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H0318...............................................by REVENUE AND TAXATION
CYANIDATION MINING FACILITIES - Amends existing law to provide for a
license tax on cyanidation mining facilities; to provide for distribution
of moneys collected to create the Cyanidation Facility Closure Fund; to
provide for what the moneys in the fund may be expended; and to provide for
unencumbered and unexpended balances in the Surface Mining Reclamation Fund
and the Cyanidation Facility Closure Fund.
03/10 House intro - 1st rdg - to printing
03/11 Rpt prt - to Rev/Tax
03/17 Rpt out - rec d/p - to 2nd rdg
03/18 2nd rdg - to 3rd rdg
03/21 3rd rdg - PASSED - 67-0-3
AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer,
Bedke, Bell, Bilbao, Block, Boe, Bolz, Bradford, Cannon, Chadderdon,
Clark, Collins, Crow, Deal, Denney, Edmunson(Barker), Ellsworth,
Field(18), Field(23), Garrett, Hart, Henbest, Henderson, Jaquet,
Jones, Kemp, Lake, LeFavour, Loertscher, Martinez, Mathews,
McGeachin, McKague, Miller, Mitchell, Moyle, Nielsen, Nonini,
Pasley-Stuart, Pence, Raybould, Ring, Ringo, Roberts, Rusche,
Rydalch, Sali, Sayler, Schaefer, Shepherd(2), Shepherd(8), Shirley,
Skippen, Smith(30), Smith(24), Smylie, Snodgrass, Stevenson, Trail,
Wills, Wood, Mr. Speaker
NAYS -- None
Absent and excused -- Black, Eskridge, Harwood
Floor Sponsor - Moyle
Title apvd - to Senate
03/22 Senate intro - 1st rdg - to Loc Gov
03/24 Rpt out - rec d/p - to 2nd rdg
03/25 2nd rdg - to 3rd rdg
03/29 3rd rdg - PASSED - 35-0-0
AYES -- Andreason, Brandt, Broadsword, Bunderson, Burkett,
Burtenshaw, Cameron, Coiner, Compton, Corder, Darrington, Davis,
Fulcher, Gannon, Geddes, Goedde, Hill, Jorgenson, Kelly, Keough,
Langhorst, Little, Lodge, Malepeai, Marley, McGee, McKenzie, Pearce,
Richardson, Schroeder, Stegner, Stennett, Sweet, Werk, Williams
NAYS -- None
Absent and excused -- None
Floor Sponsor - Langhorst
Title apvd - to House
03/30 To enrol
03/31 Rpt enrol - Sp signed - Pres signed
04/04 To Governor
04/11 Governor signed
Session Law Chapter 341
Effective: 07/01/05
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature First Regular Session - 2005
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 318
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO THE MINE LICENSE TAX; AMENDING SECTION 47-1206, IDAHO CODE, TO
3 PROVIDE FOR A LICENSE TAX ON CYANIDATION FACILITIES AND TO PROVIDE FOR
4 DISTRIBUTION OF MONEYS COLLECTED; AMENDING SECTION 47-1513, IDAHO CODE, TO
5 MAKE TECHNICAL CORRECTIONS, TO CREATE THE CYANIDATION FACILITY CLOSURE
6 FUND, TO PROVIDE FOR WHAT THE MONEYS IN THE FUND MAY BE EXPENDED AND TO
7 PROVIDE FOR UNENCUMBERED AND UNEXPENDED BALANCES IN THE SURFACE MINING
8 RECLAMATION FUND AND THE CYANIDATION FACILITY CLOSURE FUND.
9 Be It Enacted by the Legislature of the State of Idaho:
10 SECTION 1. That Section 47-1206, Idaho Code, be, and the same is hereby
11 amended to read as follows:
12 47-1206. PAYMENT OF MINE LICENSE TAX. (1) Except as provided in subsec-
13 tion (2), tThe license tax imposed herein by this chapter shall be paid to the
14 state tax commission on or before the due date of the return and the commis-
15 sion shall receipt therefor and promptly turn same over remit the sums to the
16 state treasurer, as other receipts of its office, and the state treasurer who
17 shall place sixty-six percent (66%) to the credit of the general fund of the
18 state and thirty-four percent (34%) to the credit of the abandoned mine recla-
19 mation account fund created by the provisions of section 47-1703, Idaho Code.
20 (2) The license tax imposed by this chapter only on mining operations
21 that include a cyanidation facility, as defined by section 47-1503, Idaho
22 Code, shall be paid to the state tax commission on or before the due date of
23 the return and the commission shall remit the sums to the state treasurer who
24 shall place thirty-three percent (33%) to the credit of the general fund of
25 the state, thirty-three percent (33%) to the credit of the cyanidation facil-
26 ity closure fund created by the provisions of section 47-1513, Idaho Code, and
27 thirty-four percent (34%) to the credit of the abandoned mine reclamation fund
28 created by the provisions of section 47-1703, Idaho Code.
29 SECTION 2. That Section 47-1513, Idaho Code, be, and the same is hereby
30 amended to read as follows:
31 47-1513. OPERATOR'S FAILURE TO COMPLY -- FORFEITURE OF BOND -- PENALTIES
32 -- RECLAMATION FUND -- CYANIDATION CLOSURE FUND. (a) Whenever the board deter-
33 mines that an operator has not complied with the provisions of this act chap-
34 ter, the board may notify the operator of such noncompliance, and may by pri-
35 vate conference, conciliation, and persuasion, endeavor to remedy such viola-
36 tion. In the event of a violation referred to in subsections (d) and (e) of
37 this section, the board may proceed without an administrative action, hearing
38 or decision to exercise the remedies set forth in said subsections. Addition-
39 ally, no administrative action, hearing or decision shall be required from the
40 Idaho board of environmental quality prior to the board proceeding under sub-
41 sections (d) and (e) of this section. In the event of the failure of any con-
2
1 ference, conciliation and persuasion to remedy any alleged violation, the
2 board may cause to have issued and served upon the operator alleged to be com-
3 mitting such violation, a formal complaint which shall specify the provisions
4 of this act chapter which the operator allegedly is violating, and a statement
5 of the manner in and the extent to which said operator is alleged to be vio-
6 lating the provisions of this act chapter. Such complaint may be served by
7 certified mail, and return receipt signed by the operator, an officer of a
8 corporate operator, or the designated agent of the operator shall constitute
9 service. The operator shall answer the complaint and request a hearing before
10 a designated hearing officer within thirty (30) days from receipt of the com-
11 plaint if matters asserted in the complaint are disputed. If the operator
12 fails to answer the complaint and request a hearing, the matters asserted in
13 the complaint shall be deemed admitted by the operator, and the board may pro-
14 ceed to cancel the reclamation plan and forfeit the bond in the amount neces-
15 sary to reclaim affected lands. Upon request for a hearing by an operator, the
16 board shall schedule a hearing before a hearing officer appointed by the board
17 at a time not less than thirty (30) days after the date the operator requests
18 a hearing. The board shall issue subpoenas at the request of the director of
19 the department of lands and at the request of the charged operator, and the
20 matter shall be otherwise handled and conducted in accordance with chapter 52,
21 title 67, Idaho Code. The hearing officer shall, pursuant to said hearing,
22 enter an order in accordance with chapter 52, title 67, Idaho Code, which, if
23 adverse to the operator, shall designate a time period within which corrective
24 action should be taken. The time period designated shall be long enough to
25 allow the operator, in the exercise of reasonable diligence, to rectify any
26 failure to comply designated in said order. In the event that the operator
27 takes such action as is necessary to comply with the order within the time
28 period designated in said order, no further action shall be taken by the board
29 to compel performance under the act chapter.
30 (b) Upon request of the board, the attorney general shall institute pro-
31 ceedings to have the bond of an operator forfeited for the violation by the
32 operator of an order entered pursuant to this section.
33 (c) The forfeiture of such bond shall fully satisfy all obligations of
34 the operator to reclaim the affected land under the provisions of this act
35 chapter. If the violation involves an operator that has not furnished a bond
36 required by this act chapter, or an operator that is not required to furnish a
37 bond pursuant to this act chapter, or an operator who violates this act chap-
38 ter by performing an act not included in the original approved reclamation
39 plan, and such departure from the plan is not subsequently approved, such
40 operator shall be subject to a civil penalty for his failure to comply with
41 such order in the amount determined by the board to be the anticipated cost of
42 reasonable reclamation of affected lands.
43 (d) Notwithstanding any other provisions of this act chapter, the board
44 may commence an action without bond or undertaking, in the name of the state
45 of Idaho to enjoin any operator who is conducting operations without an
46 approved reclamation plan required by section 47-1506, Idaho Code, or without
47 the bond required by this act chapter. The court, or a judge thereof at cham-
48 bers, if satisfied from the complaint or by affidavits that such acts have
49 been or are being committed, shall issue a temporary restraining order without
50 notice or bond, enjoining the defendant, his agents, and employees from con-
51 ducting such operations without said reclamation plan or bond. Upon a showing
52 of good cause therefor, the temporary restraining order may require the
53 defendant to perform reclamation of the mined area in conformity with sections
54 47-1509 and 47-1510, Idaho Code, pending final disposition of the action. The
55 action shall then proceed as in other cases for injunctions. If it is estab-
3
1 lished at trial that the defendant has operated without an approved reclama-
2 tion plan or bond, the court shall enter, in addition to any other order, a
3 decree enjoining the defendant, his agents and employees from thereafter con-
4 ducting such activities or similar actions in violation of this act chapter.
5 The board may, in conjunction with its injunctive procedures, proceed in the
6 same or in a separate action to recover from an operator who is conducting
7 surface mining or exploration operations without the required plan or bond,
8 the cost of performing the reclamation activities required by sections 47-1509
9 and 47-1510, Idaho Code, from any such operator who has not filed a bond to
10 cover the cost of the reclamation required.
11 (e) Notwithstanding any other provision of this act chapter, the board
12 may, without bond or undertaking and without any administrative action, hear-
13 ing or decision, commence an action in the name of the state of Idaho (1) to
14 enjoin a permitted surface mining operation when, under an existing approved
15 plan, an operator violates the terms of the plan and where immediate and
16 irreparable injury, loss or damage may result to the state and (2) to recover
17 the penalties and to collect civil damages provided for by law.
18 (f) In addition to the procedures set forth in subsections (a), (d) and
19 (e) of this section, and in addition to the civil penalty provided in subsec-
20 tion (c) of this section, any operator who violates any of the provisions of
21 this act chapter or rules adopted pursuant thereto, or who fails to perform
22 the duties imposed by these provisions, or who violates any determination or
23 order promulgated pursuant to the provisions of this act chapter, shall be
24 liable to a civil penalty of not less than five hundred dollars ($500) nor
25 more than two thousand five hundred dollars ($2,500) for each day during which
26 such violation continues, and in addition may be enjoined from continuing such
27 violation. Such penalties shall be recoverable in an action brought in the
28 name of the state of Idaho by the attorney general in the district court for
29 the county where the violation, or some part thereof, occurs, or in the dis-
30 trict court for the county wherein the defendant resides.
31 (1) All sums recovered related to the reclamation provisions of this
32 chapter shall be placed in the state treasury and credited to the surface
33 mining reclamation fund, which is hereby created, to be used to reclaim
34 affected lands and to administer this act the reclamation provisions of
35 this chapter.
36 (2) All sums recovered related to the cyanidation facility closure provi-
37 sions of this chapter shall be placed in the state treasury and credited
38 to the cyanidation facility closure fund, which is hereby created. Moneys
39 in the fund may be expended pursuant to appropriation and used to complete
40 permanent closure activities and to administer the permanent closure pro-
41 visions of this chapter.
42 (3) Any unencumbered and unexpended balances in the surface mining recla-
43 mation fund and the cyanidation facility closure fund remaining at the end
44 of a fiscal year shall not lapse but shall be carried forward until
45 expended or modified by subsequent statute.
46 (g) Any person who wilfully willfully and knowingly falsifies any
47 records, information, plans, specifications, or other data required by the
48 board or wilfully willfully fails, neglects, or refuses to comply with any of
49 the provisions of this act chapter shall be guilty of a misdemeanor and shall
50 be punished by a fine of not less than one thousand dollars ($1,000) and not
51 more than five thousand dollars ($5,000) or imprisonment not to exceed one (1)
52 year or both.
53 (h) Reclamation plans approved by the board as of January 1, 1997, shall
54 be deemed to be in full compliance with the requirements of this act chapter.
55 However, the board may periodically review, and revise if necessary to meet
4
1 the requirements of sections 47-1506, 47-1509, 47-1510 and 47-1511, Idaho
2 Code, the amount, terms and conditions of any bond when there is a material
3 change in the reclamation plan or a material change in the estimated reason-
4 able costs of reclamation determined pursuant to section 47-1512, Idaho Code.
5 Any revision to the amount, terms and conditions of a bond due to a material
6 change in the reclamation plan shall apply only to the affected lands covered
7 by the material change in the reclamation plan.
STATEMENT OF PURPOSE
RS15090
This legislation establishes the Cyanidation Facility
Closure Fund. Thirty-three percent of the mine license tax
paid by a gold mining operation which includes a cyanidation
facility, and any fines or penalties recovered related to the
cyanidation closure provisions of the Surface Mining Act,
would be deposited in this fund.
S. 1169 would amend the Surface Mining Act to give the
Department of Lands certain new responsibilities. The
Cyanidation Closure Fund would be available to provide funds,
subject to legislative appropriation, for these new
responsibilities.
FISCAL NOTE
The amount of money deposited in the Cyanidation Facility
Closure Fund will depend on the number of qualifying
facilities, the size of the facilities, the cost to build the
facilities and the price of gold. A large gold mine producing
100,000 ounces of gold in a year, with a $200 per ounce net
profit, would generate about $67,000 per year for the fund.
There are no major gold mines operating in the state today.
CONTACT: Jack Lyman
Idaho Mining Association
342.0031
STATEMENT OF PURPOSE/FISCAL NOTE H 318