BILL ANALYSIS                                                                                                                                                                                                    Ó





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          |                                                                 |
          |         SENATE COMMITTEE ON NATURAL RESOURCES AND WATER         |
          |                   Senator Fran Pavley, Chair                    |
          |                    2013-2014 Regular Session                    |
          |                                                                 |
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          BILL NO: SB 447                    HEARING DATE: April 23, 2013   

          AUTHOR: Lara                       URGENCY: No 
          VERSION: April 16, 2013            CONSULTANT: Bill Craven  
          DUAL REFERRAL: No                  FISCAL: Yes  
          SUBJECT: Surface mining operations.
          
          BACKGROUND AND EXISTING LAW
          Mine operators are eligible to sell materials such as sand and  
          gravel to the state if they are on what is called the AB 3098  
          list, a reference to 1992 legislation by then-Assemblymember  
          Byron Sher that amended Public Resources Code section 2717. The  
          list is a quarterly document prepared by the Department of  
          Conservation. As initially adopted, the basic requirements of  
          the AB 3098 list were that the operator have an approved  
          reclamation plan and an approved financial assurance agreement  
          pursuant to the Surface Mining and Reclamation Act (SMARA), the  
          major statute that regulates surface mining in California. Since  
          that time, the requirements have been expanded and extended to  
          local governments. 

          Currently, in order for a mining operation to be placed on the  
          AB 3098 list, the operator must have: an approved reclamation  
          plan and financial assurances, filed an annual report, paid its  
          reporting fee, and had its annual inspection by the lead agency  
          that reflects that the operation is in full compliance with the  
          law. 

          Operators with appeals pending before the State Mining and  
          Geology Board for less than 180 days remain eligible to be on  
          the AB 3098 list. 

          Public Contract Code section 10295.5 requires that no state  
          agency shall acquire or use minerals from mines unless the  
          operation is identified on AB 3098 list.

          Public Contract Code section 20676 prohibits mine operators from  
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          selling material to local agencies without first certifying that  
          the minerals are from a mining operation identified on the AB  
          3098 list. 

          In most instances under the state mining law, the county  
          government is the lead agency for purposes of approving the  
          mining operation. There are rare occasions when the state is the  
          lead agency. 

          PROPOSED LAW
          SB 447 would allow mine operators who are not in compliance with  
          the state mining laws to remain on the AB 3098 list if they have  
          entered into an order to comply with the lead agency or the  
          department to correct any violations that may have occurred  
          during an operation. 

          There are two paths for orders to comply to be completed. When  
          enforcement actions are initiated by the director, and agreement  
          has been reached by all the parties, an order to comply could be  
          stipulated to by the department, the lead agency, and the  
          operator. 

          For enforcement actions initiated by the lead agency, and an  
          agreement has been reached between the lead agency and the  
          operator, an order to comply could be stipulated to by the lead  
          agency and the operator with notice of such stipulation provided  
          to the department. 

          The bill also would make technical changes to existing law  
          regarding reports the department provides the Legislature. 

          ARGUMENTS IN SUPPORT
          According to the author, existing law is not clear on the  
          question of whether an operator can remain on the AB 3098 list  
          if the operator has entered into an agreement with the lead  
          agency or the department to correct any violation that may have  
          occurred during a mining operation. The author's belief is that  
          this proposed provision could help small- and medium-sized  
          businesses remain in business.

          As sponsor, California Construction and Industrial Materials  
          Association and two member companies, Vulcan Materials and West  
          Coast Aggregates, are in support. These entities point to the  
          hardship of being removed from the AB 3098 list when compliance  
          issues may occur even after an operator's best efforts. They  
          argue that remaining on the AB 3098 list and achieving  
          compliance with an order or stipulated order is an incentive  
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          that most operators will not forego. 

          ARGUMENTS IN OPPOSITION
          None received. 

          SUPPORT
          California Construction and Industrial Material Association
          Vulcan Materials, West Region 
          West Coast Aggregates

          OPPOSITION
          None Received



































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