legislative green slip alert – coal tax increase

HB 283

Details are given below

PLEASE FORWARD THIS INFORMATION

Call the Legislative Message line in Frankfort (1-800-372-7181).
TTY Message Line 800-896-0305

This bill has now passed the House and is in the Senate.

Tell the operator: “I want to leave a message for the SENATE APPROPRIATIONS & REVENUE COMMITTEE MEMBERS: I do not want any new taxes or fees put upon the coal industry. It will raise our energy costs here in Kentucky and hurt the economy. I am opposed to HB 283 and I do not want it passed out of committee. “

A little background on this. The sponsor is actually a good friend of coal [Rep Gooch (D)] and the coal industry supports this bill. The reason for this bill is basically the state can’t process all the applications fast enough and so supposedly more money will help that. This bill basically doubles and in some cases triples the fees a coal company has to pay for applications for certain items/activities they have to do. The coal industry is willing to “bite the bullet” on this one so they take an excuse off the table for the applications not getting processed so they can do their job and not have another reason as there are many government-contrived reasons to put pressure on the Coal Industry. However in the end we the consumer will feel the effects of this increase on our utility bills and the economy will suffer as the Coal Industry will have to pass this cost on to us. It is a short term fix that will cause long term problems especially if the EPA has its way.

BELOW IS TEXT FROM THE BILL.

Section 1

(11)         A basic fee set by administrative regulation, and bearing a reasonable relationship to the cost of processing the permit application but not to exceed two thousand five hundred dollars ($2,500)[three hundred seventy-five dollars ($375)], plus a fee set by administrative regulation but not to exceed seventy-five dollars ($75), for each acre or fraction thereof of the area of land to be affected by the operation, shall be paid before the permit required in this section shall be issued;

(13)     Any valid permit issued pursuant to this chapter shall carry with it the right of successive renewal upon expiration with respect to areas within the boundaries of the existing permit. An applicant for renewal of a permit shall pay a basic fee set by regulation, not to exceed seven hundred fifty dollars ($750)[three hundred seventy-five dollars ($375)]. The holders of the permit may apply for renewal and the renewal shall be issued, provided that on application for renewal the burden shall be on the opponents of renewal, subsequent to the fulfillment of the public notice requirements of this chapter, unless it is established and written findings by the cabinet are made that:

Section 2

(2)       For an amendment, the permittee shall file an application, map, and revised reclamation plan in the same form and with the same content as required for an original application under this chapter. He shall pay a basic fee set by regulation and bearing a reasonable relationship to the cost of processing the permit application, not to exceed one thousand seven hundred fifty dollars ($1,750)[three hundred seventy-five dollars ($375)], plus a fee set by regulation, not to exceed seventy-five dollars ($75), for each acre or fraction of an acre for the increase requested. He shall file with the cabinet a supplemental bond in the amount to be determined under the provisions of KRS 350.060(11) for each acre or fraction of an acre of the increase approved. This application shall be subject to all of the same requirements as an original application, including, but not limited to, the same public notice, review, and issuance or denial provisions.

(4)       The cabinet shall promulgate regulations specifying the permit application information requirements and procedures, including notice and hearing, which shall apply depending on the scale or extent of a permit revision. Any revision which proposes significant alterations in the reclamation plan shall be subject to the notice and hearing requirements as set forth in the regulations of the cabinet. The applicant for a revision shall pay a basic fee set by regulation, not to exceed seven hundred fifty dollars ($750) for a minor revision and one thousand seven hundred fifty dollars ($1,750) for a major revision[three hundred seventy-five dollars ($375)], plus a fee set by regulation not to exceed seventy-five dollars ($75), for each acre or fraction of an acre included in an incidental boundary revision.

Section 3

(1)       No surface coal mining permit issued pursuant to this chapter shall be transferred by sale, assignment, lease, or otherwise except upon the written approval by the cabinet of a joint application submitted by both the transferor and the transferee. A basic fee set by regulation, and bearing a reasonable relationship to the cost of processing the transfer, but not to exceed seven hundred fifty dollars ($750)[three hundred seventy-five dollars ($375)] shall accompany the application and no acreage fee will be assessed. The transferee shall file with the application a bond satisfactory to the cabinet which shall ensure reclamation of the entire area of land affected under the permit, including areas previously affected by the transferor. All rights and liabilities under the permit shall pass to the transferee upon written approval of the transfer by the cabinet, except that the transferor shall remain liable for any civil penalties resulting from violations occurring prior to the date of approval of the transfer. The cabinet shall not approve transfer of a surface coal.

__._,_.___