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H0622...........................................................by BUSINESS
PETROLEUM CLEAN WATER TRUST FUND BOARD - Amends existing law relating to
the Idaho Petroleum Clean Water Trust Fund to provide that a majority of
the board members shall constitute a quorum for the transaction of all
business; to remove language requiring a majority vote for board actions;
to provide that specified conflict of interest provisions shall be
applicable to board members; to provide that the board and its employees
shall not be personally liable in a private capacity for or on account of
certain acts or contracts; and to provide that actions against the board
shall be subject to the Idaho Tort Claims Act.
02/06 House intro - 1st rdg - to printing
02/09 Rpt prt - to Bus
02/18 Rpt out - rec d/p - to 2nd rdg
02/19 2nd rdg - to 3rd rdg
02/23 3rd rdg - PASSED - 66-0-4
AYES -- Andersen, Barraclough, Barrett, Bauer, Bayer, Bell, Black,
Block, Boe, Bolz, Bradford, Campbell, Cannon, Clark, Collins, Cuddy,
Deal, Denney, Douglas, Eberle, Edmunson, Eskridge, Field(18),
Field(23), Gagner, Garrett, Harwood, Henbest, Jaquet, Jones, Kellogg,
Kulczyk, Lake, Langford, Langhorst, Martinez, McGeachin, McKague,
Meyer, Miller, Mitchell, Moyle, Naccarato, Nielsen, Pasley-Stuart,
Raybould, Ridinger, Ring, Ringo, Robison, Rydalch, Sali, Sayler,
Schaefer, Shepherd, Shirley, Skippen, Smith(30), Smith(24), Smylie,
Snodgrass, Stevenson, Trail, Wills, Wood, Mr. Speaker
NAYS -- None
Absent and excused -- Bedke, Crow, Ellsworth, Roberts
Floor Sponsor - Meyer
Title apvd - to Senate
02/24 Senate intro - 1st rdg - to Com/HuRes
02/27 Rpt out - rec d/p - to 2nd rdg
03/01 2nd rdg - to 3rd rdg
03/15 3rd rdg - PASSED - 24-4-7
AYES -- Andreason, Bailey, Burtenshaw, Compton, Darrington, Gannon,
Geddes, Goedde, Hill, Ingram, Keough, Little, Lodge, Malepeai,
Marley, McKenzie, McWilliams, Noble, Pearce, Richardson, Schroeder,
Stegner, Sweet, Werk
NAYS -- Bunderson, Burkett, Calabretta, Kennedy
Absent and excused -- Brandt, Cameron, Davis, Noh, Sorensen,
Stennett, Williams
Floor Sponsor - Noble
Title apvd - to House
03/16 To enrol
03/17 Rpt enrol - Sp signed
03/18 Pres signed - To Governor
03/23 Governor signed
Session Law Chapter 175
Effective: 07/01/04
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-seventh Legislature Second Regular Session - 2004
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 622
BY BUSINESS COMMITTEE
1 AN ACT
2 RELATING TO THE IDAHO PETROLEUM CLEAN WATER TRUST FUND; AMENDING SECTION
3 41-4904, IDAHO CODE, TO PROVIDE THAT A MAJORITY OF THE BOARD MEMBERS SHALL
4 CONSTITUTE A QUORUM FOR THE TRANSACTION OF ALL BUSINESS AND TO REMOVE LAN-
5 GUAGE REQUIRING A MAJORITY VOTE FOR BOARD ACTIONS; AMENDING SECTION
6 41-4934, IDAHO CODE, TO PROVIDE THAT SPECIFIED CONFLICT OF INTEREST PROVI-
7 SIONS SHALL BE APPLICABLE TO BOARD MEMBERS; AMENDING SECTION 41-4945,
8 IDAHO CODE, TO PROVIDE THAT THE BOARD AND ITS EMPLOYEES SHALL NOT BE PER-
9 SONALLY LIABLE IN A PRIVATE CAPACITY FOR OR ON ACCOUNT OF CERTAIN ACTS OR
10 CONTRACTS; AND AMENDING SECTION 41-4946, IDAHO CODE, TO PROVIDE DESCRIP-
11 TIVE LANGUAGE AND TO PROVIDE THAT ACTIONS AGAINST THE BOARD SHALL BE SUB-
12 JECT TO THE IDAHO TORT CLAIMS ACT.
13 Be It Enacted by the Legislature of the State of Idaho:
14 SECTION 1. That Section 41-4904, Idaho Code, be, and the same is hereby
15 amended to read as follows:
16 41-4904. BOARD OF TRUSTEES OF THE FUND. (1) The governor shall appoint
17 seven (7) persons to be the board of trustees of the Idaho petroleum clean
18 water trust fund. One (1) member shall be a member of the state senate, one
19 (1) member shall be a member of the state house of representatives, one (1)
20 member shall be a representative of the financial community with expertise in
21 the area of insurance, accounting or finance, one (1) member shall be an engi-
22 neer, geologist or similarly trained scientist with experience in environmen-
23 tal remediation, one (1) member shall be a wholesale distributor of petroleum
24 products who participates in the trust fund and has less than five million
25 (5,000,000) gallons in annual sales, one (1) member shall be a wholesale dis-
26 tributor of petroleum products who participates in the trust fund and has from
27 five million (5,000,000) to ten million (10,000,000) gallons in annual sales,
28 and one (1) member shall be a retailer of petroleum products who participates
29 in the trust fund and has more than ten million (10,000,000) gallons in annual
30 sales. The governor shall appoint a chairman from the seven (7) members. The
31 members shall be appointed for terms of four (4) years, except that all vacan-
32 cies shall be filled for the unexpired term, provided that the first two (2)
33 appointments the governor makes after the effective date of this act shall
34 serve a term of two (2) years and the other five (5) members shall serve a
35 term of four (4) years. Thereafter, a member shall serve a term of four (4)
36 years. A certificate of appointment shall be filed in the office of the secre-
37 tary of state. A majority of the members shall constitute a quorum for the
38 transaction of all business or the exercise of any power or function of the
39 Idaho petroleum clean water trust fund. and a majority vote of the members
40 shall be necessary for any action taken by the board of trustees. Members of
41 the board of trustees shall receive a compensation for service as prescribed
42 in section 59-509(h), Idaho Code.
43 (2) The administrator of the fund shall be the state insurance fund
2
1 unless replaced by the board of trustees with another person. The administra-
2 tor shall serve at the pleasure of the board of trustees. The board of
3 trustees may appoint and employ such other persons as may be required by the
4 board and shall prescribe the duties and compensation of each such person.
5 (3) It shall be the duty of the board of trustees to direct the policies
6 and operation of the fund to assure that it is run as an efficient insurance
7 company, remains actuarially sound and maintains the public purposes for
8 which the Idaho petroleum clean water trust fund was created.
9 SECTION 2. That Section 41-4934, Idaho Code, be, and the same is hereby
10 amended to read as follows:
11 41-4934. PROHIBITED PECUNIARY INTERESTS IN PLAN MANAGEMENT. (1) Neither
12 the administrator nor any other person having responsibility for the manage-
13 ment of the trust fund or the investment or other handling of the trust fund
14 moneys or assets shall:
15 (a) Receive directly or indirectly or be pecuniarily interested in any
16 fee, commission, compensation or emolument, other than salary or other
17 similar compensation regularly fixed and allowed for services regularly
18 rendered to the trust fund, arising out of any transaction to which the
19 trust fund is or is to be a party;
20 (b) Receive compensation as a consultant to the trust fund while also
21 acting as a trustee or administrator, or as an employee of either;
22 (c) Have any direct or indirect material pecuniary interest in any loan
23 or investment of the trust fund.
24 (2) The director may, after reasonable notice and a hearing, prohibit the
25 administrator from employing or retaining or continuing to employ or retain
26 any person in the administration of the trust fund upon finding that such
27 employment or retention involves a conflict of interest not in the best inter-
28 ests of the trust fund or adversely affecting the interests of the owners or
29 operators insured by the trust fund.
30 (3) Any conflict of interest or prohibited pecuniary interest involving
31 the members of the board of trustees of the trust fund shall be governed
32 solely by the conflict of interest provisions of the Idaho nonprofit corpora-
33 tion act as set forth in section 30-3-81, Idaho Code.
34 SECTION 3. That Section 41-4945, Idaho Code, be, and the same is hereby
35 amended to read as follows:
36 41-4945. PERSONAL LIABILITY. The board and the administrator shall not,
37 nor shall any person employed by him them, be personally liable in his a pri-
38 vate capacity for or on account of any act performed or contract entered into
39 in good faith and without the intent to defraud, in connection with the admin-
40 istration of the fund or affairs relating thereto.
41 SECTION 4. That Section 41-4946, Idaho Code, be, and the same is hereby
42 amended to read as follows:
43 41-4946. ACTIONS AGAINST THE FUND, THE BOARD, ITS EMPLOYEES, AND ADMINIS-
44 TRATOR SUBJECT TO THE IDAHO TORT CLAIMS ACT. Any action against the fund, the
45 board, its employees, and the administrator shall be subject in full to the
46 Idaho tort claims act under chapter 9, title 6, Idaho Code.
STATEMENT OF PURPOSE
RS 13868
This bill makes technical corrections to the Idaho Petroleum
Clean Water Trust Fund Act I.C. 41-4901. The corrections allow a
quorum of the Board of Trustees of the fund to transact all
business for the Fund, require that conflict of interest issues
are resolved under the Idaho Nonprofit Corporation Act provisions
of I.C. 30-3-81, and include the Board in the limitations on
personal liability and actions against the Administrator in the
pre-existing law. These provisions update the statute to reflect
the existence of the Idaho Petroleum Clean Water Trust Fund Act,
which is now run by a Board of Trustees.
FISCAL IMPACT
This bill will have no fiscal impact on the General Fund or on
the Fund administered under this statute.
Contact
Name: Rep. Wayne Meyer
Phone: (208) 332-1000
Susie Budge Schaefer
Phone: (208) 345-6632
STATEMENT OF PURPOSE/FISCAL NOTE H 622