Title: DRH60460-SYz-25A* (5/10)
Category: Bill Draft

General Assembly of North Carolina	Session 2003

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2003
H	D
HOUSE DRH60460-SYz-25A*  (5/10)

Short Title:	Leaking UST Fund Liquidity. | (Public)
Sponsors: | Representative Gibson.
Referred to: |

A BILL TO BE ENTITLED
AN ACT to Improve and accelerate processing of claims under the leaking petroleum underground storage tank cleanup program, as recommended by the environmental review commission.
The General Assembly of North Carolina enacts:
SECTION 1.  Part 2A of Article 21A of Chapter 143 of the General Statutes is amended by adding a new section to read:
"§ 143‑215.94Q.  Liquidity program.
(a)	The General Assembly finds that the Department and the State have existing obligations under this Part, including the obligation under G.S. 143‑215.94E to pay claims for reimbursement duly filed with the Department by owners, operators, and landowners from the Commercial Fund and the Noncommercial Fund, which obligations impose substantial burdens on the State. The General Assembly has previously found under G.S. 143-215.94V that solvency of the Commercial Fund and the Noncommercial Fund is essential to the goals of the underground storage tank program. The General Assembly finds that:
(1)	An appropriate means of managing and ensuring the solvency of the Funds is a liquidity program that will facilitate the sale of claims made against the Commercial Fund and the Noncommercial Fund by owners, operators, and landowners who may require liquidity in anticipation of the ultimate payment of the claims by the Commercial Fund and the Noncommercial Fund. 
(2)	The most cost‑effective means to provide a liquidity program is for the Department to arrange for and incur obligations to provide funding to be used to purchase claims or in lieu thereof to participate in the establishment and operation of a nonprofit organization that will incur the liquidity obligations and purchase the claims. 
(3)	Cost efficiency may be improved if the nonprofit organization operates in one or more states in addition to the State.
(b)	The Department, acting by and through the Secretary, is hereby authorized to enter into discussions with the incorporator of a nonprofit corporation to be formed to provide liquidity for owners, operators, and landowners with claims against the Commercial Fund and the Noncommercial Fund and against similar funds in one or more other states and with officials of appropriate agencies or political subdivisions of such other states. If the Secretary makes a written determination that he reasonably expects that claimholders participating in the liquidity program will benefit from the State's participation in the liquidity program, the Department is authorized to enter into agreements with the nonprofit corporation and other agencies or political subdivisions to establish a liquidity program.
(c)	The State may be represented on the governing body of the nonprofit corporation by one or more directors, as provided in the organizational documents of the nonprofit corporation, each of whom shall be appointed by and serve at the pleasure of the Governor. The Office of Budget and Management may provide advice and guidance to any director appointed under this subsection on any financial matters relating to the nonprofit corporation and its operation of the liquidity program, including its annual budget and financial statements. 
(d)	The Department may make payments with respect to any claim made by an owner, operator, or landowner under G.S. 143‑215.94E directly to the nonprofit corporation, provided that the owner, operator, or landowner shall have delivered to the Department a copy of an assignment showing the nonprofit corporation as assignee of such claim. The Department shall develop and approve the claim assignment form.
(e)	If the Secretary is unable to make the finding described in subsection (b) of this section with respect to the nonprofit corporation, the Department is authorized to arrange for and incur liquidity obligations and use the proceeds thereof to provide liquidity either directly or through one or more nonprofit organizations to owners, operators, or landowners holding claims against the Commercial Fund and Noncommercial Fund.
(f)	Under no circumstances will the Department be authorized in any agreement relating to the liquidity program entered into with the nonprofit corporation, any agency or political subdivision of any other state, any other for‑profit or nonprofit organization or provider of liquidity obligations to commit in any way to make payments in excess of the aggregate face amount of approved claims against the Commercial Fund and Noncommercial Fund purchased under the liquidity program. No liquidity obligation shall constitute an obligation of the State, the Department, or any other agency, department, or political subdivision of the State, payable from other than the approved claims against the Commercial Fund or Noncommercial Fund purchased with the proceeds thereof, and nothing in this section shall be deemed to amend G.S. 143‑215.94J or otherwise change the limitation of the State’s liability contained in that section.
(g)	The Department is directed to implement this section expeditiously. The implementation of a liquidity program through the Department will provide a significant service to the State by reducing its administrative burden of maintaining the solvency of the Funds."
SECTION 2.  This act is effective when it becomes law.

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