House of Representatives                     P.O. Box 40600

Office of Program Research            Olympia WA 98504-0600

Finance Committee                        Phone 360-786-7100

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HB 1324

Bill Analysis

February 6, 1997

Brief Description:  Revising the collection of the metals mining and milling fee.

Bill Sponsors:  Representatives Dunshee, Chandler and Buck.

Staff:  Linda Brooks (786-7153)

Background:  In 1994 the Legislature enacted a comprehensive new state regulatory law governing metals mining and milling operations.  The new regulations include authorization for a metals mining and milling fee.  Fee revenues pay for two costs:

(1) salary and benefits for a state metals mining coordinator; and

     (2) additional inspections of mining sites by the Departments of Ecology and Natural Resources.

Currently three metals mining and milling operations are active in Washington.  The Department of Ecology annually assesses fees for each operator based on the frequency and type of inspections needed and the time spent by the mining coordinator on each project.

The Department of Ecology informs the Department of Revenue of its fee assessments.  The Department of Revenue then bills and collects the appropriate fees from each operator.  The collected fees are deposited into a special metals mining account in the state treasury.

Summary of Bill:  The Department of Ecology takes over responsibility from the Department of Revenue for the collection of metals mining and milling fees.  As a result, the Department of Revenue has no role in the administration of metals mining and milling fees.   Otherwise, there is no change.  The Department of Ecology will continue to deposit the collected fees into the same metals mining account in the state treasury.

Fiscal Note:  Available

Effective Date:  If enacted, takes effect on July 1, 1997.