2005 Legislation
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HOUSE BILL NO. 318 – Mine license tax/cyanidatn facility


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Bill Status

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

Bill Text

  ]]]]              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
  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:
 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-
  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-
  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
  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 / Fiscal Impact

                     STATEMENT OF PURPOSE
  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

                         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
  STATEMENT OF PURPOSE/FISCAL NOTE                      H 318