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LEGISLATURE
OF
THE
STATE
OF
IDAHO
Sixty-eighth
Legislature
Second
Regular
Session
-
2026
IN
THE
SENATE
SENATE
BILL
NO.
1265
BY
HEALTH
AND
WELFARE
COMMITTEE
AN
ACT
1
RELATING
TO
THE
PETROLEUM
CLEAN
WATER
TRUST
FUND
ACT;
PROVIDING
LEGISLATIVE
2
INTENT;
AMENDING
SECTION
41
-
4904,
IDAHO
CODE,
TO
REVISE
A
PROVISION
RE
-
3
GARDING
THE
BOARD
OF
TRUSTEES
OF
THE
PETROLEUM
CLEAN
WATER
TRUST
FUND;
4
AMENDING
SECTION
41
-
4910,
IDAHO
CODE,
TO
REMOVE
OUTDATED
PROVISIONS
RE
-
5
GARDING
DISTRIBUTION
OF
FUND
MONEYS;
REPEALING
SECTION
41
-
4910A,
IDAHO
6
CODE,
RELATING
TO
APPORTIONMENT
OF
MONEYS;
AMENDING
SECTION
41
-
4911,
7
IDAHO
CODE,
TO
REMOVE
CODE
REFERENCES;
REPEALING
SECTION
41
-
4925,
IDAHO
8
CODE,
RELATING
TO
THE
APPLICATION
FOR
TRUST
REGISTRATION;
AMENDING
SEC
-
9
TION
41
-
4925A,
IDAHO
CODE,
TO
REMOVE
OBSOLETE
LANGUAGE;
AMENDING
SEC
-
10
TION
41
-
4930,
IDAHO
CODE,
TO
REVISE
A
PROVISION
REGARDING
ISSUANCE
OF
1
1
CERTIFICATE
OF
REGISTRATION;
AND
DECLARING
AN
EMERGENCY
AND
PROVIDING
12
AN
EFFECTIVE
DATE.
13
Be
It
Enacted
by
the
Legislature
of
the
State
of
Idaho:
14
SECTION
1.
IDAHO
CODE
CLEANUP
-
-
LEGISLATIVE
INTENT.
It
is
the
intent
15
of
the
Legislature
to
ensure
that
the
state
laws
provided
in
Idaho
Code
are
16
streamlined,
up
-
to
-
date,
and
essential
for
the
citizens
of
Idaho,
while
best
17
serving
the
public
health,
safety,
and
welfare.
In
accordance
with
the
Idaho
18
Code
Cleanup
Act,
following
comprehensive
review,
the
Legislature
has
iden
-
19
tified
the
provisions
of
this
act
as
obsolete,
outdated,
or
unnecessary.
20
SECTION
2.
That
Section
41
-
4904,
Idaho
Code,
be,
and
the
same
is
hereby
21
amended
to
read
as
follows:
22
41
-
4904.
BOARD
OF
TRUSTEES
OF
THE
FUND.
(1)
The
governor
shall
appoint
23
seven
(7)
persons
to
be
the
board
of
trustees
of
the
Idaho
petroleum
clean
24
water
trust
fund.
One
(1)
member
shall
be
a
member
of
the
state
senate,
one
25
(1)
member
shall
be
a
member
of
the
state
house
of
representatives,
one
(1)
26
member
shall
be
a
representative
of
the
financial
community
with
expertise
27
in
the
area
of
insurance,
accounting
or
finance,
one
(1)
member
shall
be
an
28
engineer,
geologist
or
similarly
trained
scientist
with
experience
in
envi
-
29
ronmental
remediation
and
three
(3)
members
shall
be
wholesale
distributors
30
of
petroleum
products.
The
governor
shall
appoint
a
chairman
from
the
seven
31
(7)
members.
The
members
shall
be
appointed
for
terms
of
four
(4)
years,
ex
-
32
cept
that
all
vacancies
shall
be
filled
for
the
unexpired
term
,
provided
that
33
the
first
two
(2)
appointments
the
governor
makes
after
the
effective
date
34
of
this
act
shall
serve
a
term
of
two
(2)
years
and
the
other
five
(5)
members
35
shall
serve
a
term
of
four
(4)
years.
Thereafter,
a
member
shall
serve
a
term
36
of
four
(4)
years
.
A
certificate
of
appointment
shall
be
filed
in
the
office
37
of
the
secretary
of
state.
A
majority
of
the
members
shall
constitute
a
quo
-
38
rum
for
the
transaction
of
all
business
or
the
exercise
of
any
power
or
func
-
39
tion
of
the
Idaho
petroleum
clean
water
trust
fund.
Members
of
the
board
of
40
2
trustees
shall
receive
a
compensation
for
service
as
prescribed
in
section
1
59
-
509(n),
Idaho
Code.
2
(2)
The
administrator
of
the
fund
shall
be
the
state
insurance
fund
un
-
3
less
replaced
by
the
board
of
trustees
with
another
person.
The
adminis
-
4
trator
shall
serve
at
the
pleasure
of
the
board
of
trustees.
The
board
of
5
trustees
may
appoint
and
employ
such
other
persons
as
may
be
required
by
the
6
board
and
shall
prescribe
the
duties
and
compensation
of
each
such
person.
7
(3)
It
shall
be
the
duty
of
the
board
of
trustees
to
direct
the
poli
-
8
cies
and
operation
of
the
fund
to
assure
that
it
is
run
as
an
efficient
insur
-
9
ance
company,
remains
actuarially
sound
and
maintains
the
public
purposes
10
for
which
the
Idaho
petroleum
clean
water
trust
fund
was
created.
1
1
SECTION
3.
That
Section
41
-
4910,
Idaho
Code,
be,
and
the
same
is
hereby
12
amended
to
read
as
follows:
13
41
-
4910.
DISTRIBUTION
OF
APPLICATION
FEES
AND
TRANSFER
FEES.
(1)
The
14
application
fees
and
the
transfer
fees
collected
as
provided
in
this
chapter
15
shall
be
promptly
remitted
to
the
state
treasurer
for
deposit
in
the
Idaho
16
petroleum
clean
water
trust
fund.
The
transfer
fees
and
accumulated
inter
-
17
est
which
accrued
to
the
fund
prior
to
August
3,
1995,
shall
remain
in
the
18
fund.
The
transfer
fees
and
accumulated
interest,
which
have
been
held
in
a
19
separate
suspense
account
since
August
3,
1995,
shall
be
distributed
as
pro
-
20
vided
in
subsection
(4)
of
this
section.
The
transfer
fees
and
accumulated
21
interest
which
accrue
to
the
Idaho
petroleum
clean
water
trust
fund
subse
-
22
quent
to
April
1,
1997,
shall
be
distributed
monthly
thereafter
as
provided
23
in
subsection
(5)
(4)
of
this
section.
24
(2)
An
amount
of
money
equal
to
the
actual
cost
of
collecting,
adminis
-
25
tering
and
enforcing
the
transfer
fee
by
the
commission,
as
determined
by
it,
26
shall
be
retained
by
the
commission.
The
amount
retained
by
the
commission
27
shall
not
exceed
the
amount
authorized
to
be
expended
by
appropriation
by
the
28
legislature.
Any
unencumbered
balance
in
excess
of
the
actual
cost
of
col
-
29
lection,
administering
and
enforcing
the
transfer
fee
requirements
by
the
30
commission
at
the
end
of
each
fiscal
year
shall
be
remitted
to
the
state
trea
-
31
surer
for
deposit
into
the
Idaho
petroleum
clean
water
trust
fund.
32
(3)
From
the
receipts
of
the
transfer
fee,
an
amount
of
money
shall
be
33
distributed
to
the
state
refund
account
established
under
section
63
-
3067,
34
Idaho
Code,
sufficient
to
reimburse
that
account
for
all
current
refund
35
claims
under
this
chapter
paid
from
that
account.
Any
refunds
due
and
owing
36
from
the
commission
under
this
chapter
shall
be
paid
from
the
state
refund
37
account
and
those
moneys
are
hereby
continuously
appropriated
for
that
pur
-
38
pose.
39
(4)
For
the
distribution
on
April
1,
1997,
the
balance
of
the
transfer
40
fees
and
accumulated
interest
accruing
to
the
separate
suspense
account
es
-
41
tablished
for
such
fees
on
August
3,
1995,
which
remain
after
distributing
42
the
amounts
specified
in
subsections
(2)
and
(3)
of
this
section,
shall
be
43
distributed
as
follows:
44
(a)
Twenty
percent
(20%)
to
the
Idaho
petroleum
clean
water
trust
fund
45
established
in
section
41
-
4905,
Idaho
Code;
46
(b)
Three
percent
(3%)
to
the
Idaho
department
of
parks
and
recreation
47
in
accordance
with
subparagraphs
1.,
2.,
and
3.
of
paragraph
(f),
sub
-
48
section
(1)
of
section
63
-
2412,
Idaho
Code;
and
49
3
(c)
The
remainder
shall
be
distributed:
1
(i)
Six
million
dollars
($6,000,000)
to
the
state
highway
account
2
for
administration
by
the
Idaho
transportation
department
as
pro
-
3
vided
in
section
41
-
4910A,
Idaho
Code;
and
4
(ii)
The
balance
remaining
to
the
highway
distribution
account
5
established
in
section
40
-
701,
Idaho
Code.
6
(5)
(4)
For
the
distribution
at
the
end
of
fiscal
year
1997
and
monthly
7
thereafter,
the
balance
of
the
transfer
fees
and
accumulated
interest
ac
-
8
cruing
to
the
Idaho
petroleum
clean
water
trust
fund
which
remain
after
dis
-
9
tributing
the
amounts
specified
in
subsections
(2)
and
(3)
of
this
section,
10
shall
be
distributed
as
follows:
1
1
(a)
Seventy
-
seven
percent
(77%)
to
the
highway
distribution
account
12
established
in
section
40
-
701,
Idaho
Code;
and
13
(b)
Three
percent
(3%)
to
the
Idaho
department
of
parks
and
recreation
14
in
accordance
with
subparagraphs
1.,
2.,
and
3.
of
paragraph
(f),
sub
-
15
section
(1)
of
section
63
-
2412,
Idaho
Code.
16
SECTION
4.
That
Section
41
-
4910A
,
Idaho
Code,
be,
and
the
same
is
hereby
17
repealed.
18
SECTION
5.
That
Section
41
-
4911,
Idaho
Code,
be,
and
the
same
is
hereby
19
amended
to
read
as
follows:
20
41
-
4911.
ISSUANCE
OF
CONTRACTS
OF
INSURANCE
BY
THE
ADMINISTRATOR
OF
21
THE
IDAHO
PETROLEUM
CLEAN
WATER
TRUST
FUND
-
-
DEFERRAL.
(1)
The
administra
-
22
tor
may
issue
a
contract
of
insurance
to
an
owner
or
operator
of
a
petroleum
23
storage
tank
that,
based
upon
a
consideration
of
the
owner
or
operator's
ap
-
24
plication
for
insurance
and
appropriate
investigation
by
the
administrator,
25
meets
the
eligibility
provisions
of
this
chapter
and
the
underwriting
re
-
26
quirements
established
by
the
administrator.
27
(2)
The
administrator
may
defer
issuing
contracts
of
insurance
to
cer
-
28
tain
categories
of
petroleum
storage
tank
owners
or
operators
if
necessary
29
for
the
sound
operation
of
the
trust
fund.
30
(3)
The
administrator
shall
consider
the
following
factors
in
deter
-
31
mining
whether
to
defer
the
issuance
of
contracts
of
insurance
to
any
cate
-
32
gory
of
petroleum
storage
tank
owners
or
operators:
33
(a)
The
underwriting
capacity
of
the
trust
fund;
34
(b)
Any
requirement
of
federal
or
state
law
or
regulation
imposed
on
any
35
category
of
petroleum
storage
tank
owners
or
operators
to
demonstrate
36
financial
responsibility
for
corrective
action
and
compensation
to
37
third
parties
for
bodily
injury
and
property
damage
arising
from
acci
-
38
dental
releases
from
petroleum
storage
tanks;
39
(c)
The
ability
of
the
administrator
to
process
insurance
applications
40
from
different
categories
of
petroleum
storage
tank
owners
or
opera
-
41
tors.
42
(4)
Any
decision
by
the
administrator
to
defer
issuing
contracts
of
in
-
43
surance
to
any
category
of
petroleum
storage
tank
owners
or
operators
shall
44
be
documented
in
the
plan
of
operation,
or
an
amendment
thereto,
submitted
to
45
the
director
of
the
department
of
insurance
pursuant
to
sections
41
-
4925
or
46
41
-
4925A,
Idaho
Code,
and
subject
to
the
director's
approval.
47
4
(5)
The
administrator
may
issue
contracts
of
insurance
to
deferred
1
categories
of
petroleum
storage
tank
owners
or
operators
when
the
need
for
2
deferral
documented
in
subsection
(4)
of
this
section
no
longer
exists,
as
3
demonstrated
by
an
amendment
to
the
plan
of
operation
submitted
to
and
ap
-
4
proved
by
the
director
of
the
department
of
insurance
pursuant
to
section
5
41
-
4925A,
Idaho
Code.
6
SECTION
6.
That
Section
41
-
4925
,
Idaho
Code,
be,
and
the
same
is
hereby
7
repealed.
8
SECTION
7.
That
Section
41
-
4925A,
Idaho
Code,
be,
and
the
same
is
hereby
9
amended
to
read
as
follows:
10
41
-
4925A.
AMENDMENTS
TO
PLAN
OF
OPERATION.
(1)
Any
amendment
to
the
1
1
plan
of
operation
prepared
by
the
administrator
for
the
purpose
of
deferring
12
the
issuance
of
contracts
of
insurance
to
any
category
of
petroleum
storage
13
tank
owners
or
operators
or
for
issuing
contracts
of
insurance
to
any
de
-
14
ferred
category
of
petroleum
storage
tank
owners
or
operators
shall
be
sub
-
15
mitted
to
the
director
of
the
department
of
insurance.
16
(2)
The
director
shall
review
the
amendment
and
shall,
with
all
reason
-
17
able
promptness,
approve,
approve
as
modified,
or
disapprove
of
the
amend
-
18
ment
to
the
plan
of
operation.
If
the
amendment
is
approved,
the
adminis
-
19
trator
may
issue
contracts
of
insurance
and
otherwise
operate
the
trust
fund
20
in
a
manner
consistent
with
the
amended
plan
of
operation.
If
the
amend
-
21
ment
is
disapproved,
the
administrator
must
operate
the
trust
fund
in
a
man
-
22
ner
consistent
with
the
provisions
of
the
plan
of
operation
as
submitted
to
23
the
director
in
the
trust
fund's
application
for
registration
under
section
24
41
-
4925,
Idaho
Code
.
25
(3)
The
director
may
request
such
relevant
documentation
and
informa
-
26
tion,
including
an
actuarial
analysis
of
the
underwriting
capacity
of
the
27
trust
fund,
as
is
reasonably
necessary
to
evaluate
the
proposed
amendment
to
28
the
plan
of
operation.
29
(4)
All
procedures
and
policies
concerning
the
approval,
modification
30
or
disapproval
of
any
amendment
to
the
plan
of
operation
are
subject
to
the
31
provisions
of
chapter
52,
title
67,
Idaho
Code,
as
well
as
the
rules
of
prac
-
32
tice
and
procedure
of
the
department
of
insurance.
33
SECTION
8.
That
Section
41
-
4930,
Idaho
Code,
be,
and
the
same
is
hereby
34
amended
to
read
as
follows:
35
41
-
4930.
EXISTING
INSURANCE
LAWS
TO
APPLY
TO
THE
TRUST
FUND
WITH
CER
-
36
TAIN
EXCEPTIONS.
The
trust
fund
shall
comply
with
all
of
the
applicable
pro
-
37
visions
of
title
41,
Idaho
Code,
with
certain
exceptions
as
follows:
38
(1)
The
creation
of
the
trust
fund
by
act
of
the
legislature
shall
not
39
be
deemed
to
be
an
ownership,
control
or
operation
of
an
insurer
by
a
govern
-
40
mental
entity,
as
referred
to
in
section
41
-
309,
Idaho
Code,
and
the
surplus
41
funds
of
the
trust
fund
shall
be
considered
to
be
dedicated
and
held
in
re
-
42
serve
for
the
purpose
of
providing
funds
for
the
payment
of
claims
arising
43
out
of
the
discharge
of
petroleum
products
from
tanks
covered
by
a
contract
44
of
insurance
issued
to
the
tank
owner
or
operator
by
the
trust
fund
as
pro
-
45
5
vided
for
in
section
41
-
4906,
Idaho
Code.
The
absolute
control
of
the
trust
1
fund
shall
be
vested
in
the
board.
2
(2)
The
provisions
of
this
chapter
shall
be
construed
to
be
contained
3
in
the
document
of
organization
and
bylaws
of
the
trust
fund
for
purposes
of
4
sections
41
-
319,
41
-
320
and
41
-
322,
Idaho
Code,
and
the
director
shall
issue
5
a
certificate
of
registration
to
and
in
the
name
of
the
trust
fund
upon
his
6
finding
that
it
has
met
all
other
appropriate
provisions
of
the
Idaho
Code,
7
including
sections
41
-
313,
41
-
316
and
41
-
316A,
Idaho
Code
.
8
(3)
Section
41
-
337,
Idaho
Code,
shall
not
apply
to
contracts
of
insur
-
9
ance
issued
by
the
trust
fund.
10
(4)
Sections
41
-
1004
and
41
-
1022,
Idaho
Code,
shall
not
apply
to
em
-
1
1
ployees
of
the
state
insurance
fund
or
the
trust
fund.
12
(5)
Section
41
-
1103,
Idaho
Code,
shall
not
apply
to
employees
of
the
13
state
insurance
fund
or
the
trust
fund,
provided
the
employees
restrict
14
their
claims
adjusting
and
investigation
operations
only
to
those
contracts
15
issued
by
the
trust
fund.
16
(6)
Except
as
otherwise
provided
in
this
chapter,
chapter
28,
title
41,
17
Idaho
Code,
and
chapter
14,
title
30,
Idaho
Code,
shall
not
apply
to
the
trust
18
fund
nor
shall
this
trust
fund
be
construed
to
be
a
domestic
mutual
insurer,
19
nor
a
reciprocal
insurer,
nor
any
other
type
of
insurer
currently
regulated
20
by
title
41,
Idaho
Code,
and
the
only
organizational
requirements
of
this
21
trust
fund
shall
be
those
enumerated
in
this
chapter.
22
SECTION
9.
An
emergency
existing
therefor,
which
emergency
is
hereby
23
declared
to
exist,
this
act
shall
be
in
full
force
and
effect
on
and
after
24
July
1,
2026.
25