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LEGISLATURE
OF
THE
STATE
OF
IDAHO
Sixty-eighth
Legislature
Second
Regular
Session
-
2026
IN
THE
HOUSE
OF
REPRESENTATIVES
HOUSE
BILL
NO.
854
BY
WAYS
AND
MEANS
COMMITTEE
AN
ACT
1
RELATING
TO
THE
DEPARTMENT
OF
FINANCE
AND
THE
DEPARTMENT
OF
INSURANCE;
2
PROVIDING
LEGISLATIVE
INTENT;
REPEALING
SECTION
67
-
2701,
IDAHO
CODE,
3
RELATING
TO
THE
DEPARTMENT
OF
FINANCE
CREATION,
DIRECTOR,
ORGANI
-
4
ZATION,
AND
POWERS
AND
DUTIES;
AMENDING
CHAPTER
27,
TITLE
67,
IDAHO
5
CODE,
BY
THE
ADDITION
OF
A
NEW
SECTION
67
-
2701,
IDAHO
CODE,
TO
ESTAB
-
6
LISH
PROVISIONS
REGARDING
THE
DEPARTMENT
OF
FINANCE
AND
TO
PROVIDE
FOR
7
THE
DIRECTOR,
ORGANIZATION,
AND
POWERS
AND
DUTIES;
AMENDING
SECTION
8
41
-
202,
IDAHO
CODE,
TO
PROVIDE
FOR
THE
DIRECTOR
OF
THE
DEPARTMENT
OF
IN
-
9
SURANCE
TO
SERVE
AS
THE
DIRECTOR
OF
THE
DEPARTMENT
OF
FINANCE;
AMENDING
10
SECTION
41
-
206,
IDAHO
CODE,
TO
PROVIDE
THAT
THE
DIRECTOR
MAY
UTILIZE
1
1
OR
ADMINISTRATIVELY
COMBINE
THE
DIVISIONS
OF
FINANCE
AND
INSURANCE
OR
12
EMPLOYEES
THEREOF
IN
ORDER
TO
ACHIEVE
THE
DUTIES
OF
EITHER
DEPARTMENT;
13
AMENDING
SECTION
26
-
2412,
IDAHO
CODE,
TO
REMOVE
OBSOLETE
LANGUAGE;
RE
-
14
PEALING
SECTION
28
-
44
-
111,
IDAHO
CODE,
RELATING
TO
COOPERATION
BETWEEN
15
DEPARTMENTS;
AMENDING
SECTION
59
-
904,
IDAHO
CODE,
TO
REMOVE
OBSOLETE
16
LANGUAGE;
AND
PROVIDING
AN
EFFECTIVE
DATE.
17
Be
It
Enacted
by
the
Legislature
of
the
State
of
Idaho:
18
SECTION
1.
LEGISLATIVE
INTENT.
It
is
the
intent
of
the
Legislature
to
19
provide
for
greater
efficiencies
between
the
Department
of
Finance
and
the
20
Department
of
Insurance.
To
this
end,
the
Legislature
hereby
establishes
21
that,
on
and
after
July
1,
2027,
the
Director
of
the
Department
of
Insurance
22
shall
concurrently
serve
as
the
director
of
the
Department
of
Finance.
The
23
director
shall
find
and
implement
cross
-
departmental
efficiencies
between
24
the
Department
of
Insurance
and
the
Department
of
Finance
in
areas
that
in
-
25
clude
but
are
not
limited
to
administrative
services,
financial
and
account
-
26
ing
support,
and
information
technology.
27
SECTION
2.
That
Section
67
-
2701
,
Idaho
Code,
be,
and
the
same
is
hereby
28
repealed.
29
SECTION
3.
That
Chapter
27,
Title
67,
Idaho
Code,
be,
and
the
same
is
30
hereby
amended
by
the
addition
thereto
of
a
NEW
SECTION
,
to
be
known
and
des
-
31
ignated
as
Section
67
-
2701,
Idaho
Code,
and
to
read
as
follows:
32
67
-
2701.
DEPARTMENT
OF
FINANCE
-
-
CREATION
-
-
DIRECTOR
-
-
ORGANIZA
-
33
TION
-
-
POWERS
AND
DUTIES.
(1)
There
is
hereby
created
the
department
of
fi
-
34
nance.
The
department
shall,
for
the
purposes
of
section
20,
article
IV
of
35
the
constitution
of
the
state
of
Idaho,
be
an
executive
department
of
state
36
government.
37
(2)
The
director
of
the
department
of
insurance
as
appointed
pursuant
38
to
section
41
-
202,
Idaho
Code,
shall
be
the
director
of
the
department
of
fi
-
39
nance.
All
responsibilities,
powers,
and
duties
of
the
director
of
finance
40
shall
be
conferred
to
the
director
of
the
department
of
insurance.
41
2
(3)
Neither
the
director
of
the
department
nor
any
administrator
of
a
1
division
in
the
department
shall
be
the
owner
of
or
financially
interested
2
either
directly
or
indirectly
in
any
banking
or
insurance
corporation
sub
-
3
ject
to
the
supervision
of
the
department.
4
(4)
The
department
of
finance
shall
be
composed
of
such
divisions
as
5
are
established
by
law
and
such
other
units
as
may
be
administratively
estab
-
6
lished.
The
director
shall
appoint
division
administrators
to
serve,
at
the
7
pleasure
of
the
director,
to
head
such
divisions
as
may
be
established.
The
8
director
shall,
subject
to
the
approval
of
the
governor,
fix
the
salary
of
9
each
administrator.
10
(5)
The
director
shall
have
power:
1
1
(a)
To
exercise
the
rights,
powers
and
duties
vested
by
law
in
the
de
-
12
partment
or
in
the
director;
and
13
(b)
To
execute
the
laws
relating
to
banks
and
banking.
14
(6)
The
director
may
utilize
or
administratively
combine
the
divisions
15
or
employees
of
the
department
of
finance
with
the
department
of
insurance
in
16
order
to
achieve
the
duties
of
either
department.
17
SECTION
4.
That
Section
41
-
202,
Idaho
Code,
be,
and
the
same
is
hereby
18
amended
to
read
as
follows:
19
41
-
202.
DIRECTOR
-
-
APPOINTMENT
-
-
TERM
-
-
QUALIFICATIONS.
(1)
The
di
-
20
rector
of
the
department
of
insurance
shall
be
the
chief
executive
officer
of
21
the
department
of
insurance.
22
(2)
The
director
shall
be
appointed
by
the
governor
and
shall
hold
of
-
23
fice
for
a
term
of
four
(4)
years,
subject
to
earlier
removal
by
the
governor.
24
A
vacancy
in
the
office
of
director
shall
be
filled
for
the
balance
of
the
un
-
25
expired
term
only.
26
(3)
The
governor
shall
not
appoint
as
director
any
individual,
and
no
27
individual
shall
hold
the
office
of
director,
who
is
not
qualified
therefor
28
as
follows:
29
(a)
Must
be
a
qualified
elector
of
the
state
of
Idaho;
and
30
(b)
Must
have
had
at
least
five
(5)
years'
practical
experience
in
one
31
or
more
of
the
types
of
insurance
business
subject
to
regulation
by
the
32
director,
or
have
had
other
professional
or
business
experience
reason
-
33
ably
adequate
in
character
and
scope
to
equip
him
to
discharge
the
du
-
34
ties
and
fulfill
the
responsibilities
of
the
office
of
director.
35
(4)
On
and
after
July
1,
2027,
the
director
shall
also
be
the
director
of
36
the
department
of
finance
pursuant
to
section
67
-
2701,
Idaho
Code.
37
SECTION
5.
That
Section
41
-
206,
Idaho
Code,
be,
and
the
same
is
hereby
38
amended
to
read
as
follows:
39
41
-
206.
DIVISIONS
AND
EMPLOYEES.
(1)
The
department
shall
be
orga
-
40
nized
into
such
divisions
and
such
other
units
as
may
be
administratively
41
established
in
order
to
efficiently
administer
the
department.
Each
di
-
42
vision
shall
be
headed
by
a
division
administrator
who
shall
be
appointed
43
by
and
serve
at
the
pleasure
of
the
director,
and
shall
be
a
nonclassified
44
employee
exempt
from
the
provisions
of
chapter
53,
title
67,
Idaho
Code.
45
3
(2)
The
director
may
pursuant
to
chapter
53,
title
67,
Idaho
Code,
ap
-
1
point,
employ,
fix
the
compensation
of,
prescribe
and
require
the
duties
of
2
and
discharge
such
employees
as
the
duties
of
his
office
may
require.
3
(3)
The
director
may
contract
for
and
procure
on
a
basis
of
fee
and
with
-
4
out
giving
such
persons
any
status
as
an
employee
of
this
state,
such
inde
-
5
pendently
contracting
actuarial,
technical,
examining,
and
other
similar
6
professional
services
as
the
director
may
from
time
to
time
require
for
the
7
discharge
of
his
duties.
8
(4)
On
and
after
July
1,
2027,
the
director
may
utilize
or
administra
-
9
tively
combine
the
divisions
or
employees
of
the
department
of
finance
with
10
the
department
of
insurance
in
order
to
achieve
the
duties
of
either
depart
-
1
1
ment.
12
SECTION
6.
That
Section
26
-
2412,
Idaho
Code,
be,
and
the
same
is
hereby
13
amended
to
read
as
follows:
14
26
-
2412.
ANNUAL
FINANCIAL
EXAMINATION.
The
corporation
shall
be
ex
-
15
amined
at
least
once
annually
by
the
director
of
the
department
of
finance
16
and
shall
make
reports
of
its
condition
not
less
than
annually
to
said
direc
-
17
tor
of
the
department
of
finance
and
more
frequently
upon
call
of
the
direc
-
18
tor
of
the
department
of
finance,
who
in
turn
shall
make
copies
of
such
re
-
19
ports
available
to
the
director
of
the
department
of
insurance
and
the
gov
-
20
ernor;
and
the
corporation
shall
also
furnish
such
other
information
as
may
21
from
time
to
time
be
required
by
the
director
of
the
department
of
finance
and
22
secretary
of
state.
The
corporation
shall
pay
the
actual
cost
of
said
exam
-
23
inations.
The
director
of
the
department
of
finance
shall
exercise
the
same
24
power
and
authority
over
corporations
organized
under
this
act
as
is
now
ex
-
25
ercised
over
banks
and
trust
companies
by
the
provisions
of
title
26,
Idaho
26
Code,
where
the
provision
of
title
26,
Idaho
Code,
are
not
in
conflict
with
27
this
act.
28
SECTION
7.
That
Section
28
-
44
-
111
,
Idaho
Code,
be,
and
the
same
is
29
hereby
repealed.
30
SECTION
8.
That
Section
59
-
904,
Idaho
Code,
be,
and
the
same
is
hereby
31
amended
to
read
as
follows:
32
59
-
904.
STATE
OFFICES
-
-
VACANCIES,
HOW
FILLED
AND
CONFIRMED.
(a)
All
33
vacancies
in
any
state
office,
and
in
the
supreme
and
district
courts,
unless
34
otherwise
provided
for
by
law,
shall
be
filled
by
appointment
by
the
gover
-
35
nor.
Appointments
to
fill
vacancies
pursuant
to
this
section
shall
be
made
36
as
provided
in
subsections
(b),
(c),
(d),
(e),
(f)
and
(g)
of
this
section,
37
subject
to
the
limitations
prescribed
in
those
subsections.
38
(b)
Nominations
and
appointments
to
fill
vacancies
occurring
in
the
of
-
39
fice
of
lieutenant
governor,
state
controller,
state
treasurer,
superinten
-
40
dent
of
public
instruction,
attorney
general
and
secretary
of
state
shall
be
41
made
by
the
governor,
subject
to
the
advice
and
consent
of
the
senate,
for
42
the
balance
of
the
term
of
office
to
which
the
predecessor
of
the
person
ap
-
43
pointed
was
elected.
44
(c)
Nominations
and
appointments
to
and
vacancies
in
the
following
45
listed
offices
shall
be
made
or
filled
by
the
governor
subject
to
the
advice
46
4
and
consent
of
the
senate
for
the
terms
prescribed
by
law,
or
in
case
such
1
terms
are
not
prescribed
by
law,
then
to
serve
at
the
pleasure
of
the
gover
-
2
nor:
3
Director
of
the
department
of
administration,
4
Director
of
the
department
of
finance,
5
Director
of
the
department
of
insurance,
6
Director,
department
of
agriculture,
7
Director
of
the
department
of
water
resources,
8
Director
of
the
Idaho
state
police,
9
Director
of
the
department
of
commerce,
10
Director
of
the
department
of
labor,
1
1
Director
of
the
department
of
environmental
quality,
12
Director
of
the
department
of
juvenile
corrections,
13
Executive
director
of
the
commission
of
pardons
and
parole,
14
The
state
historic
preservation
officer,
15
The
administrator
of
the
division
of
human
resources,
16
Member
of
the
state
tax
commission,
17
Members
of
the
board
of
regents
of
the
university
of
Idaho
and
the
state
18
board
of
education,
19
Members
of
the
Idaho
water
resource
board,
20
Members
of
the
state
fish
and
game
commission,
21
Members
of
the
Idaho
transportation
board,
22
Voting
members
of
the
state
board
of
health
and
welfare,
23
Members
of
the
board
of
environmental
quality,
24
Members
of
the
board
of
directors
of
state
parks
and
recreation,
25
Members
of
the
board
of
correction,
26
Members
of
the
industrial
commission,
27
Members
of
the
Idaho
public
utilities
commission,
28
Members
of
the
Idaho
personnel
commission,
29
Members
of
the
board
of
directors
of
the
Idaho
state
retirement
system,
30
Members
of
the
board
of
directors
of
the
state
insurance
fund,
31
Members
of
the
commission
of
pardons
and
parole.
32
(d)
Appointments
made
by
the
state
board
of
land
commissioners
to
the
33
office
of
director,
department
of
lands,
and
appointments
to
fill
vacancies
34
occurring
in
those
offices
shall
be
submitted
by
the
president
of
the
state
35
board
of
land
commissioners
to
the
senate
for
the
advice
and
consent
of
the
36
senate
in
accordance
with
the
procedure
prescribed
in
this
section.
37
(e)
Appointments
made
pursuant
to
this
section
while
the
senate
is
in
38
session
shall
be
submitted
along
with
the
letter
of
appointment
to
the
sen
-
39
ate
forthwith
for
the
advice
and
consent
of
that
body.
Appointments
made
40
pursuant
to
this
section
while
the
senate
is
not
in
session
shall
be
submit
-
41
ted
along
with
the
letter
of
appointment
to
the
senate
pursuant
to
section
42
67
-
803,
Idaho
Code.
Should
the
senate
adjourn
without
granting
its
consent
43
to
an
appointment
the
appointment
shall
thereupon
become
void
and
a
vacancy
44
in
the
office
to
which
the
appointment
was
made
shall
exist,
and
the
office
45
shall
be
deemed
vacant
upon
the
date
of
adjournment.
It
is
the
duty
of
the
ap
-
46
pointing
authority
to
supply
the
senate
with
the
letter
of
appointment.
The
47
appointee
shall
supply
the
senate
with
the
documentation
it
requests.
48
All
appointments
made
pursuant
to
subsection
(c)
of
this
section,
ex
-
49
cept
those
appointments
for
which
a
term
of
office
is
fixed
by
law,
shall
ter
-
50
5
minate
at
the
expiration
of
any
gubernatorial
term.
Appointments
to
fill
the
1
vacancies
thus
created
by
the
expiration
of
the
term
of
office
of
the
gover
-
2
nor
shall
be
forthwith
submitted
to
the
senate
for
the
advice
and
consent
of
3
that
body,
and
when
so
submitted
shall
be
as
expeditiously
considered
as
pos
-
4
sible.
5
Upon
receipt
of
an
appointment
along
with
the
letter
of
appointment
in
6
the
senate
for
the
purpose
of
securing
the
advice
and
consent
of
the
sen
-
7
ate,
the
appointment
shall
be
referred
by
the
presiding
officer
to
the
appro
-
8
priate
committee
of
the
senate
for
consideration
and
report
prior
to
action
9
thereon
by
the
full
senate.
10
(f)
Excepting
the
appointments
made
pursuant
to
subsection
(c)
of
this
1
1
section,
whenever
an
appointee's
term
has
expired
as
prescribed
by
law,
12
the
governor
or
the
authorized
appointing
authority
must
fill
the
position
13
within
twelve
(12)
months
of
the
expiration
of
the
term.
However,
an
of
-
14
fice
will
be
vacant
if
the
governor
or
the
authorized
appointing
authority:
15
(i)
fails
to
timely
appoint
a
qualified
person
at
the
earlier
of
the
time
16
required
by
law
or
required
in
this
subsection;
or
(ii)
fails
to
provide
17
the
senate
with
an
appropriate
letter
or
document
of
appointment
by
the
18
thirty
-
sixth
legislative
day
of
the
subsequent
legislative
session.
All
19
letters
or
documents
of
appointment
must,
as
reasonably
possible,
accompany
20
the
additional
documentation
required
by
the
senate.
At
the
request
of
the
21
secretary
of
the
senate,
the
governor
or
the
authorized
appointing
authority
22
must
provide
the
additional
documentation.
23
(g)
It
is
the
intent
of
the
legislature
that
the
provisions
of
this
sec
-
24
tion
as
amended
by
this
chapter
shall
not
apply
to
appointments
which
have
25
been
made
prior
to
the
effective
date
of
this
chapter.
It
is
the
further
in
-
26
tent
of
the
legislature
that
the
provisions
of
this
section
shall
apply
to
27
the
offices
listed
in
this
section
and
to
any
office
created
by
law
or
exec
-
28
utive
order
which
succeeds
to
the
powers,
duties,
responsibilities
and
au
-
29
thorities
of
any
of
the
offices
listed
in
subsections
(c)
and
(d)
of
this
sec
-
30
tion.
31
SECTION
9.
This
act
shall
be
in
full
force
and
effect
on
and
after
July
32
1,
2027.
33