BILL NUMBER: AB 2453	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 17, 2010
	AMENDED IN SENATE  JULY 15, 2010

INTRODUCED BY   Assembly Member Tran

                        FEBRUARY 19, 2010

   An act to amend Sections 3225, 3236.5, 3743, and 3744 of, to add
 Section 3763 to, to repeal Sections 3352, 3353, 3764, and
3765 of, and to repeal and add Sections 3350, 3351, 3354, 3355, 3356,
3762, 3766,   Section 3763 to, and to repeal and add
Sections 3350, 3351, 3352, 3353, 3354, 3355, 3356, 3762, 3764, 3765,
3766,  3767, and 3768 of, the Public Resources Code, relating to
oil and gas.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2453, as amended, Tran. Oil and gas: operations: enforcement
actions.
   Under existing law, the Division of Oil, Gas, and Geothermal
Resources in the Department of Conservation regulates the operation
of oil, gas, and geothermal wells in specified districts of the
state. Existing law establishes procedures for an operator of a well
or owner of a rig, derrick, or other operating structure to appeal
from an order of the State Oil and Gas Supervisor or a district
deputy regarding the operation of a well, or drilling or testing
operations.
   This bill would make numerous changes to the appeal process and
procedures. The bill would require an order of the supervisor or a
district deputy to state the factual basis for the order, the
statutory and regulatory basis of the action, and the penalties and
requirements imposed on the operator. The bill would also require a
cease and desist order to specify the operations to cease and a
detailed explanation of the action to be taken by the operator to
permit operations to resume.
   The bill would, among other things, provide for review of an order
of the supervisor imposing a civil penalty by the director, revise
the requirements for filing a notice of appeal, provide that the
filing of an appeal does not stay an order for remedial work or a
cease and desist order issued under emergency circumstances and, in
these circumstances, require an expedited hearing before the
director. The bill requires the division to reimburse an operator for
required remedial work if an order is invalidated on appeal  ,
as determined in a hearing before the director  .
   The bill, would also, among other things, require  all
 certain appeals to be heard in a formal hearing process
before an administrative law judge, instead of in an informal hearing
before the director of the department,  except for certain
emergency orders, and   would specify certain procedures
for an informal hearing   before the director, including
the conversion of an informal hearing   ,   and
would impose specified requirements with regard to an appeal of an
emergency order. The bill  would revise the scope of the
judicial review of an appealed order.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 3225 of the Public Resources Code is amended to
read:
   3225.  (a) An order of the supervisor or a district deputy issued
pursuant to this chapter shall provide a clear and concise recitation
of the acts or omissions with which the operator is charged. The
order shall state all penalties and requirements imposed on the
operator in connection with the acts or omissions charged and the
order shall provide references to the provisions of this code and the
regulations that support the imposition of the penalties and
requirements.
   (b) An order requiring an operator to cease and desist operations
pursuant to Section 3270.3 shall specify the operations that the
operator is required to cease and desist and shall provide a detailed
explanation of the steps that the operator shall take before the
supervisor will permit the operations to resume.
   (c) An order of the supervisor or a district deputy shall be in
writing and shall be served on the operator by personal service or by
certified mail.
   (d) When the supervisor or a district deputy issues a written
order concerning an operation, an appeal may be made from the order
pursuant to the procedures contained in Article 6 (commencing with
Section 3350). The order shall inform the operator of its right to
appeal the order.
  SEC. 2.  Section 3236.5 of the Public Resources Code is amended to
read:
   3236.5.  (a) A person who violates this chapter or a regulation
implementing this chapter is subject to a civil penalty not to exceed
twenty-five thousand dollars ($25,000) for each violation. An act of
God and an act of vandalism beyond the reasonable control of the
operator shall not be considered a violation. The civil penalty shall
be imposed by an order of the supervisor pursuant to Section 3225
upon a determination that a violation has been committed by the
person charged. The imposition of a civil penalty under this section
shall be in addition to any other penalty provided by law for the
violation. When establishing the amount of the civil penalty pursuant
to this section, the supervisor shall consider, in addition to other
relevant circumstances, all of the following:
   (1) The extent of harm caused by the violation.
   (2) The persistence of the violation.
   (3) The pervasiveness of the violation.
   (4) The number of prior violations by the same violator.
   (b) An order of the supervisor imposing a civil penalty shall be
reviewable pursuant to Article 6 (commencing with Section 3350). When
the order of the supervisor has become final and the penalty has not
been paid, the supervisor may apply to the appropriate superior
court for an order directing payment of the civil penalty. The
supervisor may also seek from the court an order directing that
production from the well or use of the production facility that is
the subject of the civil penalty order be discontinued until the
violation has been remedied to the satisfaction of the supervisor and
the civil penalty has been paid.
   (c) Any amount collected under this section shall be deposited in
the Oil, Gas, and Geothermal Administrative Fund.
  SEC. 3.  Section 3350 of the Public Resources Code is repealed.
  SEC. 4.  Section 3350 is added to the Public Resources Code, to
read:
   3350.  (a) The operator of a well or a production facility to whom
the supervisor or district deputy has issued an order pursuant to
this chapter may file a notice of appeal to the director from that
order. The notice of appeal shall be in writing and shall be filed
with the supervisor or with the district deputy who issued the order.
The operator shall file the appeal within 10 days of the service of
the order, or within 10 days of the posting of a copy of an order
made pursuant to Section 3308. Failure of the operator to file an
appeal from the order within the 10-day period shall be a waiver by
the operator of its rights to challenge the order. If the order,
other than an order made pursuant to Section 3308, is served by mail,
the time for responding shall be determined as provided in Section
1013 of the Code of Civil Procedure.
   (b)  (1)    The filing of a written notice of
appeal shall operate as a stay of the order, except when an order for
remedial work or an order to cease and desist operations is issued
as an emergency order pursuant to Section 3226. If the order is an
emergency order, the operator shall immediately cease and desist the
specified operations and shall perform whatever work is required by
the order to alleviate the emergency or shall permit the agents
appointed by the supervisor to perform that work.  If the
order is set aside or modified on appeal, the costs incurred by the
operator for whatever work is not required by the set aside or
modified order shall be refunded to the operator by the supervisor or
the costs incurred by the supervisor for the work shall not be
imposed on the operator. If the operator believes that it will be
irretrievably  
   (2) If the emergency order is set aside or modified on appeal, the
supervisor shall refund the reasonable costs incurred by the
operator for whatever work is not required by the set-aside or
modified order or shall not impose costs for work performed by the
supervisor or the supervisor's agents if the work is excluded from
the modified order or the order is set aside.  
   (3) (A) The costs to be refunded pursuant to paragraph (2) by the
supervisor shall be determined in a hearing before the director after
the exhaustion of appeals. The operator shall have the burden of
proving the amount of costs to be refunded.  
   (B) A determination by the director as to the amount of costs to
be refunded pursuant to paragraph (2) may be appealed by the operator
pursuant to subdivision (a) of Section 3354. 
    (4)     If the operator believes that it
will be irretrievably  injured by the performance of the work
required to alleviate the emergency pending the outcome of the
appeal, the operator may seek an order from the appropriate superior
court restraining the enforcement of the order pending the outcome of
the appeal.
  SEC. 5.  Section 3351 of the Public Resources Code is repealed.
  SEC. 6.  Section 3351 is added to the Public Resources Code, to
read: 
   3351.  (a) Except as provided in subdivision (c), a hearing shall
be provided in accordance with Chapter 5 (commencing with Section
11500) of Part 1 of Division 3 of Title 2 of the Government Code for
an appeal from any order. 
    3351.    (a) A hearing shall be provided in
accordance with Chapter 5 (commencing with Section 11500) of Part 1
of Division 3 of Title 2 of the Government Code only in an appeal
from an order in the following circumstances:  
   (1) Issued pursuant to a Section 3237 finding that the operator's
wells are deserted and should be plugged and abandoned.  
   (2) Imposing civil penalties totaling more than ten thousand
dollars ($10,000).  
   (3) Rescinding an injection project approval for a project that
has already commenced.  
   (4) Imposing a life-of-well bond or a life-of-production facility
bond. 
   (b) An order issued pursuant to Section 3225 shall satisfy the
requirement of Section 11503 of the Government Code that an
accusation be filed. 
   (c) For an appeal of an order that is also an emergency order for
remedial work or to cease and desist operations, a hearing shall be
conducted in accordance with Article 13 (commencing with Section
11460.10) of Chapter 4.5 of Part 1 of Division 3 of Title 2 of the
Government Code for the limited purpose of  
   (c) For an appeal of an order that is not described in subdivision
(a), a hearing shall be conducted by the director in accordance with
Sections 3352 and 3353. 
    (d)     For an appeal of an order that is
described in subdivision (a) and is also an emergency order for
remedial work or to cease and desist operations, a hearing shall be
conducted by the director in accordance with Sections 3352 and 3353
for the limited purpose of  considering the emergency order for
remedial work or to cease and desist operations. All other penalties
and requirements imposed by the order shall be considered at a
hearing provided in accordance with Chapter 5 (commencing with
Section 11500) of Part 1 of Division 3 of Title 2 of the Government
Code.
  SEC. 7.  Section 3352 of the Public Resources Code is repealed.
   SEC. 8.    Section 3352 is added to the  
Public Resources Code   , to read: 
   3352.  (a) A hearing conducted by the director shall adhere to the
following:
   (1) When an order is not issued as an emergency order, within 30
days from the date of the service of the notice of appeal, the
director shall provide to the operator notice of the time and place
of the hearing. The hearing shall take place within 30 days after the
date of the director's notice. The notice shall inform the operator
that the director may extend the date of the hearing for up to 60
days for good cause upon application of the operator or the
supervisor.
   (2) When an order has been issued as an emergency order, within 10
days from the date of the service of the notice of appeal, the
director shall provide to the operator notice of the time and place
of the hearing. The hearing shall take place within 20 days after the
date of the director's notice. The notice shall inform the operator
that the director may extend the date of the hearing for up to 30
days for good cause upon application of the operator or the
supervisor.
   (b) The director shall conduct the hearing within the district
where the majority of the wells or production facilities that are the
subject of the order are located, or the hearing may be conducted at
a location outside of that district upon application of the
operator. The hearing shall be reported by a stenographic reporter
and may, in addition, be electronically recorded by either party.
   (c) The notice of hearing shall inform the operator of its right
to file a written answer to the charges no later than 10 days before
the date of the hearing. The notice also shall inform the operator
that it has the right to present oral and documentary evidence at the
hearing.
   (d) Upon a verified and timely petition of the operator, the
director may order the testimony of a witness at the hearing. The
petition shall be served upon the director and the other party within
5 days after the filing of an appeal and shall set forth the name
and address of the witness whose testimony is requested, to the
extent known; a showing of the materiality of the testimony; and a
showing that the witness cannot be compelled to testify absent an
order of the director. The supervisor may file an opposition to the
petition within 5 days after the petition is served. The director
shall either deny or grant the petition within 10 days after receipt
of the petition and receiving any opposition to the petition. Upon
granting a petition, the director shall issue a subpoena pursuant to
Section 3357 compelling the testimony of the witness at the hearing.
   (e) The director may convert a hearing pursuant to this section to
a formal hearing conducted in accordance with Chapter 5 (commencing
with Section 11500) of Part 1 of Division 3 of Title 2 of the
Government Code in any of the following circumstances:
   (1) The operator makes a showing satisfactory to the director that
the order being appealed is likely to result in termination of an
established oil or gas producing or injection operation.
   (2) It appears to the director that the hearing will involve
complex evidentiary or procedural issues that will cause more than
minimal delay or burdens.
   (3) The operator and the supervisor agree and stipulate to convert
the hearing to a formal hearing.
   (f) The conversion of a hearing pursuant to this section to a
formal hearing shall be conducted in accordance with Article 15
(commencing with Section 11470.10) of Chapter 4.5 of Part 1 of
Division 3 of Title 2 of the Government Code.
   SEC. 8.   SEC. 9.   Section 3353 of the
Public Resources Code is repealed.
   SEC. 10.    Section 3353 is added to the  
Public Resources Code  , to read:  
   3353.  (a) Within 30 days after the close of a hearing conducted
by the director, the director shall issue a written decision
affirming, setting aside, or modifying the order from which the
appeal was taken. The director's written decision shall be based upon
the preponderance of the evidence and shall set forth the director's
factual findings, legal conclusions, and rationale for the result.
The director may extend the 30-day period for issuing the written
decision if the extension is agreed to by the operator.
   (b) The director shall file the written decision with the
supervisor and serve it on the operator as soon as the decision is
complete, at which time the decision shall be deemed final. The
director's decision shall supersede the order of the supervisor from
which the appeal was made. If the director affirms or modifies the
order, the director shall retain jurisdiction until the operator
completes the work required to be performed by the order. 
   SEC. 9.   SEC. 11.   Section 3354 of the
Public Resources Code is repealed.
   SEC. 10.   SEC. 12.   Section 3354 is
added to the Public Resources Code, to read: 
   3354.  Following a hearing conducted in accordance with Chapter 5
(commencing with Section 11500) of Part 1 of Division 3 of Title 2 of
the Government Code, or a hearing conducted in accordance with
Article 13 (commencing with Section 11460.10) of Chapter 4.5 of Part
1 of Division 3 of Title 2 of the Government Code, the operator may
obtain judicial review of the decision pursuant to Section 11523 of
the Government Code. 
    3354.   (a) Following a hearing conducted by the
director pursuant to Sections 3352 and 3353 or subdivision (b) of
Section 3350, the operator may obtain judicial review of the decision
of the director by filing a petition for writ of administrative
mandamus in the superior court of the county where the division's
district office from which the order was issued is located. The
operator shall file the petition within 30 days after the date the
operator was served with the decision.
   (b) Following a hearing conducted in accordance with Chapter 5
(commencing with Section 11500) of Part 1 of Division 3 of Title 2 of
the Government Code, the operator may obtain judicial review of the
decision pursuant to Section 11523 of the Government Code.
   SEC. 11.   SEC. 13.   Section 3355 of
the Public Resources Code is repealed.
   SEC. 12.   SEC. 14.   Section 3355 is
added to the Public Resources Code, to read:
   3355.  When an operator seeks judicial review of a decision of the
director  , including a decision  following a hearing
conducted in accordance with Chapter 5 (commencing with Section
11500) of Part 1 of Division 3 of Title 2 of the Government Code, the
court shall hear the cause on the record before the director or an
administrative law judge. New or additional evidence shall not be
introduced in court. The court's inquiry shall extend to whether the
director acted without or in excess of jurisdiction, whether there
was a fair hearing, and whether there is any prejudicial abuse of
discretion. Abuse of discretion is established if the administrative
proceeding has not been conducted in the manner required by law, the
decision is not supported by the findings, or the findings are not
supported by substantial evidence in light of the whole record.
   SEC. 13.   SEC. 15.   Section 3356 of
the Public Resources Code is repealed.
   SEC. 14.   SEC. 16.   Section 3356 is
added to the Public Resources Code, to read:
   3356.  If the operator does not appeal an order, if the operator
does not timely seek judicial review of a decision affirming or
modifying an order within the time provided in Section 3354, or if
the operator has timely sought and obtained judicial review and the
court has affirmed the decision, then any charge, including penalty
and interest, that the decision permits the supervisor to impose on
the operator for work performed by the supervisor or the supervisor's
agents shall constitute a state tax lien against the real and
personal property of the operator pursuant to Section 3423.
   SEC. 15.  SEC. 17   .   Section
3743 of the Public Resources Code is amended to read:
   3743.  (a) An order of the supervisor or a district deputy issued
pursuant to this chapter shall provide a clear and concise recitation
of the acts or omissions with which the operator is charged. The
order shall state all penalties and requirements imposed on the
operator in connection with the acts or omissions charged and the
order shall provide citations to the provisions of this code and the
regulations that support the imposition of the penalties and
requirements.
   (b) An order of the supervisor or a district deputy shall be in
writing and shall be served on the operator by personal service or by
certified mail.
   (c) When the supervisor or a district deputy makes or gives any
written direction concerning the drilling, testing, or other
operations in any well drilled, in process of drilling, or being
abandoned, and the operator, owner, or representative of either,
serves written notice, either personally or by mail, addressed to the
supervisor, or to the district deputy at his or her office in the
district, requesting that a definite order be made upon the subject,
the supervisor or the district deputy shall, within five days after
receipt of the notice, deliver a final written order on the subject
matter.
   (d) When the supervisor or a district deputy issues any written
order concerning an operation, an appeal may be made from the order
pursuant to Sections 3762 to 3768, inclusive. The order shall inform
the operator of its right to appeal the order.
   SEC. 16.   SEC. 18.   Section 3744 of
the Public Resources Code is amended to read:
   3744.  (a) Within 30 days from the date of service of an order
made pursuant to Section 3743, or if there has been an appeal from
the order to the director, within 30 days after service of the
decision of the director, or if a review has been taken of the order
of the director, within 10 days after the affirmance of the order,
the operator shall commence in good faith the work ordered and
continue it until completion. If the work has not been commenced and
continued to completion, the supervisor may appoint necessary agents
to enter the premises and perform the work. An accurate account of
the expenditures shall be kept. Any amount so expended constitutes a
lien against the real or personal property of the operator upon which
the work is done and the lien has the force, effect, and priority of
a judgment lien pursuant to Section 3772.
   (b) Notwithstanding Section 3741, 3743, or 3755, if the supervisor
determines that an emergency exists, the supervisor may make formal
or emergency orders or undertake any other action that the supervisor
determines to be necessary for the protection of life, health,
property, or natural resources.
   SEC. 17.   SEC. 19.   Section 3762 of
the Public Resources Code is repealed.
   SEC. 18.   SEC. 20.   Section 3762 is
added to the Public Resources Code, to read:
   3762.  (a) The operator of a well to whom the supervisor or
district deputy has issued an order pursuant to this chapter may file
a notice of appeal to the director from that order. The notice of
appeal shall be in writing and shall be filed with the supervisor or
with the district deputy who issued the order. The operator shall
file the appeal within 10 days of the service of the order. Failure
of the operator to file an appeal from the order within the 10-day
period shall be a waiver by the operator of its rights to challenge
the order. If the order is served by mail, the time for responding
shall be determined as provided in Section 1013 of the Code of Civil
Procedure.
   (b)  (1)    The filing of a written notice of
appeal shall operate as a stay of the order, except when an order for
remedial work is issued as an emergency order pursuant to Section
3744. If the order is an emergency order, the operator shall
immediately perform whatever work is required by the order to
alleviate the emergency or shall permit the agents appointed by the
supervisor to perform that work.  If the order is set aside
or modified on appeal, the costs incurred by the operator for
whatever work is not required by the set aside or modified order
shall be refunded to the operator by the supervisor or the costs
incurred by the supervisor for the work shall not be imposed on the
operator. If the operator believes that  
   (2) If the emergency order is set aside or modified on appeal, the
supervisor shall refund the reasonable costs incurred by the
operator for whatever work is not required by the set-aside or
modified order or shall not impose costs for work performed by the
supervisor or the supervisor's agents if the work is excluded from
the modified order or the order is set aside.  
   (3) (A) The costs to be refunded pursuant to paragraph (2) by the
supervisor shall be determined in a hearing before the director after
the exhaustion of appeals. The operator shall have the burden of
proving the amount of costs to be refunded.  
   (B) A determination by the director as to the amount of costs to
be refunded pursuant to paragraph (2) may be appealed by the operator
pursuant to subdivision (a) of Section 3354. 
    (4)     If the operator believes that 
it will be irretrievably injured by the performance of the work
required to alleviate the emergency pending the outcome of the
appeal, the operator may seek an order from the appropriate superior
court restraining the enforcement of the order pending the outcome of
the appeal.
   SEC. 19.   SEC. 21.   Section 3763 is
added to the Public Resources Code, to read: 
   3763.  (a) Except as provided in subdivision (c), a hearing shall
be provided in accordance with Chapter 5 (commencing with Section
11500) of Part 1 of Division 3 of Title 2 of the Government Code for
an appeal from any order. 
    3763.    (a) A hearing shall be provided in
accordance with Chapter 5 (commencing with Section 11500) of Part 1
of Division 3 of Title 2 of the Government Code only in an appeal
from an order in the following circumstances:  
   (1) Issued pursuant to a Section 3755 finding that the operator's
wells are deserted and should be plugged and abandoned.  
   (2) Rescinding an injection project approval for a project that
has already commenced. 
   (b) An order issued pursuant to Section 3743 shall satisfy the
requirement of Section 11503 of the Government Code that an
accusation be filed. 
    (c) For an appeal of an order that is also an emergency order for
remedial work, a hearing shall be conducted in accordance with
Article 13 (commencing with Section 11460.10) of Chapter 4.5 of Part
1 of Division 3 of Title 2 of the Government Code for  
   (c) For an appeal of an order that is not described in subdivision
(a), a hearing shall be conducted by the director in accordance with
Sections 3764 and 3765. 
    (d)     For an appeal of an order that is
described in subdivision (a) and is also an emergency order for
remedial work, a hearing shall be conducted   by the
director in accordance with Sections 3764 and 3765 for  the
limited purpose of considering the emergency order for remedial work.
All other penalties and requirements imposed by the order shall be
considered at a hearing provided in accordance with Chapter 5
(commencing with Section 11500) of Part 1 of Division 3 of Title 2 of
the Government Code.
   SEC. 20.   SEC. 22.   Section 3764 of
the Public Resources Code is repealed.
   SEC. 23.    Section 3764 is added to the  
Public Resources Code   , to read:  
   3764.  (a) A hearing conducted by the director shall adhere to the
following:
   (1) When an order is not issued as an emergency order, within 30
days from the date of the service of the notice of appeal, the
director shall provide to the operator notice of the time and place
of the hearing. The hearing shall take place within 30 days after the
date of the director's notice. The notice shall inform the operator
that the director may extend the date of the hearing for up to 60
days for good cause upon application of the operator or the
supervisor.
   (2) When an order has been issued as an emergency order, within 10
days from the date of the service of the notice of appeal, the
director shall provide to the operator notice of the time and place
of the hearing. The hearing shall take place within 20 days after the
date of the director's notice. The notice shall inform the operator
that the director may extend the date of the hearing for up to 30
days for good cause upon application of the operator or the
supervisor.
                                              (b) The director shall
conduct the hearing within the district where the majority of the
wells that are the subject of the order are located, or the hearing
may be conducted at a location outside of that district upon
application of the operator. The hearing shall be reported by a
stenographic reporter and may, in addition, be electronically
recorded by either party.
   (c) The notice of hearing shall inform the operator of its right
to file a written answer to the charges no later than 10 days before
the date of the hearing. The notice also shall inform the operator
that it has the right to present oral and documentary evidence at the
hearing.
   (d) Upon a verified and timely petition of the operator, the
director may order the testimony of a witness at the hearing. The
petition shall be served upon the director and the other party within
5 days after the filing of an appeal and shall set forth the name
and address of the witness whose testimony is requested, to the
extent known; a showing of the materiality of the testimony; and a
showing that the witness cannot be compelled to testify absent an
order of the director. The supervisor may file an opposition to the
petition within 5 days after the petition is served. The director
shall either deny or grant the petition within 10 days after receipt
of the petition and receiving any opposition to the petition. Upon
granting a petition, the director shall issue a subpoena pursuant to
Section 3357 compelling the testimony of the witness at the hearing.
   (e) The director may convert a hearing pursuant to this section to
a formal hearing conducted in accordance with Chapter 5 (commencing
with Section 11500) of Part 1 of Division 3 of Title 2 of the
Government Code in any of the following circumstances:
   (1) The operator makes a showing satisfactory to the director that
the order being appealed is likely to result in termination of an
established oil or gas producing or injection operation.
   (2) It appears to the director that the hearing will involve
complex evidentiary or procedural issues that will cause more than
minimal delay or burdens.
   (3) The operator and the supervisor agree and stipulate to convert
the hearing to a formal hearing.
   (f) The conversion of a hearing pursuant to this section to a
formal hearing shall be conducted in accordance with Article 15
(commencing with Section 11470.10) of Chapter 4.5 of Part 1 of
Division 3 of Title 2 of the Government Code. 
   SEC. 21.   SEC. 24.   Section 3765 of
the Public Resources Code is repealed.
   SEC. 25.    Section 3765 is added to the  
Public Resources Code   , to read:  
   3765.  (a) Within 30 days after the close of a hearing conducted
by the director, the director shall issue a written decision
affirming, setting aside, or modifying the order from which the
appeal was taken. The director's written decision shall be based upon
the preponderance of the evidence and shall set forth the director's
factual findings, legal conclusions, and rationale for the result.
The director may extend the 30-day period for issuing the written
decision if the extension is agreed to by the operator.
   (b) The director shall file the written decision with the
supervisor and serve it on the operator as soon as the decision is
complete, at which time the decision shall be deemed final. The
director's decision shall supersede the order of the supervisor from
which the appeal was made. If the director affirms or modifies the
order, the director shall retain jurisdiction until the operator
completes the work required to be performed by the order. 
   SEC. 22.   SEC. 26.   Section 3766 of
the Public Resources Code is repealed.
   SEC. 23.   SEC. 27.   Section 3766 is
added to the Public Resources Code, to read: 
   3766.  Following a hearing conducted in accordance with Chapter 5
(commencing with Section 11500) of Part 1 of Division 3 of Title 2 of
the Government Code, or a hearing conducted in accordance with
Article 13 (commencing with Section 11460.10) of Chapter 4.5 of Part
1 of Division 3 of Title 2 of the Government Code, the operator may
obtain judicial review of the decision pursuant to Section 11523 of
the Government Code. 
    3766.   (a) Following a hearing conducted by the
director pursuant to Sections 3764 and 3765 or subdivision (b) of
Section 3762, the operator may obtain judicial review of the decision
of the director by filing a petition for writ of administrative
mandamus in the superior court of the county where the division's
district office from which the order was issued is located. The
operator shall file the petition within 30 days after the date the
operator was served with the decision.
   (b) Following a hearing conducted in accordance with Chapter 5
(commencing with Section 11500) of Part 1 of Division 3 of Title 2 of
the Government Code, the operator may obtain judicial review of the
decision pursuant to Section 11523 of the Government Code.
   SEC. 24.   SEC. 28.   Section 3767 of
the Public Resources Code is repealed.
   SEC. 25.   SEC. 29.   Section 3767 is
added to the Public Resources Code, to read:
   3767.  When an operator seeks judicial review of a decision of the
director  , including a decision  following a hearing
conducted in accordance with Chapter 5 (commencing with Section
11500) of Part 1 of Division 3 of Title 2 of the Government Code, the
court shall hear the cause on the record before the director or an
administrative law judge. New or additional evidence shall not be
introduced in court. The court's inquiry shall extend to whether the
director acted without or in excess of jurisdiction, whether there
was a fair hearing, and whether there is any prejudicial abuse of
discretion. Abuse of discretion is established if the administrative
proceeding has not been conducted in the manner required by law, the
decision is not supported by the findings, or the findings are not
supported by substantial evidence in light of the whole record.
   SEC. 26.   SEC. 30.   Section 3768 of
the Public Resources Code is repealed.
   SEC. 27.   SEC. 31.   Section 3768 is
added to the Public Resources Code, to read:
   3768.  If the operator does not appeal an order, if the operator
does not timely seek judicial review of a decision affirming or
modifying an order within the time provided in Section 3766, or if
the operator has timely sought and obtained judicial review and the
court has affirmed the decision, then any charge, including penalty
and interest, that the decision permits the supervisor to impose on
the operator for work performed by the supervisor or the supervisor's
agents shall constitute a state tax lien against the real and
personal property of the operator pursuant to Section 3772.
   SEC. 28.   SEC. 32.   The director may
adopt emergency regulations for the purposes of implementing Sections
3225, 3236.5, 3350, 3351,  3352, 3353,  3354, 3355, 3356,
3743, 3744, 3762, 3763,  3764, 3765,  3766, 3767, and 3768.
Any emergency regulations, if adopted, shall be adopted in accordance
with Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code, and for the purposes of
that chapter, including Section 11349.6 of the Government Code, the
adoption of these regulations is an emergency and shall be considered
by the Office of Administrative Law as necessary for the immediate
preservation of the public peace, health and safety, and general
welfare. Notwithstanding Chapter 3.5 (commencing with Section 11340)
of Part 1 of Division 3 of Title 2 of the Government Code, including
subdivision (e) of Section 11346.1 of the Government Code, any
emergency regulations adopted pursuant to this section shall be filed
with, but not be repealed by, the Office of Administrative Law and
shall remain in effect until revised by the director.