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S1584......................................................by STATE AFFAIRS
PETROLEUM PRODUCTS - Amends existing law to provide for suspension of the
transfer fee imposed on petroleum products delivered or stored within the
state when the unencumbered Clean Water Trust fund balance equals
$25,000,000; and to provide for reinitiation of the transfer fee when the
unencumbered balance in the fund equals $15,000,000.
04/04 Senate intro - 1st rdg - to printing
04/04 Rpt prt - to Transp
Rpt out - to 2nd rdg
Rules susp - PASSED - 32-3-0
AYES--Andreason, Boatright, Bunderson, Burtenshaw, Cameron, Crow,
Danielson, Darrington, Davis, Deide, Dunklin, Frasure, Geddes,
Hawkins, Ingram, Ipsen, Keough, King-Barrutia, Lee, McLaughlin, Noh,
Parry, Richardson, Riggs, Risch, Sandy, Sorensen, Stegner, Thorne,
Walton, Wheeler, Williams
NAYS--Schroeder, Stennett, Whitworth
Absent and excused--None
Floor Sponsor - Frasure
Title apvd - to House
04/05 House intro - 1st rdg - to 2nd rdg
Rls susp - PASSED - 53-1-16
AYES -- Barraclough(Barraclough), Barrett, Bell, Bieter, Black, Boe,
Bruneel, Campbell, Cheirrett, Crow, Cuddy, Deal, Denney, Ellsworth,
Field(13), Field(20), Hadley, Hammond, Henbest, Hornbeck, Jaquet,
Jones, Judd, Kellogg, Kempton, Kendell, Kunz, Linford, Mader, Marley,
Meyer, Montgomery, Mortensen, Moyle, Pearce, Pischner, Pomeroy,
Reynolds, Ridinger, Ringo, Robison, Sali, Schaefer, Sellman,
Shepherd, Smylie, Stevenson, Stoicheff, Stone, Taylor, Trail, Wood,
Zimmermann
NAYS -- McKague
Absent and excused -- Alltus, Callister, Chase, Clark, Gagner,
Geddes, Gould, Hansen(23), Hansen(29), Lake, Loertscher(Loertscher),
Moss, Smith, Tilman, Wheeler, Mr Speaker
Floor Sponsors - Kempton, Deal
Title apvd - to Senate
04/05 To enrol
04/06 Rpt enrol - Pres signed - Sp signed
04/07 To Governor
04/17 Governor signed
Session Law Chapter 419
Effective: 07/01/00
S1584
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-fifth Legislature Second Regular Session - 2000
IN THE SENATE
SENATE BILL NO. 1584
BY STATE AFFAIRS COMMITTEE
1 AN ACT
2 RELATING TO THE IDAHO PETROLEUM CLEAN WATER TRUST FUND; AMENDING SECTION
3 41-4908, IDAHO CODE, TO PROVIDE FOR SUSPENSION OF THE TRANSFER FEE IMPOSED
4 ON PETROLEUM PRODUCTS DELIVERED OR STORED WITHIN THE STATE WHEN THE UNEN-
5 CUMBERED BALANCE IN THE FUND EQUALS TWENTY-FIVE MILLION DOLLARS AND FOR
6 REINITIATION OF THE TRANSFER FEE WHEN THE UNENCUMBERED BALANCE IN THE FUND
7 EQUALS FIFTEEN MILLION DOLLARS AND TO MAKE TECHNICAL CORRECTIONS.
8 Be It Enacted by the Legislature of the State of Idaho:
9 SECTION 1. That Section 41-4908, Idaho Code, be, and the same is hereby
10 amended to read as follows:
11 41-4908. SOURCE OF TRUST FUND -- APPLICATION FEES -- APPLICATION FOR
12 ENROLLMENT -- TRANSFER FEES. (1) Every owner or operator of an underground
13 storage tank may, if he desires to apply to the trust fund to insure the
14 underground tank, make application for and pay into the trust fund an initial
15 application fee set by the administrator, but not to exceed twenty-five dol-
16 lars ($25.00) for each tank for which application for coverage is made.
17 (2) Every owner or operator of an above ground aboveground storage tank
18 may, if he desires to apply to the trust fund to insure the above ground
19 aboveground tank, make application for and pay into the trust fund an initial
20 application fee set by the administrator, but not to exceed twenty-five dol-
21 lars ($25.00) for each tank for which application for coverage is made.
22 (3) Every owner or operator of a farm tank or residential tank may, if he
23 desires to apply to the trust fund to insure the tank, make application for
24 and pay into the trust fund an initial application fee set by the administra-
25 tor, but not to exceed twenty-five dollars ($25.00) for each tank for which
26 application for coverage is made.
27 (4) Every owner or operator of a heating tank may, if he desires to apply
28 to the trust fund to insure the tank, make application for and pay into the
29 trust fund an initial application fee set by the administrator, but not to
30 exceed five dollars ($5.00) for each tank for which application for coverage
31 is made.
32 (5) The application for insurance shall be made to the administrator on
33 forms furnished and prescribed by him for the purpose of eliciting reasonably
34 available information as to the type and use of the storage tank, the type of
35 business enterprise of the tank owner or operator, the age of the storage
36 tank, the materials used in the construction of the tank and the inside and
37 outside protective coatings and other corrosion protective measures, leak
38 detection methods, spill and overfill prevention methods of the tank, the
39 location of the tank and its proximity to roads and buildings, the foundation
40 and type of material used as a bedding and fill for the tank, any available
41 inspection records of the tank including the gallons of petroleum products
42 entered into the tank and the gallon dispersements from the tank, and other
43 information that is reasonably prudent in order to obtain a sufficient body of
2
1 statistical data to determine the relative hazards of various categories of
2 tanks, the potential that future leaks or discharges may occur, and the condi-
3 tions under which cleanup costs and personal injury and property damage costs
4 may occur and vary in the severity of the release and the resultant costs to
5 the trust fund.
6 (6) The administrator shall act upon the application for insurance with
7 all reasonable promptness, and he shall make such investigations of the appli-
8 cant as he deems advisable to determine if the information contained in the
9 application for insurance is accurate and complete. The administrator shall
10 determine if the applicant's storage tanks meet all the eligibility require-
11 ments and promptly notify the applicant of the acceptance or nonacceptance of
12 the application for insurance. The absence of unknown data requested on the
13 application shall not preclude an applicant's acceptance for coverage by the
14 trust fund, if the applicant is otherwise eligible for insurance under this
15 chapter.
16 (7) In addition to the application fees received by the trust fund pursu-
17 ant to this section, the trust fund shall receive the revenue produced by the
18 imposition of a "transfer fee" of one cent ($.01) per gallon on the delivery
19 or storage of all petroleum products as defined in subsection (24) of section
20 41-4903, Idaho Code, delivered or stored within the state of Idaho. This
21 transfer fee is hereby imposed upon the first licensed distributor who
22 receives, as receipt is determined in section 63-2403, Idaho Code, a petroleum
23 product within this state for the privilege of engaging in the delivery or
24 storage of petroleum products whose delivery or storage may present the danger
25 of a discharge into the environment and thus create the liability to be
26 funded. The fee imposed by this subsection shall not apply to: (a) petroleum
27 or petroleum products which are first delivered or stored in this state in a
28 container of fifty-five (55) gallons or less if such container is intended to
29 be transferred to the ultimate consumer of the petroleum or petroleum
30 products; or (b) petroleum or petroleum products delivered or stored in this
31 state for the purpose of packaging or repackaging into containers of fifty-
32 five (55) gallons or less if such container is intended to be transferred to
33 the ultimate consumer of the petroleum or petroleum products.
34 (8) The transfer fee shall be collected by the commission on all petro-
35 leum products delivered or stored within this state after April 1, 1990. This
36 transfer fee shall be in addition to any excise tax imposed on motor fuel or
37 other petroleum products and shall be remitted to the commission with the
38 distributor's monthly report as required in section 63-2406, Idaho Code. The
39 distributor may deduct from his monthly report those gallons of petroleum
40 products returned to a licensed distributor's refinery or pipeline terminal
41 storage or exported from the state when supported by proper documents approved
42 by the commission. For the purpose of carrying out its duties under the provi-
43 sions of this chapter, the commission shall have the powers and duties pro-
44 vided in sections 63-3038, 63-3039, 63-3042 through 63-3066, 63-3068, 63-3071,
45 and 63-3074 through 63-3078, Idaho Code, which sections are incorporated by
46 reference herein as though set out verbatim.
47 (9) No person shall be excused from liability for any duty or fee imposed
48 in this chapter for failure to obtain a distributor's license.
49 (10) The director shall certify to the commission when the unencumbered
50 balance in the trust fund equals thirty twenty-five million dollars
51 ($3025,000,000). Effective the first day of the second month following the
52 date of such certification, the imposition of the transfer fee shall be sus-
53 pended. Thereafter, the director shall certify to the commission when the
54 unencumbered balance in the trust fund equals twenty fifteen million dollars
55 ($2015,000,000). Effective the first day of the second month following the
3
1 date of such certification, the imposition of the transfer fee shall be
2 reinitiated.
STATEMENT OF PURPOSE
RS 10344
State law provides that when the unencumbered balance in the Idaho Petroleum
Clean Water Trust Fund equals $30 million, the collection of the one-cent transfer
fee per gallon of petroleum products shall be suspended. Thereafter, when the
unencumbered balance in the trust fund declines to $20 million, the transfer fees
shall be reinitiated. In the fall of 1999, the Manager of the State Insurance Fund
certified that the unencumbered balance had reached $30 million and the Tax
Commission suspended the fee. This legislation changes the triggers downward
by $5 million to $25 million and $15 million respectively.
FISCAL NOTE
At the end of calendar year 1999, the unencumbered balance in the Petroleum
Clean Water Trust Fund was $31.4 million. Assuming claims and underwriting
expenses exceed investment income and registration fees an average of $2.5
million each year, this legislation will delay reinstatement of the transfer fee by
two years. However, a reduction of $5 million in the asset base would result in
lower investment earnings so that once reinstated the transfer fees would stay in
place longer before reaching the new $25 million suspension trigger.
Contact: Senator Evan Frasure 2-1000
STATEMENT OF PURPOSE/FISCAL NOTE S 1584