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 1Section 1. 20.192 (1) (q) of the statutes is created to read:
SB542,5,3
120.192 (1) (q) Regional Wisconsin diversification program. From the economic
2development fund, all moneys received under s. 70.395 (1e) for grants, loans, and
3disbursements under s. 238.14.
SB542, s. 2 4Section 2. 20.566 (7) (title) of the statutes is amended to read:
SB542,5,65 20.566 (7) (title) Investment and local impact fund; mining transportation
6fund
.
SB542, s. 3 7Section 3. 20.566 (7) (w) of the statutes is created to read:
SB542,5,108 20.566 (7) (w) Mining transportation fund. From the mining transportation
9fund, all moneys received under s. 70.395 (1e) to be disbursed under s. 70.395 (2)
10(gm).
SB542, s. 4 11Section 4. 25.17 (1) (jd) of the statutes is created to read:
SB542,5,1212 25.17 (1) (jd) Mining transportation fund (s. 70.395 (2) (gm));
SB542, s. 5 13Section 5. 25.49 (2m) of the statutes is created to read:
SB542,5,1514 25.49 (2m) The moneys transferred under s. 70.395 (1e) to the appropriation
15account under s. 20.192 (1) (q).
SB542, s. 6 16Section 6. 70.375 (2) (a) of the statutes is amended to read:
SB542,5,2417 70.375 (2) (a) In Except as provided in subs. (2b) and (2c), with respect to mines
18not in operation on November 28, 1981, there is imposed upon persons engaged in
19mining metalliferous minerals in this state a net proceeds occupation tax effective
20on the date on which extraction begins to compensate the state and municipalities
21for the loss of valuable, irreplaceable metalliferous minerals. The amount of the tax
22shall be determined by applying the rates established under sub. (5) to the net
23proceeds of each mine. The net proceeds of each mine for each year are the difference
24between the gross proceeds and the deductions allowed under sub. (4) for the year.
SB542, s. 7 25Section 7. 70.375 (2b) of the statutes is created to read:
SB542,6,6
170.375 (2b) Minimum tax. With respect to mines in operation after December
231, 2011, beginning with the first month of extraction, for the first 60 months in
3which a person is extracting ferrous metallic minerals in this state, the amount of
4the tax imposed on that person is the greater of the tax computed under sub. (2) for
5the year in which extraction occurs or an amount equal to $416,667 for each month
6in which extraction occurs.
SB542, s. 8 7Section 8. 70.375 (2c) of the statutes is created to read:
SB542,6,188 70.375 (2c) Credit. With respect to mines in operation after December 31,
92011, if a person subject to sub. (2b) would have paid less tax under sub. (2) than
10under sub. (2b), the person may claim as a credit against the tax imposed under sub.
11(2) or (2b) an amount equal to the difference between the amount paid under sub. (2b)
12and the amount that the person would have paid under sub. (2), except that the
13person may not claim a credit amount that would result in less than the total
14minimum tax liability computed under sub. (2b), less any credit amount claimed
15under s. 70.395 (2) (dg), for the first 60 months in which a person is extracting ferrous
16metallic minerals in this state. The person may carry forward the amount of any
17unused credit under this subsection to claim against the person's tax liability in
18subsequent years until the total amount of the credit is used.
SB542, s. 9 19Section 9. 70.395 (1e) of the statutes is amended to read:
SB542,7,320 70.395 (1e) Distribution. Fifteen days after the collection of the tax under ss.
2170.38 to 70.39, the department of administration, upon certification of the
22department of revenue, shall transfer the amount collected in respect to mines not
23in operation on November 28, 1981, to the investment and local impact fund, except
24that the department of administration shall transfer 70 percent of the amount
25collected from each person extracting ferrous metallic minerals to the investment

1and local impact fund, 20 percent to the appropriation under s. 20.192 (1) (q) for the
2regional Wisconsin diversification program under s. 238.14, and 10 percent to the
3mining transportation fund
.
SB542, s. 10 4Section 10. 70.395 (2) (dc) 1. of the statutes is amended to read:
SB542,7,85 70.395 (2) (dc) 1. Each person intending to submit an application for a mining
6permit shall pay $50,000 $75,000 to the department of revenue for deposit in the
7investment and local impact fund at the time that the person notifies the department
8of natural resources under s. 293.31 (1) of that intent.
SB542, s. 11 9Section 11. 70.395 (2) (dc) 2. of the statutes is amended to read:
SB542,7,1210 70.395 (2) (dc) 2. A person making a payment under subd. 1. shall pay an
11additional $50,000 $75,000 upon notification by the board that the board has
12distributed 50% of the payment under subd. 1.
SB542, s. 12 13Section 12. 70.395 (2) (dc) 3. of the statutes is amended to read:
SB542,7,1714 70.395 (2) (dc) 3. A person making a payment under subd. 2. shall pay an
15additional $50,000 $75,000 upon notification by the board that the board has
16distributed all of the payment under subd. 1. and 50% of the payment under subd.
172.
SB542, s. 13 18Section 13. 70.395 (2) (dg) of the statutes is amended to read:
SB542,8,519 70.395 (2) (dg) Each person constructing a metalliferous mining site shall pay
20to the department of revenue for deposit in the investment and local impact fund, as
21a construction fee, an amount sufficient to make the construction period payments
22under par. (d) 5. in respect to that site. Any person paying a construction fee under
23this paragraph may credit against taxes due under s. 70.375 an amount equal to the
24payments that the taxpayer has made under this paragraph, provided that the credit
25does not reduce the taxpayer's liability under s. 70.375 below the amount needed to

1make the first-dollar payments under par. (d) 1., 2. and 2m. for that year in respect
2to the taxpayer's mine. The taxpayer may use the credit to reduce the taxpayer's
3liability under s. 70.375 below the minimum amount required under s. 70.375 (2b).

4Any amount not creditable because of that limitation in any year may be carried
5forward.
SB542, s. 14 6Section 14. 70.395 (2) (gm) of the statutes is created to read:
SB542,8,117 70.395 (2) (gm) There is created a mining transportation fund under the
8jurisdiction and management of the investment and local impact board, as created
9under s. 15.435. The board may disburse moneys from the mining transportation
10fund, as it determines is necessary, for highway, rail, or shipping infrastructure
11related to mining ferrous metallic minerals in this state.
SB542, s. 15 12Section 15. 227.43 (1) (bd) of the statutes is created to read:
SB542,8,1713 227.43 (1) (bd) Assign a hearing examiner to preside over the informational
14meeting under s. 293.43 (3) (b) and over the hearing under s. 293.43 (1m) for an
15application for a permit to mine for ferrous minerals and assign the same hearing
16examiner to any request under s. 293.495 (3) (c) 1. for the same mining permit
17application.
SB542, s. 16 18Section 16. 238.14 of the statutes is created to read:
SB542,8,20 19238.14 Regional Wisconsin diversification program. The corporation
20may use moneys received under s. 20.192 (1) (q) only as follows:
SB542,9,2 21(1) The corporation may make a grant or loan of those moneys to a business that
22is located within 100 miles from the site of a mine for ferrous metallic minerals in
23this state, and the corporation shall give preference for that grant or loan to a
24business that is located in close proximity to the site of the mine. In making a grant
25or loan under this subsection, the corporation shall coordinate with an appropriate

1unit of local government, as defined in s. 238.133 (1) (b), to make that grant or loan
2on a competitive basis for the purpose of business diversification.
SB542,9,5 3(2) The corporation may disburse those moneys for the purpose of catastrophe
4abatement or response related to a mine for ferrous metallic minerals, as determined
5by the corporation.
SB542, s. 17 6Section 17. 281.34 (5) (am) of the statutes is created to read:
SB542,9,127 281.34 (5) (am) Iron mining. If the department determines that a high capacity
8well proposed in connection with iron mining may impair a privately owned well, the
9department may not approve the proposed high capacity well unless it is able to
10include and includes in the approval conditions, which may include conditions as to
11location, depth, pumping capacity, rate of flow, and ultimate use, that will ensure
12that the privately owned well will not be impaired.
SB542, s. 18 13Section 18. 289.645 (3) of the statutes is amended to read:
SB542,9,1614 289.645 (3) Amount of recycling fee. The fee imposed under this section is
15$7 per ton for all solid waste other than high-volume industrial waste and mining
16waste from mining for ferrous minerals, as defined in s. 293.01 (4e)
.
SB542, s. 19 17Section 19. 293.01 (2m) of the statutes is created to read:
SB542,9,2018 293.01 (2m) "Ceded territory" means the territory in Wisconsin ceded by the
19Chippewa Indians to the United States in the treaty of 1837, 7 Stat. 536, and the
20treaty of 1842, 7 Stat. 591.
SB542, s. 20 21Section 20. 293.01 (4e) of the statutes is created to read:
SB542,9,2422 293.01 (4e) "Ferrous mineral" means an ore or earthen material in natural
23deposits in or on the earth that primarily exists in the form of an iron oxide, including
24taconite, magnetite, and hematite.
SB542, s. 21 25Section 21. 293.01 (4m) of the statutes is created to read:
SB542,10,4
1293.01 (4m) "Ferrous mining" means the mining of ferrous minerals at a
2mining site where the department determines, based on information provided under
3s. 293.31 (7) (a) by a person proposing to mine for ferrous minerals, that it is not likely
4that any of the disturbed areas will contain significant amounts of sulfide minerals.
SB542, s. 22 5Section 22. 293.01 (18) of the statutes is amended to read:
SB542,10,196 293.01 (18) "Prospecting" means engaging in the examination of an area for the
7purpose of determining the quality and quantity of minerals, other than for
8exploration but including the obtaining of an ore sample, by such physical means as
9excavating, trenching, construction of shafts, ramps and tunnels and other means,
10other than for exploration, which the department, by rule, identifies, and the
11production of prospecting refuse and other associated activities. "Prospecting" shall
12not include such activities when the activities are, by themselves, intended for and
13capable of commercial exploitation of the underlying ore body. However, the fact that
14prospecting activities and construction may have use ultimately in mining, if
15approved, shall not mean that prospecting activities and construction constitute
16mining within the meaning of sub. (9), provided such activities and construction are
17reasonably related to prospecting requirements. When conducted in contemplation
18of ferrous mining, "prospecting" does not include any activities that result in the
19removal of 10,000 or more tons of material.
SB542, s. 23 20Section 23. 293.13 (1) (c) of the statutes is created to read:
SB542,10,2421 293.13 (1) (c) Require that, if an iron mining operation is located in whole or
22in part within the ceded territory, any wetland mitigation that is authorized or
23required by the department as a result of, or as part of, the mining operation occurs
24within the ceded territory.
SB542, s. 24 25Section 24. 293.31 (7) of the statutes is created to read:
SB542,11,5
1293.31 (7) (a) If a person who intends to mine for ferrous minerals wishes to
2have the department determine that it is not likely that any of the areas that would
3be disturbed by proposed mining contain significant amounts of sulfide minerals, the
4person shall provide the department with information on which to make that
5determination.
SB542,11,96 (b) The department may only determine that it is not likely that any of the areas
7disturbed by proposed mining for ferrous minerals contain significant amounts of
8sulfide minerals if the person who intends to mine provides sufficient information
9under par. (a) to make that determination.
SB542, s. 25 10Section 25. 293.32 (2) of the statutes is amended to read:
SB542,11,2011 293.32 (2) The department shall annually compare the fees paid under this
12section and under chs. 30, 280 to 292 and 295 to 299 in connection with proposed
13prospecting or mining for which notice has been given under s. 293.31 (1) with the
14costs incurred by the department in connection with that proposed prospecting or
15mining, including the costs incurred under chs. 30, 280 to 292 and 295 to 299 but
16excluding costs related to the environmental impact statement. If the costs incurred
17exceed the fees paid, the person who notified the department shall pay a fee equal
18to the amount by which the costs exceed the fees previously paid, except that the total
19amount that a person who proposes to conduct ferrous mining may be required to pay
20under this subsection and sub. (1) may not exceed $2,000,000
.
SB542, s. 26 21Section 26. 293.35 (4) of the statutes is created to read:
SB542,11,2422 293.35 (4) The department is not required to prepare a statement under s. 1.11
23or an environmental analysis for consideration of an application for a permit to
24prospect in contemplation of ferrous mining.
SB542, s. 27 25Section 27. 293.35 (5) of the statutes is amended to read:
SB542,12,5
1293.35 (5) If the department determines that a statement under s. 1.11 is
2required for consideration of an application for a prospecting permit to which sub.
3(4) does not apply
, the statement need not consider impacts unrelated to the proposed
4prospecting activity, other than the issue of unsuitability for surface mining, absent
5a certification under sub. (1).
SB542, s. 28 6Section 28. 293.43 (3) (b) (intro.) of the statutes is amended to read:
SB542,12,217 293.43 (3) (b) (intro.) If it is determined that a statement under s. 1.11 is
8required, or if an environmental impact statement is required under s. 293.39, the
9department shall hold at least one informational meeting regarding the preliminary
10environmental report within 60 days of its issuance and, for an application for a
11mining permit for ferrous mining, no later than the deadline under s. 293.495 (1).
12The hearing examiner assigned under s. 227.43 (1) (bd) shall preside over the
13informational meeting regarding the preliminary environmental impact report for
14proposed ferrous mining
. The meeting shall be held not sooner than 30 days nor later
15than 60 days after the issuance of the report. The scheduling and providing of notice
16of the meeting shall be completed not later than 10 days following the issuance of the
17preliminary environmental report. A hearing referred to under sub. (1m) shall be
18scheduled for a date not less than 120 days nor more than 180 days after the issuance
19of the environmental impact statement. The scheduling and providing of notice of
20the hearing shall be completed within 30 days from the date of issuance of the
21environmental impact statement. The providing of notice shall be accomplished by:
SB542, s. 29 22Section 29. 293.43 (5) (bm) of the statutes is created to read:
SB542,13,723 293.43 (5) (bm) The hearing examiner shall hold a prehearing conference on
24an application for a mining permit for ferrous mining. At the prehearing conference
25under this paragraph, the parties shall outline the issues that they wish to raise in

1the contested case portion of the hearing and shall present summaries of the
2testimony that they wish to present. The hearing examiner shall identify the issues
3that will be considered in the contested case portion of the hearing for an application
4for a mining permit for ferrous mining, shall notify the parties of those issues, and
5shall exclude evidence that is not relevant to those issues. The hearing examiner
6shall also establish a schedule for the case that will enable the department to meet
7the deadline under s. 293.495 (2).
SB542, s. 30 8Section 30. 293.43 (6) of the statutes is created to read:
SB542,13,139 293.43 (6) Exception for certain prospecting. The department is not required
10to conduct a hearing under this section on a permit for prospecting in contemplation
11of ferrous mining. Notwithstanding s. 227.42, no person is entitled to a contested
12case hearing on a decision by the department on a permit for prospecting in
13contemplation of ferrous mining.
SB542, s. 31 14Section 31. 293.49 (1) (a) (intro.) of the statutes is amended to read:
SB542,13,1915 293.49 (1) (a) (intro.) Except as provided in sub. (2) and s. 293.50 and except
16with respect to property specified in s. 41.41 (11), within 90 days of the completion
17of the public hearing record or, for an application for a mining permit for ferrous
18mining, no later than the deadline under s. 293.495 (2)
, the department shall issue
19the mining permit if it finds:
SB542, s. 32 20Section 32. 293.49 (2) (intro.) of the statutes is amended to read:
SB542,13,2421 293.49 (2) (intro.) Within 90 days of the completion of the public hearing record
22or, for an application for a mining permit for ferrous mining, no later than the
23deadline under s. 293.495 (2)
, the department shall deny the mining permit if it finds
24any of the following:
SB542, s. 33 25Section 33. 293.495 of the statutes is created to read:
SB542,14,6
1293.495 Deadlines for processing ferrous mining permit applications.
2(1) Deadline for informational meeting. The deadline for the department to hold
3the informational meeting under s. 293.43 (3) (b) on the preliminary environmental
4report for a mining permit for ferrous mining is the 270th day after the day on which
5the department determines that the application under s. 293.37 for the mining
6permit is complete, except as extended under sub. (3) or (4).
SB542,14,11 7(2) Deadline for acting on mining permit application. The deadline for the
8department to act under s. 293.49 (1) (a) (intro.) and (2) (intro.) on the application for
9a mining permit for ferrous mining is the 270th day after the day on which the
10informational meeting under s. 293.43 (3) (b) is concluded, except as extended under
11sub. (3) or (4).
SB542,14,15 12(3) Requests for extensions. (a) The department may propose not more than
133 extensions under this section for any one application for a mining permit. An
14applicant may propose any number of extensions under this section for any one
15application for a mining permit.
SB542,14,1716 (am) If an applicant proposes an extension under par. (a) to a deadline under
17sub. (1) or (2), the deadline is extended as proposed by the applicant.
SB542,14,2018 (b) If the department and an applicant agree to an extension to a deadline
19under sub. (1) or (2) proposed by the department under par. (a), including the length
20of the extension, the deadline is extended as provided in the agreement.
SB542,14,2421 (c) 1. If the department and an applicant do not agree to an extension proposed
22by the department under par. (a), the department may request the administrator of
23the division of hearings and appeals in the department of administration to appoint
24a hearing examiner to resolve the disagreement.
SB542,15,3
12. A hearing examiner appointed under subd. 1. shall determine whether there
2is good cause for an extension and, if so, shall grant an extension and specify the
3length of the extension.
SB542,15,11 4(4) Extension for joint preparation of environmental impact statement. If
5the U.S. Army Corps of Engineers notifies the department that an extension of the
6deadline under sub. (1) or (2) or both deadlines is necessary to enable the department
7and the U.S. Army Corps of Engineers to jointly prepare their environmental impact
8statements for the proposed ferrous mining, the department shall extend the
9deadline or deadlines by the amount that the U.S. Army Corps of Engineers
10determines is necessary. The department shall notify the applicant of any extension
11under this subsection.
SB542, s. 34 12Section 34. 293.50 (4) of the statutes is created to read:
SB542,15,1413 293.50 (4) Subsection (2) does not apply to an application for a mining permit
14for ferrous mining.
SB542,15,1515 (End)
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