Amendment ASA2-SB1

Under this substitute amendment, instead of paying a net proceeds occupation tax based on net income, a person who is mining ferrous minerals in this state would pay a tax equal to $2 for each 2,240 pounds of ferrous minerals extracted from mines in this state, based on a three-year average. The tax rate would be annually adjusted to reflect the change in the gross domestic product.

Under current law, a person who intends to apply for a mining permit must make three payments of $50,000 each to the investment and local impact fund. Under the substitute amendment, a person who intends to apply for a mining permit must instead make three payments of $100,000 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 board). The revenue is then, generally, distributed to the counties and municipalities in which metallic minerals are being mined. The substitute amendment allows the board to provide grants to units of local government to prepare economic impact studies related to sites at or near the units of local government on which exploration or prospecting is being conducted for the potential mining of ferrous minerals.

Under the substitute amendment, 70 percent of the revenue collected from the tax on extracting ferrous metallic minerals in this state, as created in the substitute amendment, is deposited into the investment and local impact fund and 30 percent of the revenue is used for a regional Wisconsin diversification program that the substitute amendment requires the Wisconsin Economic Development Corporation (WEDC) to establish. The substitute amendment 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 substitute amendment 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:

SB1-ASA2,1 Section 1. 20.192 (1) (g) of the statutes is created to read:

SB1-ASA2,6,3 20.192 (1) (g) Regional Wisconsin diversification program. All moneys received under s. 70.395 (1e) for grants, loans, and disbursements under s. 238.14.

SB1-ASA2,2 Section 2. 70.375 (2) (a) of the statutes is amended to read:

SB1-ASA2,6,12 70.375 (2) (a) In Except as provided in sub. (7), 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.

SB1-ASA2,3 Section 3. 70.375 (5) (intro.) of the statutes is amended to read:

SB1-ASA2,7,3 70.375 (5) Rates. (intro.) The Except as provided in sub. (7), the tax to be assessed, levied and collected upon persons engaging in mining metalliferous minerals in this state shall be computed at the following rates:

SB1-ASA2,4 Section 4. 70.375 (7) of the statutes is created to read:

SB1-ASA2,7,11 70.375 (7) Per ton rate. (a) Notwithstanding subs. (2) and (5), for mines in operation after December 31, 2012, the tax assessed, levied, and collected from a person engaged in mining ferrous minerals in this state is an amount equal to $2 for each 2,240 pounds of ferrous minerals extracted by the person from mines in this state, based on the average annual amount extracted during the current year and the previous 2 years, not including any year in which the person is not extracting ferrous minerals from mines in this state.

SB1-ASA2,7,16 (b) Beginning in 2014, and in each year thereafter, the department shall change the dollar amount rate under par. (a) to reflect the percentage change in the gross domestic product implicit price deflator from the 4th quarter of the 2nd preceding year to the 4th quarter of the preceding year, as determined by the federal department of commerce.

SB1-ASA2,5 Section 5. 70.395 (1e) of the statutes is amended to read:

SB1-ASA2,8,2 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 under s. 70.375 (7) to the investment and local impact fund and 30 percent of the amount collected from each person under s. 70.375 (7) to the appropriation under s. 20.192 (1) (g) for the regional Wisconsin diversification program under s. 238.14.

SB1-ASA2,6 Section 6. 70.395 (2) (dc) 1. of the statutes is amended to read:

SB1-ASA2,8,7 70.395 (2) (dc) 1. Each person intending to submit an application for a mining permit shall pay $50,000 $100,000 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.

SB1-ASA2,7 Section 7. 70.395 (2) (dc) 2. of the statutes is amended to read:

SB1-ASA2,8,11 70.395 (2) (dc) 2. A person making a payment under subd. 1. shall pay an additional $50,000 $100,000 upon notification by the board that the board has distributed 50% of the payment under subd. 1.

SB1-ASA2,8 Section 8. 70.395 (2) (dc) 3. of the statutes is amended to read:

SB1-ASA2,8,16 70.395 (2) (dc) 3. A person making a payment under subd. 2. shall pay an additional $50,000 $100,000 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.

SB1-ASA2,9 Section 9. 70.395 (2) (g) (intro.) of the statutes is amended to read:

SB1-ASA2,8,20 70.395 (2) (g) (intro.) The board may distribute the revenues received by the investment and local impact fund under sub. (1e) or proceeds thereof in accordance with par. (h) for the following purposes, as the board determines necessary:

SB1-ASA2,10 Section 10. 70.395 (2) (L) of the statutes is created to read:

SB1-ASA2,9,2 70.395 (2) (L) Notwithstanding any other provision under this subsection, the board may provide grants to local governmental units, as defined in s. 238.133 (1) (b), to prepare economic impact studies related to sites at or near the local governmental units on which exploration or prospecting is being conducted for the potential mining of ferrous minerals or that are the subject of a preapplication process for a permit to mine ferrous minerals.

SB1-ASA2,11 Section 11. 227.42 (4) of the statutes is amended to read:

SB1-ASA2,9,5 227.42 (4) This section does not apply if a hearing on the matter was conducted as a part of a hearing under s. 293.43 293.44.

SB1-ASA2,12 Section 12. 238.14 of the statutes is created to read:

SB1-ASA2,9,8 238.14 Regional Wisconsin diversification program. The corporation may use moneys appropriated under s. 20.192 (1) (g) only as follows:

SB1-ASA2,9,15 (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 local governmental unit, as defined in s. 238.133 (1) (b), to make that grant or loan on a competitive basis for the purpose of business diversification.

SB1-ASA2,9,18 (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.

SB1-ASA2,13 Section 13. 281.93 (3) of the statutes is amended to read:

SB1-ASA2,9,21 281.93 (3) Mining hearing. Subsections (1) and (2) do not apply if a hearing on the matter is conducted as a part of a hearing under s. 293.43 293.44.

SB1-ASA2,14 Section 14. 283.63 (3) of the statutes is amended to read:

SB1-ASA2,9,24 283.63 (3) Subsections (1) and (2) do not apply if a hearing on the permit application is conducted as a part of a hearing under s. 293.43 293.44.

SB1-ASA2,15 Section 15. 285.81 (3) of the statutes is amended to read:

SB1-ASA2,10,2 285.81 (3) Mining hearing. Subsections (1) and (2) do not apply if a hearing on the matter is conducted as a part of a hearing under s. 293.43 293.44.

SB1-ASA2,16 Section 16. 289.05 (2) of the statutes is amended to read:

SB1-ASA2,10,21 289.05 (2) With the advice and comment of the metallic mining council, the department shall promulgate rules for the identification and regulation of metallic mining wastes. The rules promulgated to identify metallic mining wastes and to regulate the location, design, construction, operation and maintenance of facilities for the disposal of metallic mining wastes shall be in accordance with any or all of the provisions under this chapter and chs. 30 and 283. The rules shall take into consideration the special requirements of metallic mining operations in the location, design, construction, operation and maintenance of facilities for the disposal of metallic mining wastes as well as any special environmental concerns that will arise as a result of the disposal of metallic mining wastes. In promulgating the rules, the department shall give consideration to research, studies, data and recommendations of the U.S. environmental protection agency on the subject of metallic mining wastes arising from the agency's efforts to implement the resource conservation and recovery act. In the rules, the department shall adopt the standards of the American Society for Testing and Materials for testing and other methodologies related to the evaluation of mining waste. After the department promulgates rules adopting those standards, the department may modify or replace the rules to reflect new technologies or industry practices.

SB1-ASA2,17 Section 17. 289.27 (3) of the statutes is amended to read:

SB1-ASA2,11,2 289.27 (3) Nonapplicability. Notwithstanding sub. (2), this section does not apply if a hearing on the feasibility report is conducted as a part of a hearing under s. 293.43 293.44 and the time limits, notice and hearing provisions under that section supersede the time limits, notice and hearing provisions under s. 289.25 (2) and (3) and this section.

SB1-ASA2,18 Section 18. 289.29 (5) of the statutes is amended to read:

SB1-ASA2,11,10 289.29 (5) Issuance of final determination of feasibility in certain situations involving utilities and mining. If a determination of feasibility is identified in the listing specified in s. 196.491 (3) (a) 3. a., the issuance of a final determination of feasibility is subject to the time limit under s. 196.491 (3) (a) 3. b. If a determination of feasibility is required covered by a hearing under s. 293.43, the issuance of a final determination of feasibility is subject to the time limits under s. 293.45 (2) or 293.49, whichever is applicable.

SB1-ASA2,19 Section 19. 289.645 (4) (g) of the statutes is created to read:

SB1-ASA2,11,12 289.645 (4) (g) The recycling fee does not apply to prospecting or mining waste.

SB1-ASA2,20 Section 20. 293.31 (1) of the statutes is amended to read:

SB1-ASA2,12,9 293.31 (1) Any person intending to submit an application for a prospecting or mining permit shall notify the department prior to the collection of data or information intended to be used to support the permit application. A person intending to submit an application for a mining permit shall provide notice under this subsection at least 12 months before filing that application. Specific environmental data which would be pertinent to a specific prospecting or mining application, but which was obtained or collected or generated prior to the notice of intent to apply for a prospecting or mining permit, shall be submitted in writing to the department together with any substantiating background information which would assist the department in establishing the validity of the data. The department shall review the data and, if it concludes that the benefits of permitting the admission of the data outweigh the policy reasons for excluding it, and if the data is otherwise admissible, inform the person giving the notice of intent to prospect or mine that the data will be accepted by the department. Such exclusion shall not relate to general environmental information such as soil characteristics, hydrologic conditions and air and water data contained in publications, maps, documents, studies, reports and similar sources, whether public or private, not prepared by or for the applicant. Such exclusion shall likewise not relate to data which is otherwise admissible that is collected prior to notification under this subsection for purposes of evaluating another site or sites and which is not collected with intent to evade the provisions of this section.

SB1-ASA2,21 Section 21. 293.313 of the statutes is created to read:

SB1-ASA2,12,11 293.313 Collaboration. The department shall do all of the following:

SB1-ASA2,12,13 (1) Provide assistance to a person who provides notice under s. 293.31 during the processes under this subchapter.

SB1-ASA2,12,16 (2) Work with and consult with federally recognized American Indian tribes or bands in this state during the processes under this subchapter concerning proposed mining in which the tribes and bands have an interest.

SB1-ASA2,12,19 (3) Work with and provide assistance to other regulatory agencies, including local, state, and federal agencies, during the processes under this subchapter related to proposed mining in which the agencies have an interest.

SB1-ASA2,12,24 (4) After the department receives a notice under s. 293.31, seek to enter into a memorandum of understanding with any federal regulatory agency with responsibilities related to the potential mining operation covering timelines, sampling metrology, and any other issue of mutual concern related to processing an application for a mining permit.

SB1-ASA2,13,3 (5) Seek to take the lead in processes related to processing an application for a mining permit that are undertaken in coordination with federal regulatory agencies.

SB1-ASA2,22 Section 22. 293.35 (5) of the statutes is amended to read:

SB1-ASA2,13,9 293.35 (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 s. 293.42 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).

SB1-ASA2,23 Section 23. 293.37 (2) (gm) of the statutes is created to read:

SB1-ASA2,13,13 293.37 (2) (gm) A proposed irrevocable trust agreement to provide funds for activities to avoid or remedy any adverse environmental consequences from the mining operation.

SB1-ASA2,24 Section 24. 293.42 of the statutes is created to read:

SB1-ASA2,13,17 293.42 Process for certain prospecting permit applications. If the application for a prospecting permit shows that less 10,000 tons of material is proposed to be excavated, all of the following apply:

SB1-ASA2,13,19 (1) The department is not required to prepare a statement under s. 1.11 or an environmental analysis for consideration of the application.

SB1-ASA2,13,22 (2) The department shall hold a public informational hearing on the application in the county where the prospecting site, or the largest portion of the prospecting site, is located.

SB1-ASA2,14,2 (3) The hearing under sub. (2), shall cover, to the fullest extent possible, all other applications for approvals, licenses, and permits issued by the department that are needed to conduct the prospecting. The department shall inform the applicant as to the timely application date for all approvals, licenses, and permits issued by the department, so as to facilitate their consideration at the hearing.

SB1-ASA2,14,5 (4) The department shall approve the application for the prospecting permit, and issue the prospecting permit, or deny the application, under s. 293.45, no later than 60 days after the department determines that the application is complete.

SB1-ASA2,14,13 (5) For each approval, license, or permit, other than the prospecting permit, covered by the hearing under sub. (2), except for an approval, license, or permit for which federal law requires the opportunity for public comment or the ability to request a public hearing prior to issuance, the department shall approve the application and issue the approval, license, or permit or deny the application no later than 60 days after the department determines that the application for the prospecting permit is complete, notwithstanding any procedural provisions that would otherwise apply.

SB1-ASA2,14,16 (6) Notwithstanding s. 227.42, no person is entitled to a contested case hearing on a decision by the department on the prospecting permit or on another approval, license, or permit that is covered by the public informational hearing under sub. (2).

SB1-ASA2,25 Section 25. 293.43 (title) of the statutes is amended to read:

SB1-ASA2,14,19 293.43 (title) Hearings Public informational hearings on permit applications.

SB1-ASA2,26 Section 26. 293.43 (1) of the statutes is repealed and recreated to read:

SB1-ASA2,14,23 293.43 (1) Applicability. This section applies to all applications for mining permits and to those applications for prospecting permits to which s. 293.42 does not apply.

SB1-ASA2,27 Section 27. 293.43 (1m) of the statutes is amended to read:

SB1-ASA2,15,9 293.43 (1m) Scope. (a) The hearing on the Before approving or denying the application for a prospecting or mining permit shall cover, the department shall hold a public informational hearing covering the application and, any statements environmental impact statement prepared under s. 1.11 and, to the fullest extent possible, all other applications for approvals, licenses and permits issued by the department. The department shall inform the applicant as to the timely application date for all approvals, licenses and permits issued by the department, so as to facilitate the consideration of all other matters at the hearing on the prospecting or mining permits permit.

SB1-ASA2,15,25 (b) Except as provided in this paragraph, for all department issued approvals, licenses and permits relating to prospecting or mining including solid waste feasibility report approvals and permits related to air and water, to be issued after April 30, 1980, the notice, hearing and comment provisions, if any, and the time for issuance of decisions, shall be controlled by this section and ss. 293.44, 293.45, and 293.49. If an applicant fails to make application for an approval, license or permit for an activity incidental to prospecting or mining in time for notice under this section to be provided, the notice and comment requirements, if any, shall be controlled by the specific statutory provisions with respect to that application. If notice under those specific statutory notice requirements can be given for consideration of the approval, license or permit at the hearing under this section, the application shall be considered at that hearing; otherwise, the specific statutory hearing provisions, if any, with respect to that application shall control. The substantive requirements for the issuance of any approval, permit or license incidental to prospecting or mining are not affected by the fact that a hearing on the approval, permit or license is conducted as part of a hearing under this section.

SB1-ASA2,28 Section 28. 293.43 (2) of the statutes is amended to read:

SB1-ASA2,16,4 293.43 (2) Location. The hearing under sub. (1m) shall be held in the county where the prospecting or mining site, or the largest portion of the prospecting or mining site, is located, but may subsequently be adjourned to other locations.

SB1-ASA2,29 Section 29. 293.43 (2m) of the statutes is created to read:

SB1-ASA2,16,11 293.43 (2m) Meeting on preliminary environmental impact statement. Before issuing a final environmental impact statement for a mining permit or for a prospecting permit, if the department determines that an environmental impact statement is required under s. 1.11 for the prospecting permit, the department shall hold at least one informational meeting regarding its preliminary environmental impact statement.

SB1-ASA2,30 Section 30. 293.43 (3) (a) of the statutes is repealed.

SB1-ASA2,31 Section 31. 293.43 (3) (b) (intro.) of the statutes is repealed and recreated to read:

SB1-ASA2,16,18 293.43 (3) (b) (intro.) The department shall hold the hearing under sub. (1m) after it issues the final environmental impact statement, if an environmental impact statement is required. The department shall provide notice of the hearing under sub. (1m) by doing all of the following:

SB1-ASA2,32 Section 32. 293.43 (3) (c) of the statutes is amended to read:

SB1-ASA2,16,24 293.43 (3) (c) Written comments may be submitted by any governmental agency within 80 days of the date of or any individual after the issuance of the environmental impact statement under par. (b). Individual persons may submit written comments within 120 days of the date of issuance of the statement. The last day for receipt of comments shall be specified by the department in all notices.

SB1-ASA2,33 Section 33. 293.43 (4) of the statutes is amended to read:

SB1-ASA2,17,7 293.43 (4) Participation by local governments. Any county, town, village or city receiving notice of the filing of an application in the manner provided under sub. (3) (a) or (b) shall refer the application and reclamation plan to a committee established under s. 293.33 (1) or (2), if any, for review and comment. Such counties, towns, villages or cities may participate as a party in the hearing under sub. (1m) on the application and may make recommendations on the reclamation plan and future use of the project site.

SB1-ASA2,34 Section 34. 293.43 (5) of the statutes is repealed.

SB1-ASA2,35 Section 35. 293.44 of the statutes is created to read:

SB1-ASA2,17,17 293.44 Contested case hearing. (1) Requirement; scope. A contested case hearing shall be held on the application for a mining permit or a prospecting permit, other than a prospecting permit to which s. 293.42 applies, if a person files a notice of intent to participate under sub. (4) within 30 days after the department provides notice under sub. (3). The application for any other approval, license, or permit that was covered by the informational hearing under s. 293.43 (1m) and any environmental impact statement prepared under s. 1.11 shall be considered at the contested case hearing.