California Legislature—2015–16 Regular Session

Assembly Bill No. 1142

Introduced by Assembly Member Gray

February 27, 2015

An act to amend Sections 2207, 2773.1, 2774, and 2774.1 of, to amend and repeal Section 2717 of, and to add Section 2773.11 to, the Public Resources Code, relating to mining and geology.

LEGISLATIVE COUNSEL’S DIGEST

AB 1142, as introduced, Gray. Mining and geology: surface mining.

(1) The Surface Mining and Reclamation Act of 1975 requires the department to publish in the California 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 also 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. The act, until January 1, 2019, requires this list to identify surface mining operations whose reclamation plan has been approved and is in compliance with the act, whose mining operation is in compliance with the approved reclamation plan or an order to comply, as specified, and whose mining operation has an approved financial assurance, as specified.

This bill would continue indefinitely the inclusion on the list the identification of those surface mining operations.

(2) The act prohibits a person, with exceptions, from conducting surface mining operations unless, among other things, a permit is obtained from, a specified reclamation plan is submitted to and approved by, and financial assurances for reclamation have been approved by the lead agency for the operation of the surface mining operation.

This bill would revise and recast provisions of the act related to financial assurances and, among other things, would prohibit an operator being required to adjust financial assurances that are in excess of the amount determined necessary to perform reclamation in accordance with the surface mining operation’s approved reclamation plan, require financial assurance cost estimates be submitted for review and include estimates of the time needed to complete reclamation of the mine, and prescribe the actions to be taken by an operator, lead agency, and the director prior to the modification of the amount of a financial assurance or the full or partial release of the financial assurance instrument. By adding to the duties of local agencies, this bill would impose a state-mandated local program.

(3) The act requires the owner or operator of a mining operation to forward annually to the director and the lead agency a report that provides, among other things, proof of annual inspection by the lead agency. The act also requires every lead agency to adopt ordinances that establish procedures for the review and approval of reclamation plans, and, before approving a reclamation plan, to submit the plan to the director. The act requires a lead agency to inspect a surface mining operation within 6 months of receiving a specified report and to conduct an inspection no less than once every calendar year. The act authorizes a lead agency to authorize an inspection to be conducted by a state licensed geologist, state licensed civil engineer, state licensed landscape architect, or state licensed forester, as specified.

This bill would revise and recast those provisions and, among other things, would require the owner or operator to provide a copy of the previously completed annual inspection form and a requested date for the next annual inspection by the lead agency, require a lead agency to authorize an inspection to be conducted by an employee of the local agency who has received specified training, impose new requirements on the lead agency related to the timing of inspections, impose timelines on a lead agency related to the submission of an application for a permit to conduct a surface mining operation, and require the State Geologist to coordinate with the director, board, lead agencies, and interested parties to develop a curriculum for the training of mine inspectors. By adding to the duties of local agencies, this bill would impose a state-mandated local program.

(4) The act requires that the lead agency have primary responsibility in enforcing the act. The act authorizes, in cases where the board is not the lead agency, the director to initiate enforcement actions if the lead agency has been notified by the director, for at least 15 days, of a violation and has not taken appropriate enforcement action, or the director determines there is a violation that presents an imminent and substantial endangerment to the public health or safety, or the environment.

This bill would require the lead agency, the director, or the board, as appropriate, to take into account and seek to minimize the impact of any proposed enforcement action on the number of existing jobs supported directly or indirectly by the surface mining operation.

(5) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

SECTION 1.  

Section 2207 of the Public Resources Code is
amended to read:

2207.  

(a) The owner or the operator of a mining operation
within the state shall forward to the director annually, not later
than a date established by the director, upon forms approved by
the board from time to time, a report that identifies begin insert and contains end insert
all of the following:

(1) The name, address, and telephone number of the person,
company, or other owner of the mining operation.

(2) The name, address, and telephone number of a designated
agent who resides in this state, and who will receive and accept
service of all orders, notices, and processes of the lead agency,
board, director, or court.

(3) The location of the mining operation, its name, its mine
number as issued by the begin delete Bureau of Mines end delete begin insert Office of Mine
Reclamation end insert or the director, its section, township, range, latitude,
longitude, and approximate boundaries of the mining operation
marked on a United States Geological Survey 71⁄2-minute or
15-minute quadrangle map.

(4) The lead agency.

(5) The approval date of the mining operation’s reclamation
plan.

(6) The mining operation’s status as active, idle, reclaimed, or
in the process of being reclaimed.

(7) The commodities produced by the mine and the type of
mining operation.

begin delete

(8) Proof of annual inspection by the lead agency.

end delete begin insert

(8) A copy of the previously completed annual inspection form
and a requested date for the next annual inspection by the lead
agency.

end insert

(9) Proof of financial assurances.

(10) Ownership of the property, including government agencies,
if applicable, by the assessor’s parcel number, and total assessed
value of the mining operation.

(11) The approximate permitted size of the mining operation
subject to Chapter 9 (commencing with Section 2710), in acres.

(12) The approximate total acreage of land newly disturbed by
the mining operation during the previous calendar year.

(13) The approximate total of disturbed acreage reclaimed during
the previous calendar year.

(14) The approximate total unreclaimed disturbed acreage
remaining as of the end of the calendar year.

(15) The total production for each mineral commodity produced
during the previous year.

(16) A copy of any approved reclamation plan and any
amendments or conditions of approval to any existing reclamation
plan approved by the lead agency.

(b) (1) Every year, not later than the date established by the
director, the person submitting the report pursuant to subdivision
(a) shall forward to the lead agency, upon forms furnished by the
board, a report that provides all of the information specified in
begin delete paragraphs (1) to (16), inclusive, of end delete subdivision (a).

(2) The owner or operator of a mining operation shall allow
access to the property to any governmental agency or the agent of
any company providing financial assurances in connection with
the reclamation begin delete plan, end delete begin insert plan end insert in order that the reclamation can be
carried out by the entity or company, in accordance with the
provisions of the reclamation plan.

(c) Subsequent reports shall include only changes in the
information submitted for the items described in subdivision (a),
except that, instead of the approved reclamation plan, the reports
shall include any reclamation plan amendments approved during
the previous year. The reports shall state whether review of a
reclamation plan, financial assurances, or an interim management
plan is pending under subdivision (b), (c), (d), or (h) of Section
2770, or whether an appeal before the board or lead agency
governing body is pending under subdivision (e) or (h) of Section
2770. The director shall notify the person submitting the report
and the owner’s designated agent in writing that the report and the
fee required pursuant to subdivision (d) have been received, specify
the mining operation’s mine number if one has not been issued by
the begin delete Bureau of Mines, end delete begin insert Office of Mine Reclamation, end insert and notify the
person and agent of any deficiencies in the report within 90 days
of receipt. That person or agent shall have 30 days from receipt of
the notification to correct the noted deficiencies and forward the
revised begin delete reports end delete begin insert report end insert to the director and the lead agency. Any
person who fails to comply with this section, or knowingly provides
incorrect or false information in reports required by this section,
may be subject to an administrative penalty as provided in
subdivision (c) of Section 2774.1.

(d) (1) The board shall impose, by regulation, pursuant to
paragraph (2), an annual reporting fee on, and method for collecting
annual fees from, each active or idle mining operation. The
maximum fee for any single mining operation may not exceed four
thousand dollars ($4,000) annually and may not be less than one
hundred dollars ($100) annually, as adjusted for the cost of living
as measured by the California Consumer Price Index for all urban
consumers, calendar year averages, using the percentage change
in the previous year, beginning with the 2005-06 fiscal year and
annually thereafter.

(2) (A) The board shall adopt, by regulation, a schedule of fees
authorized under paragraph (1) to cover the department’s cost in
carrying out this section and Chapter 9 (commencing with Section
2710), as reflected in the Governor’s begin insert proposed end insert Budget, and may
adopt those regulations as emergency regulations. In establishing
the schedule of fees to be paid by each active and idle mining
operation, the fees shall be calculated on an equitable basis
reflecting the size and type of operation. The board shall also
consider the total assessed value of the mining operation, the
acreage disturbed by mining activities, and the acreage subject to
the reclamation plan.

(B) Regulations adopted pursuant to this subdivision shall be
adopted by the board in accordance with begin delete Chapter end delete begin insert the Administrative
Procedure Act (Chapter end insert 3.5 (commencing with Section 11340) of
Part 1 of Division 3 of Title 2 of the Government begin delete Code. end delete begin insert Code). end insert
The adoption of any emergency regulations pursuant to this
subdivision shall be considered necessary to address an emergency
and shall be considered by the Office of Administrative Law to be
necessary for the immediate preservation of the public peace,
health, safety, and general welfare.

(3) The total revenue generated by the reporting fees may not
exceed, and may be less than, the amount of three million five
hundred thousand dollars ($3,500,000), as adjusted for the cost of
living as measured by the California Consumer Price Index for all
urban consumers, calendar year averages, using the percentage
change in the previous year, beginning with the 2005-06 fiscal
year and annually thereafter. If the director determines that the
revenue collected during the preceding fiscal year was greater or
less than the cost to operate the program, the board shall adjust
the fees to compensate for the overcollection or undercollection
of revenues.

(4) (A) The reporting fees established pursuant to this
subdivision shall be deposited in the Mine Reclamation Account,
which is hereby created. Any fees, penalties, interest, fines, or
charges collected by the director or board pursuant to this chapter
or Chapter 9 (commencing with Section 2710) shall be deposited
in the Mine Reclamation Account. The money in the account shall
be available to the department and board, upon appropriation by
the Legislature, for the purpose of carrying out this section and
complying with Chapter 9 (commencing with Section 2710), which
includes, but is not limited to, classification and designation of
areas with mineral resources of statewide or regional significance,
reclamation plan and financial assurance review, mine inspection,
and enforcement.

(B) (i) In addition to reporting fees, the board shall collect five
dollars ($5) per ounce of gold and ten cents ($0.10) per ounce of
silver mined within the state and shall deposit the fees collected
in the Abandoned Mine Reclamation and Minerals Fund
Subaccount, which is hereby created in the Mine Reclamation
Account. The department may expend the moneys in the
subaccount, upon appropriation by the Legislature, for only the
purposes of Section 2796.5 and as authorized herein for the
remediation of abandoned mines.

(ii) Notwithstanding subdivision (j) of Section 2796.5, fees
collected pursuant to clause (i) may also be used to remediate
features of historic abandoned mines and lands that they impact.
For the purposes of this section, historic abandoned mines are
mines for which operations have been conducted before January
1, 1976, and include, but are not limited to, historic gold and silver
mines.

(5) In case of late payment of the reporting fee, a penalty of not
less than one hundred dollars ($100) or 10 percent of the amount
due, whichever is greater, plus interest at the rate of 11⁄2 percent
per month, computed from the delinquent date of the assessment
until and including the date of payment, shall be assessed. New
mining operations that have not submitted a report shall submit a
report prior to commencement of operations. The new operation
shall submit its fee according to the reasonable fee schedule
adopted by the board, and the month that the report is received
shall become that operation’s anniversary month.

(e) The lead agency, or the board when acting as the lead agency,
may impose a fee upon each mining operation to cover the
reasonable costs incurred in implementing this chapter and Chapter
9 (commencing with Section 2710).

(f) For purposes of this section, “mining operation” means a
mining operation of any kind or character whatever in this state,
including, but not limited to, a mining operation that is classified
as a “surface mining operation” as defined in Section 2735, unless
excepted by Section 2714. For the purposes of fee collections only,
“mining operation” may include one or more mines operated by
a single operator or mining company on one or more sites, if the
total annual combined mineral production for all sites is less than
100 troy ounces for precious metals, if precious metals are the
primary mineral commodity produced, or less than 100,000 short
tons if the primary mineral commodity produced is not precious
metals.

(g) Any information in reports submitted pursuant to subdivision
(a) that includes or otherwise indicates the total mineral production,
reserves, or rate of depletion of any mining operation may not be
disclosed to any member of the public, as defined in subdivision
(b) of Section 6252 of the Government Code. Other portions of
the reports are public records unless excepted by statute. Statistical
bulletins based on these reports and published under Section 2205
shall be compiled to show, for the state as a whole and separately
for each lead agency, the total of each mineral produced therein.
In order not to disclose the production, reserves, or rate of depletion
from any identifiable mining operation, no production figure shall
be published or otherwise disclosed unless that figure is the
aggregated production of not less than three mining operations. If
the production figure for any lead agency would disclose the
production, reserves, or rate of depletion of less than three mining
operations or otherwise permit the reasonable inference of the
production, reserves, or rate of depletion of any identifiable mining
operation, that figure shall be combined with the same figure of
not less than two other lead agencies without regard to the location
of the lead agencies. The bulletin shall be published annually by
June 30 or as soon thereafter as practicable.

(h) The approval of a form by the board pursuant to this section
is not the adoption of a regulation for purposes of begin delete Chapter end delete begin insert the
Administrative Procedure Act (Chapter end insert 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
begin delete Code end delete begin insert Code) end insert and is not subject to that begin delete chapter. end delete begin insert act. end insert

SEC. 2.  

Section 2717 of the Public Resources Code, as
amended by Section 2 of Chapter 417 of the Statutes of 2013, is
amended to read:

2717.  

(a) Notwithstanding Section 10231.5 of the Government
Code, the board shall submit to the Legislature on December 1 of
each year a report on the actions taken pursuant to this chapter
during the preceding fiscal year. The report shall include a
statement of the actions, including legislative recommendations,
that are necessary to carry out more completely the purposes and
requirements of this chapter.

(b) For begin insert the end insert purposes of ensuring compliance with Sections
10295.5 and 20676 of the Public Contract Code, the department
shall, at a minimum, quarterly publish in the California 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 all of the following:

(1) Surface mining operations for which a report is required and
has been submitted pursuant to Section 2207 that indicates all of
the following:

(A) The reclamation plan and financial assurances have been
approved pursuant to this chapter.

(B) Compliance with state reclamation standards developed
pursuant to Section 2773.

(C) Compliance with the financial assurance guidelines
developed pursuant to Section 2773.1.

(D)  begin delete The end delete begin insert Whether the end insert annual reporting fee has been submitted
to the begin delete Department of Conservation. end delete begin insert department. end insert

(2) Surface mining operations for which an appeal is pending
before the board pursuant to subdivision (e) of Section 2770, if
the appeal was not pending before the board for more than 180
days.

(3) Surface mining operations for which an inspection is required
and for which an inspection notice has been submitted by the lead
agency pursuant to Section 2774 that indicates both compliance
with the approved reclamation plan and that sufficient financial
assurances, pursuant to Section 2773.1, have been approved and
secured.

(4) Surface mining operations that meet all of the following:

(A) The reclamation plan has been approved and is in
compliance with this chapter.

(B) The mining operation is in compliance with either of the
following:

(i) The approved reclamation plan.

(ii) An order to comply issued prior to January 1, 2019, pursuant
to this chapter and that is being complied with by the operator. An
order to comply may be stipulated to as follows:

(I) By the department, lead agency, and operator if the
enforcement action was initiated by the director.

(II) By the lead agency and the operator, with notice of the
stipulation provided to the director if the enforcement action was
initiated by the lead agency.

(C) In accordance with Section 2773.1 and Article 11
(commencing with Section 3800) of Title 14 of the California Code
of Regulations, as amended, the surface mining operation has an
approved financial assurance in place that is adequate for
reclamation pursuant to the approved reclamation plan.

(c) Between July 1, 2017, and January 1, 2018, the department
shall submit to the Legislature a report on the activities of lead
agencies and surface mining operations. This report shall include,
but begin delete is end delete begin insert need end insert not begin insert be end insert limited to, all of the following:

(1) Number of financial assurance cost estimates reviewed and
approved each year by each lead agency.

(2) Number of annual mine inspections performed by each lead
agency.

(3) Information on idle mines and interim management plans
approved by each lead agency.

(4) Number and location of mining operations that are no longer
in operation with no intent to resume and are in the process of
reclamation and how many years each of these mining operations
has claimed that status.

(5) Information on approved mineral resources management
plans across the state from the board.

(6) Number and location of mines with reclamation plans
approved prior to the adoption of the 1993 reclamation standards.

(7) Percentage of mining operations on the list published
pursuant to subdivision (b) and the number and location of mining
operations that have been placed on the list pursuant to clause (ii)
of subparagraph (B) of paragraph (4) of subdivision (b).

(8) Number of historic abandoned mines remediated by the
department and begin insert the end insert locations of known remaining hazards.

(9) Number, types, and status of notices of violations and orders
to comply issued by the department organized by location.

(10) Number of administrative penalties issued by the
department and amounts, as well as information on the amounts
actually collected by the department organized by location.

(d) A report submitted pursuant to subdivision (a) or (c) shall
be submitted in compliance with Section 9795 of the Government
Code.

begin delete

(e) This section shall remain in effect only until January 1, 2019,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2019, deletes or extends that date.

end delete

SEC. 3.  

Section 2717 of the Public Resources Code, as added
by Section 3 of Chapter 417 of the Statutes of 2013, is repealed.

begin delete

2717.  

(a) Notwithstanding Section 10231.5 of the Government
Code, the board shall submit to the Legislature on December 1 of
each year a report on the actions taken pursuant to this chapter
during the preceding fiscal year. The report shall include a
statement of the actions, including legislative recommendations,
that are necessary to carry out more completely the purposes and
requirements of this chapter.

(b) For purposes of ensuring compliance with Sections 10295.5
and 20676 of the Public Contract Code, the department shall, at a
minimum, quarterly publish in the California 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 all of the following:

(1) Surface mining operations for which a report is required and
has been submitted pursuant to Section 2207 that indicates all of
the following:

(A) The reclamation plan and financial assurances have been
approved pursuant to this chapter.

(B) Compliance with state reclamation standards developed
pursuant to Section 2773.

(C) Compliance with the financial assurance guidelines
developed pursuant to Section 2773.1.

(D) The annual reporting fee has been submitted to the
Department of Conservation.

(2) Surface mining operations for which an appeal is pending
before the board pursuant to subdivision (e) of Section 2770, if
the appeal was not pending before the board for more than 180
days.

(3) Surface mining operations for which an inspection is required
and for which an inspection notice has been submitted by the lead
agency pursuant to Section 2774 that indicates both compliance
with the approved reclamation plan and that sufficient financial
assurances, pursuant to Section 2773.1, have been approved and
secured.

(4) Surface mining operations to which an order to comply was
issued pursuant to this chapter prior to January 1, 2019, and that
is being complied with. An order to comply may have been
stipulated to as follows:

(A) By the department, lead agency, and operator if the
enforcement action was initiated by the director.

(B) By the lead agency and the operator, with notice of the
stipulation provided to the director if the enforcement action was
initiated by the lead agency.

(c) A report submitted pursuant to subdivision (a) shall be
submitted in compliance with Section 9795 of the Government
Code.

(d) This section shall become operative January 1, 2019.

end delete

SEC. 4.  

Section 2773.1 of the Public Resources Code is
amended to read:

2773.1.  

(a) Lead agencies shall require financial assurances
of each surface mining operation to ensure reclamation is
performed in accordance with the surface mining operation’s
approved reclamation plan, as follows:

(1) Financial assurances may take the form of surety bonds
executed by an admitted surety insurer, as defined in subdivision
(a) of Section 995.120 of the Code of Civil Procedure, irrevocable
letters of credit, trust funds, or other forms of financial assurances
specified by the board pursuant to subdivision (e) begin delete , which end delete begin insert that end insert the
lead agency reasonably determines are adequate to perform
reclamation in accordance with the surface mining operation’s
approved reclamation plan.

(2) The financial assurances shall remain in effect for the
duration of the surface mining operation and any additional period
until reclamation is completed.

(3) The amount of financial assurances required of a surface
mining operation for any one year shall be begin insert reviewed and, if
necessary, end insert adjusted begin delete annually end delete begin insert once each calendar year end insert to account
for new lands disturbed by surface mining operations, inflation,
and reclamation of lands accomplished in accordance with the
approved reclamation plan. begin insert An operator shall not be required to
adjust financial assurances that are in excess of the amount
determined necessary to perform reclamation in accordance with
the surface mining operation’s approved reclamation plan. end insert

begin insert

(4) Financial assurance cost estimates shall be submitted to the
lead agency for review on the form adopted by the board by
regulation pursuant to subdivision (f). The estimates shall include
estimates of the time needed to complete reclamation of the mine
in accordance with the approved reclamation plan, including, but
not limited to, any monitoring studies required by the reclamation
plan.

end insert begin delete

(4)

end delete

begin insert (5) end insert  The financial assurances shall be made payable to the lead
agency and the department. Financial assurances that were
approved by the lead agency prior to January 1, 1993, and were
made payable to the State Geologist shall be considered payable
to the department for purposes of this chapter. However, if a surface
mining operation has received approval of its financial assurances
from a public agency other than the lead agency, the lead agency
shall deem those financial assurances adequate for purposes of
this section, or shall credit them toward fulfillment of the financial
assurances required by this section, if they are made payable to
the public agency, the lead agency, and the department and
otherwise meet the requirements of this section. In any event, if a
lead agency and one or more public agencies exercise jurisdiction
over a surface mining operation, the total amount of financial
assurances required by the lead agency and the public agencies
for any one year shall not exceed that amount begin delete which end delete begin insert that end insert is
necessary to perform reclamation of lands remaining disturbed.
For purposes of this paragraph, a “public agency” may include a
federal agency.

(b) If the lead agency or the board, following a public hearing,
determines that the operator is financially incapable of performing
reclamation in accordance with its approved reclamation plan, or
has abandoned its surface mining operation without commencing
reclamation, either the lead agency or the director shall do all of
the following:

(1) Notify the operator by personal service or certified mail that
the lead agency or the director intends to take appropriate action
to forfeit the financial assurances and specify the reasons for so
doing.

(2) Allow the operator 60 days to commence or cause the
commencement of reclamation in accordance with its approved
reclamation plan and require that reclamation be completed within
the time limits specified in the approved reclamation plan or some
other time period mutually agreed upon by the lead agency or the
director and the operator.

(3) Proceed to take appropriate action to require forfeiture of
the financial assurances if the operator does not substantially
comply with paragraph (2).

(4) Use the proceeds from the forfeited financial assurances to
conduct and complete reclamation in accordance with the approved
reclamation plan. begin delete In no event shall the end delete begin insert The end insert financial assurances
begin insert shall not end insert be used for any other purpose. The operator is responsible
for the costs of conducting and completing reclamation in
accordance with the approved reclamation plan begin delete which end delete begin insert that end insert are in
excess of the proceeds from the forfeited financial assurances.

(c) Financial assurances shall no longer be required of a surface
mining operation, and shall be released, upon written notification
by the lead agency, which shall be forwarded to the operator and
the director, that reclamation has been completed in accordance
with the approved reclamation plan. If a mining operation is sold
or ownership is transferred to another person, the existing financial
assurances shall remain in force and shall not be released by the
lead agency until new financial assurances are secured from the
new owner and have been approved by the lead agency in
accordance with Section 2770.

(d) The lead agency shall have primary responsibility to seek
forfeiture of financial assurances and to reclaim mine sites under
subdivision (b). However, in cases where the board is not the lead
agency pursuant to Section 2774.4, the director may act to seek
forfeiture of financial assurances and reclaim mine sites pursuant
to subdivision (b) only if both of the following occurs:

(1) The financial incapability of the operator or the abandonment
of the mining operation has come to the attention of the director.

(2) The lead agency has been notified in writing by the director
of the financial incapability of the operator or the abandonment
of the mining operation for at least 15 days, begin delete and end delete begin insert the lead agency end insert
has not taken appropriate measures to seek forfeiture of the
financial assurances and reclaim the mine begin delete site; end delete begin insert site, end insert and one of the
following has occurred:

(A) The lead agency has been notified in writing by the director
that failure to take appropriate measures to seek forfeiture of the
financial assurances or to reclaim the mine site shall result in
actions being taken against the lead agency under Section 2774.4.

(B) The director determines that there is a violation that amounts
to an imminent and substantial endangerment to the public health,
safety, or to the environment.

(C) The lead agency notifies the director in writing that its good
faith attempts to seek forfeiture of the financial assurances have
not been successful.

The director shall comply with subdivision (b) in seeking
forfeiture of financial assurances and reclaiming mine sites.

(e) The board may adopt regulations specifying financial
assurance mechanisms other than surety bonds, irrevocable letters
of credit, and trust funds, which the board determines are
reasonably available and adequate to ensure reclamation pursuant
to this chapter, but these mechanisms begin delete may end delete begin insert shall end insert not include
financial tests, or surety bonds executed by one or more personal
sureties. These mechanisms may include reclamation bond pool
programs.

(f) On or before March 1, 1993, the board shall adopt guidelines
to implement this section. The guidelines are exempt from the
requirements of begin delete Chapter end delete begin insert the Administrative Procedure Act (Chapter end insert
3.5 (commencing with Section 11340) of Part 1 of Division 3 of
Title 2 of the Government begin delete Code, end delete begin insert Code), end insert and are not subject to
review by the Office of Administrative Law.

SEC. 5.  

Section 2773.11 is added to the Public Resources Code,
to read:

2773.11.  

(a) Prior to the modification of the amount of a
financial assurance or the full or partial release of the financial
assurance instrument to which both the lead agency and the
department are cobeneficiaries pursuant to Section 2773.1, the
lead agency shall provide to the director all of the following
documents at one time:

(1) An inspection report, prepared by a qualified person pursuant
to Section 2774, indicating that there are aspects of the surface
mining operation that require modification of the existing financial
assurance amount or stating that the mined land has been reclaimed
in full or in part, as the case may be, in accordance with the
approved reclamation plan.

(2) A revised financial assurance cost estimate prepared by the
operator and accepted by the lead agency, or prepared by the lead
agency pursuant to Section 2773.1, with supporting documentation
that indicates the specific cost changes to the existing financial
assurance amount, or that indicates there are no further outstanding
reclamation liabilities to be included in the financial assurance.

(3) A statement by the lead agency, with supporting
documentation that may include the most recent inspection report
and any geological and engineering reports prepared as part of the
inspection report, that the mined land remains subject to a financial
assurance as modified or that the mined land has been reclaimed
in accordance with the approved reclamation plan, that there are
no outstanding reclamation liabilities, and recommending to the
director that the financial assurance be released.

(4) The director shall review and comment on the documents
within 45 days from the date of receipt of the documents, pursuant
to Section 2774. The director shall inspect the surface mining
operation if the director determines it necessary pursuant to Section
2774.1 and shall do any of the following:

(A) Notify the lead agency of the director’s concurrence that
the modified financial assurance amount is adequate or that there
are no outstanding reclamation liabilities on the mined land and
that the original financial assurance should be released in full or
in part pursuant to Section 2773.1, at which time the financial
assurance shall be released.

(B) Notify the lead agency that the director has found, based
on an inspection, aspects of the surface mining operation that
require additional modifications to the financial assurance amount
or aspects that are not in compliance with the approved reclamation
plan.

(C) Commence the financial assurance forfeiture process
pursuant to Section 2773.1.

(b) (1) An operator may request the lead agency and the director
jointly to inspect and review a request for full or partial release of
a financial assurance instrument. Notwithstanding subdivision (a),
the operator may submit a request for a joint inspection and review
to the lead agency and the director along with the surface mining
operation’s most recent inspection report, a revised financial
assurance cost estimate, and other supporting documentation.

(2) The lead agency and the director shall conduct a joint
inspection for the purpose of evaluating the operator’s request
within 90 days after receipt of the operator’s request.

(3) Within 45 days after completion of the joint inspection, the
lead agency and the director shall do any of the following:

(A) Notify the operator the modified financial assurance amount
is adequate or that there are no outstanding reclamation liabilities
on the mined land and that the original financial assurance should
be released in full or in part pursuant to Section 2773.1, at which
time the financial assurance shall be released.

(B) Notify the operator that aspects of the surface mining
operation require additional modifications to the financial assurance
amount or that aspects of the surface mining operation are not in
compliance with the approved reclamation plan.

(C) Commence the financial assurance forfeiture process
pursuant to Section 2773.1.

(c) If a violation by the operator is confirmed by an inspection
either by the lead agency or by the director, the lead agency or the
director may take actions pursuant to Section 2774.1 to ensure the
violation is corrected. The financial assurance shall not be released
until the violation is corrected.

(d) Prior to sending written notification and release of financial
assurances pursuant to Section 2773.1, the lead agency shall obtain
the written concurrence of the director that the completion of
reclamation of the mined land disturbed by the surface mining
operation is in accordance with the requirements of the reclamation
plan approved by the lead agency.

(e) The board shall promulgate a regulation consistent with this
section.

SEC. 6.  

Section 2774 of the Public Resources Code is amended
to read:

2774.  

(a) Every lead agency shall adopt ordinances in
accordance with state policy that establish procedures for the
review and approval of reclamation plans and financial assurances
and the issuance of a permit to conduct surface mining operations,
except that any lead agency without an active surface mining
operation in its jurisdiction may defer adopting an implementing
ordinance until the filing of a permit application. The ordinances
shall establish procedures requiring at least one public hearing and
shall be periodically reviewed by the lead agency and revised, as
necessary, to ensure that the ordinances continue to be in
accordance with state policy.

(b)  begin delete The lead agency shall conduct an inspection of a surface
mining operation within six months of receipt by the lead agency
of the surface mining operation’s report submitted pursuant to
Section 2207, end delete begin insert Surface mining operations shall be inspected
annually, end insert solely to determine whether the surface mining operation
is in compliance with begin delete this chapter. In no event shall a lead agency
inspect a surface mining operation less than once in any calendar
year. end delete begin insert its reclamation plan as described in subdivision (c) of Section
2772. end insert The lead agency begin delete may end delete begin insert shall end insert cause an inspection to be
conducted by a state licensed geologist, state licensed civil
engineer, state licensed landscape architect, begin delete or end delete state licensed
forester, begin insert or a lead agency employee who is a mine inspector
qualified pursuant to subdivision (i), end insert who is experienced in land
reclamation and who has not been employed by a surface mining
operation within the jurisdiction of the lead agency in any capacity
during the previous 12 months begin insert , except that a local government
may inspect its own surface mining operations end insert . All inspections
shall be conducted using a form developed by the department and
approved by the board that begin delete shall include end delete begin insert includes end insert the professional
licensing and disciplinary information of the person who conducted
the inspection. The operator shall be solely responsible for the
reasonable cost of the inspection. The lead agency begin insert or the inspector
qualified pursuant to subdivision (i) end insert shall begin delete notify the director within
30 days of the date of completion of the inspection that the
inspection has been conducted end delete begin insert provide a notice of completion of
inspection to the director within 90 days of conducting the
inspection end insert . The notice shall contain a statement regarding the
surface mining operation’s compliance with begin delete this chapter, shall
include end delete begin insert its approved reclamation plan, as described in subdivision
(c) of Section 2772, end insert a copy of the completed inspection form, and
begin delete shall specify end delete which aspects of the surface mining operations, if
any, are inconsistent with begin delete this chapter end delete begin insert its approved reclamation
plan, as described in subdivision (c) of Section 2772, and any
corrective measures recommended by the inspector end insert . If the surface
mining operation has a review of its reclamation plan, financial
assurances, or an interim management plan pending under
subdivision (b), (c), (d), or (h) of Section 2770, or an appeal
pending before the board or lead agency governing body under
subdivision (e) or (h) of Section 2770, the notice shall so indicate.
The lead agency shall forward to the operator a copy of the notice,
a copy of the completed inspection form, and any supporting
documentation, including, but not limited to, any inspection report
prepared by the geologist, civil engineer, landscape architect, begin delete or end delete
forester, begin insert or mine inspector qualified pursuant to subdivision (i) end insert
who conducted the inspection.

(c) Before approving a surface mining operation’s reclamation
begin delete plan, end delete begin insert plan or end insert financial assurances, begin delete including existing financial
assurances reviewed by the lead agency pursuant to subdivision
(c) of Section 2770, end delete or any amendments begin insert to the reclamation plan
and adjustments to financial assurances based on an amendment
to a reclamation plan end insert , the lead agency shall submit the plan,
assurances, or amendments to the director for review. begin insert The plan or
amendments shall be submitted to the director as early as
practicable in order to facilitate review of the plan pursuant to
the California Environmental Quality Act (Division 13
(commencing with Section 21000)). end insert All documentation for that
submission shall be submitted to the director at one time. When
the lead agency submits a reclamation plan or plan amendments
to the director for review, the lead agency shall also submit to the
director, for use in reviewing the reclamation plan or plan
amendments, information from any begin insert prior final end insert related document
prepared, adopted, or certified pursuant to begin delete Division 13
(commencing with Section 21000) end delete begin insert the California Environmental
Quality Act (Division 13 (commencing with Section 21000)) end insert , and
shall submit any other pertinent information. The lead agency shall
certify to the director that the reclamation plan is begin insert considered
complete and end insert in begin insert substantial end insert compliance with the applicable
requirements of this chapter and Article 1 (commencing with
Section 3500) of Chapter 8 of Division 2 of Title 14 of the
California Code of Regulations and the lead agency’s mining
ordinance in effect at the time that the reclamation plan is submitted
to the director for review.

(d) (1) The director shall have 30 days from the date of receipt
of a reclamation plan or plan amendments submitted pursuant to
subdivision (c), and 45 days from the date of receipt of financial
assurances submitted pursuant to subdivision (c), to prepare written
comments, if the director so chooses. The lead agency shall
evaluate written comments received from the director relating to
the reclamation plan, plan amendments, or financial assurances
within a reasonable amount of time.

(2) The lead agency shall prepare a written response to the
director’s comments describing the disposition of the major issues
raised by the director’s comments, and submit the lead agency’s
proposed response to the director at least 30 days prior to approval
of the reclamation plan, plan amendment, or financial assurance.
The lead agency’s response to the director’s comments shall
describe whether the lead agency proposes to adopt the director’s
comments to the reclamation plan, plan amendment, or financial
assurance. If the lead agency does not propose to adopt the
director’s comments, the lead agency shall specify, in detail, why
the lead agency proposes not to adopt the comments. Copies of
any written comments received and responses prepared by the lead
agency shall be forwarded to the operator. The lead agency shall
also give the director at least 30 days’ notice of the time, place,
and date of the hearing before the lead agency at which time the
reclamation plan, plan amendment, or financial assurance is
scheduled to be approved by the lead agency. If no hearing is
required by this chapter, or by the local ordinance, or other state
law, then the lead agency shall provide 30 days’ notice to the
director that it intends to approve the reclamation plan, plan
amendment, or financial assurance. The lead agency shall send to
the director its final response to the director’s comments within
30 days following its approval of the reclamation plan, plan
amendment, or financial assurance begin insert , along with final approved
copies of those documents, end insert during which period the department
retains all powers, duties, and authorities of this chapter.

(3) To the extent begin delete that end delete there is a conflict between the comments
of a trustee agency or a responsible agency that are based on the
agency’s statutory or regulatory authority and the comments of
other commenting agencies begin delete which end delete begin insert that end insert are received by the lead
agency pursuant to begin delete Division 13 (commencing with Section 21000) end delete
begin insert the California Environmental Quality Act (Division 13
(commencing with Section 21000)) end insert regarding a reclamation plan
or plan amendments, the lead agency shall consider only the
comments of the trustee agency or responsible agency.

begin delete

(e) A lead agency shall notify the director of the filing of an
application for a permit to conduct surface mining operations
within 30 days of an application being filed with the lead agency.
By July 1, 1991, each lead agency shall submit to the director for
every active or idle mining operation within its jurisdiction, a copy
of the mining permit required pursuant to Section 2774, and any
conditions or amendments to those permits. By July 1 of each
subsequent year, the lead agency shall submit to the director for
each active or idle mining operation a copy of any permit or
reclamation plan amendments, as applicable, or a statement that
there have been no changes during the previous year. Failure to
file with the director the information required under this section
shall be cause for action under Section 2774.4.

end delete begin insert

(e) (1) If an operator does not request an inspection date on
the annual report filed pursuant to Section 2207, or if the lead
agency is unable to cause the inspection of a given surface mining
operation on the date requested by the operator, the lead agency
shall provide the operator with a minimum of 30 days’ written
notice of a pending inspection or a lesser time period if agreed to
by the operator.

end insert begin insert

(2) Within 30 days of an annual inspection being conducted
pursuant to this section, each operator shall provide an annual
financial assurance cost estimate, on the form developed by the
board by regulation pursuant to subdivision (f) of Section 2773.1,
to the director and the lead agency for review.

end insert begin insert

(3) The director shall have 45 days from the date of receipt of
the operator’s annual financial assurance cost estimate to prepare
written comments on the operator’s financial assurances and
provide the comments to the lead agency and the operator. The
lead agency shall have 30 days from receipt of the director’s
comments to evaluate the written comments received from the
director and provide the director and operator its proposed
response to the director. The lead agency shall accept or reject a
surface mining operation’s annual financial assurance cost
estimate within 60 days of receipt of the director’s comments or
the due date of the director’s comments if comments are not
received. The lead agency shall send to the director its final
response to the director’s comments within 30 days of its
acceptance of the annual financial assurance cost estimate.

end insert begin insert

(4) If the lead agency determines an operator’s annual financial
assurance cost estimate is inadequate, the lead agency shall specify
the reasons for that determination. The operator shall have 30
days to appeal that denial pursuant to subdivision (e) of Section
2770 or provide a revised financial assurance cost estimate
incorporating the suggested changes to the director and the lead
agency for approval by the lead agency.

end insert begin insert

(5) The operator shall provide the director and the lead agency
with a revised financial assurances mechanism within 60 days of
the lead agency’s approval. An operator shall not be required to
adjust financial assurances that are in excess of the amount
determined necessary to perform reclamation in accordance with
the surface mining operation’s approved reclamation plan provided
that financial assurance mechanism remains in effect.

end insert begin insert

(f) (1) No later than April 1 of each year, the director shall
provide each lead agency with a notice listing each active or idle
surface mining operation within the lead agency’s jurisdiction.
For each surface mining operation, the director shall request, and
the lead agency shall provide to the director, on a form provided
by the director, no later than July 1 of each year, the following
information:

end insert begin insert

(A) A copy of any permit or reclamation plan amendments, as
applicable.

end insert begin insert

(B) A statement that there have been no changes during the
previous year, as applicable.

end insert begin insert

(C) The date of each surface mining operation’s last inspection.

end insert begin insert

(D) The date of each surface mining operation’s last financial
assurance review pursuant to Section 2773.1 for each operation
listed.

end insert begin insert

(2) The director shall request similar information on any new
or omitted operations, to be provided to the director no later than
July 1 of each year.

end insert begin insert

(3) The form provided by the director shall include the
department’s current information for each operation. The notice
to each lead agency shall include a statement that failure to file
with the director the information requested pursuant to this
subdivision may be cause for action pursuant to Section 2774.4.

end insert begin insert

(g) The review and approval of financial assurances pursuant
to this section shall not be considered a project for purposes of
the California Environmental Quality Act (Division 13
(commencing with Section 21000)).

end insert begin insert

(h) (1) If a surface mining operation is not inspected by the
lead agency on the date requested by the operator pursuant to
Section 2207 and the operator has not received a 30-day notice
of pending inspection from the lead agency as provided in
subdivision (e), the operator may send a notice to the lead agency
and the director stating the operator’s intent to have the surface
mining operation inspected by a third party who has not been
employed in any capacity by the operator in the previous 12 months
and who is a state-licensed geologist, state-licensed civil engineer,
state-licensed landscape architect, or state-licensed forester who
is experienced in land reclamation. An inspector retained by the
operator pursuant to this section shall provide the lead agency a
15-day notice of the inspector’s intended inspection date for the
operation and shall provide a reasonable opportunity for a
representative of the lead agency to attend the inspection.

end insert begin insert

(2) An inspector who inspects a surface mining operation
pursuant to this subdivision shall provide the notice of completion
of inspection specified in subdivision (b) to the director and the
lead agency, whether or not a lead agency representative
participated in the inspection. The notice shall include the stamp
of the licensed professional who conducted the inspection.

end insert begin insert

(i) (1) The State Geologist shall coordinate with the director,
board, lead agencies, and interested parties to develop a
curriculum for the training of mine inspectors. The curriculum
shall include, but need not be limited to, all of the following:

end insert begin insert

(A) Training on determining revegetative success.

end insert begin insert

(B) Evaluating slopes for signs of instability.

end insert begin insert

(C) How to properly use the inspection form approved by the
board.

end insert begin insert

(D) The calculation of financial assurances.

end insert begin insert

(E) Considerations for corrective measures.

end insert begin insert

(F) Other issues necessary to ensure the consistent inspection
of surface mines under this chapter.

end insert begin insert

(2) Lead agency employees who inspect surface mining
operations under this chapter on or before December 31, 2015,
shall be deemed qualified mine inspectors for up to two years after
the State Geologist has finalized the curriculum pursuant to
paragraph (1) and the training has been available to lead agency
employees.

end insert begin insert

(3) A lead agency employee who has completed the training
curriculum developed pursuant to paragraph (1) shall be a
qualified mine inspector.

end insert begin insert

(4) Nothing in this subdivision shall be construed to affect or
impose qualifications or standards on employees designated by a
local, state, or federal agency to perform inspections of real
property under separate provisions of local, state, or federal law,
including, but not limited to, the Porter-Cologne Water Quality
Control Act (Division 7 (commencing with Section 13000) of the
Water Code), the federal Clean Water Act (33 U.S.C. Sec. 1251
et seq.), and the Fish and Game Code, notwithstanding the fact
that that informational addenda are submitted to lead agencies
pursuant to this chapter in addition to reclamation plans, including
materials submitted pursuant to subdivision (d) of Section 2772.

end insert begin insert

(5) Absent express authorization under this chapter, mine
inspectors shall not inspect operations for the purpose of
evaluating compliance with separate provisions of local, state, or
federal law, including, but not limited to, the Porter-Cologne Water
Quality Control Act (Division 7 (commencing with Section 13000)
of the Water Code), the federal Clean Water Act (33 U.S.C. Sec.
1251 et seq.), and the Fish and Game Code.

end insert

SEC. 7.  

Section 2774.1 of the Public Resources Code is
amended to read:

2774.1.  

(a) Except as provided in subdivision (i) of Section
2770, if the lead agency or the director determines, based upon an
annual inspection pursuant to Section 2774, or otherwise confirmed
by an inspection of the mining operation, that a surface mining
operation is not in compliance with this chapter, the lead agency
or the director may notify the operator of that violation by personal
service or certified mail. If the violation extends beyond 30 days
after the date of the lead agency’s or the director’s notification,
the lead agency or the director may issue an order by personal
service or certified mail requiring the operator to comply with this
chapter or, if the operator does not have an approved reclamation
plan or financial assurances, cease all further mining activities.

(b) An order issued under subdivision (a) shall not take effect
until the operator has been provided a hearing before the lead
agency for orders issued by the lead agency, or board for orders
issued by the director, concerning the alleged violation. An order
issued under subdivision (a) shall specify which aspects of the
surface mine’s activities or operations are inconsistent with this
chapter, shall specify a time for compliance that the lead agency
or director determines is reasonable, taking into account the
seriousness of the violation and any good faith efforts to comply
with applicable requirements, and shall set a date for the hearing,
which shall not be sooner than 30 days after the date of the order.

(c) An operator who violates or fails to comply with an order
issued under subdivision (a) after the order’s effective date, as
provided in subdivision (b), or who fails to submit a report to the
director or lead agency as required by Section 2207, shall be subject
to an order by the lead agency or the director imposing an
administrative penalty of not more than five thousand dollars
($5,000) per day, assessed from the original date of noncompliance
with this chapter or Section 2207. The penalty may be imposed
administratively by the lead agency or the director. In determining
the amount of the administrative penalty, the lead agency or the
director shall take into consideration the nature, circumstances,
extent, and gravity of the violation or violations, any prior history
of violations, the degree of culpability, economic savings, if any,
resulting from the violation, and any other matters justice may
require. Orders setting administrative penalties shall become
effective upon issuance of the order and payment shall be made
to the lead agency or the director within 30 days, unless the
operator petitions the legislative body of the lead agency, the board,
or the superior court for review as provided in Section 2774.2. An
order shall be served by personal service or by certified mail upon
the operator. Penalties collected by the director shall not be used
for purposes other than to cover the reasonable costs incurred by
the director in implementing this chapter or Section 2207.

(d) If the lead agency or the director determines that the surface
mine is not in compliance with this chapter, so that the surface
mine presents an imminent and substantial endangerment to the
public health or the environment, the lead agency or the Attorney
General, on behalf of the director, may seek an order from a court
of competent jurisdiction enjoining that operation.

(e) Upon a complaint by the director, the department, or the
board, the Attorney General may bring an action to recover
administrative penalties under this section, and penalties under
Section 2207, in any court of competent jurisdiction in this state
against any person violating any provision of this chapter or Section
2207, or any regulation adopted pursuant to this chapter or Section
2207. The Attorney General may bring this action on his or her
own initiative if, after examining the complaint and the evidence,
he or she believes a violation has occurred. The Attorney General
may also seek an order from a court of competent jurisdiction
compelling the operator to comply with this chapter and Section
2207.

(f) (1) The lead agency has primary responsibility for enforcing
this chapter and Section 2207. In cases where the board is not the
lead agency pursuant to Section 2774.4, enforcement actions may
be initiated by the director pursuant to this section only after the
violation has come to the attention of the director and either of the
following occurs:

(A) The lead agency has been notified by the director in writing
of the violation for at least 30 days, and has not taken appropriate
enforcement action, which may include failing to issue an order
to comply within a reasonable time after issuing a notice of
violation.

(B) The director determines that there is a violation that amounts
to an imminent and substantial endangerment to the public health
or safety, or to the environment.

(2) The director shall comply with this section in initiating
enforcement actions.

begin insert

(g) In exercising enforcement authority pursuant to this section,
the lead agency, the director, or the board, as appropriate, shall
take into account and seek to minimize the impact of any proposed
enforcement action on the number of existing jobs supported
directly or indirectly by the surface mining operation.

end insert begin delete

(g)

end delete

begin insert (h) end insert  Remedies under this section are in addition to, and do not
supersede or limit, any and all other remedies, civil or criminal.

SEC. 8.  

No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
a local agency or school district has the authority to levy service
charges, fees, or assessments sufficient to pay for the program or
level of service mandated by this act, within the meaning of Section
17556 of the Government Code.