund.

4. The general administration of the fund and the responsibility forthe proper operation of the fund, including all decisions relating topayments from the fund, are hereby vested in a board of trustees. Theboard of trustees shall consist of the commissioner of administration orthe commissioner's designee, the director of the department of naturalresources or the director's designee, the director of the department ofagriculture or the director's designee, and eight citizens appointed by thegovernor with the advice and consent of the senate. Three of the appointedmembers shall be owners or operators of retail petroleum storage tanks,including one tank owner or operator of greater than one hundred tanks; onetank owner or operator of less than one hundred tanks; and one abovegroundstorage tank owner or operator. One appointed trustee shall represent afinancial lending institution, and one appointed trustee shall representthe insurance underwriting industry. One appointed trustee shall representindustrial or commercial users of petroleum. The two remaining appointedcitizens shall have no petroleum-related business interest, and shallrepresent the nonregulated public at large. The members appointed by thegovernor shall serve four-year terms except that the governor shalldesignate two of the original appointees to be appointed for one year, twoto be appointed for two years, two to be appointed for three years and twoto be appointed for four years. Any vacancies occurring on the board shallbe filled in the same manner as provided in this section.

5. The board shall meet in Jefferson City, Missouri, within thirtydays following August 28, 1996. Thereafter, the board shall meet upon thewritten call of the chairman of the board or by the agreement of any sixmembers of the board. Notice of each meeting shall be delivered to allother trustees in person or by registered mail not less than six days priorto the date fixed for the meeting. The board may meet at any time byunanimous mutual consent. There shall be at least one meeting in eachquarter.

6. Six trustees shall constitute a quorum for the transaction ofbusiness, and any official action of the board shall be based on a majorityvote of the trustees present.

7. The trustees shall serve without compensation but shall receivefrom the fund their actual and necessary expenses incurred in theperformance of their duties for the board.

8. The board of trustees shall be a type III agency and shall appointan executive director and other employees as needed, who shall be stateemployees and be eligible for all corresponding benefits. The executivedirector shall have charge of the offices, operations, records, and otheremployees of the board, subject to the direction of the board. Employeesof the board shall receive such salaries and necessary expenses as shall befixed by the board.

9. Staff resources for the Missouri petroleum storage tank insurancefund may be provided by the department of natural resources or anotherstate agency as otherwise specifically determined by the board. The fundshall compensate the department of natural resources or other state agencyfor all costs of providing staff required by this subsection. Suchcompensation shall be made pursuant to contracts negotiated between theboard and the department of natural resources or other state agency.

10. In order to carry out the fiduciary management of the fund, theboard may select and employ, or may contract with, persons experienced ininsurance underwriting, accounting, the servicing of claims and ratemaking, and legal counsel to defend third-party claims, who shall serve atthe board's pleasure. Invoices for such services shall be presented to theboard in sufficient detail to allow a thorough review of the costs of suchservices.

11. At the first meeting of the board, the board shall elect one ofits members as chairman. The chairman shall preside over meetings of theboard and perform such other duties as shall be required by action of theboard.

12. The board shall elect one of its members as vice chairman, andthe vice chairman shall perform the duties of the chairman in the absenceof the latter or upon the chairman's inability or refusal to act.

13. The board shall determine and prescribe all rules and regulationsas they relate to fiduciary management of the fund, pursuant to thepurposes of sections 319.100 to 319.137. In no case shall the board haveoversight regarding environmental cleanup standards for petroleum storagetanks.

14. No trustee or staff member of the fund shall receive any gain orprofit from any moneys or transactions of the fund. This shall notpreclude any eligible trustee from making a claim or receiving benefitsfrom the petroleum storage tank insurance fund as provided by sections319.100 to 319.137.

15. The board may reinsure all or a portion of the fund's liability.Any insurer who sells environmental liability insurance in this state may,at the option of the board, reinsure some portion of the fund's liability.

16. The petroleum storage tank insurance fund shall expire onDecember 31, 2020, unless extended by action of the general assembly.After December 31, 2020, the board of trustees may continue to function forthe sole purpose of completing payment of claims made prior to December 31,2020.

17. The board shall annually commission an independent financialaudit of the petroleum storage tank insurance fund. The board shallbiennially commission an actuarial analysis of the petroleum storage tankinsurance fund. The results of the financial audit and the actuarialanalysis shall be made available to the public. The board may contractwith third parties to carry out the requirements of this subsection.

(L. 1989 H.B. 77, et al. § 12 subsecs. 1 to 4, A.L. 1991 S.B. 91 & 317, A.L. 1996 S.B. 708, A.L. 1998 H.B. 1148, A.L. 2001 H.B. 453, A.L. 2008 S.B. 907)