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H0685aa.............................................by REVENUE AND TAXATION
MINES - FINANCIAL ASSURANCE - Adds to existing law to require mine
operators to provide alternative financial assurance; to create the
Reclamation Fund; to provide for recovery of costs; and to provide that the
State Board of Land Commissioners shall not approve certain operations
under specified conditions.
02/26 House intro - 1st rdg - to printing
02/27 Rpt prt - to Rev/Tax
03/06 Rpt out - rec d/p - to 2nd rdg
To Gen Ord
03/07 Rpt out amen - to engros
03/08 Rpt engros - 1st rdg - to 2nd rdg as amen
Rls susp - PASSED - 65-0-5
AYES -- Aikele, Barraclough, Barrett, Bedke, Bell, Bieter, Black,
Block, Boe, Bolz, Bruneel, Campbell, Collins, Crow, Cuddy, Deal,
Denney, Ellis, Ellsworth, Eskridge, Field(13), Field(20), Gagner,
Hadley, Hammond, Harwood, Henbest, Higgins, Hornbeck, Jaquet, Jones,
Kellogg(Duncan), Kendell, Kunz, Lake, Langford, Loertscher, Mader,
Martinez, McKague, Meyer, Montgomery, Mortensen, Moyle, Pearce,
Pischner, Pomeroy, Raybould, Ridinger, Roberts, Robison, Sali,
Schaefer, Sellman, Shepherd, Smith(33), Smith(23), Smylie, Stevenson,
Stone, Tilman, Wheeler, Wood, Young, Mr. Speaker
NAYS -- None
Absent and excused -- Bradford, Callister, Clark, Gould, Trail
Floor Sponsor - Barrett
Title apvd - to Senate
03/11 Senate intro - 1st rdg - to Res/Env
03/13 Rpt out - rec d/p - to 2nd rdg
03/14 2nd rdg - to 3rd rdg
03/15 3rd rdg - PASSED - 35-0-0
AYES -- Andreason, Boatright, Branch Brandt, Bunderson, Burtenshaw,
Cameron, Darrington, Davis, Deide, Dunklin, Frasure, Geddes, Goedde,
Hawkins, Hill, Ingram, Ipsen, Keough, King-Barrutia, Little, Lodge,
Marley, Noh, Richardson, Risch, Sandy, Schroeder, Sims, Sorensen,
Stegner, Stennett, Thorne, Wheeler, Williams
NAYS -- None
Absent and excused -- None
Floor Sponsor - Burtenshaw
Title apvd - to House
To enrol - rpt enrol - Sp signed - Pres signed
03/18 To Governor
03/20 Governor signed
Session Law Chapter 153
Effective: 05/01/02
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature Second Regular Session - 2002
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 685
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO MINES AND MINING; AMENDING TITLE 47, IDAHO CODE, BY THE ADDITION
3 OF A NEW CHAPTER 18, TITLE 47, IDAHO CODE, TO PROVIDE THE PURPOSE OF THE
4 CHAPTER, TO PROVIDE APPLICABILITY TO MINE OPERATORS WHO ARE REQUIRED TO
5 PROVIDE ALTERNATIVE FINANCIAL ASSURANCE, TO PROVIDE FOR FINANCIAL ASSUR-
6 ANCE AND TO CREATE THE RECLAMATION FUND, TO PROVIDE FOR RECOVERY OF COSTS,
7 AND TO PROVIDE THAT THE STATE BOARD OF LAND COMMISSIONERS SHALL NOT
8 APPROVE CERTAIN OPERATIONS UNDER SPECIFIED CONDITIONS; DECLARING AN EMER-
9 GENCY AND PROVIDING AN EFFECTIVE DATE.
10 Be It Enacted by the Legislature of the State of Idaho:
11 SECTION 1. That Title 47, Idaho Code, be, and the same is hereby amended
12 by the addition thereto of a NEW CHAPTER, to be known and designated as Chap-
13 ter 18, Title 47, Idaho Code, and to read as follows:
14 CHAPTER 18
15 FINANCIAL ASSURANCE
16 47-1801. PURPOSE. The purpose of this chapter is to provide an alterna-
17 tive form of performance bond or financial assurance for mining operations and
18 mineral leases.
19 47-1802. APPLICABILITY. Mine operators, as described herein, shall be
20 required to provide alternative financial assurance. Mine operators who are
21 required to provide alternative financial assurance under the provisions of
22 this chapter shall include those mine operators who are working under the
23 requirements of Idaho law and who are not specifically exempted by the state
24 board of land commissioners.
25 47-1803. FINANCIAL ASSURANCE. (1) The state treasurer shall be the cus-
26 todian of an interest-bearing, dedicated fund known as the "Reclamation Fund"
27 which is hereby created. The reclamation fund shall be funded by payments from
28 applicable parties, interest and cost recoveries initiated by the state board
29 of land commissioners. All payments, interest and cost recoveries shall be
30 established by the state board of land commissioners.
31 (2) An operator's commitment to reclaim affected lands and operator's
32 payments to the reclamation fund shall be documented on a department of lands
33 form requiring that the operator shall faithfully perform the requirements of
34 the approved plan and comply with all administrative rules governing the oper-
35 ation.
36 (3) Moneys accruing to or received by the fund shall be expended by the
37 department of lands, after approval by the state board of land commissioners
38 and upon legislative appropriation, for reclamation of mines subject to the
39 provisions of this chapter. Moneys in excess of those needed for reclamation
40 liabilities shall be utilized, after approval of the state board of land com-
2
1 missioners, for mine administration, abandoned mine land reclamation or educa-
2 tional purposes. The state board of land commissioners shall determine by
3 rules adopted pursuant to chapter 52, title 67, Idaho Code, an appropriate
4 minimum balance to be maintained in the reclamation fund for reclamation lia-
5 bilities.
6 47-1804. COST RECOVERY. If an operator fails to provide financial assur-
7 ance as required by the provisions of this chapter, or has forfeited moneys
8 from the reclamation fund and has not repaid those moneys, the state board of
9 land commissioners shall be authorized to file liens against personal property
10 and equipment of the operator to recover costs. The operator shall be liable
11 for the actual cost of the required financial assurance, reclamation costs and
12 administrative costs incurred by the department of lands.
13 47-1805. OPERATIONS NOT APPROVED. The state board of land commissioners
14 shall not approve any application for a reclamation plan, placer permit, min-
15 eral lease, or approve an amendment of any such document filed by a company,
16 individual, corporate officer or operator who is not in compliance with appli-
17 cable mining or leasing statutes or administrative rules, or who has forfeited
18 reclamation funds and has not fully reimbursed the department of lands for the
19 reclamation and administrative costs incurred by the state board of land com-
20 missioners, or who has not paid the required financial assurance.
21 SECTION 2. An emergency existing therefor, which emergency is hereby
22 declared to exist, this act shall be in full force and effect on and after May
23 1, 2002.
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature Second Regular Session - 2002
Moved by Moyle
Seconded by Barrett
IN THE HOUSE OF REPRESENTATIVES
HOUSE AMENDMENT TO H.B. NO. 685
1 AMENDMENTS TO SECTION 1
2 On page 1 of the printed bill, in line 18, following "leases" insert: "as
3 required by the state board of land commissioners"; in line 19, following
4 "operators" delete the remainder of the line; delete lines 20 through 24 and
5 insert: "who are working under the requirements of title 47, Idaho Code, may
6 be required to provide alternative financial assurance, and if so required,
7 shall provide such alternative financial assurance in accordance with the pro-
8 visions of this chapter."; in line 25, following "1803." insert: "RECLAMATION
9 FUND CREATED -- "; and in line 34, following "rules" insert: "and policy".
10 On page 2, in line 2, following "shall" delete the remainder of the line;
11 and in line 3, delete "rules adopted pursuant to chapter 52, title 67, Idaho
12 Code," and insert: "adopt policy to determine".
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature Second Regular Session - 2002
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 685, As Amended
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO MINES AND MINING; AMENDING TITLE 47, IDAHO CODE, BY THE ADDITION
3 OF A NEW CHAPTER 18, TITLE 47, IDAHO CODE, TO PROVIDE THE PURPOSE OF THE
4 CHAPTER, TO PROVIDE APPLICABILITY TO MINE OPERATORS WHO ARE REQUIRED TO
5 PROVIDE ALTERNATIVE FINANCIAL ASSURANCE, TO PROVIDE FOR FINANCIAL ASSUR-
6 ANCE AND TO CREATE THE RECLAMATION FUND, TO PROVIDE FOR RECOVERY OF COSTS,
7 AND TO PROVIDE THAT THE STATE BOARD OF LAND COMMISSIONERS SHALL NOT
8 APPROVE CERTAIN OPERATIONS UNDER SPECIFIED CONDITIONS; DECLARING AN EMER-
9 GENCY AND PROVIDING AN EFFECTIVE DATE.
10 Be It Enacted by the Legislature of the State of Idaho:
11 SECTION 1. That Title 47, Idaho Code, be, and the same is hereby amended
12 by the addition thereto of a NEW CHAPTER, to be known and designated as Chap-
13 ter 18, Title 47, Idaho Code, and to read as follows:
14 CHAPTER 18
15 FINANCIAL ASSURANCE
16 47-1801. PURPOSE. The purpose of this chapter is to provide an alterna-
17 tive form of performance bond or financial assurance for mining operations and
18 mineral leases as required by the state board of land commissioners.
19 47-1802. APPLICABILITY. Mine operators who are working under the require-
20 ments of title 47, Idaho Code, may be required to provide alternative finan-
21 cial assurance, and if so required, shall provide such alternative financial
22 assurance in accordance with the provisions of this chapter.
23 47-1803. RECLAMATION FUND CREATED -- FINANCIAL ASSURANCE. (1) The state
24 treasurer shall be the custodian of an interest-bearing, dedicated fund known
25 as the "Reclamation Fund" which is hereby created. The reclamation fund shall
26 be funded by payments from applicable parties, interest and cost recoveries
27 initiated by the state board of land commissioners. All payments, interest and
28 cost recoveries shall be established by the state board of land commissioners.
29 (2) An operator's commitment to reclaim affected lands and operator's
30 payments to the reclamation fund shall be documented on a department of lands
31 form requiring that the operator shall faithfully perform the requirements of
32 the approved plan and comply with all administrative rules and policy govern-
33 ing the operation.
34 (3) Moneys accruing to or received by the fund shall be expended by the
35 department of lands, after approval by the state board of land commissioners
36 and upon legislative appropriation, for reclamation of mines subject to the
37 provisions of this chapter. Moneys in excess of those needed for reclamation
38 liabilities shall be utilized, after approval of the state board of land com-
39 missioners, for mine administration, abandoned mine land reclamation or educa-
40 tional purposes. The state board of land commissioners shall adopt policy to
2
1 determine an appropriate minimum balance to be maintained in the reclamation
2 fund for reclamation liabilities.
3 47-1804. COST RECOVERY. If an operator fails to provide financial assur-
4 ance as required by the provisions of this chapter, or has forfeited moneys
5 from the reclamation fund and has not repaid those moneys, the state board of
6 land commissioners shall be authorized to file liens against personal property
7 and equipment of the operator to recover costs. The operator shall be liable
8 for the actual cost of the required financial assurance, reclamation costs and
9 administrative costs incurred by the department of lands.
10 47-1805. OPERATIONS NOT APPROVED. The state board of land commissioners
11 shall not approve any application for a reclamation plan, placer permit, min-
12 eral lease, or approve an amendment of any such document filed by a company,
13 individual, corporate officer or operator who is not in compliance with appli-
14 cable mining or leasing statutes or administrative rules, or who has forfeited
15 reclamation funds and has not fully reimbursed the department of lands for the
16 reclamation and administrative costs incurred by the state board of land com-
17 missioners, or who has not paid the required financial assurance.
18 SECTION 2. An emergency existing therefor, which emergency is hereby
19 declared to exist, this act shall be in full force and effect on and after May
20 1, 2002.
STATEMENT OF PURPOSE
RS 12062
The purpose of this Act is to allow State Land Board designated mine
operators an alternative form of reclamation bond. The alternative
bond will be provided in the form of annual payments to a dedicated
reclamation account. The reclamation account will reduce the economic
impact of reclamation bonding on small mining operations, streamline
the process for providing reclamation assurance and maintain adequate
financial guarantee for mine reclamation.
FISCAL IMPACT
There is no fiscal impact on the general fund. A dedicated
reclamation account will be established at the Idaho Department of
Lands. Annual revenue into this account is anticipated in the amount
of $100,000.00 annually.
Contact
Name: Rep. Lenore Barrett
Phone: 208 332 1000
Scott Nicholls, Dept. of Lands/208-334-0261
Pat Holmberg 208-983-9360
Lois Van Hoover 208-363-9697
STATEMENT OF PURPOSE/FISCAL NOTE H 685