HF1197

Purpose

To prevent environmental review and the issuance of permits, licenses, or leases for mining nonferrous sulfide ore to “bad actors,” by requiring detailed disclosures and adding eligibility restrictions based on prior environmental and related violations.

Main Provisions

• Disclosure Statement Requirement

  • Anyone subject to environmental review for a proposed nonferrous sulfide ore project, or applying for renewals, assignments, modifications, amendments, or transfers of related permits, licenses, or leases, must submit a disclosure statement before starting environmental review or when submitting the application.
  • The disclosure statement must include:
  • Full names and business addresses of individuals (and officers, directors, partners, or key employees) involved in the business, and full names/addresses of all people with equity or debt in the business (and, if publicly traded, those holding more than 5%).
  • Names/addresses of parent, subsidiary, or affiliate entities.
  • Names/addresses of officers, directors, or partners of any disclosed business.
  • A listing and explanation of any recent charges, indictments, convictions, settlements, consent decrees, or final orders related to environmental or natural resources laws in the last 15 years.
  • Any consent decrees, administrative orders, or sanctions related to environmental actions in the last 15 years.
  • Any charges, indictments, convictions, or settlements related to bribery or corruption (including the Foreign Corrupt Practices Act) in the last 15 years.
  • Any civil or administrative sanctions or fines for environmental, OSHA, or related violations in the last 15 years (with amounts).
  • Any other information the agencies may require about competency, reliability, or good character.

• Prohibited Actions (Environmental Review and Permits)

  • The state agencies (the environmental review authority and the Minnesota Pollution Control Agency) are prohibited from:
  • Conducting environmental review or issuing, renewing, assigning, approving, modifying, amending, or transferring permits, licenses, or leases for nonferrous sulfide ore projects to an applicant who, in the last 15 years, has:
    • Been charged, indicted, or convicted of environmental or natural resources law violations.
    • Been party to or subject of a consent decree, consent agreement, final order, or similar sanctions for environmental actions.
    • Been charged, indicted, or convicted of bribery or corruption (including but not limited to the FCPA).
    • Paid civil or administrative sanctions or fines for environmental, OSHA, or related violations totaling more than $1,000,000 in the last 15 years.
    • Settled claims related to environmental, bribery, or corruption violations in the last 15 years.
    • Been found civilly liable for willful or repeated violations of environmental, occupational safety and health, or related laws.
  • This prohibition also applies if the person is a subsidiary, affiliate, common owner, or holds more than 5% equity in such a disqualified business, or employs an officer or director of such a disqualified business.
  • The prohibition applies to both the applicant and certain related individuals or entities as identified in the disclosure.

• Timeline for Determinations

  • The agencies must determine within six months of a disclosure statement submission whether the applicant is prohibited from environmental review or from issuing/renewing/approving/ transferring permits, licenses, or leases.

• Compliance and Updating Information

  • If information in the disclosure statement changes after submission, or if the agency requests more information, the applicant must update the disclosure in writing within 30 days.

• Other Law

  • The requirements in this section override time limits or judicial-review timing provisions in other laws, ensuring prompt action or denial based on the disclosure and prohibited-actor criteria.

• Failure to Disclose

  • If a person fails to disclose or provides false information, the agencies must not proceed with environmental review or issue any related permits, licenses, or leases.

Effects and Practical Implications

• Why this matters: The bill adds a new screening layer intended to block “bad actors” with environmental violations, bribery, or major sanctions from gaining permission to mine nonferrous sulfide ore in Minnesota.
• Who is affected: Companies seeking nonferrous sulfide ore mining permits, licenses, or leases, including their officers, directors, partners, and key owners, as well as related parent/affiliate entities.
• What changes: Introduction of mandatory disclosures, new eligibility criteria based on past conduct, and a defined waiting period for agency determinations to block issuance of mining authorizations to disqualified parties.

Potential Considerations

• Scope: Applies specifically to nonferrous sulfide ore mining and related environmental review and permit actions.
• Timeframes: Six-month determination period; 30-day update window for changes to disclosures.
• Enforcement: Clear penalties for failure to disclose or for submitting inaccurate information.

In Plain Language Takeaway

This bill requires mining applicants to reveal detailed information about key people and past legal issues. If someone or their related companies have recent environmental violations, bribery issues, or large fines, they cannot move forward with environmental review or receive mining permits in Minnesota for nonferrous sulfide ore. Agencies must decide within six months, and applicants must update information within 30 days if things change.

Relevant Terms - nonferrous sulfide ore - environmental review - environmental assessment worksheet - environmental impact statement - permits, license, leases - bad actors - disclosure statement - officers, directors, partners - equity, debt liability - parent, subsidiary, affiliate - charge, indictment, conviction - consent decree, final order - bribery, corruption - Foreign Corrupt Practices Act (FCPA) - sanctions, fines - occupational safety and health (OSHA) - common ownership - substantial ownership (more than five percent) - Minnesota Pollution Control Agency (MPCA) - commissioner - six-month determination period - 15 years (look-back window) - failure to disclose / misrepresentation