LRBs0294/1
RCT&ARG:eev&sac:jf
2013 - 2014 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO ASSEMBLY BILL 704
February 11, 2014 - Offered by Representative Hulsey.
AB704-ASA1,1,7 1An Act to amend chapter 295 (title) and subchapter I (title) of chapter 295
2[precedes 295.11]; and to create 20.370 (6) (cs), 25.46 (13) and 295.24 of the
3statutes; relating to: monitoring industrial sand mining and processing
4operations, a fee on the extraction of certain sand, compensation for costs
5incurred because of sand mining, increasing funding for inspection and repair
6of state bridges, granting rule-making authority, and making an
7appropriation.
Analysis by the Legislative Reference Bureau
This substitute amendment requires a person who engages in the mining of frac
sand (a type of sand that can be used to prop open rock fissures and increase the flow
of natural gas or oil) to pay a fee of one dollar per ton of frac sand extracted.
The substitute amendment requires the Department of Natural Resources
(DNR) to use a portion of the revenue generated from the fee imposed on frac sand
mining to provide compensation to cities, villages, towns, and counties for costs
incurred due to the impacts of frac sand mining, including costs of road repair and
repairing damaged wetlands.

The substitute amendment also authorizes ten full-time equivalent positions
to DNR for monitoring industrial sand mining and processing operations and
provides funding for those positions from the environmental fund.
In addition, the substitute amendment increases funding for the Department
of Transportation for inspection and repair of bridges on state trunk highways.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB704-ASA1,1 1Section 1. 20.370 (6) (cs) of the statutes is created to read:
AB704-ASA1,2,52 20.370 (6) (cs) Compensation for frac sand mining impacts. From the
3environmental fund, from the moneys received under s. 295.24 (2), the amount by
4which those moneys exceed $1,117,000 in each fiscal year for compensation for frac
5sand mining impacts under s. 295.24 (3).
AB704-ASA1,2 6Section 2. 25.46 (13) of the statutes is created to read:
AB704-ASA1,2,87 25.46 (13) The moneys received under s. 295.24 (2) for environmental
8management.
AB704-ASA1,3 9Section 3. Chapter 295 (title) of the statutes, as affected by 2013 Wisconsin
10Act 1
, is amended to read:
AB704-ASA1,2,1111 Chapter 295
AB704-ASA1,2,1212 NONMETALLIC MINING RECLAMATION;
AB704-ASA1,2,1313 OIL AND GAS;
AB704-ASA1,2,1414 ferrous metalliC mining
AB704-ASA1,4 15Section 4. Subchapter I (title) of chapter 295 [precedes 295.11] of the statutes
16is amended to read:
AB704-ASA1,2,1717 CHAPTER 295
AB704-ASA1,2,1818 SUBCHAPTER I
AB704-ASA1,3,1
1NONMETALLIC MINING RECLAMATION
AB704-ASA1,5 2Section 5. 295.24 of the statutes is created to read:
AB704-ASA1,3,4 3295.24 Frac sand mining fee and community impact program. (1)
4Definitions. In this section:
AB704-ASA1,3,75 (a) "Frac sand" means a type of industrial sand that can be used in deep well
6applications to prop open rock fissures and increase the flow rate of natural gas or
7oil.
AB704-ASA1,3,88 (b) "Political subdivision" means a city, village, town, or county.
AB704-ASA1,3,10 9(2) Fee. (a) A person who engages in frac sand mining shall pay to the
10department a fee of $1 for each ton of frac sand extracted by the person in this state.
AB704-ASA1,3,1311 (b) A person shall pay the fee under par. (a) for the frac sand extracted during
12a calendar quarter no later than the 30th day after the last day of the calendar
13quarter.
AB704-ASA1,3,18 14(3) Community impact program. (a) From the appropriation under s. 20.370
15(6) (cs), the department shall provide compensation to political subdivisions for costs
16incurred due to the impacts of frac sand mining, including costs incurred for road
17repair, cleaning up spilled sand, repairing damaged wetlands, and mitigating other
18environmental impacts.
AB704-ASA1,3,2019 (b) The department shall promulgate rules for the program under this
20subsection.
AB704-ASA1,6 21Section 6. Fiscal changes.
AB704-ASA1,4,722 (1) Sand operation monitoring. In the schedule under section 20.005 (3) of the
23statutes for the appropriation to the department of natural resources under section
2420.370 (3) (mq) of the statutes, as affected by the acts of 2013, the dollar amount is
25increased by $279,250 for the first fiscal year of the fiscal biennium in which this

1subsection takes effect to increase the authorized FTE positions for the department
2by 10.0 SEG positions for monitoring industrial sand mining and processing
3operations. In the schedule under section 20.005 (3) of the statutes for the
4appropriation to the department of natural resources under section 20.370 (3) (mq)
5of the statutes, as affected by the acts of 2013, the dollar amount is increased by
6$1,117,000 for the second fiscal year of the fiscal biennium in which this subsection
7takes effect to provide funding for the positions authorized in this subsection.
AB704-ASA1,4,138 (2) Inspection and repair of state bridges. In the schedule under section
920.005 (3) of the statutes for the appropriation to the department of transportation
10under section 20.395 (3) (eq) of the statutes, as affected by the acts of 2013, the dollar
11amount is increased by $200,000,000 for the first fiscal year of the fiscal biennium
12in which this subsection takes effect to increase funding for inspection and repair of
13bridges on state trunk highways.
AB704-ASA1,7 14Section 7. Initial applicability.
AB704-ASA1,4,1615 (1) Sand mining fee. The treatment of section 295.24 (2) of the statutes first
16applies to frac sand extracted on March 1, 2014.
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