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S1136.....................................................by TRANSPORTATION PETROLEUM CLEAN WATER TRUST FUND - Amends existing law to provide for distribution of moneys from the Idaho Petroleum Clean Water Trust Fund when the unencumbered fund balance reaches $30,000,000; and to provide a distribution formula from the trust fund when the unencumbered fund balance equals $20,000,000. 02/10 Senate intro - 1st rdg - to printing 02/11 Rpt prt - to Transp
S1136|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature First Regular Session - 1999IN THE SENATE SENATE BILL NO. 1136 BY TRANSPORTATION COMMITTEE 1 AN ACT 2 RELATING TO THE IDAHO PETROLEUM CLEAN WATER TRUST FUND; AMENDING SECTION 3 41-4908, IDAHO CODE, TO DELETE THE REQUIREMENT THAT IMPOSITION OF THE 4 TRANSFER FEE SHALL BE SUSPENDED WHEN THE UNENCUMBERED FUND BALANCE REACHES 5 THIRTY MILLION DOLLARS, TO PROVIDE FOR DISTRIBUTION OF MONEYS FROM THE 6 IDAHO PETROLEUM CLEAN WATER TRUST FUND WHEN THE UNENCUMBERED FUND BALANCE 7 REACHES THIRTY MILLION DOLLARS, TO PROVIDE A DISTRIBUTION FORMULA FROM THE 8 TRUST FUND WHEN THE UNENCUMBERED FUND BALANCE EQUALS TWENTY MILLION DOL- 9 LARS AND TO MAKE TECHNICAL CORRECTIONS. 10 Be It Enacted by the Legislature of the State of Idaho: 11 SECTION 1. That Section 41-4908, Idaho Code, be, and the same is hereby 12 amended to read as follows: 13 41-4908. SOURCE OF TRUST FUND -- APPLICATION FEES -- APPLICATION FOR 14 ENROLLMENT -- TRANSFER FEES. (1) Every owner or operator of an underground 15 storage tank may, if he desires to apply to the trust fund to insure the 16 underground tank, make application for and pay into the trust fund an initial 17 application fee set by the administrator, but not to exceed twenty-five dol- 18 lars ($25.00) for each tank for which application for coverage is made. 19 (2) Every owner or operator of anabove ground20 aboveground storage tank may, if he desires to apply to the trust fund 21 to insure theabove groundaboveground tank, make 22 application for and pay into the trust fund an initial application fee set by 23 the administrator, but not to exceed twenty-five dollars ($25.00) for each 24 tank for which application for coverage is made. 25 (3) Every owner or operator of a farm tank or residential tank may, if he 26 desires to apply to the trust fund to insure the tank, make application for 27 and pay into the trust fund an initial application fee set by the administra- 28 tor, but not to exceed twenty-five dollars ($25.00) for each tank for which 29 application for coverage is made. 30 (4) Every owner or operator of a heating tank may, if he desires to apply 31 to the trust fund to insure the tank, make application for and pay into the 32 trust fund an initial application fee set by the administrator, but not to 33 exceed five dollars ($5.00) for each tank for which application for coverage 34 is made. 35 (5) The application for insurance shall be made to the administrator on 36 forms furnished and prescribed by him for the purpose of eliciting reasonably 37 available information as to the type and use of the storage tank, the type of 38 business enterprise of the tank owner or operator, the age of the storage 39 tank, the materials used in the construction of the tank and the inside and 40 outside protective coatings and other corrosion protective measures, leak 41 detection methods, spill and overfill prevention methods of the tank, the 42 location of the tank and its proximity to roads and buildings, the foundation 43 and type of material used as a bedding and fill for the tank, any available 2 1 inspection records of the tank including the gallons of petroleum products 2 entered into the tank and the gallon dispersements from the tank, and other 3 information that is reasonably prudent in order to obtain a sufficient body of 4 statistical data to determine the relative hazards of various categories of 5 tanks, the potential that future leaks or discharges may occur, and the condi- 6 tions under which cleanup costs and personal injury and property damage costs 7 may occur and vary in the severity of the release and the resultant costs to 8 the trust fund. 9 (6) The administrator shall act upon the application for insurance with 10 all reasonable promptness, and he shall make such investigations of the 11 applicant as he deems advisable to determine if the information contained in 12 the application for insurance is accurate and complete. The administrator 13 shall determine if the applicant's storage tanks meet all the eligibility 14 requirements and promptly notify the applicant of the acceptance or nonaccept- 15 ance of the application for insurance. The absence of unknown data requested 16 on the application shall not preclude an applicant's acceptance for coverage 17 by the trust fund, if the applicant is otherwise eligible for insurance under 18 this chapter. 19 (7) In addition to the application fees received by the trust fund pursu- 20 ant to this section, the trust fund shall receive the revenue produced by the 21 imposition of a "transfer fee" of one cent ($.01) per gallon on the delivery 22 or storage of all petroleum products as defined in subsection (24) of section 23 41-4903, Idaho Code, delivered or stored within the state of Idaho. This 24 transfer fee is hereby imposed upon the first licensed distributor who 25 receives, as receipt is determined in section 63-2403, Idaho Code, a petroleum 26 product within this state for the privilege of engaging in the delivery or 27 storage of petroleum products whose delivery or storage may present the danger 28 of a discharge into the environment and thus create the liability to be 29 funded. The fee imposed by this subsection shall not apply to (a) petroleum or 30 petroleum products which are first delivered or stored in this state in a con- 31 tainer of fifty-five (55) gallons or less if such container is intended to be 32 transferred to the ultimate consumer of the petroleum or petroleum 33 products ; or (b) petroleum or petroleum products delivered or 34 stored in this state for the purpose of packaging or repackaging into contain- 35 ers of fifty-five (55) gallons or less if such container is intended to be 36 transferred to the ultimate consumer of the petroleum or petroleum products. 37 (8) The transfer fee shall be collected by the commission on all petro- 38 leum products delivered or stored within this state after April 1, 1990. This 39 transfer fee shall be in addition to any excise tax imposed on motor fuel or 40 other petroleum products and shall be remitted to the commission with the 41 distributor's monthly report as required in section 63-2406, Idaho Code. The 42 distributor may deduct from his monthly report those gallons of petroleum 43 products returned to a licensed distributor's refinery or pipeline terminal 44 storage or exported from the state when supported by proper documents approved 45 by the commission. For the purpose of carrying out its duties under the provi- 46 sions of this chapter, the commission shall have the powers and duties pro- 47 vided in sections 63-3038, 63-3039, 63-3042 through 63-3066, 63-3068, 63-3071, 48 and 63-3074 through 63-3078, Idaho Code, which sections are incorporated by 49 reference herein as though set out verbatim. 50 (9) No person shall be excused from liability for any duty or fee imposed 51 in this chapter for failure to obtain a distributor's license. 52 (10) The director shall certify to the commission when the unencumbered 53 balance in the trust fund equals thirty million dollars ($30,000,000). Effec- 54 tive the first day of the second month following the date of such certifica- 55 tion, the imposition of the transfer fee shall besuspended3 1 distributed as follows: For the month of certification by the director and 2 monthly thereafter, the balance of the transfer fees and accumulated interest 3 accruing to the Idaho petroleum clean water trust fund shall be distributed: 4 ninety-seven percent (97%) to the restricted highway fund established in sec- 5 tion 40-701A, Idaho Code, and three percent (3%) to the Idaho department of 6 parks and recreation to be distributed as provided in subsection (1)(e)1., 2. 7 and 3. of section 63-2412, Idaho Code, and to the accounts specified in those 8 subparts according to the formula in those subparts . Thereafter, the 9 director shall certify to the commission when the unencumbered balance in the 10 trust fund equals twenty million dollars ($20,000,000). Effective the first 11 day of the second month following the date of such certification, the imposi- 12 tion of the transfer fee shall bereinitiateddistributed 13 as provided in section 41-4909, Idaho Code .
Statement of Purpose / Fiscal Impact STATEMENT OF PURPOSE RS 08940 This legislation relates to the "transfer fee" of the Idaho Petroleum Clean Water Trust Fund, established under Idaho Code 4l-4908. This fund provides insurance at the option of those who own or operate; aboveground storage tanks, farm or residential tanks or any heating tank. Idaho Code establishes two means of financing this fund; a twenty five dollar ($25) initial application fee and a one cent ($.0l) per-gallon transfer fee on delivery or storage of all petroleum products in the state of Idaho. Thislegislation pertains only to the transfer fee. According to Idaho Code this transfer fee is to be suspended after the director of the Department of Insurance has certified that the unencumbered balance in the trust fund is more than thirty million dollars ($30,000,000). This measure would remove the suspension requirement and change the distribution of the fee until the balance of the account has been certified by the director to be twenty million dollars ($20,000,000). This legislation redistribute the monies in the Idaho Petroleum Clean Water Trust Fund account according to the following schedule: 97% to the Restricted Highway Fund 3% to Idaho Department of Parks and Recreation c= FISCAL IMPACT None to the general fund. CONTACT Name: Stuart O. Davis Agency: Idaho Association of Highway Districts Phone: 345-5176 Statement of Purpose/Fiscal Impact S 1136