Fine Print Of Mining Bill Exposes Serious Flaws

We all have heard stories about someone who was talked into making a bad deal during tough economic times. Friends and neighbors who, in an attempt to get out of a tight situation, signed legal documents that ended up ruining them financially. As a child, I remember hearing my parents and other adults using the expressions, “lost the farm” and “gave away the store.” Often there was sadness in their voices, but there were times when I heard disappointment and anger as well.

The lesson in all these stories is to read the fine print. When someone says they have a good deal for you, you need to be careful. If it’s someone you know, the expression “trust but verify” comes to mind. If it’s someone you don’t know all that well, a healthy dose of skepticism makes sense.

You may have seen one of the letters to the editor that a colleague of mine sent to newspapers in the 74th Assembly district, claiming the mining bill (AB 426) that came up for a vote in the Assembly is a good deal. Representative Tiffany doesn’t represent either Ashland or Iron County, where the mine will be located. From his perspective, maybe the bill is O.K. Maybe the details don’t bother him or his constituents. I, on the other hand, was elected to look out for you and the fine print in the mining bill has provisions that harm, rather than help us.

Under current law mining companies pay a net proceeds tax instead of property taxes. Those taxes are deposited in the Mining Investment and Local Impact Fund. This is the epitome of a segregated fund -- the taxes are returned to local communities to make up for lost property taxes and to help deal with the impacts of mining.

The bill steals 40 percent out of the Impact Fund and puts it in the state’s general purpose fund. This isn’t a one time raid, it is a permanent diversion. Maybe that’s good for people in other parts of the state, but it will make it harder for local governments to pay for the infrastructure needed to support a mine. It also means less money to invest in our schools, roads and other things that will help us grow our economy.

Rep. Tiffany and many of the others who voted for AB 426 pledged to end the practice of raiding segregated funds to pay for other programs. Why then, is it o.k. to raid our fund but no others? The fact that a previous legislature raided this segregated fund doesn’t justify doing it again.

The bill shortens the time period during which a mine operator is required to show proof of financial responsibility for the long-term care of the mining site. Rep. Tiffany and out of state mining companies may think it is a good idea, but I don’t. And I don’t think my constituents would either.

Streamlining the process is a worthy goal. But we need to pay attention to the details. Current law allows for people who live in the area of a proposed mine to intervene if they think that the DNR or a mining company is relying on faulty information. The bill eliminates those opportunities. I don’t think we should make it harder for people to protect themselves and their neighbors if someone applies for a permit that could harm them.

And it’s not just the people of the north who lose out under this bill. Right now companies that want to open up a mine must pay for the cost of any studies required to approve a mining permit. The non-partisan Legislative Fiscal Bureau indicated that these fees could top $7 million. The bill caps the amount of fees that the DNR can seek re-imbursement for at $2 million. Taxpayers across the state would be left footing the bill for over $5 million. I don’t think that’s a good deal.

The North needs jobs. The Assembly missed an opportunity to update our mining laws in a way that could have brought good paying jobs to the area. They could have presented the Senate with a responsible mining bill that doesn’t give away the store. As it stands now, the Senate is not going to act on AB 426.

I’ve already met with Senator Dale Schultz (R-Richland Center) who serves on the Senate Select Committee on Mining Jobs. They are working on a new draft and he was happy to talk to me about what should be in the mining bill. Senator Shultz will be up in Ashland at the Northern Great Lakes Visitor Center on February 26th with Senator Bob Jauch giving a presentation on finding common ground for the common good. Let’s do that. Let’s come up with a mining bill that we can all support.

Janet Bewley is the state representative for the 74th Assembly District.