COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 4756-01
Bill No.: SB 1315
Subject: Mining; Department of Natural Resources
Type: Original
Date: March 15, 2004
FISCAL SUMMARY
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Total Estimated
Net Effect on General Revenue Fund |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Reclamation Fund | ($28,200) | ($28,200) | ($28,200) |
| Total Estimated
Net Effect on All State Funds |
($28,200) | ($28,200) | ($28,200) |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 4 pages.
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Local Government | $0 | $0 | $0 |
ASSUMPTION
Officials with the Department of Transportation assume no fiscal impact to their agency.
Officials with the Department of Natural Resources assume Section 444.770.6 appears to exempt operators or landowners conducting excavation for the management of "seasonal gravel accretion" from having to obtain a permit. The department assumes that small operators currently permitted would fall under the "seasonal" category. There are approximately 94 small operator permits issued per year. It is estimated this proposal would result in a loss of $28,200 annually (94 x $300 annual permit = $28,200) to the Mined Land Reclamation Fund.
| FISCAL IMPACT - State Government | FY 2005
(10 Mo.) |
FY 2006 | FY 2007 |
| RECLAMATION FUND | |||
| Cost - Loss of Small Operator Permits | ($28,200) | ($28,200) | ($28,200) |
| NET ESTIMATED EFFECT ON RECLAMATION FUND |
($28,200) |
($28,200) |
($28,200) |
| FISCAL IMPACT - Local Government | FY 2005
(10 Mo.) |
FY 2006 | FY 2007 |
| $0 | $0 | $0 |
FISCAL IMPACT - Small Business
Yes. Sand and gravel operators mining gravel at the request of a property owner to remove seasonal gravel accretion, in any amount, will not be required to purchase a permit and would therefore be retrieved at the time and expense of permitting.
DESCRIPTION
This act pertains to sand and gravel.
This act defines "noncommercial operator" as a person whose excavation activities are limited to their privately owned land used for purposes other than surface mining. This act goes on to clarify that it is unlawful for any operator other than a noncommercial operator to engage in surface mining without first obtaining a permit to do so. The exception to that rule is detailed in this act; when an operator conducts gravel removal at the request of a property owner for the purpose of managing seasonal gravel accretion on property not used for gravel mining.
This act allows for the selling or bartering of material extracted from the landowner's property without a permit only when that excavation is conducted in accordance to department guidelines.
DESCRIPTION (continued)
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
Department of Transportation
Mickey Wilson, CPA
Director
March 15, 2004