The proposed bill would amend current statutes regarding financial assurance mechanisms for owners and operators of exploration operations and mining units that create surface disturbances. Specifically, it would add cash deposits with a third-party escrow or trust account to the list of allowable financial assurance mechanisms, which currently includes options such as surety bonds and letters of credit. Additionally, the bill stipulates that all interest and earnings accrued from these cash deposits, minus any administrative fees, are the property of the owner or operator and can be applied toward final reclamation costs. Furthermore, the bill mandates that if the financial assurance is held in a third-party escrow or trust account, the State Mine Inspector must release the proportional share of any interest earned upon partial release or substitution of the deposited funds. This change aims to clarify the handling of interest accrued from these financial assurances and ensure that operators benefit from their deposits. Overall, the bill seeks to modernize and enhance the financial assurance framework for mining operations in Arizona.

Statutes affected:
Introduced Version: 27-991, 27-996, 27-1291, 27-1296, 27-992
House Engrossed Version: 27-991, 27-996, 27-1291, 27-1296, 27-992
Chaptered Version: 27-991, 27-996, 27-1291, 27-1296, 27-992