2006 Legislation
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HOUSE BILL NO. 575 – Surface mining reclmatn fnd/balance

HOUSE BILL NO. 575

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Bill Status



H0575.....................................................by APPROPRIATIONS
SURFACE MINING RECLAMATION FUND - Amends existing law to delete language
that provided any unencumbered and unexpended balances in the Surface
Mining Reclamation Fund and the Cyanidation Facility Closure Fund remaining
at the end of the fiscal year shall not lapse but shall be carried forward
until expended or modified by subsequent statute; and to delete language
that provided any unencumbered and unexpended balance of the Abandoned Mine
Reclamation Fund remaining at the end of a fiscal year shall not lapse but
shall be carried forward for the purposes of the statute on abandoned mines
until expended or until modified by subsequent statute.
                                                                        
02/08    House intro - 1st rdg - to printing
02/09    Rpt prt - to Approp
02/17    Rpt out - rec d/p - to 2nd rdg
02/20    2nd rdg - to 3rd rdg
02/23    3rd rdg - PASSED - 61-2-7
      AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer,
      Bedke, Bell, Bilbao, Block, Boe, Bolz, Bradford, Cannon, Chadderdon,
      Clark, Collins, Crow, Deal, Denney, Edmunson, Ellsworth, Eskridge,
      Field(18), Garrett, Hart, Harwood, Henbest, Henderson, Jaquet, Kemp,
      Lake, LeFavour, Martinez, Mathews, McGeachin, McKague, Miller,
      Mitchell, Moyle, Nielsen, Pasley-Stuart, Pence, Raybould, Ringo,
      Roberts, Rusche, Rydalch, Sali, Sayler, Schaefer, Shepherd(2),
      Shirley, Skippen, Smith(30), Smylie(Luker), Snodgrass, Stevenson,
      Trail, Wills, Mr. Speaker
      NAYS -- Loertscher, Shepherd(8)
      Absent and excused -- Black, Brackett, Field(23), Nonini, Ring,
      Smith(24), Wood
    Floor Sponsor - Bolz
    Title apvd - to Senate
02/24    Senate intro - 1st rdg - to Fin
02/27    Rpt out - rec d/p - to 2nd rdg
02/28    2nd rdg - to 3rd rdg
03/02    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 - Pearce
    Title apvd - to House
03/03    To enrol
03/06    Rpt enrol - Sp signed
03/07    Pres signed
03/08    To Governor
03/11    Governor signed
         Session Law Chapter 37
         Effective: 07/01/06

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 575
                                                                        
                                BY APPROPRIATIONS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO MINES AND MINING BONDS; AMENDING SECTION 47-1513, IDAHO  CODE,  TO
  3        DELETE LANGUAGE THAT PROVIDED  ANY UNENCUMBERED AND UNEXPENDED BALANCES IN
  4        THE  SURFACE  MINING RECLAMATION FUND AND THE CYANIDATION FACILITY CLOSURE
  5        FUND REMAINING AT THE END OF A FISCAL YEAR SHALL NOT LAPSE  BUT  SHALL  BE
  6        CARRIED  FORWARD  UNTIL  EXPENDED  OR  MODIFIED BY SUBSEQUENT STATUTE; AND
  7        AMENDING SECTION 47-1703, IDAHO CODE, TO MAKE A TECHNICAL  CORRECTION  AND
  8        TO  DELETE LANGUAGE THAT PROVIDED  ANY UNENCUMBERED AND UNEXPENDED BALANCE
  9        OF THE ABANDONED MINE RECLAMATION FUND REMAINING AT THE END  OF  A  FISCAL
 10        YEAR  SHALL NOT LAPSE BUT SHALL BE CARRIED FORWARD FOR THE PURPOSES OF THE
 11        STATUTE ON ABANDONED MINES UNTIL EXPENDED OR UNTIL MODIFIED BY  SUBSEQUENT
 12        STATUTE.
                                                                        
 13    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 14        SECTION  1.  That  Section 47-1513, Idaho Code, be, and the same is hereby
 15    amended to read as follows:
                                                                        
 16        47-1513.  OPERATOR'S FAILURE TO COMPLY -- FORFEITURE OF BOND --  PENALTIES
 17    -- RECLAMATION FUND -- CYANIDATION CLOSURE FUND. (a) Whenever the board deter-
 18    mines  that  an operator has not complied with the provisions of this chapter,
 19    the board may notify the operator of such noncompliance, and  may  by  private
 20    conference,  conciliation,  and persuasion, endeavor to remedy such violation.
 21    In the event of a violation referred to in subsections (d)  and  (e)  of  this
 22    section,  the  board  may proceed without an administrative action, hearing or
 23    decision to exercise the remedies set forth in said subsections. Additionally,
 24    no administrative action, hearing or decision shall be required from the Idaho
 25    board of environmental quality prior to the board proceeding under subsections
 26    (d) and (e) of this section. In the event of the failure  of  any  conference,
 27    conciliation  and  persuasion  to  remedy any alleged violation, the board may
 28    cause to have issued and served upon the operator  alleged  to  be  committing
 29    such  violation, a formal complaint which shall specify the provisions of this
 30    chapter which the operator allegedly is violating, and a statement of the man-
 31    ner in and the extent to which said operator is alleged to  be  violating  the
 32    provisions  of  this  chapter. Such complaint may be served by certified mail,
 33    and return receipt signed by the operator, an officer of a corporate operator,
 34    or the designated agent of the operator shall constitute service. The operator
 35    shall answer the complaint and request a hearing before a  designated  hearing
 36    officer  within  thirty  (30)  days  from  receipt of the complaint if matters
 37    asserted in the complaint are disputed. If the operator fails  to  answer  the
 38    complaint  and  request a hearing, the matters asserted in the complaint shall
 39    be deemed admitted by the operator, and the board may proceed  to  cancel  the
 40    reclamation  or permanent closure plan and forfeit the bond in the amount nec-
 41    essary to reclaim affected lands or complete the permanent closure activities.
 42    Upon request for a hearing by an operator, the board shall schedule a  hearing
 43    before a hearing officer appointed by the board at a time not less than thirty
                                                                        
                                           2
                                                                        
  1    (30)  days  after  the  date  the operator requests a hearing. The board shall
  2    issue subpoenas at the request of the director of the department of lands  and
  3    at the request of the charged operator, and the matter shall be otherwise han-
  4    dled  and  conducted  in accordance with chapter 52, title 67, Idaho Code. The
  5    hearing officer shall, pursuant to said hearing, enter an order in  accordance
  6    with  chapter  52,  title  67,  Idaho Code, which, if adverse to the operator,
  7    shall designate a time period within which corrective action should be  taken.
  8    The  time period designated shall be long enough to allow the operator, in the
  9    exercise  of reasonable diligence, to rectify any failure to comply designated
 10    in said order. In the event that the operator takes such action as  is  neces-
 11    sary to comply with the order within the time period designated in said order,
 12    no  further action shall be taken by the board to compel performance under the
 13    chapter.
 14        (b)  Upon request of the board, the attorney general shall institute  pro-
 15    ceedings  to  have  the bond of an operator forfeited for the violation by the
 16    operator of an order entered pursuant to this section.
 17        (c)  The forfeiture of such bond shall fully satisfy  all  obligations  of
 18    the operator to reclaim the affected land or complete permanent closure activ-
 19    ities under the provisions of this chapter. If the violation involves an oper-
 20    ator  that  has  not furnished a bond required by this chapter, or an operator
 21    that is not required to furnish a bond pursuant to this chapter, or an  opera-
 22    tor  who violates this chapter by performing an act not included in the origi-
 23    nal approved reclamation plan or the original approved permanent closure plan,
 24    and such departure from the plan is not subsequently approved,  such  operator
 25    shall  be subject to a civil penalty for his failure to comply with such order
 26    in the amount determined by the board to be the anticipated cost of reasonable
 27    reclamation of affected lands or permanent closure of the  cyanidation  facil-
 28    ity.  Nothing in this subsection shall relieve the operator of any obligation,
 29    including the obligation to complete closure requirements, pursuant to a  per-
 30    mit  issued  by the department of environmental quality under section 39-118A,
 31    Idaho Code, or limit that department's authority to  require  compliance  with
 32    such permit requirements.
 33        (d)  Notwithstanding  any  other provisions of this chapter, the board may
 34    commence an action without bond or undertaking, in the name of  the  state  of
 35    Idaho  to enjoin any operator who is conducting operations without an approved
 36    plan required by section 47-1506, Idaho Code, or without the bond required  by
 37    this chapter. The court, or a judge thereof at chambers, if satisfied from the
 38    complaint  or  by  affidavits that such acts have been or are being committed,
 39    shall issue a temporary restraining order without notice  or  bond,  enjoining
 40    the defendant, his agents, and employees from conducting such operations with-
 41    out  said  plan  or bond. Upon a showing of good cause therefor, the temporary
 42    restraining order may require the defendant  to  perform  reclamation  of  the
 43    mined  area in conformity with sections 47-1509 and 47-1510, Idaho Code, or to
 44    complete permanent  closure  activities,  pending  final  disposition  of  the
 45    action. The action shall then proceed as in other cases for injunctions. If it
 46    is  established  at  trial that the defendant has operated without an approved
 47    plan or bond, the court shall enter, in addition to any other order, a  decree
 48    enjoining  the  defendant, his agents and employees from thereafter conducting
 49    such activities or similar actions in violation of  this  chapter.  The  board
 50    may,  in conjunction with its injunctive procedures, proceed in the same or in
 51    a separate action to recover from an operator who is conducting surface mining
 52    or exploration operations or operating  a  cyanidation  facility  without  the
 53    required  plan  or  bond,  the  cost  of performing the reclamation activities
 54    required by sections 47-1509 and 47-1510, Idaho Code, or the cost of permanent
 55    closure activities from any such operator who has not filed a  bond  to  cover
                                                                        
                                           3
                                                                        
  1    the cost of the required activities.
  2        (e)  Notwithstanding  any  other provision of this chapter, the board may,
  3    without bond or undertaking and without any administrative action, hearing  or
  4    decision, commence an action in the name of the state of Idaho (1) to enjoin a
  5    permitted  surface  mining  operation  or  cyanidation facility when, under an
  6    existing approved plan, an operator violates the terms of the plan  and  where
  7    immediate  and  irreparable injury, loss or damage may result to the state and
  8    (2) to recover the penalties and to collect civil damages provided for by law.
  9        (f)  In addition to the procedures set forth in subsections (a),  (d)  and
 10    (e)  of this section, and in addition to the civil penalty provided in subsec-
 11    tion (c) of this section, any operator who violates any of the  provisions  of
 12    this  chapter  or  rules adopted pursuant thereto, or who fails to perform the
 13    duties imposed by these provisions, or who violates any determination or order
 14    promulgated pursuant to the provisions of this chapter, shall be liable  to  a
 15    civil  penalty  of not less than five hundred dollars ($500) nor more than two
 16    thousand five hundred dollars ($2,500) for each day during which  such  viola-
 17    tion  continues,  and  in addition may be enjoined from continuing such viola-
 18    tion. Such penalties shall be recoverable in an action brought in the name  of
 19    the  state  of  Idaho  by  the  attorney general in the district court for the
 20    county where the violation, or some part thereof, occurs, or in  the  district
 21    court for the county wherein the defendant resides.
 22        (1)  All  sums  recovered  related  to  the reclamation provisions of this
 23        chapter shall be placed in the state treasury and credited to the  surface
 24        mining  reclamation  fund,  which is hereby created, to be used to reclaim
 25        affected lands and to administer the reclamation provisions of this  chap-
 26        ter.
 27        (2)  All sums recovered related to the cyanidation facility closure provi-
 28        sions  of  this chapter shall be placed in the state treasury and credited
 29        to the cyanidation facility closure fund, which is hereby created.  Moneys
 30        in the fund may be expended pursuant to appropriation and used to complete
 31        permanent  closure activities and to administer the permanent closure pro-
 32        visions of this chapter.
 33        (3)  Any unencumbered and unexpended balances in the surface mining recla-
 34        mation fund and the cyanidation facility closure fund remaining at the end
 35        of a fiscal year shall not  lapse  but  shall  be  carried  forward  until
 36        expended or modified by subsequent statute.
 37        (g)  Any  person who willfully and knowingly falsifies any records, infor-
 38    mation, plans, specifications, or other data required by the  board  or  will-
 39    fully fails, neglects, or refuses to comply with any of the provisions of this
 40    chapter  shall  be  guilty of a misdemeanor and shall be punished by a fine of
 41    not less than one thousand dollars ($1,000) and not more  than  five  thousand
 42    dollars ($5,000) or imprisonment not to exceed one (1) year or both.
 43        (h)  Reclamation  plans approved by the board as of January 1, 1997, shall
 44    be deemed to be in full compliance with the requirements of this chapter. How-
 45    ever, the board may periodically review, and revise if necessary to  meet  the
 46    requirements  of  sections  47-1506, 47-1509, 47-1510 and 47-1511, Idaho Code,
 47    the amount, terms and conditions of any bond when there is a  material  change
 48    in the reclamation plan or a material change in the estimated reasonable costs
 49    of  reclamation  determined pursuant to section 47-1512, Idaho Code. Any revi-
 50    sion to the amount, terms and conditions of a bond due to a material change in
 51    the reclamation plan shall apply only to the affected  lands  covered  by  the
 52    material change in the reclamation plan.
 53        (i)  A  cyanidation  facility  with  an  existing  permit  approved by the
 54    department of environmental quality under section 39-118A, Idaho Code,  as  of
 55    July  1,  2005, shall be deemed to be in full compliance with the requirements
                                                                        
                                           4
                                                                        
  1    of this chapter. If there is a material modification or a  material  expansion
  2    of  a  cyanidation facility after July 1, 2005, the provisions of this chapter
  3    shall apply to the modification or expansion. Provided however, that  reclama-
  4    tion  or closure related activities at a facility with an existing cyanidation
  5    permit that did not actively add cyanide after January 1, 2005, shall  not  be
  6    considered  to be material modifications or a material expansion of the facil-
  7    ity.
  8        (j)  For a permanent closure plan approved by  the  board  after  July  1,
  9    2005, the board shall periodically review, and revise if necessary to meet the
 10    requirements  of  this   chapter, the amount, terms and conditions of any bond
 11    when there is a material change in the permanent closure plan  or  a  material
 12    change  in the estimated reasonable costs of permanent closure determined pur-
 13    suant to section 47-1512, Idaho Code. The board may require a  fee  sufficient
 14    to  employ  a  qualified independent party, acceptable to the operator and the
 15    board, to verify any revised estimate of the  reasonable  costs  of  permanent
 16    closure.
                                                                        
 17        SECTION  2.  That  Section 47-1703, Idaho Code, be, and the same is hereby
 18    amended to read as follows:
                                                                        
 19        47-1703.  FUNDING. This chapter shall govern the use of state and  federal
 20    moneys  specifically appropriated for abandoned mine reclamation. This chapter
 21    shall not require the state to expend or appropriate state moneys.  The  board
 22    may  receive  federal funds, state funds, and any other funds, and, within the
 23    limits imposed by a specific grant, expend them as directed by  this  chapter.
 24    All  grants, funds, fees, fines, penalties and other uncleared money which has
 25    been or will be paid to the state for  abandoned  mine  reclamation  shall  be
 26    placed  in  the  state treasury and credited to the abandoned mine reclamation
 27    account fund, which is hereby created. This account fund shall be available to
 28    the board, by legislative appropriation, and shall be expended for the  recla-
 29    mation  of  lands affected by eligible mining operations. Any unencumbered and
 30    unexpended balance of this account remaining at the end of a fiscal year shall
 31    not lapse but shall be carried forward for the purposes of this chapter  until
 32    expended or until modified by subsequent statute.

Statement of Purpose / Fiscal Impact


                     STATEMENT OF PURPOSE

                           RS 15730

This legislation removes language that has provided perpetual 
carryover for three mining funds and returns those funds to a 
traditional budgeting approach. The impacted funds are the 
Abandoned Mine Reclamation Fund which was added in 1994, the 
Cyanidation Closure Fund which was new in 2005, and the Surface 
Mining Reclamation Fund which was amended to add the language in 
2005.  

The traditional Idaho State budgeting approach is to revert all 
unused spending authority at fiscal year-end, then begin the new 
fiscal year with a fresh appropriation.  Unless otherwise 
directed, unspent cash remains in each fund.  The perpetual 
carryover language undermines the annual legislative 
appropriation process by eliminating the need to craft a budget 
based on the projected workload for the fiscal year.  For 
example, the original FY 2006 appropriation for the Abandoned 
Mine Reclamation Fund was $251,500; however, carryover of 
$651,500 (rolling from previous years) increased this year's 
spending authority to $903,000.



                            FISCAL NOTE

This legislation does not increase or decrease revenues or 
authorize the expenditure of monies from the general fund or any 
other fund.  It does change the way that three mining funds are 
budgeted to limit the expenditure of those funds to the annual 
appropriation.  Should the Department of Lands anticipate the 
expenditure of reclamation funds that exceed the base 
appropriation, then the Department would need to request an 
additional appropriation from the legislature to expend 
additional cash from the funds.





Contact

Name:  Representatives Darrell Bolz
Phone: 208 332-1000
Name:  Ray Houston, Legislative Services
Phone: 208 334-4741


STATEMENT OF PURPOSE/FISCAL NOTE                       H 575