Under the substitute amendment, if an iron mining operation is located in an
area ceded by the Chippewa to the United States, any wetland mitigation that is
authorized or required by DNR must occur within the ceded territory.

Current law requires a person who proposes to construct a high capacity well
to obtain approval from DNR. Under the law, if DNR determines that a high capacity
well may impair the water supply of a public water utility, DNR may not approve the
proposed high capacity well unless it includes conditions that will ensure that the
water supply of the public utility will not be impaired.
The substitute amendment provides that, if DNR determines that a high
capacity well proposed in connection with iron mining may impair a privately owned
well, DNR may not approve the proposed high capacity well unless it includes
conditions that will ensure that the privately owned well will not be impaired.
Net proceeds occupation tax
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 substitute amendment, 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 substitute amendment, 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
substitute amendment, 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 substitute amendment, 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 substitute amendment
requires the Wisconsin Economic Development Corporation (WEDC) to establish.
Under the substitute amendment, 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 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:
SB488-SSA3, s. 1 1Section 1. 20.192 (1) (q) of the statutes is created to read:
SB488-SSA3,5,42 20.192 (1) (q) Regional Wisconsin diversification program. From the economic
3development fund, all moneys received under s. 70.395 (1e) for grants, loans, and
4disbursements under s. 238.14.
SB488-SSA3, s. 2 5Section 2. 20.566 (7) (title) of the statutes is amended to read:
SB488-SSA3,5,76 20.566 (7) (title) Investment and local impact fund; mining transportation
7fund
.
SB488-SSA3, s. 3 8Section 3. 20.566 (7) (w) of the statutes is created to read:
SB488-SSA3,5,119 20.566 (7) (w) Mining transportation fund. From the mining transportation
10fund, all moneys received under s. 70.395 (1e) to be disbursed under s. 70.395 (2)
11(gm).
SB488-SSA3, s. 4 12Section 4. 25.17 (1) (jd) of the statutes is created to read:
SB488-SSA3,5,1313 25.17 (1) (jd) Mining transportation fund (s. 70.395 (2) (gm));
SB488-SSA3, s. 5 14Section 5. 25.49 (2m) of the statutes is created to read:
SB488-SSA3,5,1615 25.49 (2m) The moneys transferred under s. 70.395 (1e) to the appropriation
16account under s. 20.192 (1) (q).
SB488-SSA3, s. 6 17Section 6. 70.375 (2) (a) of the statutes is amended to read:
SB488-SSA3,6,618 70.375 (2) (a) In Except as provided in subs. (2b) and (2c), with respect to mines
19not in operation on November 28, 1981, there is imposed upon persons engaged in

1mining metalliferous minerals in this state a net proceeds occupation tax effective
2on the date on which extraction begins to compensate the state and municipalities
3for the loss of valuable, irreplaceable metalliferous minerals. The amount of the tax
4shall be determined by applying the rates established under sub. (5) to the net
5proceeds of each mine. The net proceeds of each mine for each year are the difference
6between the gross proceeds and the deductions allowed under sub. (4) for the year.
SB488-SSA3, s. 7 7Section 7. 70.375 (2b) of the statutes is created to read:
SB488-SSA3,6,138 70.375 (2b) Minimum tax. With respect to mines in operation after December
931, 2011, beginning with the first month of extraction, for the first 60 months in
10which a person is extracting ferrous metallic minerals in this state, the amount of
11the tax imposed on that person is the greater of the tax computed under sub. (2) for
12the year in which extraction occurs or an amount equal to $416,667 for each month
13in which extraction occurs.
SB488-SSA3, s. 8 14Section 8. 70.375 (2c) of the statutes is created to read:
SB488-SSA3,6,2515 70.375 (2c) Credit. With respect to mines in operation after December 31,
162011, if a person subject to sub. (2b) would have paid less tax under sub. (2) than
17under sub. (2b), the person may claim as a credit against the tax imposed under sub.
18(2) or (2b) an amount equal to the difference between the amount paid under sub. (2b)
19and the amount that the person would have paid under sub. (2), except that the
20person may not claim a credit amount that would result in less than the total
21minimum tax liability computed under sub. (2b), less any credit amount claimed
22under s. 70.395 (2) (dg), for the first 60 months in which a person is extracting ferrous
23metallic minerals in this state. The person may carry forward the amount of any
24unused credit under this subsection to claim against the person's tax liability in
25subsequent years until the total amount of the credit is used.
SB488-SSA3, s. 9
1Section 9. 70.395 (1e) of the statutes is amended to read:
SB488-SSA3,7,102 70.395 (1e) Distribution. Fifteen days after the collection of the tax under ss.
370.38 to 70.39, the department of administration, upon certification of the
4department of revenue, shall transfer the amount collected in respect to mines not
5in operation on November 28, 1981, to the investment and local impact fund, except
6that the department of administration shall transfer 70 percent of the amount
7collected from each person extracting ferrous metallic minerals to the investment
8and local impact fund, 20 percent to the appropriation under s. 20.192 (1) (q) for the
9regional Wisconsin diversification program under s. 238.14, and 10 percent to the
10mining transportation fund
.
SB488-SSA3, s. 10 11Section 10. 70.395 (2) (dc) 1. of the statutes is amended to read:
SB488-SSA3,7,1512 70.395 (2) (dc) 1. Each person intending to submit an application for a mining
13permit shall pay $50,000 $75,000 to the department of revenue for deposit in the
14investment and local impact fund at the time that the person notifies the department
15of natural resources under s. 293.31 (1) of that intent.
SB488-SSA3, s. 11 16Section 11. 70.395 (2) (dc) 2. of the statutes is amended to read:
SB488-SSA3,7,1917 70.395 (2) (dc) 2. A person making a payment under subd. 1. shall pay an
18additional $50,000 $75,000 upon notification by the board that the board has
19distributed 50% of the payment under subd. 1.
SB488-SSA3, s. 12 20Section 12. 70.395 (2) (dc) 3. of the statutes is amended to read:
SB488-SSA3,7,2421 70.395 (2) (dc) 3. A person making a payment under subd. 2. shall pay an
22additional $50,000 $75,000 upon notification by the board that the board has
23distributed all of the payment under subd. 1. and 50% of the payment under subd.
242.
SB488-SSA3, s. 13 25Section 13. 70.395 (2) (dg) of the statutes is amended to read:
SB488-SSA3,8,12
170.395 (2) (dg) Each person constructing a metalliferous mining site shall pay
2to the department of revenue for deposit in the investment and local impact fund, as
3a construction fee, an amount sufficient to make the construction period payments
4under par. (d) 5. in respect to that site. Any person paying a construction fee under
5this paragraph may credit against taxes due under s. 70.375 an amount equal to the
6payments that the taxpayer has made under this paragraph, provided that the credit
7does not reduce the taxpayer's liability under s. 70.375 below the amount needed to
8make the first-dollar payments under par. (d) 1., 2. and 2m. for that year in respect
9to the taxpayer's mine. The taxpayer may use the credit to reduce the taxpayer's
10liability under s. 70.375 below the minimum amount required under s. 70.375 (2b).

11Any amount not creditable because of that limitation in any year may be carried
12forward.
SB488-SSA3, s. 14 13Section 14. 70.395 (2) (gm) of the statutes is created to read:
SB488-SSA3,8,1814 70.395 (2) (gm) There is created a mining transportation fund under the
15jurisdiction and management of the investment and local impact board, as created
16under s. 15.435. The board may disburse moneys from the mining transportation
17fund, as it determines is necessary, for highway, rail, or shipping infrastructure
18related to mining ferrous metallic minerals in this state.
SB488-SSA3, s. 15 19Section 15. 227.43 (1) (bd) of the statutes is created to read:
SB488-SSA3,8,2420 227.43 (1) (bd) Assign a hearing examiner to preside over the informational
21meeting under s. 293.43 (3) (b) and over the hearing under s. 293.43 (1m) for an
22application for a permit to mine for ferrous minerals and assign the same hearing
23examiner to any request under s. 293.495 (3) (c) 1. for the same mining permit
24application.
SB488-SSA3, s. 16 25Section 16. 238.14 of the statutes is created to read:
SB488-SSA3,9,2
1238.14 Regional Wisconsin diversification program. The corporation
2may use moneys received under s. 20.192 (1) (q) only as follows:
SB488-SSA3,9,9 3(1) The corporation may make a grant or loan of those moneys to a business that
4is located within 100 miles from the site of a mine for ferrous metallic minerals in
5this state, and the corporation shall give preference for that grant or loan to a
6business that is located in close proximity to the site of the mine. In making a grant
7or loan under this subsection, the corporation shall coordinate with an appropriate
8unit of local government, as defined in s. 238.133 (1) (b), to make that grant or loan
9on a competitive basis for the purpose of business diversification.
SB488-SSA3,9,12 10(2) The corporation may disburse those moneys for the purpose of catastrophe
11abatement or response related to a mine for ferrous metallic minerals, as determined
12by the corporation.
SB488-SSA3, s. 17 13Section 17. 281.34 (5) (am) of the statutes is created to read:
SB488-SSA3,9,1914 281.34 (5) (am) Iron mining. If the department determines that a high capacity
15well proposed in connection with iron mining may impair a privately owned well, the
16department may not approve the proposed high capacity well unless it is able to
17include and includes in the approval conditions, which may include conditions as to
18location, depth, pumping capacity, rate of flow, and ultimate use, that will ensure
19that the privately owned well will not be impaired.
SB488-SSA3, s. 18 20Section 18. 289.645 (3) of the statutes is amended to read:
SB488-SSA3,9,2321 289.645 (3) Amount of recycling fee. The fee imposed under this section is
22$7 per ton for all solid waste other than high-volume industrial waste and mining
23waste from mining for ferrous minerals, as defined in s. 293.01 (4e)
.
SB488-SSA3, s. 19 24Section 19. 293.01 (2m) of the statutes is created to read:
SB488-SSA3,10,3
1293.01 (2m) "Ceded territory" means the territory in Wisconsin ceded by the
2Chippewa Indians to the United States in the treaty of 1837, 7 Stat. 536, and the
3treaty of 1842, 7 Stat. 591.
SB488-SSA3, s. 20 4Section 20. 293.01 (4e) of the statutes is created to read:
SB488-SSA3,10,75 293.01 (4e) "Ferrous mineral" means an ore or earthen material in natural
6deposits in or on the earth that primarily exists in the form of an iron oxide, including
7taconite, magnetite, and hematite.
SB488-SSA3, s. 21 8Section 21. 293.01 (4m) of the statutes is created to read:
SB488-SSA3,10,129 293.01 (4m) "Ferrous mining" means the mining of ferrous minerals at a
10mining site where the department determines, based on information provided under
11s. 293.31 (7) (a) by a person proposing to mine for ferrous minerals, that it is not likely
12that any of the disturbed areas will contain significant amounts of sulfide minerals.
SB488-SSA3, s. 22 13Section 22. 293.01 (18) of the statutes is amended to read:
SB488-SSA3,11,214 293.01 (18) "Prospecting" means engaging in the examination of an area for the
15purpose of determining the quality and quantity of minerals, other than for
16exploration but including the obtaining of an ore sample, by such physical means as
17excavating, trenching, construction of shafts, ramps and tunnels and other means,
18other than for exploration, which the department, by rule, identifies, and the
19production of prospecting refuse and other associated activities. "Prospecting" shall
20not include such activities when the activities are, by themselves, intended for and
21capable of commercial exploitation of the underlying ore body. However, the fact that
22prospecting activities and construction may have use ultimately in mining, if
23approved, shall not mean that prospecting activities and construction constitute
24mining within the meaning of sub. (9), provided such activities and construction are
25reasonably related to prospecting requirements. When conducted in contemplation

1of ferrous mining, "prospecting" does not include any activities that result in the
2removal of 10,000 or more tons of material.
SB488-SSA3, s. 23 3Section 23. 293.13 (1) (c) of the statutes is created to read:
SB488-SSA3,11,74 293.13 (1) (c) Require that, if an iron mining operation is located in whole or
5in part within the ceded territory, any wetland mitigation that is authorized or
6required by the department as a result of, or as part of, the mining operation occurs
7within the ceded territory.
SB488-SSA3, s. 24 8Section 24. 293.31 (7) of the statutes is created to read:
SB488-SSA3,11,139 293.31 (7) (a) If a person who intends to mine for ferrous minerals wishes to
10have the department determine that it is not likely that any of the areas that would
11be disturbed by proposed mining contain significant amounts of sulfide minerals, the
12person shall provide the department with information on which to make that
13determination.
SB488-SSA3,11,1714 (b) The department may only determine that it is not likely that any of the areas
15disturbed by proposed mining for ferrous minerals contain significant amounts of
16sulfide minerals if the person who intends to mine provides sufficient information
17under par. (a) to make that determination.
SB488-SSA3, s. 25 18Section 25. 293.32 (2) of the statutes is amended to read:
SB488-SSA3,12,319 293.32 (2) The department shall annually compare the fees paid under this
20section and under chs. 30, 280 to 292 and 295 to 299 in connection with proposed
21prospecting or mining for which notice has been given under s. 293.31 (1) with the
22costs incurred by the department in connection with that proposed prospecting or
23mining, including the costs incurred under chs. 30, 280 to 292 and 295 to 299 but
24excluding costs related to the environmental impact statement. If the costs incurred
25exceed the fees paid, the person who notified the department shall pay a fee equal

1to the amount by which the costs exceed the fees previously paid, except that the total
2amount that a person who proposes to conduct ferrous mining may be required to pay
3under this subsection and sub. (1) may not exceed $2,000,000
.
SB488-SSA3, s. 26 4Section 26. 293.32 (4) of the statutes is created to read:
SB488-SSA3,12,75 293.32 (4) The department shall notify the joint committee on finance when its
6costs that would be reimbursable under subs. (1) and (2) for a proposal for ferrous
7mining reach $2,000,000.
SB488-SSA3, s. 27 8Section 27. 293.35 (4) of the statutes is created to read:
SB488-SSA3,12,119 293.35 (4) The department is not required to prepare a statement under s. 1.11
10or an environmental analysis for consideration of an application for a permit to
11prospect in contemplation of ferrous mining.
SB488-SSA3, s. 28 12Section 28. 293.35 (5) of the statutes is amended to read:
SB488-SSA3,12,1713 293.35 (5) If the department determines that a statement under s. 1.11 is
14required for consideration of an application for a prospecting permit to which sub.
15(4) does not apply
, the statement need not consider impacts unrelated to the proposed
16prospecting activity, other than the issue of unsuitability for surface mining, absent
17a certification under sub. (1).
SB488-SSA3, s. 29 18Section 29. 293.43 (3) (b) (intro.) of the statutes is amended to read:
SB488-SSA3,13,819 293.43 (3) (b) (intro.) If it is determined that a statement under s. 1.11 is
20required, or if an environmental impact statement is required under s. 293.39, the
21department shall hold at least one informational meeting regarding the preliminary
22environmental report within 60 days of its issuance and, for an application for a
23mining permit for ferrous mining, no later than the deadline under s. 293.495 (1).
24The hearing examiner assigned under s. 227.43 (1) (bd) shall preside over the
25informational meeting regarding the preliminary environmental impact report for

1proposed ferrous mining
. The meeting shall be held not sooner than 30 days nor later
2than 60 days after the issuance of the report. The scheduling and providing of notice
3of the meeting shall be completed not later than 10 days following the issuance of the
4preliminary environmental report. A hearing referred to under sub. (1m) shall be
5scheduled for a date not less than 120 days nor more than 180 days after the issuance
6of the environmental impact statement. The scheduling and providing of notice of
7the hearing shall be completed within 30 days from the date of issuance of the
8environmental impact statement. The providing of notice shall be accomplished by:
SB488-SSA3, s. 30 9Section 30. 293.43 (5) (bm) of the statutes is created to read:
SB488-SSA3,13,1910 293.43 (5) (bm) The hearing examiner shall hold a prehearing conference on
11an application for a mining permit for ferrous mining. At the prehearing conference
12under this paragraph, the parties shall outline the issues that they wish to raise in
13the contested case portion of the hearing and shall present summaries of the
14testimony that they wish to present. The hearing examiner shall identify the issues
15that will be considered in the contested case portion of the hearing for an application
16for a mining permit for ferrous mining, shall notify the parties of those issues, and
17shall exclude evidence that is not relevant to those issues. The hearing examiner
18shall also establish a schedule for the case that will enable the department to meet
19the deadline under s. 293.495 (2).
SB488-SSA3, s. 31 20Section 31. 293.43 (6) of the statutes is created to read:
SB488-SSA3,13,2521 293.43 (6) Exception for certain prospecting. The department is not required
22to conduct a hearing under this section on a permit for prospecting in contemplation
23of ferrous mining. Notwithstanding s. 227.42, no person is entitled to a contested
24case hearing on a decision by the department on a permit for prospecting in
25contemplation of ferrous mining.
SB488-SSA3, s. 32
1Section 32. 293.49 (1) (a) (intro.) of the statutes is amended to read:
SB488-SSA3,14,62 293.49 (1) (a) (intro.) Except as provided in sub. (2) and s. 293.50 and except
3with respect to property specified in s. 41.41 (11), within 90 days of the completion
4of the public hearing record or, for an application for a mining permit for ferrous
5mining, no later than the deadline under s. 293.495 (2)
, the department shall issue
6the mining permit if it finds:
SB488-SSA3, s. 33 7Section 33. 293.49 (2) (intro.) of the statutes is amended to read:
SB488-SSA3,14,118 293.49 (2) (intro.) Within 90 days of the completion of the public hearing record
9or, for an application for a mining permit for ferrous mining, no later than the
10deadline under s. 293.495 (2)
, the department shall deny the mining permit if it finds
11any of the following:
SB488-SSA3, s. 34 12Section 34. 293.495 of the statutes is created to read:
SB488-SSA3,14,18 13293.495 Deadlines for processing ferrous mining permit applications.
14(1) Deadline for informational meeting. The deadline for the department to hold
15the informational meeting under s. 293.43 (3) (b) on the preliminary environmental
16report for a mining permit for ferrous mining is the 270th day after the day on which
17the department determines that the application under s. 293.37 for the mining
18permit is complete, except as extended under sub. (3) or (4).
SB488-SSA3,14,23 19(2) Deadline for acting on mining permit application. The deadline for the
20department to act under s. 293.49 (1) (a) (intro.) and (2) (intro.) on the application for
21a mining permit for ferrous mining is the 270th day after the day on which the
22informational meeting under s. 293.43 (3) (b) is concluded, except as extended under
23sub. (3) or (4).
SB488-SSA3,15,2 24(3) Requests for extensions. (a) The department may propose not more than
253 extensions under this section for any one application for a mining permit. An

1applicant may propose any number of extensions under this section for any one
2application for a mining permit.
SB488-SSA3,15,43 (am) If an applicant proposes an extension under par. (a) to a deadline under
4sub. (1) or (2), the deadline is extended as proposed by the applicant.
SB488-SSA3,15,75 (b) If the department and an applicant agree to an extension to a deadline
6under sub. (1) or (2) proposed by the department under par. (a), including the length
7of the extension, the deadline is extended as provided in the agreement.
SB488-SSA3,15,118 (c) 1. If the department and an applicant do not agree to an extension proposed
9by the department under par. (a), the department may request the administrator of
10the division of hearings and appeals in the department of administration to appoint
11a hearing examiner to resolve the disagreement.
SB488-SSA3,15,1412 2. A hearing examiner appointed under subd. 1. shall determine whether there
13is good cause for an extension and, if so, shall grant an extension and specify the
14length of the extension.
SB488-SSA3,15,22 15(4) Extension for joint preparation of environmental impact statement. If
16the U.S. Army Corps of Engineers notifies the department that an extension of the
17deadline under sub. (1) or (2) or both deadlines is necessary to enable the department
18and the U.S. Army Corps of Engineers to jointly prepare their environmental impact
19statements for the proposed ferrous mining, the department shall extend the
20deadline or deadlines by the amount that the U.S. Army Corps of Engineers
21determines is necessary. The department shall notify the applicant of any extension
22under this subsection.
SB488-SSA3, s. 35 23Section 35. 293.50 (4) of the statutes is created to read:
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