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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
|||| 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 groundaboveground storage tank 18 may, if he desires to apply to the trust fund to insure the above ground19 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 thirtytwenty-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 twentyfifteen 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