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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), t The license tax imposed hereinby 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 overremit the sums to the 16 state treasurer, as other receipts of its office, and the state treasurerwho 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 accountfund 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 actchap- 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 actchapter 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 actchapter. 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 actchapter. 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 act35 chapter. If the violation involves an operator that has not furnished a bond 36 required by this actchapter, or an operator that is not required to furnish a 37 bond pursuant to this actchapter, or an operator who violates this actchap- 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 actchapter, 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 actchapter. 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 actchapter. 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 actchapter, 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 actchapter 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 actchapter, 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 actthe 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 wilfullywillfully and knowingly falsifies any 47 records, information, plans, specifications, or other data required by the 48 board or wilfullywillfully fails, neglects, or refuses to comply with any of 49 the provisions of this actchapter 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 actchapter. 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