BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



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          |SENATE RULES COMMITTEE            |                        SB 447|
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                                 UNFINISHED BUSINESS


          Bill No:  SB 447
          Author:   Lara (D)
          Amended:  8/26/13
          Vote:     21

           
           SENATE NATURAL RESOURCES AND WATER COMMITTEE  :  9-0, 4/23/13
          AYES:  Pavley, Cannella, Evans, Fuller, Hueso, Jackson, Lara,  
            Monning, Wolk

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           SENATE FLOOR  :  34-0, 5/9/13
          AYES:  Anderson, Beall, Block, Calderon, Cannella, Corbett,  
            Correa, De Le�n, DeSaulnier, Emmerson, Evans, Fuller, Gaines,  
            Galgiani, Hancock, Hernandez, Hill, Hueso, Huff, Jackson,  
            Knight, Leno, Lieu, Liu, Monning, Nielsen, Padilla, Roth,  
            Steinberg, Walters, Wolk, Wright, Wyland, Yee
          NO VOTE RECORDED:  Berryhill, Lara, Pavley, Price, Vacancy,  
            Vacancy

           ASSEMBLY FLOOR  :  Not available


           SUBJECT  :    Surface mining operations

           SOURCE  :     California Construction and Industrial Material  
          Association


           DIGEST  :    This bill allows, until January 1, 2019, a surface  
          mining operator, whose operations are not in compliance with its  
          approved reclamation plan, to continue to sell mining products  
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          to a state or local agency if the operator stipulates to an  
          order to comply with the lead agency and/or the Department of  
          Conservation (DOC).  This bill also requires the DOC to submit a  
          report to the Legislature on July 1, 2017 and July 1, 2018. 

           Assembly Amendments  (1) require the DOC to submit a report to  
          the Legislature on July 1, 2017 and July 1, 2018; (2) add a  
          January 1, 2019 sunset date; and (3) make other technical and  
          conforming changes. 

           ANALYSIS  :    Existing law prohibits, with certain exceptions,  
          under the Surface Mining and Reclamation Act of 1975 (SMARA), a  
          person from conducting a surface mining operation unless, among  
          other things, a reclamation plan has been submitted to and  
          approved by the lead agency, as defined, for the operation.  For  
          purposes of compliance with specified provisions of the Public  
          Contract Code, the SMARA requires DOC to, at a minimum,  
          quarterly publish in the Regulatory Notice Register, or  
          otherwise make available, upon request, to the Department of  
          General Services or any other state or local agency, a list  
          identifying certain surface mining operations.  Existing law  
          prohibits a state agency from acquiring or utilizing mined  
          material, or from contracting with a person utilizing these  
          materials, as specified, unless the material is produced from a  
          mining operation on that list that meets certain requirements.

          This bill allows, until January 1, 2019, a surface mining  
          operation to continue to sell mining products, as specified, and  
          remain on the DOC approved list, if it meets all of the  
          following conditions:

          1.The reclamation plan has been approved and is in compliance  
            with the Surface Mining and Reclamation Act (SMARA). 

          2.The surface mining operation is in compliance with either of  
            the following: 

             A.   The approved reclamation plan. 

             B.   An order to comply, which may be stipulated to by DOC,  
               lead agency, and the operator, for enforcement actions  
               initiated by the director of the DOC. 

             C.   An order to comply, which may be stipulated to by the  

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               lead agency and the operator, with the notice of the  
               stipulation provided to the director of the DOC, for  
               enforcement actions initiated by the lead agency. 

          1.The surface mining operation has approved financial assurance  
            in place that is adequate for reclamation pursuant to the  
            approved reclamation plan. 

           Background
           
          Mine operators are eligible to sell materials such as sand and  
          gravel to the state if they are on the AB 3098 list.  As  
          initially adopted, the basic requirements of the AB 3098 list  
          were that the operators have an approved reclamation plan and an  
          approved financial assurance agreement pursuant to the 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  
          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. 

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No


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           SUPPORT  :   (Verified  9/6/13)

          California Construction and Industrial Materials Association  
          (source) 
          California State Association of Counties 
          CalPortland Company
          Granite Rock Company
          Syar Industries
          Werner Corporation 

           ARGUMENTS IN SUPPORT  :    According to the author's office,  
          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 DOC 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.


          RM:nl  9/6/13   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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