Amends, repeals, and adds to existing law to provide for the Director of the Department of Insurance to serve as the Director of the Department of Finance on and after July 1, 2027.

LEGISLATURE OF THE STATE OF IDAHO
Sixty-eighth Legislature Second Regular Session - 2026
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 854
BY WAYS AND MEANS COMMITTEE
AN ACT	1
RELATING TO THE DEPARTMENT OF FINANCE AND THE DEPARTMENT OF INSURANCE;	2
PROVIDING LEGISLATIVE INTENT; REPEALING SECTION 67-2701, IDAHO CODE,	3
RELATING TO THE DEPARTMENT OF FINANCE CREATION, DIRECTOR, ORGANI-	4
ZATION, AND POWERS AND DUTIES; AMENDING CHAPTER 27, TITLE 67, IDAHO	5
CODE, BY THE ADDITION OF A NEW SECTION 67-2701, IDAHO CODE, TO ESTAB-	6
LISH PROVISIONS REGARDING THE DEPARTMENT OF FINANCE AND TO PROVIDE FOR	7
THE DIRECTOR, ORGANIZATION, AND POWERS AND DUTIES; AMENDING SECTION	8
41-202, IDAHO CODE, TO PROVIDE FOR THE DIRECTOR OF THE DEPARTMENT OF IN-	9
SURANCE TO SERVE AS THE DIRECTOR OF THE DEPARTMENT OF FINANCE; AMENDING	10
SECTION 41-206, IDAHO CODE, TO PROVIDE THAT THE DIRECTOR MAY UTILIZE	11
OR ADMINISTRATIVELY COMBINE THE DIVISIONS OF FINANCE AND INSURANCE OR	12
EMPLOYEES THEREOF IN ORDER TO ACHIEVE THE DUTIES OF EITHER DEPARTMENT;	13
AMENDING SECTION 26-2412, IDAHO CODE, TO REMOVE OBSOLETE LANGUAGE; RE-	14
PEALING SECTION 28-44-111, IDAHO CODE, RELATING TO COOPERATION BETWEEN	15
DEPARTMENTS; AMENDING SECTION 59-904, IDAHO CODE, TO REMOVE OBSOLETE	16
LANGUAGE; AND PROVIDING AN EFFECTIVE DATE.	17
Be It Enacted by the Legislature of the State of Idaho:	18
SECTION 1. LEGISLATIVE INTENT. It is the intent of the Legislature to	19
provide for greater efficiencies between the Department of Finance and the	20
Department of Insurance. To this end, the Legislature hereby establishes	21
that, on and after July 1, 2027, the Director of the Department of Insurance	22
shall concurrently serve as the director of the Department of Finance. The	23
director shall find and implement cross-departmental efficiencies between	24
the Department of Insurance and the Department of Finance in areas that in-	25
clude but are not limited to administrative services, financial and account-	26
ing support, and information technology.	27
SECTION 2. That Section 67-2701, Idaho Code, be, and the same is hereby	28
repealed.	29
SECTION 3. That Chapter 27, Title 67, Idaho Code, be, and the same is	30
hereby amended by the addition thereto of a NEW SECTION, to be known and des-	31
ignated as Section 67-2701, Idaho Code, and to read as follows:	32
67-2701. DEPARTMENT OF FINANCE -- CREATION -- DIRECTOR -- ORGANIZA-	33
TION -- POWERS AND DUTIES. (1) There is hereby created the department of fi-	34
nance. The department shall, for the purposes of section 20, article IV of	35
the constitution of the state of Idaho, be an executive department of state	36
government.	37
(2) The director of the department of insurance as appointed pursuant	38
to section 41-202, Idaho Code, shall be the director of the department of fi-	39
nance. All responsibilities, powers, and duties of the director of finance	40
shall be conferred to the director of the department of insurance.	41

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2
(3) Neither the director of the department nor any administrator of a	1
division in the department shall be the owner of or financially interested	2
either directly or indirectly in any banking or insurance corporation sub-	3
ject to the supervision of the department.	4
(4) The department of finance shall be composed of such divisions as	5
are established by law and such other units as may be administratively estab-	6
lished. The director shall appoint division administrators to serve, at the	7
pleasure of the director, to head such divisions as may be established. The	8
director shall, subject to the approval of the governor, fix the salary of	9
each administrator.	10
(5) The director shall have power:	11
(a) To exercise the rights, powers and duties vested by law in the de-	12
partment or in the director; and	13
(b) To execute the laws relating to banks and banking.	14
(6) The director may utilize or administratively combine the divisions	15
or employees of the department of finance with the department of insurance in	16
order to achieve the duties of either department.	17
SECTION 4. That Section 41-202, Idaho Code, be, and the same is hereby	18
amended to read as follows:	19
41-202. DIRECTOR -- APPOINTMENT -- TERM -- QUALIFICATIONS. (1) The di-	20
rector of the department of insurance shall be the chief executive officer of	21
the department of insurance.	22
(2) The director shall be appointed by the governor and shall hold of-	23
fice for a term of four (4) years, subject to earlier removal by the governor.	24
A vacancy in the office of director shall be filled for the balance of the un-	25
expired term only.	26
(3) The governor shall not appoint as director any individual, and no	27
individual shall hold the office of director, who is not qualified therefor	28
as follows:	29
(a) Must be a qualified elector of the state of Idaho; and	30
(b) Must have had at least five (5) years' practical experience in one	31
or more of the types of insurance business subject to regulation by the	32
director, or have had other professional or business experience reason-	33
ably adequate in character and scope to equip him to discharge the du-	34
ties and fulfill the responsibilities of the office of director.	35
(4) On and after July 1, 2027, the director shall also be the director of	36
the department of finance pursuant to section 67-2701, Idaho Code.	37
SECTION 5. That Section 41-206, Idaho Code, be, and the same is hereby	38
amended to read as follows:	39
41-206. DIVISIONS AND EMPLOYEES. (1) The department shall be orga-	40
nized into such divisions and such other units as may be administratively	41
established in order to efficiently administer the department. Each di-	42
vision shall be headed by a division administrator who shall be appointed	43
by and serve at the pleasure of the director, and shall be a nonclassified	44
employee exempt from the provisions of chapter 53, title 67, Idaho Code.	45

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(2) The director may pursuant to chapter 53, title 67, Idaho Code, ap-	1
point, employ, fix the compensation of, prescribe and require the duties of	2
and discharge such employees as the duties of his office may require.	3
(3) The director may contract for and procure on a basis of fee and with-	4
out giving such persons any status as an employee of this state, such inde-	5
pendently contracting actuarial, technical, examining, and other similar	6
professional services as the director may from time to time require for the	7
discharge of his duties.	8
(4) On and after July 1, 2027, the director may utilize or administra-	9
tively combine the divisions or employees of the department of finance with	10
the department of insurance in order to achieve the duties of either depart-	11
ment.	12
SECTION 6. That Section 26-2412, Idaho Code, be, and the same is hereby	13
amended to read as follows:	14
26-2412. ANNUAL FINANCIAL EXAMINATION. The corporation shall be ex-	15
amined at least once annually by the director of the department of finance	16
and shall make reports of its condition not less than annually to said direc-	17
tor of the department of finance and more frequently upon call of the direc-	18
tor of the department of finance, who in turn shall make copies of such re-	19
ports available to the director of the department of insurance and the gov-	20
ernor; and the corporation shall also furnish such other information as may	21
from time to time be required by the director of the department of finance and	22
secretary of state. The corporation shall pay the actual cost of said exam-	23
inations. The director of the department of finance shall exercise the same	24
power and authority over corporations organized under this act as is now ex-	25
ercised over banks and trust companies by the provisions of title 26, Idaho	26
Code, where the provision of title 26, Idaho Code, are not in conflict with	27
this act.	28
SECTION 7. That Section 28-44-111, Idaho Code, be, and the same is	29
hereby repealed.	30
SECTION 8. That Section 59-904, Idaho Code, be, and the same is hereby	31
amended to read as follows:	32
59-904. STATE OFFICES -- VACANCIES, HOW FILLED AND CONFIRMED. (a) All	33
vacancies in any state office, and in the supreme and district courts, unless	34
otherwise provided for by law, shall be filled by appointment by the gover-	35
nor. Appointments to fill vacancies pursuant to this section shall be made	36
as provided in subsections (b), (c), (d), (e), (f) and (g) of this section,	37
subject to the limitations prescribed in those subsections.	38
(b) Nominations and appointments to fill vacancies occurring in the of-	39
fice of lieutenant governor, state controller, state treasurer, superinten-	40
dent of public instruction, attorney general and secretary of state shall be	41
made by the governor, subject to the advice and consent of the senate, for	42
the balance of the term of office to which the predecessor of the person ap-	43
pointed was elected.	44
(c) Nominations and appointments to and vacancies in the following	45
listed offices shall be made or filled by the governor subject to the advice	46

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and consent of the senate for the terms prescribed by law, or in case such	1
terms are not prescribed by law, then to serve at the pleasure of the gover-	2
nor:	3
Director of the department of administration,	4
Director of the department of finance,	5
Director of the department of insurance,	6
Director, department of agriculture,	7
Director of the department of water resources,	8
Director of the Idaho state police,	9
Director of the department of commerce,	10
Director of the department of labor,	11
Director of the department of environmental quality,	12
Director of the department of juvenile corrections,	13
Executive director of the commission of pardons and parole,	14
The state historic preservation officer,	15
The administrator of the division of human resources,	16
Member of the state tax commission,	17
Members of the board of regents of the university of Idaho and the state	18
board of education,	19
Members of the Idaho water resource board,	20
Members of the state fish and game commission,	21
Members of the Idaho transportation board,	22
Voting members of the state board of health and welfare,	23
Members of the board of environmental quality,	24
Members of the board of directors of state parks and recreation,	25
Members of the board of correction,	26
Members of the industrial commission,	27
Members of the Idaho public utilities commission,	28
Members of the Idaho personnel commission,	29
Members of the board of directors of the Idaho state retirement system,	30
Members of the board of directors of the state insurance fund,	31
Members of the commission of pardons and parole.	32
(d) Appointments made by the state board of land commissioners to the	33
office of director, department of lands, and appointments to fill vacancies	34
occurring in those offices shall be submitted by the president of the state	35
board of land commissioners to the senate for the advice and consent of the	36
senate in accordance with the procedure prescribed in this section.	37
(e) Appointments made pursuant to this section while the senate is in	38
session shall be submitted along with the letter of appointment to the sen-	39
ate forthwith for the advice and consent of that body. Appointments made	40
pursuant to this section while the senate is not in session shall be submit-	41
ted along with the letter of appointment to the senate pursuant to section	42
67-803, Idaho Code. Should the senate adjourn without granting its consent	43
to an appointment the appointment shall thereupon become void and a vacancy	44
in the office to which the appointment was made shall exist, and the office	45
shall be deemed vacant upon the date of adjournment. It is the duty of the ap-	46
pointing authority to supply the senate with the letter of appointment. The	47
appointee shall supply the senate with the documentation it requests.	48
All appointments made pursuant to subsection (c) of this section, ex-	49
cept those appointments for which a term of office is fixed by law, shall ter-	50

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minate at the expiration of any gubernatorial term. Appointments to fill the	1
vacancies thus created by the expiration of the term of office of the gover-	2
nor shall be forthwith submitted to the senate for the advice and consent of	3
that body, and when so submitted shall be as expeditiously considered as pos-	4
sible.	5
Upon receipt of an appointment along with the letter of appointment in	6
the senate for the purpose of securing the advice and consent of the sen-	7
ate, the appointment shall be referred by the presiding officer to the appro-	8
priate committee of the senate for consideration and report prior to action	9
thereon by the full senate.	10
(f) Excepting the appointments made pursuant to subsection (c) of this	11
section, whenever an appointee's term has expired as prescribed by law,	12
the governor or the authorized appointing authority must fill the position	13
within twelve (12) months of the expiration of the term. However, an of-	14
fice will be vacant if the governor or the authorized appointing authority:	15
(i) fails to timely appoint a qualified person at the earlier of the time	16
required by law or required in this subsection; or (ii) fails to provide	17
the senate with an appropriate letter or document of appointment by the	18
thirty-sixth legislative day of the subsequent legislative session. All	19
letters or documents of appointment must, as reasonably possible, accompany	20
the additional documentation required by the senate. At the request of the	21
secretary of the senate, the governor or the authorized appointing authority	22
must provide the additional documentation.	23
(g) It is the intent of the legislature that the provisions of this sec-	24
tion as amended by this chapter shall not apply to appointments which have	25
been made prior to the effective date of this chapter. It is the further in-	26
tent of the legislature that the provisions of this section shall apply to	27
the offices listed in this section and to any office created by law or exec-	28
utive order which succeeds to the powers, duties, responsibilities and au-	29
thorities of any of the offices listed in subsections (c) and (d) of this sec-	30
tion.	31
SECTION 9. This act shall be in full force and effect on and after July	32
1, 2027.	33

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