SB542: Bill Text

Under current law, the state imposes a net proceeds occupation tax on the mining of metallic minerals in this state. The tax is based, generally, on a percentage of net income from the sale of ore or minerals after certain mining processes have been applied to the ore or minerals. Under the bill, for the first 60 months in which a person is extracting ferrous metallic minerals in this state, the annual amount of the tax imposed on that person is the greater of the amount of the net proceeds occupation tax computed for that person or an amount equal to $416,667 for each month in which extraction occurs. If the amount of the net proceeds occupation tax computed for that person is less than the minimum amount required under the bill, the person may claim the difference between the net proceeds occupation tax amount and the minimum amount paid as a credit against the tax imposed in subsequent years as long as the person's tax liability is not less than the minimum amount, less any credit the person claims for construction fees, as allowed under current law.

Under current law, in addition to paying the net proceeds occupation tax, a person who intends to apply for a mining permit must make an additional three payments of $50,000 each to the investment and local impact fund. Under the bill, a person who intends to apply for a mining permit must also make an additional three payments of $75,000 each to the investment and local impact fund.

Under current law, the revenue collected from the net proceeds occupation tax is deposited into the investment and local impact fund. The fund is managed by the local impact fund board. The revenue is then, generally, distributed to the counties and municipalities in which metallic minerals are being mined.

Under the bill, 70 percent of the revenue collected from the net proceeds occupation tax on extracting ferrous metallic minerals in this state is deposited into the investment and local impact fund, 10 percent of the revenue is deposited into a mining transportation fund, and 20 percent of the revenue is used for a regional Wisconsin diversification program that the bill requires the Wisconsin Economic Development Corporation (WEDC) to establish. Under the bill, the local impact fund board disburses moneys from the mining transportation fund for highway, rail, or shipping infrastructure relating to mining for ferrous metallic minerals. The bill authorizes WEDC to use the moneys it receives for the regional Wisconsin diversification program for the purpose of making business diversification grants or loans in coordination with appropriate units of local government to businesses that are located in close proximity to, but no more than 100 miles from, the site of a mine for ferrous metallic minerals. The bill also authorizes WEDC to use those moneys for the purpose of catastrophe abatement or response, as determined by WEDC.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB542, s. 1 Section 1. 20.192 (1) (q) of the statutes is created to read:

SB542,5,3 20.192 (1) (q) Regional Wisconsin diversification program. From the economic development fund, all moneys received under s. 70.395 (1e) for grants, loans, and disbursements under s. 238.14.

SB542, s. 2 Section 2. 20.566 (7) (title) of the statutes is amended to read:

SB542,5,6 20.566 (7) (title) Investment and local impact fund; mining transportation fund.

SB542, s. 3 Section 3. 20.566 (7) (w) of the statutes is created to read:

SB542,5,10 20.566 (7) (w) Mining transportation fund. From the mining transportation fund, all moneys received under s. 70.395 (1e) to be disbursed under s. 70.395 (2) (gm).

SB542, s. 4 Section 4. 25.17 (1) (jd) of the statutes is created to read:

SB542,5,12 25.17 (1) (jd) Mining transportation fund (s. 70.395 (2) (gm));

SB542, s. 5 Section 5. 25.49 (2m) of the statutes is created to read:

SB542,5,15 25.49 (2m) The moneys transferred under s. 70.395 (1e) to the appropriation account under s. 20.192 (1) (q).

SB542, s. 6 Section 6. 70.375 (2) (a) of the statutes is amended to read:

SB542,5,24 70.375 (2) (a) In Except as provided in subs. (2b) and (2c), with respect to mines not in operation on November 28, 1981, there is imposed upon persons engaged in mining metalliferous minerals in this state a net proceeds occupation tax effective on the date on which extraction begins to compensate the state and municipalities for the loss of valuable, irreplaceable metalliferous minerals. The amount of the tax shall be determined by applying the rates established under sub. (5) to the net proceeds of each mine. The net proceeds of each mine for each year are the difference between the gross proceeds and the deductions allowed under sub. (4) for the year.

SB542, s. 7 Section 7. 70.375 (2b) of the statutes is created to read:

SB542,6,6 70.375 (2b) Minimum tax. With respect to mines in operation after December 31, 2011, beginning with the first month of extraction, for the first 60 months in which a person is extracting ferrous metallic minerals in this state, the amount of the tax imposed on that person is the greater of the tax computed under sub. (2) for the year in which extraction occurs or an amount equal to $416,667 for each month in which extraction occurs.

SB542, s. 8 Section 8. 70.375 (2c) of the statutes is created to read:

SB542,6,18 70.375 (2c) Credit. With respect to mines in operation after December 31, 2011, if a person subject to sub. (2b) would have paid less tax under sub. (2) than under sub. (2b), the person may claim as a credit against the tax imposed under sub. (2) or (2b) an amount equal to the difference between the amount paid under sub. (2b) and the amount that the person would have paid under sub. (2), except that the person may not claim a credit amount that would result in less than the total minimum tax liability computed under sub. (2b), less any credit amount claimed under s. 70.395 (2) (dg), for the first 60 months in which a person is extracting ferrous metallic minerals in this state. The person may carry forward the amount of any unused credit under this subsection to claim against the person's tax liability in subsequent years until the total amount of the credit is used.

SB542, s. 9 Section 9. 70.395 (1e) of the statutes is amended to read:

SB542,7,3 70.395 (1e) Distribution. Fifteen days after the collection of the tax under ss. 70.38 to 70.39, the department of administration, upon certification of the department of revenue, shall transfer the amount collected in respect to mines not in operation on November 28, 1981, to the investment and local impact fund, except that the department of administration shall transfer 70 percent of the amount collected from each person extracting ferrous metallic minerals to the investment and local impact fund, 20 percent to the appropriation under s. 20.192 (1) (q) for the regional Wisconsin diversification program under s. 238.14, and 10 percent to the mining transportation fund.

SB542, s. 10 Section 10. 70.395 (2) (dc) 1. of the statutes is amended to read:

SB542,7,8 70.395 (2) (dc) 1. Each person intending to submit an application for a mining permit shall pay $50,000 $75,000 to the department of revenue for deposit in the investment and local impact fund at the time that the person notifies the department of natural resources under s. 293.31 (1) of that intent.

SB542, s. 11 Section 11. 70.395 (2) (dc) 2. of the statutes is amended to read:

SB542,7,12 70.395 (2) (dc) 2. A person making a payment under subd. 1. shall pay an additional $50,000 $75,000 upon notification by the board that the board has distributed 50% of the payment under subd. 1.

SB542, s. 12 Section 12. 70.395 (2) (dc) 3. of the statutes is amended to read:

SB542,7,17 70.395 (2) (dc) 3. A person making a payment under subd. 2. shall pay an additional $50,000 $75,000 upon notification by the board that the board has distributed all of the payment under subd. 1. and 50% of the payment under subd. 2.

SB542, s. 13 Section 13. 70.395 (2) (dg) of the statutes is amended to read:

SB542,8,5 70.395 (2) (dg) Each person constructing a metalliferous mining site shall pay to the department of revenue for deposit in the investment and local impact fund, as a construction fee, an amount sufficient to make the construction period payments under par. (d) 5. in respect to that site. Any person paying a construction fee under this paragraph may credit against taxes due under s. 70.375 an amount equal to the payments that the taxpayer has made under this paragraph, provided that the credit does not reduce the taxpayer's liability under s. 70.375 below the amount needed to make the first-dollar payments under par. (d) 1., 2. and 2m. for that year in respect to the taxpayer's mine. The taxpayer may use the credit to reduce the taxpayer's liability under s. 70.375 below the minimum amount required under s. 70.375 (2b). Any amount not creditable because of that limitation in any year may be carried forward.

SB542, s. 14 Section 14. 70.395 (2) (gm) of the statutes is created to read:

SB542,8,11 70.395 (2) (gm) There is created a mining transportation fund under the jurisdiction and management of the investment and local impact board, as created under s. 15.435. The board may disburse moneys from the mining transportation fund, as it determines is necessary, for highway, rail, or shipping infrastructure related to mining ferrous metallic minerals in this state.

SB542, s. 15 Section 15. 227.43 (1) (bd) of the statutes is created to read:

SB542,8,17 227.43 (1) (bd) Assign a hearing examiner to preside over the informational meeting under s. 293.43 (3) (b) and over the hearing under s. 293.43 (1m) for an application for a permit to mine for ferrous minerals and assign the same hearing examiner to any request under s. 293.495 (3) (c) 1. for the same mining permit application.

SB542, s. 16 Section 16. 238.14 of the statutes is created to read:

SB542,8,20 238.14 Regional Wisconsin diversification program. The corporation may use moneys received under s. 20.192 (1) (q) only as follows:

SB542,9,2 (1) The corporation may make a grant or loan of those moneys to a business that is located within 100 miles from the site of a mine for ferrous metallic minerals in this state, and the corporation shall give preference for that grant or loan to a business that is located in close proximity to the site of the mine. In making a grant or loan under this subsection, the corporation shall coordinate with an appropriate unit of local government, as defined in s. 238.133 (1) (b), to make that grant or loan on a competitive basis for the purpose of business diversification.

SB542,9,5 (2) The corporation may disburse those moneys for the purpose of catastrophe abatement or response related to a mine for ferrous metallic minerals, as determined by the corporation.

SB542, s. 17 Section 17. 281.34 (5) (am) of the statutes is created to read:

SB542,9,12 281.34 (5) (am) Iron mining. If the department determines that a high capacity well proposed in connection with iron mining may impair a privately owned well, the department may not approve the proposed high capacity well unless it is able to include and includes in the approval conditions, which may include conditions as to location, depth, pumping capacity, rate of flow, and ultimate use, that will ensure that the privately owned well will not be impaired.

SB542, s. 18 Section 18. 289.645 (3) of the statutes is amended to read:

SB542,9,16 289.645 (3) Amount of recycling fee. The fee imposed under this section is $7 per ton for all solid waste other than high-volume industrial waste and mining waste from mining for ferrous minerals, as defined in s. 293.01 (4e).

SB542, s. 19 Section 19. 293.01 (2m) of the statutes is created to read:

SB542,9,20 293.01 (2m) "Ceded territory" means the territory in Wisconsin ceded by the Chippewa Indians to the United States in the treaty of 1837, 7 Stat. 536, and the treaty of 1842, 7 Stat. 591.

SB542, s. 20 Section 20. 293.01 (4e) of the statutes is created to read:

SB542,9,24 293.01 (4e) "Ferrous mineral" means an ore or earthen material in natural deposits in or on the earth that primarily exists in the form of an iron oxide, including taconite, magnetite, and hematite.

SB542, s. 21 Section 21. 293.01 (4m) of the statutes is created to read:

SB542,10,4 293.01 (4m) "Ferrous mining" means the mining of ferrous minerals at a mining site where the department determines, based on information provided under s. 293.31 (7) (a) by a person proposing to mine for ferrous minerals, that it is not likely that any of the disturbed areas will contain significant amounts of sulfide minerals.

SB542, s. 22 Section 22. 293.01 (18) of the statutes is amended to read:

SB542,10,19 293.01 (18) "Prospecting" means engaging in the examination of an area for the purpose of determining the quality and quantity of minerals, other than for exploration but including the obtaining of an ore sample, by such physical means as excavating, trenching, construction of shafts, ramps and tunnels and other means, other than for exploration, which the department, by rule, identifies, and the production of prospecting refuse and other associated activities. "Prospecting" shall not include such activities when the activities are, by themselves, intended for and capable of commercial exploitation of the underlying ore body. However, the fact that prospecting activities and construction may have use ultimately in mining, if approved, shall not mean that prospecting activities and construction constitute mining within the meaning of sub. (9), provided such activities and construction are reasonably related to prospecting requirements. When conducted in contemplation of ferrous mining, "prospecting" does not include any activities that result in the removal of 10,000 or more tons of material.

SB542, s. 23 Section 23. 293.13 (1) (c) of the statutes is created to read:

SB542,10,24 293.13 (1) (c) Require that, if an iron mining operation is located in whole or in part within the ceded territory, any wetland mitigation that is authorized or required by the department as a result of, or as part of, the mining operation occurs within the ceded territory.

SB542, s. 24 Section 24. 293.31 (7) of the statutes is created to read:

SB542,11,5 293.31 (7) (a) If a person who intends to mine for ferrous minerals wishes to have the department determine that it is not likely that any of the areas that would be disturbed by proposed mining contain significant amounts of sulfide minerals, the person shall provide the department with information on which to make that determination.

SB542,11,9 (b) The department may only determine that it is not likely that any of the areas disturbed by proposed mining for ferrous minerals contain significant amounts of sulfide minerals if the person who intends to mine provides sufficient information under par. (a) to make that determination.

SB542, s. 25 Section 25. 293.32 (2) of the statutes is amended to read:

SB542,11,20 293.32 (2) The department shall annually compare the fees paid under this section and under chs. 30, 280 to 292 and 295 to 299 in connection with proposed prospecting or mining for which notice has been given under s. 293.31 (1) with the costs incurred by the department in connection with that proposed prospecting or mining, including the costs incurred under chs. 30, 280 to 292 and 295 to 299 but excluding costs related to the environmental impact statement. If the costs incurred exceed the fees paid, the person who notified the department shall pay a fee equal to the amount by which the costs exceed the fees previously paid, except that the total amount that a person who proposes to conduct ferrous mining may be required to pay under this subsection and sub. (1) may not exceed $2,000,000.

SB542, s. 26 Section 26. 293.35 (4) of the statutes is created to read:

SB542,11,24 293.35 (4) The department is not required to prepare a statement under s. 1.11 or an environmental analysis for consideration of an application for a permit to prospect in contemplation of ferrous mining.

SB542, s. 27 Section 27. 293.35 (5) of the statutes is amended to read:

SB542,12,5 293.35 (5) If the department determines that a statement under s. 1.11 is required for consideration of an application for a prospecting permit to which sub. (4) does not apply, the statement need not consider impacts unrelated to the proposed prospecting activity, other than the issue of unsuitability for surface mining, absent a certification under sub. (1).

SB542, s. 28 Section 28. 293.43 (3) (b) (intro.) of the statutes is amended to read:

SB542,12,21 293.43 (3) (b) (intro.) If it is determined that a statement under s. 1.11 is required, or if an environmental impact statement is required under s. 293.39, the department shall hold at least one informational meeting regarding the preliminary environmental report within 60 days of its issuance and, for an application for a mining permit for ferrous mining, no later than the deadline under s. 293.495 (1). The hearing examiner assigned under s. 227.43 (1) (bd) shall preside over the informational meeting regarding the preliminary environmental impact report for proposed ferrous mining. The meeting shall be held not sooner than 30 days nor later than 60 days after the issuance of the report. The scheduling and providing of notice of the meeting shall be completed not later than 10 days following the issuance of the preliminary environmental report. A hearing referred to under sub. (1m) shall be scheduled for a date not less than 120 days nor more than 180 days after the issuance of the environmental impact statement. The scheduling and providing of notice of the hearing shall be completed within 30 days from the date of issuance of the environmental impact statement. The providing of notice shall be accomplished by:

SB542, s. 29 Section 29. 293.43 (5) (bm) of the statutes is created to read:

SB542,13,7 293.43 (5) (bm) The hearing examiner shall hold a prehearing conference on an application for a mining permit for ferrous mining. At the prehearing conference under this paragraph, the parties shall outline the issues that they wish to raise in the contested case portion of the hearing and shall present summaries of the testimony that they wish to present. The hearing examiner shall identify the issues that will be considered in the contested case portion of the hearing for an application for a mining permit for ferrous mining, shall notify the parties of those issues, and shall exclude evidence that is not relevant to those issues. The hearing examiner shall also establish a schedule for the case that will enable the department to meet the deadline under s. 293.495 (2).

SB542, s. 30 Section 30. 293.43 (6) of the statutes is created to read:

SB542,13,13 293.43 (6) Exception for certain prospecting. The department is not required to conduct a hearing under this section on a permit for prospecting in contemplation of ferrous mining. Notwithstanding s. 227.42, no person is entitled to a contested case hearing on a decision by the department on a permit for prospecting in contemplation of ferrous mining.

SB542, s. 31 Section 31. 293.49 (1) (a) (intro.) of the statutes is amended to read:

SB542,13,19 293.49 (1) (a) (intro.) Except as provided in sub. (2) and s. 293.50 and except with respect to property specified in s. 41.41 (11), within 90 days of the completion of the public hearing record or, for an application for a mining permit for ferrous mining, no later than the deadline under s. 293.495 (2), the department shall issue the mining permit if it finds:

SB542, s. 32 Section 32. 293.49 (2) (intro.) of the statutes is amended to read:

SB542,13,24 293.49 (2) (intro.) Within 90 days of the completion of the public hearing record or, for an application for a mining permit for ferrous mining, no later than the deadline under s. 293.495 (2), the department shall deny the mining permit if it finds any of the following:

SB542, s. 33 Section 33. 293.495 of the statutes is created to read:

SB542,14,6 293.495 Deadlines for processing ferrous mining permit applications. (1) Deadline for informational meeting. The deadline for the department to hold the informational meeting under s. 293.43 (3) (b) on the preliminary environmental report for a mining permit for ferrous mining is the 270th day after the day on which the department determines that the application under s. 293.37 for the mining permit is complete, except as extended under sub. (3) or (4).

SB542,14,11 (2) Deadline for acting on mining permit application. The deadline for the department to act under s. 293.49 (1) (a) (intro.) and (2) (intro.) on the application for a mining permit for ferrous mining is the 270th day after the day on which the informational meeting under s. 293.43 (3) (b) is concluded, except as extended under sub. (3) or (4).

SB542,14,15 (3) Requests for extensions. (a) The department may propose not more than 3 extensions under this section for any one application for a mining permit. An applicant may propose any number of extensions under this section for any one application for a mining permit.

SB542,14,17 (am) If an applicant proposes an extension under par. (a) to a deadline under sub. (1) or (2), the deadline is extended as proposed by the applicant.

SB542,14,20 (b) If the department and an applicant agree to an extension to a deadline under sub. (1) or (2) proposed by the department under par. (a), including the length of the extension, the deadline is extended as provided in the agreement.

SB542,14,24 (c) 1. If the department and an applicant do not agree to an extension proposed by the department under par. (a), the department may request the administrator of the division of hearings and appeals in the department of administration to appoint a hearing examiner to resolve the disagreement.

SB542,15,3 2. A hearing examiner appointed under subd. 1. shall determine whether there is good cause for an extension and, if so, shall grant an extension and specify the length of the extension.

SB542,15,11 (4) Extension for joint preparation of environmental impact statement. If the U.S. Army Corps of Engineers notifies the department that an extension of the deadline under sub. (1) or (2) or both deadlines is necessary to enable the department and the U.S. Army Corps of Engineers to jointly prepare their environmental impact statements for the proposed ferrous mining, the department shall extend the deadline or deadlines by the amount that the U.S. Army Corps of Engineers determines is necessary. The department shall notify the applicant of any extension under this subsection.

SB542, s. 34 Section 34. 293.50 (4) of the statutes is created to read:

SB542,15,14 293.50 (4) Subsection (2) does not apply to an application for a mining permit for ferrous mining.

SB542,15,15 (End)