SB 0332 - Fiscal Note

Fiscal Note - SB 0332 - Revises surface mining and land reclamation permit requirements

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO.: 1219-01

BILL NO.: SB 332

SUBJECT: Surface Mining and Land Reclamation

TYPE: Original

DATE: January 29, 1999

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FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
General Revenue	$0	($175,243) to (Unknown)	($173,236) to (Unknown)
Total Estimated Net Effect on All State Funds	$0	( $175,243) to (Unknown)	($173,236) to (Unknown)

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
None	$0	$0	$0
Total Estimated Net Effect on All Federal Funds	$0	$0	$0

ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
Local Government	$0	$0	$0

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 4 pages.

FISCAL ANALYSIS

ASSUMPTION

The Department of Natural Resources (DNR) assumes currently Section 444.773.3 RSMo allows the department to hold a public hearing only if a person's health, safety or livelihood is affected by noncompliance with any applicable laws or regulations. The department has received numerous requests for public hearings throughout the years, but we have had to deny these requests because the present criterion (allowing a hearing only if noncompliance affects a person) is so stringent. The department has held only one hearing related to a surface mining permit.

The proposed legislation grants a public hearing, as defined by Chapter 536 RSMo, if requested by any interested person. The DNR assumes the proposed legislation would apply to any permit action which would meet the public notice requirements. The department averages approximately 60 new applications per year; last calendar year the department received 109 new applications. We estimate that at least one-half of these applications will result in a public hearing.

Due to the sensitive nature of these public hearings, the department assumes a hearing officer will be needed for each of these public hearings, resulting in legal expenditures of approximately $3,800 per hearing. The department has included these costs for approximately 30 public hearings. The department does not have the necessary resources to implement the proposed legislation. In addition, if the actual number of public hearings exceeds these projections or the costs for the public hearings exceeds our estimate, the department may need to request additional resources.

The proposed legislation also adds additional criteria on which the department may deny a permit. Under the current criterion, the department has never denied a land reclamation mining permit. But due to the sensitivity of the new criterion, the department assumes there would be an increase in the number of permits going through the permit appeals process. However, the number of permit appeals and the associated costs are unknown.

The department will request one Land Reclamation Specialist to investigate requests for the public hearings, gather information concerning requests, schedule the public hearings, present and verify such evidence before the hearing officer, and then communicate findings to the Land Reclamation Commission.

When the current fee structure for surface mining permits was established, a component for the increased criteria for public hearings was not included. Therefore, a modification to the fee structure or general revenue would be required to cover these costs. Since the fee structure is not modified in this proposal, general revenue will be requested.

ASSUMPTION (continued)

Oversight has adjusted DNR's expense and equipment costs to conform to Office of Administration guidelines.

FISCAL IMPACT - State Government	FY 2000	FY 2001	FY 2002
	(10 Mo.)
GENERAL REVENUE FUND
Cost - DNR
Personal Service (1 FTE)	$0	($34,280)	($35,137)
Fringe Benefits	0	(10,246)	(10,502)
Expense and Equipment	0	(13,033)	(6,382)
	$0	($57,559)	($52,021)
Other Cost - DNR		($117,684)	($121,215)
Hearing Officer expense		to	to
	$0	(Unknown)	(Unknown)
		($175,243)	($173,236)
Estimated Net Effect on		to	to
GENERAL REVENUE FUND	$0	(Unknown)	(Unknown)
FISCAL IMPACT - Local Government	FY 2000	FY 2001	FY 2002
	(10 Mo.)
	0	0	0
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.

DESCRIPTION

This bill makes several changes to the application process for surface mining permits.

DESCRIPTION (continued)

Under current law, the applicant is required to publish a notice in a newspaper of general circulation in the local area, interested parties may submit written comments to the Department of Natural Resources (DNR) or request a public hearing for 15 days after the application is filed, and DNR must forward a recommendation on the permit to the Land Reclamation Commission by the end of the public comment period. This bill requires the applicant to publish a notice once a week for 4 weeks, beginning no more than 10 days after the application is filed. The applicant is also required to notify by mail the local governing body and property owners within 1,000 feet of the proposed surface mine. Notices must include a statement that interested parties may submit written comments to DNR or request a public hearing up to 15 days after the end of the 4-week public notice period. DNR must forward its recommendation on the permit to the commission within 4 weeks after the end of the public notice period. If a public hearing was requested, DNR will conduct the hearing within 30 days after the end of the comment period, and will make a recommendation to the commission within 15 days after the hearing.

The bill also allows the commission to deny a permit if there is substantial evidence that an interested party's health, safety, livelihood, or property use, value, or enjoyment is unduly impaired by the proposed mine. Under current law, the commission may deny permits only if the applicant has not complied fully with statutes and rules.

This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.

SOURCES OF INFORMATION

Department of Natural Resources

Jeanne Jarrett, CPA

Director

January 29, 1999