Texas Register, Volume 33, Number 1, Pages 1-358, January 4, 2008 Page: 60
358 p. ; 28 cm.View a full description of this periodical.
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maintenance of insurance coverage or other financial assurance
for owners or operators of underground storage tanks before a
costly accidental release occurs from an underground storage
tank not insured or otherwise financially assured by the owner
or operator.
The cost for insurers or other entities providing financial assur-
ance for underground storage tanks required to comply with the
proposed sections will be based on (i) the cost of labor in iden-
tifying insurance or other financial assurance for underground
storage tanks that is canceled or not renewed; (ii) the cost of la-
bor in reprogramming existing systems to meet the requirements
of the proposed sections; and (iii) the cost of providing notice of
the termination of insurance or other financial assurance for un-
derground storage tanks to the TCEQ. These costs, however,
are the result of the legislative enactment of HB 1956, and not
the result of the adoption, enforcement, or administration of the
proposed sections.
ECONOMIC IMPACT STATEMENT AND REGULATORY FLEX-
IBILITY ANALYSIS FOR SMALL AND MICRO BUSINESSES.
In accordance with the Government Code 2006.002(c), the De-
partment and the TCEQ have determined that there are no small
or micro businesses required to comply with the proposed rule.
This determination is based on a compilation of profiles of all
known insurers or other entities providing financial assurance
for underground storage tanks. The Department and the TCEQ
are not aware, nor have any knowledge, of any entity insuring
or providing financial assurance for underground storage tanks
that has fewer than 100 employees or less than $6 million in
annual gross receipts. Further, any costs that are incurred by
any business, regardless of size, that is required to comply with
the proposal are the result of the enactment of HB 1956, and
not the result of the adoption, enforcement, or administration of
the proposed amendments. In accordance with the Government
Code 2006.002(c), the Department has therefore determined
that a regulatory flexibility analysis is not required because the
proposal will not have an adverse impact on small or micro busi-
nesses.
TAKINGS IMPACT ASSESSMENT. The Department has de-
termined that no private real property interests are affected by
this proposal and that this proposal does not restrict or limit
an owner's right to property that would otherwise exist in the
absence of government action, and therefore, does not consti-
tute a taking or require a takings impact assessment under the
Government Code 2007.043.
REQUEST FOR PUBLIC COMMENT. To be considered, writ-
ten comments on the proposal must be submitted no later than
5:00 p.m. on February 4, 2008 to Gene C. Jarmon, General
Counsel and Chief Clerk, Mail Code 113-2A, Texas Department
of Insurance, P.O. Box 149104, Austin, Texas 78714-9104. An
additional copy of the comment must be simultaneously submit-
ted to Marilyn Hamilton, Associate Commissioner, Property and
Casualty Division, Mail Code 104-PC, Texas Department of In-
surance, P.O. Box 149104, Austin, Texas 78714-9104. Any re-
quest for a public hearing should be submitted separately to the
Office of Chief Clerk prior to the close of the public comment pe-
riod. No hearing will be held unless requested. If a hearing is
held, written and oral comments presented at the hearing will be
considered.
STATUTORY AUTHORITY. The new sections are proposed
under the Water Code 26.352(e-1) and the Insurance Code36.001. Subsection (e-1) of the Water Code 26.352 requires
that an insurance company or other entity that provides insur-
ance coverage or another form of financial assurance to an
owner or operator of an underground storage tank for purposes
of the Water Code 26.352 notify the TCEQ if the insurance
coverage or other financial assurance is canceled or not re-
newed not later than the 30th day after the date the coverage
terminates. Subsection (e-1) of the Water Code 26.352 further
requires that the Department adopt rules to implement and
enforce this subsection. The Insurance Code 36.001 provides
that the Commissioner of Insurance may adopt any rules nec-
essary and appropriate to implement the powers and duties of
the Department under the Insurance Code and other laws of
this state.
CROSS REFERENCE TO STATUTE. The following statute is
affected by the proposal: Water Code 26.352.
5.9101. Purpose.
In accordance with the Water Code 26.352(e-1), this subchapter spec-
ifies the requirements and procedures for an insurer or other entity pro-
viding financial assurance for the purposes of meeting financial respon-
sibility requirements for underground storage tank owners or operators
under the Water Code 26.352 to provide notice to the Texas Com-
mission on Environmental Quality (TCEQ) after insurance or other fi-
nancial assurance for an underground storage tank is canceled or not
renewed.
5.9102. Definitions.
The following words and terms when used in this subchapter shall have
the following meanings unless the context clearly indicates otherwise:
(1) Financial assurance--A financial instrument that as pro-
vided by rules adopted by the TCEQ may be used to comply with fi-
nancial responsibility requirements established under the Water Code
26.352.
(2) Insurer--An entity operating under the Insurance Code
providing insurance or other financial assurance to an owner or opera-
tor of underground storage tanks for the purposes of meeting financial
responsibility requirements established under the Water Code 26.352,
including all entities operating under the Insurance Code Chapters 941
(Lloyd's plans), 942 (reciprocals and interinsurance exchanges), 981
(surplus lines insurers), and 2201 (risk retention groups and purchas-
ing groups).
(3) TCEQ--Texas Commission on Environmental Quality.
5.9103. Applicability.
(a) This subchapter is applicable to all insurers providing in-
surance or other financial assurance to owners or operators of under-
ground storage tanks for the purposes of meeting financial responsibil-
ity requirements established under the Water Code 26.352.
(b) All provisions of this subchapter except 5.9107 (relating
to Disciplinary Actions by the Commissioner of Insurance) also apply
to any other entity providing, holding, or maintaining financial assur-
ance for the owners or operators of underground storage tanks for the
purposes of meeting financial responsibility requirements established
under the Water Code 26.352.
(c) This subchapter applies only to notices required to be is-
sued under the Water Code 26.352(e-1) and that are issued on or after
April 1, 2008, regardless of when the insurance policy or other form of
financial assurance was issued or created.
5.9104. Content of Notice.33 TexReg 60 January 4, 2008 Texas Register
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Texas. Secretary of State. Texas Register, Volume 33, Number 1, Pages 1-358, January 4, 2008, periodical, January 4, 2008; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth90775/m1/59/: accessed May 4, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.