View Bill Status
View Bill Text
View Statement of Purpose / Fiscal Impact
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
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-eighth Legislature Second Regular Session - 2006IN 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-34mation fund and the cyanidation facility closure fund remaining at the end35of a fiscal year shall not lapse but shall be carried forward until36expended 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 27accountfund, which is hereby created. Thisaccountfund 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 and30unexpended balance of this account remaining at the end of a fiscal year shall31not lapse but shall be carried forward for the purposes of this chapter until32expended or until modified by subsequent statute.
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