AB 148 — Revises provisions governing mining. (BDR 46-134)

(ReprintedAssembly withBill amendmentsNo. adopted on April 16, 2021) FIRST REPRINT A.B.

148148–Assemblymen APeters, SSEMBLYWatts, BBilbray- ILLAxelrod; NO .

148–AAnderson, SSEMBLYMENCarlton, PETERSCohen, ,Martinez, WNguyen ATTSand ,Torres BCHAPTER.......... ILBRAY -AXELROD ;

A NDERSON , C ARLTON , COHEN , M ARTINEZ , NGUYEN AND TORRES FEBRUARY 18, 2021 ____________ Referred to Committee on Natural Resources SUMMARY—Revises provisions governing mining.

(BDR 46-134) FISCAL NOTE:

Effect on Local Government:

No.

Effect on the State:

No.

~ EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

Existing law prohibits a person from engaging in certain exploration projects or mining operations without a permit issued for that purpose by the Division ofofects or Environmental Protection of the State Department of Conservation and Natural Resources.

(1) requires certain information to be included in an application for such a permit, including the name and address of the applicant and, if the applicant is a corporation or other business entity, the name and address of its principal officers;

(NRS 519A.190, 519A.210) Sections 1 and 2 of this bill require an applicant for such a permit who is a corporation or business entity to submit with the application the name and address of each person who has a controlling interest in the corporation or business entity.

Sections 1 and 2 further require an applicant to submit an affidavit that states whether or not the applicant and each person who has a controlling interest in the corporation or business entity is in good standing with all agencies of other states and federal agencies in relation to the reclamation of exploration projects or mining operations outside of this State.

(1) pays the full amount of the defaultedlating - *AB148_R1* – 2 – obligation or provides evidence of satisfaction of the defaulted obligation;

Sections 1 and 2 further prohibit the issuance of a permit if the applicant or, if the applicant is a corporation or other business entity, a person who has aanta or, if controlling interest in the corporation or business entity is not in good standing with an agency of another state or a federal agency in relation to the reclamation of an exploration project or mining operation outside of this State unless the applicant or personof who has a controlling interest remedies all issues relating to the exploration project or mining theoperation otheroutside stateof andthis federalState agencies.ecomesand inbecomes inon good standing with all agencies of THEthe PEOPLEother OFstate THEand STATEfederal OFagencies NEVADA,in REPRESENTEDrelation INto SENATEthe ANDreclamation ASSEMBLY,of DOthe ENACTexploration ASproject FOLLOWS:or mining operation outside of this State.

- 81st Session (2021) – 2 – EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

and (II)corporation Theor namebusiness andentity addressfor service of process;agent of the registered[(b)] agent(2) ofAn theexploration corporationmap or businesssketch entityin forsufficient servicedetail ofto process;enable the Division to locate the area to be explored and to determine whether significant environmental problems are likely to result;

[(b)] (2) An exploration map or sketch in sufficient detail to enable the Division to locate the area to be explored and to determine whether significant environmental problems are likely to result;

[and (d)] (4) An affidavit stating whether or not the applicant and, if applicable, each person who has a controlling interest in the corporation or business entity is in good standing with all agencies of other states and federal agencies in relation to the reclamation of exploration projects outside of this State;

- *AB148_R1* – 3 – [4.

5.] (d) File with the Division a bond or other surety in a form approved by the Administrator and in an amount required by the regulations adopted by the Commission pursuant to NRS 519A.160.

- 81st Session (2021) – 3 – 2.

(a) The applicant has defaulted on any obligation relating to reclamation pursuant to this chapter, including, without limitation, by forfeiting a surety or failing to pay the full costs of reclamation or any penalty assessed pursuant to NRS 519A.280;

or (c) The applicant or, if the applicant is a corporation or other business entity, a person who has a controlling interest in the corporation or business entity is not in good standing with an agency of another state or a federal agency in relation to the reclamation of an exploration project outside of this State.

and (b) Demonstrates to the Division that any conditions which led to the default have been remedied and that such conditions no led longer exist.

The Division may issue a permit to engage in an exploration project pursuant to this section to an applicant described in paragraph (c) of subsection 2 if the applicant demonstrates to the Division that the applicant or person who has a controlling interest in the corporation or business entity has remedied all issues related to the reclamation of the exploration project outside of this State and becomes in good standing with all agencies of the other state and federal agencies.agencies in relation to the reclamation of the exploration project.

As used in this section, “person who has a controlling interest” meansmeans: a person who:

-(a) *AB148_R1*The –president, 4secretary, –treasurer (a) Owns or controlsequivalent athereof majority of the voting stock or holds any other controlling interest, directly or indirectly, in a corporation or other business entityentity; that gives the person the power to direct management or determine policy;

or- (b)81st IsSession a(2021) principal– officer,4 – (b) A partner, director or trustee of athe corporation or business entity.entity;

or (c) A person who, directly or indirectly, possesses the power to direct the management or determine the policy of the corporation ownership of voting stock in the corporation or business entity, a contract or any other circumstance.

 The term does not include a person designated to act as a proxy, including, without limitation, an agent, bank, broker, nominee or custodian, for one or more persons who own voting stock unless the proxy otherwise has the power to direct the management or determine the policy of the corporation or business entity.

[and (c)] (3) An affidavit stating whether or not the applicant and, if applicable, each person who has a controlling interest in thethed, corporation or business entity is in good standing with all agencies of other states and federal agencies in relation to the reclamation of mining operations outside of this State;

- 81st Session (2021) – 5 – [6.] (e) File with the Division of Minerals of the Commission on Mineral Resources a copy of the plan for reclamation which is filed with the application pursuant to [subsection 1,] paragraph (a), on the same day the application is filed with the Division.

2.Division shall not issue a permit to engage in a mining operation pursuant to this section to an applicant if:

Except(a) asThe otherwiseapplicant providedhas indefaulted subsectionson 3any andobligation 4,relating theto Divisionreclamation shallpursuant notto issuethis achapter, permitincluding, towithout engagelimitation, inby forfeiting a miningsurety operationor pursuantfailing to thispay sectionthe tofull ancosts applicantof if:reclamation or any penalty assessed pursuant to NRS 519A.280;

- *AB148_R1* – 5 – (a) The applicant has defaulted on any obligation relating to reclamation pursuant to this chapter, including, without limitation, by forfeiting a surety or failing to pay the full costs of reclamation or any penalty assessed pursuant to NRS 519A.280;