Amended in Senate July 1, 2015

Amended in Assembly June 3, 2015

Amended in Assembly May 5, 2015

Amended in Assembly April 6, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 1142


Introduced by Assembly Member Gray

February 27, 2015


An act to amend Sections 2207,begin insert 2715.5, 2733, 2770, 2772,end insert 2773.1, 2774, and 2774.2 ofbegin insert, and to add Sections 2736, 2772.1, and 2773.4 to,end insert the Public Resources Code, relating to mining and geology.

LEGISLATIVE COUNSEL’S DIGEST

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

(1) The Surface Mining and Reclamation Act of 1975 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.

begin insert

This bill would revise and recast provisions of the act related to the approval of reclamation plans and, among other things, would require a reclamation plan filed by an operator of a surface mining operation with a lead agency to include specified reclamation maps; require a lead agency, when submitting a proposed reclamation plan to the Director of Conservation, to incorporate specified items of information and documents in the submitted reclamation plan within certain timeframes; and, require the director to take certain actions upon receiving a proposed reclamation plan. By adding to the duties of a local government acting as a lead agency under the act, this bill would impose a state-mandated local program.

end insert

This bill would revise and recast provisions of the act related to financial assurances and, among other things, would require financial assurance cost estimates be submitted for review and include estimates of the time needed to complete reclamation of thebegin delete mine andend deletebegin insert mine;end insert require an operator to replace an approved financial assurance only if the financial assurance cost estimate identifies a need to increase the amount of the financialbegin delete assuranceend deletebegin insert assurance; require a lead agency to submit a surface mining operation’s proposed financial assurance cost estimate to the director for review, as specified; and, require the director to take certain actions upon receiving a financial assurance cost estimate from a lead agencyend insert. By adding to the duties ofbegin delete local agencies,end deletebegin insert a local government acting as a lead agency under the act,end insert this bill would impose a state-mandated local program.

begin insert

This bill also would require a lead agency or the State Mining and Geology Board to conduct a specified public hearing if the lead agency has evidence that an operator may be financially incapable of performing reclamation in accordance with its approved reclamation plan or that the operator has abandoned a surface mining operation without completing reclamation and to take appropriate actions to seize the operator’s financial assurances if warranted following that hearing.

end insert

(2) The act requires the owner or operator of a mining operation to forward annually to thebegin delete Director of Conservationend deletebegin insert directorend insert 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 cause 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 leadbegin delete agency,end deletebegin insert agency;end insert authorize a lead agency to cause an inspection to be conducted by an unlicensed employee of the lead agency who meets specified criteria and who, after January 1, 2018, has completed an inspection workshop, asbegin delete provided,end deletebegin insert provided;end insert impose new requirements on the lead agency related to the timing ofbegin delete inspections,end deletebegin insert inspections;end insert impose timelines on a lead agency related to the submission of an application for a permit to conduct a surface miningbegin delete operation,end deletebegin insert operation;end insert and require the director to provide an inspection workshop and update workshop for lead agency employees who inspect surface mining operations after January 1, 2018. By adding to the duties of local agencies, this bill would impose a state-mandated local program.

(3) 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. The act establishes procedures and timelines for an operator to have an order setting administrative penalties reviewed by a legislative body of a lead agency, the board, or a superior court.

This bill, after the expiration of a specified review period, would authorize the director or the board when it acts as a lead agency to apply to the small claims court or the superior court, as appropriate, for a judgment to collect an unpaid administrative penalty.

(4) 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:

P3    1

SECTION 1.  

Section 2207 of the Public Resources Code is
2amended to read:

3

2207.  

(a) The owner or the operator of a mining operation
4within the state shall forward to the director annually, not later
5than a date established by the director, upon forms approved by
P4    1the board from time to time, a report that identifies and contains
2all of the following:

3(1) The name, address, and telephone number of the person,
4company, or other owner of the mining operation.

5(2) The name, address, and telephone number of a designated
6agent who resides in this state, and who will receive and accept
7service of all orders, notices, and processes of the lead agency,
8board, director, or court.

9(3) The location of the mining operation, its name, its mine
10number as issued by the Office of Mine Reclamation or the
11director, its section, township, range, latitude, longitude, and
12approximate boundaries of the mining operation marked on a
13United States Geological Survey 712-minute or 15-minute
14quadrangle map.

15(4) The lead agency.

16(5) The approval date of the mining operation’s reclamation
17plan.

18(6) The mining operation’s status as active, idle, reclaimed, or
19in the process of being reclaimed.

20(7) The commodities produced by the mine and the type of
21mining operation.

22(8) A copy of the previously completed annual inspection form
23and a requested date for the next annual inspection by the lead
24agency.

25(9) Proof of financial assurances.

26(10) Ownership of the property, including government agencies,
27if applicable, by the assessor’s parcel number, and total assessed
28value of the mining operation.

29(11) The approximate permitted size of the mining operation
30subject to Chapter 9 (commencing with Section 2710), in acres.

31(12) The approximate total acreage of land newly disturbed by
32the mining operation during the previous calendar year.

33(13) The approximate total of disturbed acreage reclaimed during
34the previous calendar year.

35(14) The approximate total unreclaimed disturbed acreage
36remaining as of the end of the calendar year.

37(15) The total production for each mineral commodity produced
38during the previous year.

P5    1(16) A copy of any approved reclamation plan and any
2amendments or conditions of approval to any existing reclamation
3plan approved by the lead agency.

4(b) (1) Every year, not later than the date established by the
5director, the person submitting the report pursuant to subdivision
6(a) shall forward to the lead agency, upon forms furnished by the
7board, a report that provides all of the information specified in
8 subdivision (a).

9(2) The owner or operator of a mining operation shall allow
10access to the property to any governmental agency or the agent of
11any company providing financial assurances in connection with
12the reclamation plan in order that the reclamation can be carried
13out by the entity or company, in accordance with the provisions
14of the reclamation plan.

15(c) Subsequent reports shall include only changes in the
16information submitted for the items described in subdivision (a),
17except that, instead of the approved reclamation plan, the reports
18shall include any reclamation plan amendments approved during
19the previous year. The reports shall state whether review of a
20reclamation plan, financial assurances, or an interim management
21plan is pending under subdivision (b), (c), (d), or (h) of Section
222770, or whether an appeal before the board or lead agency
23governing body is pending under subdivision (e) or (h) of Section
242770. The director shall notify the person submitting the report
25and the owner’s designated agent in writing that the report and the
26fee required pursuant to subdivision (d) have been received, specify
27the mining operation’s mine number if one has not been issued by
28the Office of Mine Reclamation, and notify the person and agent
29of any deficiencies in the report within 90 days of receipt. That
30person or agent shall have 30 days from receipt of the notification
31to correct the noted deficiencies and forward the revised report to
32the director and the lead agency. Any person who fails to comply
33with this section, or knowingly provides incorrect or false
34information in reports required by this section, may be subject to
35an administrative penalty as provided in subdivision (c) of Section
362774.1.

37(d) (1) The board shall impose, by regulation, pursuant to
38paragraph (2), an annual reporting fee on, and method for collecting
39annual fees from, each active or idle mining operation. The
40maximum fee for any single mining operation may not exceed four
P6    1thousand dollars ($4,000) annually and may not be less than one
2hundred dollars ($100) annually, as adjusted for the cost of living
3as measured by the California Consumer Price Index for all urban
4consumers, calendar year averages, using the percentage change
5in the previous year, beginning with the 2005-06 fiscal year and
6annually thereafter.

7(2) (A) The board shall adopt, by regulation, a schedule of fees
8authorized under paragraph (1) to cover the department’s cost in
9carrying out this section and Chapter 9 (commencing with Section
102710), as reflected in the Governor’s proposed Budget, and may
11adopt those regulations as emergency regulations. In establishing
12the schedule of fees to be paid by each active and idle mining
13operation, the fees shall be calculated on an equitable basis
14reflecting the size and type of operation. The board shall also
15consider the total assessed value of the mining operation, the
16acreage disturbed by mining activities, and the acreage subject to
17the reclamation plan.

18(B) Regulations adopted pursuant to this subdivision shall be
19adopted by the board in accordance with the Administrative
20Procedure Act (Chapter 3.5 (commencing with Section 11340) of
21Part 1 of Division 3 of Title 2 of the Government Code). The
22adoption of any emergency regulations pursuant to this subdivision
23shall be considered necessary to address an emergency and shall
24be considered by the Office of Administrative Law to be necessary
25for the immediate preservation of the public peace, health, safety,
26and general welfare.

27(3) The total revenue generated by the reporting fees may not
28exceed, and may be less than, the amount of three million five
29hundred thousand dollars ($3,500,000), as adjusted for the cost of
30living as measured by the California Consumer Price Index for all
31urban consumers, calendar year averages, using the percentage
32change in the previous year, beginning with the 2005-06 fiscal
33year and annually thereafter. If the director determines that the
34revenue collected during the preceding fiscal year was greater or
35less than the cost to operate the program, the board shall adjust
36 the fees to compensate for the overcollection or undercollection
37of revenues.

38(4) (A) The reporting fees established pursuant to this
39subdivision shall be deposited in the Mine Reclamation Account,
40which is hereby created. Any fees, penalties, interest, fines, or
P7    1charges collected by the director or board pursuant to this chapter
2or Chapter 9 (commencing with Section 2710) shall be deposited
3in the Mine Reclamation Account. The money in the account shall
4be available to the department and board, upon appropriation by
5the Legislature, for the purpose of carrying out this section and
6complying with Chapter 9 (commencing with Section 2710), which
7includes, but is not limited to, classification and designation of
8areas with mineral resources of statewide or regional significance,
9reclamation plan and financial assurance review, mine inspection,
10and enforcement.

11(B) (i) In addition to reporting fees, the board shall collect five
12dollars ($5) per ounce of gold and ten cents ($0.10) per ounce of
13silver mined within the state and shall deposit the fees collected
14in the Abandoned Mine Reclamation and Minerals Fund
15Subaccount, which is hereby created in the Mine Reclamation
16Account. The department may expend the moneys in the
17subaccount, upon appropriation by the Legislature, for only the
18purposes of Section 2796.5 and as authorized herein for the
19remediation of abandoned mines.

20(ii) Notwithstanding subdivision (j) of Section 2796.5, fees
21collected pursuant to clause (i) may also be used to remediate
22features of historic abandoned mines and lands that they impact.
23For the purposes of this section, historic abandoned mines are
24mines for which operations have been conducted before January
251, 1976, and include, but are not limited to, historic gold and silver
26mines.

27(5) In case of late payment of the reporting fee, a penalty of not
28less than one hundred dollars ($100) or 10 percent of the amount
29due, whichever is greater, plus interest at the rate of 112 percent
30per month, computed from the delinquent date of the assessment
31until and including the date of payment, shall be assessed. New
32mining operations that have not submitted a report shall submit a
33report prior to commencement of operations. The new operation
34shall submit its fee according to the reasonable fee schedule
35adopted by the board, and the month that the report is received
36shall become that operation’s anniversary month.

37(e) The lead agency, or the board when acting as the lead agency,
38may impose a fee upon each mining operation to cover the
39reasonable costs incurred in implementing this chapter and Chapter
409 (commencing with Section 2710).

P8    1(f) For purposes of this section, “mining operation” means a
2mining operation of any kind or character whatever in this state,
3including, but not limited to, a mining operation that is classified
4as a “surface mining operation” as defined in Section 2735, unless
5excepted by Section 2714. For the purposes of fee collections only,
6“mining operation” may include one or more mines operated by
7a single operator or mining company on one or more sites, if the
8total annual combined mineral production for all sites is less than
9100 troy ounces for precious metals, if precious metals are the
10primary mineral commodity produced, or less than 100,000 short
11tons if the primary mineral commodity produced is not precious
12metals.

13(g) Any information in reports submitted pursuant to subdivision
14(a) that includes or otherwise indicates the total mineral production,
15reserves, or rate of depletion of any mining operation may not be
16disclosed to any member of the public, as defined in subdivision
17(b) of Section 6252 of the Government Code. Other portions of
18the reports are public records unless excepted by statute. Statistical
19bulletins based on these reports and published under Section 2205
20shall be compiled to show, for the state as a whole and separately
21for each lead agency, the total of each mineral produced therein.
22In order not to disclose the production, reserves, or rate of depletion
23from any identifiable mining operation, no production figure shall
24be published or otherwise disclosed unless that figure is the
25aggregated production of not less than three mining operations. If
26the production figure for any lead agency would disclose the
27production, reserves, or rate of depletion of less than three mining
28operations or otherwise permit the reasonable inference of the
29production, reserves, or rate of depletion of any identifiable mining
30operation, that figure shall be combined with the same figure of
31not less than two other lead agencies without regard to the location
32of the lead agencies. The bulletin shall be published annually by
33June 30 or as soon thereafter as practicable.

34(h) The approval of a form by the board pursuant to this section
35is not the adoption of a regulation for purposes of the
36Administrative Procedure Act (Chapter 3.5 (commencing with
37Section 11340) of Part 1 of Division 3 of Title 2 of the Government
38Code) and is not subject to that act.

39begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 2715.5 of the end insertbegin insertPublic Resources Codeend insertbegin insert is
40amended to read:end insert

P9    1

2715.5.  

(a) The Cache Creek Resource Management Plan, in
2conjunction with a site specific plan deemed consistent by the lead
3agency with the Cache Creek Resource Management Plan, until
4December 31, 2017, shall be considered to be a functional
5equivalent of a reclamation plan for the purposes of this chapter.
6No other reclamation plan shall be required to be reviewed and
7approved for any excavation project subject to the Cache Creek
8Resource Management Plan that is conducted in conformance with
9an approved site specific plan that is consistent with the Cache
10Creek Resource Managementbegin delete Plan,end deletebegin insert Planend insert and the standards
11specified in that plan governing erosion control, channel
12stabilization, habitat restoration, flood control, or infrastructure
13maintenance, if that plan is reviewed and approved by a lead
14agency pursuant to this chapter.

15(b) Forbegin insert theend insert purposes of this section, the board of supervisors of
16the county in which the Cache Creek Resource Management Plan
17is to be implemented shall prepare and file the annual report
18required to be prepared pursuant to Section 2207.

19(c) Nothing in this section precludes an enforcement action by
20the board or the department brought pursuant to this chapter or
21Section 2207 if the lead agency or the director determines that a
22surface mining operator, acting under the authority of the Cache
23Creek Resource Management Plan, is not in compliance with the
24requirements of this chapter or Section 2207.

25(d)  begin delete“Site end delete begin insertFor purposes of this section, “site end insertspecificbegin delete plan,” for
26the purposes of this section,end delete
begin insert planend insertbegin insertend insert means an individual project
27plan approved by the lead agency that is consistent with the Cache
28Creek Resource Management Plan. Site specific plans prepared
29in conformance with the Cache Creek Resource Management Plan
30shallbegin delete, at a minimum,end delete includebegin insert, at a minimum,end insert the information
31required pursuant to subdivision (c) of Section 2772, shall comply
32with the requirements of Article 9 (commencing with Section
333700) of Subchapter 1 of Chapter 8 of Division 2 of Title 14 of
34the California Code of Regulations, and shall be provided along
35with a financial assurance estimate to the department for review
36and comment pursuant to Sectionbegin delete 2774.end deletebegin insert 2772.1 or 2773.4, as
37applicable.end insert
Notwithstanding the number of days authorized by
38begin delete paragraph (1) ofend delete subdivisionbegin delete (d)end deletebegin insert (b)end insert of Sectionbegin delete 2774,end deletebegin insert 2772.1 or
39subdivision (c) of Section 2773.4, end insert
the department shall review the
40site specific plan and the financial assurance estimate and prepare
P10   1any written comments within 15 days from the date of receipt of
2the plan and the estimate.

3(e) Prior to engaging in an excavation activity in conformance
4with the Cache Creek Resource Management Plan, a surface mining
5operation shall be required to obtain financial assurances that meet
6the requirements of Section 2773.1.

7(f) This section shall remain in effect only until December 31,
82017, and as of that date is repealed, unless a later enacted statute
9that is enacted before December 31, 2017, deletes or extends that
10date.

11begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 2733 of the end insertbegin insertPublic Resources Codeend insertbegin insert is amended
12to read:end insert

13

2733.  

“Reclamation” means the combined process of land
14treatment that minimizes water degradation, air pollution, damage
15to aquatic or wildlife habitat, flooding, erosion, and other adverse
16effects from surface mining operations, including adverse surface
17effects incidental to underground mines, so that mined lands are
18reclaimed to a usable conditionbegin delete whichend deletebegin insert thatend insert is readily adaptable for
19alternate land uses and create no danger to public health or safety.
20The process may extend to affected lands surrounding mined lands,
21and may require backfilling, grading, resoiling, revegetation, soil
22compaction,begin insert slopeend insert stabilization, or other measures.

23begin insert

begin insertSEC. 4.end insert  

end insert

begin insertSection 2736 is added to the end insertbegin insertPublic Resources Codeend insertbegin insert,
24to read:end insert

begin insert
25

begin insert2736.end insert  

“Financial assurances” means a current approved
26financial assurance cost estimate and a financial assurance
27mechanism that is at least equal to the current approved financial
28assurance cost estimate.

end insert
29begin insert

begin insertSEC. 5.end insert  

end insert

begin insertSection 2770 of the end insertbegin insertPublic Resources Codeend insertbegin insert is amended
30to read:end insert

31

2770.  

(a) Except as provided in this section, a person shall not
32conduct surface mining operations unless a permit is obtained
33from, a reclamation plan has been submitted to and approved by,
34and financial assurances for reclamation have been approvedbegin delete by,end delete
35begin insert byend insert the lead agency for the operation pursuant to this article.

36(b) A person with an existing surface mining operation who has
37vested rights pursuant to Section 2776 and who does not have an
38approved reclamation plan shall submit a reclamation plan to the
39lead agency not later than March 31, 1988. If a reclamation plan
40application is not on file by March 31, 1988, the continuation of
P11   1the surface mining operation is prohibited until a reclamation plan
2is submitted to the lead agency. Forbegin insert theend insert purposes of this
3subdivision, a reclamation planbegin insert existing prior to January 1, 2016,end insert
4 may consist of all or the appropriate sections of any plans or written
5agreements previously approved by the lead agency or another
6agency, together with any additional documents needed to
7substantially meet the requirements of Sections 2772 and 2773
8and the lead agency surface mining ordinance adopted pursuant
9to subdivision (a) of Section 2774, provided that allbegin delete documentsend delete
10begin insert documents,end insert which together were proposed to serve as the
11reclamationbegin delete planend deletebegin insert plan,end insert are submitted for approval to the lead
12agency in accordance with this chapter.

begin delete

13(c) If a person with an existing surface mining operation has
14received lead agency approval of its financial assurances for
15reclamation prior to January 1, 1991, the lead agency shall
16administratively review those existing financial assurances in
17accordance with subdivision (d) prior to January 1, 1992. The
18review of existing financial assurances shall not be considered a
19project for purposes of Division 13 (commencing with Section
2021000). A person with an existing surface mining operation that
21does not have financial assurances that received lead agency
22approval prior to January 1, 1991, shall submit financial assurances
23for reclamation for review in accordance with subdivision (d).

end delete
begin insert

24(c) The review of financial assurances shall not be considered
25a project for purposes of the California Environmental Quality
26Act (Division 13 (commencing with Section 21000)).

end insert

27(d) The lead agency’s review of a reclamation plan submitted
28pursuant to subdivision (b) or of financial assurances pursuant to
29subdivision (c) is limited to whether the plan or the financial
30assurances substantially meet the applicable requirements of
31Sections 2772, 2773,begin delete andend delete 2773.1,begin insert and 2773.3end insert and the lead agency
32surface mining ordinance adopted pursuant to subdivision (a) of
33Section 2774, but, in any event, the lead agency shall require that
34financial assurances for reclamation be sufficient to perform
35reclamation of lands remaining disturbed. Reclamation plans or
36financial assurances determined to substantially meet these
37requirements shall be approved by the lead agency for purposes
38of this chapter. Reclamation plans or financial assurances
39determined not to substantially meet these requirements shall be
40returned to the operator within 60 days. The operator has 60 days
P12   1to revise the plan or financial assurances to address identified
2deficiencies, at which time the revised plan or financial assurances
3shall be returned to the lead agency for review and approval. Except
4as specified in subdivision (e) or (i), unless the operator has filed
5on or before July 1, 1990, an appeal pursuant to subdivision (e)
6with regard to nonapproval of the reclamation plan, or has filed
7on or before January 1, 1994, an appeal pursuant to subdivision
8(e) with regard to nonapproval of financial assurances, and that
9appeal is pending before the board, the continuation of the surface
10mining operation is prohibited until a reclamation plan and
11financial assurances for reclamation are approved by the lead
12agency.

13(e) A person whobegin delete, based on the evidence of the record,end delete can
14substantiatebegin insert, based on the evidence of the record,end insert that a lead agency
15has either (1) failed to act according to due process or has relied
16on considerations not related to the specific applicable requirements
17of Sections 2772, 2773,begin delete andend delete 2773.1,begin insert and 2773.3end insert and the lead
18agency surface mining ordinance adopted pursuant to subdivision
19(a) of Section 2774, in reaching a decision to deny approval of a
20reclamation plan or financial assurances for reclamation, (2) failed
21to act within a reasonable time of receipt of a completed
22application, or (3) failed to review and approve reclamation plans
23or financial assurances as required bybegin delete subdivisions (c) andend delete
24begin insert subdivisionend insert (d)begin insert or Sections 2772.1 and 2773.4end insert, may appeal that
25action or inaction to the board.begin insert If the director has commented
26pursuant to Section 2773.4 that a financial assurance cost estimate
27is inadequate, the director may appeal the lead agency’s approval
28of a financial assurance cost estimate on any of the grounds
29identified in this subdivision that were included in the director’s
30comments pursuant to Article 7 (commencing with Section 3680)
31of Subchapter 1 of Chapter 8 of Division 2 of Title 14 of the
32California Code of Regulations.end insert

33(f) The board may decline to hear an appeal if it determines that
34the appeal raises no substantial issues related to the lead agency’s
35review pursuant to this section.

36(g) Appeals that the board does not decline to hear shall be
37scheduled and heard at a public hearing within 45 days of the filing
38of thebegin delete appeal,end deletebegin insert appealend insert or a longer period as may be mutually agreed
39upon by the board and the person filing the appeal. In hearing an
40appeal, the board shall only determine whether the reclamation
P13   1plan or the financial assurances substantially meet the applicable
2requirements of Sections 2772, 2773,begin delete andend delete 2773.1,begin insert and 2773.3end insert and
3the lead agency surface mining ordinance adopted pursuant to
4subdivision (a) of Section 2774. A reclamation plan or financial
5assurances determined to meet these requirements shall be
6approvedbegin insert or upheldend insert. A reclamation plan or financial assurances
7determined not to meet these requirements shall be returnedbegin delete to the
8person filing the appealend delete
with a notice of deficiencies,begin insert to the
9operator,end insert
who shall be granted, once only, a period of 30 days, or
10a longer period mutually agreed upon by the operator and the
11board, to correct the noted deficiencies and submit the revised
12reclamation plan or the revised financial assurances to the lead
13agency for review and approval.

14(h) (1) Within 90 days of a surface mining operation becoming
15idle, as defined in Section 2727.1, the operator shall submit to the
16lead agency for review andbegin delete approval,end deletebegin insert approvalend insert an interim
17management plan. The review and approval of an interim
18management plan shall not be considered a project for purposes
19ofbegin delete Divisionend deletebegin insert the California Environmental Quality Act (Divisionend insert
20 13 (commencing with Sectionbegin delete 21000).end deletebegin insert 21000)).end insert The approved
21interim management plan shall be considered an amendment to
22the surface mining operation’s approved reclamationbegin delete plan,end deletebegin insert planend insert
23 for purposes of this chapter. The interim management plan shall
24provide measures the operator will implement to maintain the site
25in compliance with this chapter, including, but not limited to, all
26permit conditions.

27(2) The interim management plan may remain in effect for a
28period not to exceed five years, at which time the lead agency shall
29do one of the following:

30(A) Renew the interim management plan for an additional period
31not to exceed five years, which may be renewed for one additional
32five-year renewal period at the expiration of the first five-year
33renewal period, if the lead agency finds that the surface mining
34operator has complied fully with the interim management plan.

35(B) Require thebegin delete surface miningend delete operator to commence
36reclamation in accordance with its approved reclamation plan.

37(3) The financial assurances required by Section 2773.1 shall
38remain in effect during the period that the surface mining operation
39is idle. If the surface mining operation is still idle after the
40expiration of its interim management plan, thebegin delete surface mining
P14   1operationend delete
begin insert operatorend insert shall commence reclamation in accordance
2 with its approved reclamation plan.

3(4) Within 60 days of the receipt of the interim management
4begin delete plan,end deletebegin insert planend insert or a longer period mutually agreed upon by the lead
5agency and the operator, the lead agency shall review and approve
6the plan in accordance with its ordinance adopted pursuant to
7subdivision (a) of Section 2774, so long as the plan satisfies the
8requirements of this subdivision, and so notify the operator in
9writing. Otherwise, the lead agency shall notify the operator in
10writing of any deficiencies in the plan. The operator shall have 30
11days, or a longer period mutually agreed upon by the operator and
12the lead agency, to submit a revised plan.

13(5) The lead agency shall approve or deny approval of the
14revised interim management plan within 60 days of receipt. If the
15lead agency denies approval of the revised interim management
16plan, the operator may appeal that action to the lead agency’s
17governing body, which shall schedule a public hearing within 45
18days of the filing of thebegin delete appeal,end deletebegin insert appealend insert or a longer period mutually
19agreed upon by the operator and the governing body.

20(6) Unless review of an interim management plan is pending
21before the leadbegin delete agency,end deletebegin insert agencyend insert or an appeal is pending before the
22lead agency’s governing body, a surface mining operation that
23remains idle for over one year after becomingbegin delete idleend deletebegin insert idle,end insert as defined
24in Sectionbegin delete 2727.1end deletebegin insert 2727.1,end insert without obtaining approval of an interim
25management plan shall be considered abandoned and the operator
26shall commence and complete reclamation in accordance with the
27approved reclamation plan.

28(i) An enforcement action that may be brought against a surface
29mining operation for operating without an approved reclamation
30plan, financial assurance, or interim management plan shall be
31held in abeyance pending review pursuant to subdivision (b),begin delete (c),end delete
32 (d), or (h), or the resolution of an appeal filed with the board
33pursuant to subdivision (e), or with a lead agency governing body
34pursuant to subdivision (h).

35begin insert

begin insertSEC. 6.end insert  

end insert

begin insertSection 2772 of the end insertbegin insertPublic Resources Codeend insertbegin insert is amended
36to read:end insert

37

2772.  

(a) The reclamation plan shall be filed with the lead
38agency, on a form provided by the lead agency, by any person who
39owns, leases, or otherwise controls or operates onbegin delete all,end deletebegin insert allend insert or any
P15   1portion ofbegin delete any,end deletebegin insert anyend insert minedbegin delete lands,end deletebegin insert landsend insert and who plans to conduct
2surface mining operations on the lands.

begin delete

3(b) All documentation for the reclamation plan shall be
4submitted by the lead agency to the department at one time.

end delete
begin insert

5(b) The reclamation plan shall include a chart identifying the
6page number, chapter, appendix, or other specific location in the
7reclamation plan where content meeting the requirements, as
8applicable, of Sections 2772, 2773, and 2773.3 is located.

end insert

9(c) The reclamation plan shall include all of the following
10information and documents:

11(1) The name and address of thebegin delete surface miningend delete operator and
12the names and addresses of any persons designated by the operator
13as an agent for the service of process.

14(2) The anticipated quantity and type of minerals for which the
15surface mining operation is to be conducted.

16(3) The proposed dates for the initiation andbegin delete terminationend deletebegin delete ofend delete
17begin insert completion of reclamation activities for theend insert surface mining
18operation.

19(4) The maximum anticipated depth of the surface mining
20operation.

begin delete

21(5) The size and legal description of the lands that will be
22affected by the surface mining operation, a map that includes the
23boundaries and topographic details of the lands, a description of
24the general geology of the area, a detailed description of the
25geology of the area in which surface mining is to be conducted,
26the location of all streams, roads, railroads, and utility facilities
27within, or adjacent to, the lands, the location of all proposed access
28roads to be constructed in conducting the surface mining operation,
29and the names and addresses of the owners of all surface interests
30and mineral interests in the lands.

end delete
begin insert

31(5) A reclamation plan map or maps that shall include all of
32the following:

end insert
begin insert

33(A) Size and legal description of the lands that will be affected
34by the surface mining operation and the names and addresses of
35the owners of all surface interests and mineral interests in the
36lands.

end insert
begin insert

37(B) Clearly defined and accurately drawn property lines,
38setbacks, and the reclamation plan boundary.

end insert
begin insert

P16   1(C) Existing topography and final topography depicted with
2contour lines drawn at appropriate intervals for the site’s
3conditions.

end insert
begin insert

4(D) Detailed geologic description of the area of the surface
5mining operation.

end insert
begin insert

6(E) Location of railroads, utility facilities, access roads,
7temporary roads to be reclaimed, and any roads remaining for
8the approved end use.

end insert
begin insert

9(F) All maps, diagrams, or calculations that require preparation
10in accordance with the Professional Engineers Act (Chapter 7
11(commencing with Section 6700) of Division 3 of the Business and
12Professions Code), the Geologist and Geophysicist Act (Chapter
1312.5 (commencing with Section 7800) of Division 3 of the Business
14and Professions Code), or the Professional Land Surveyors’ Act
15(Chapter 15 (commencing with Section 8700) of Division 3 of the
16Business and Professions Code) shall be prepared by a
17California-licensed professional, shall include his or her license
18number and name, and shall bear the signature and seal of the
19licensee.

end insert

20(6) A descriptionbegin delete of,end deletebegin insert ofend insert and a planbegin delete for,end deletebegin insert forend insert the type of surface
21mining to bebegin delete employed,end deletebegin insert employedend insert and a time schedule that will
22provide for the completion of surface mining on each segment of
23the mined lands so that reclamation can be initiated at the earliest
24possible time on those portions of the mined lands that will not be
25subject to further disturbance by the surface mining operation.

26(7) A description of the proposed use or potential uses of the
27mined lands after reclamation and evidence that all owners of a
28possessory interest in the land have been notified of the proposed
29use or potential uses.

30(8) A description of the manner in which reclamation, adequate
31for the proposed use or potentialbegin delete usesend deletebegin insert uses,end insert will be accomplished,
32including both of the following:

33(A) A description of the manner in whichbegin insert knownend insert contaminants
34will bebegin delete controlled,end deletebegin insert controlledend insert and mining waste will be disposed.

35(B) A description of the manner in which affected streambed
36channels and streambanks will be rehabilitated to a condition
37begin delete minimizingend deletebegin insert that minimizesend insert erosion andbegin delete sedimentation will occur.end delete
38begin insert sedimentation.end insert

39(9) An assessment of the effect of implementation of the
40reclamation plan on future mining in the area.

P17   1(10) A statement that the person submitting the reclamation
2plan accepts responsibility for reclaiming the mined lands in
3accordance with the reclamation plan.

4(11) Any other informationbegin delete whichend deletebegin insert thatend insert the lead agency may
5require by ordinance.

6(d) An item of information or a document required pursuant to
7subdivision (c) that has already been prepared as part of a permit
8application for the surface mining operation, or as part of an
9environmental document prepared for the project pursuant to
10begin delete Divisionend deletebegin insert the California Environmental Quality Act (Divisionend insert 13
11(commencing with Sectionbegin delete 21000),end deletebegin insert 21000))end insert may be included in
12the reclamation plan by reference, if that item of information or
13that document is attached to the reclamation plan when the lead
14agency submits the reclamation plan to the director for review. To
15the extentbegin delete thatend delete the informationbegin delete orend deletebegin insert,end insert documentbegin insert, or component of a
16documentend insert
referenced in the reclamation plan is used to meet the
17requirements of subdivision (c)begin insert or Section 2773 orend insertbegin insert 2773.3end insert, the
18informationbegin delete orend deletebegin insert,end insert documentbegin insert, or component of a documentend insert shall
19become part of the reclamation plan and shall be subject to all
20other requirements of this article.

21(e) Nothing in this section is intended to limit or expand the
22department’s authority or responsibility to review a document in
23accordance withbegin delete Divisionend deletebegin insert the California Environmental Quality
24Act (Divisionend insert
13 (commencing with Sectionbegin delete 21000).end deletebegin insert 21000)).end insert

25begin insert

begin insertSEC. 7.end insert  

end insert

begin insertSection 2772.1 is added to the end insertbegin insertPublic Resources Codeend insertbegin insert,
26to read:end insert

begin insert
27

begin insert2772.1.end insert  

(a) (1) Prior to approving a surface mining
28operation’s reclamation plan or plan amendment, the lead agency
29shall submit the reclamation plan or plan amendment to the
30director for review. The reclamation plan or plan amendment shall
31be submitted to the director as early as practicable in order to
32facilitate the review of the reclamation plan pursuant to the
33California Environmental Quality Act (Division 13 (commencing
34with Section 21000)). All documentation for the submission shall
35be submitted to the director at one time.

36(2) An item of information, document, or component of a
37document that has been prepared as part of a permit application
38for the surface mining operation or as part of an environmental
39document prepared for the project pursuant to the California
40Environmental Quality Act (Division 13 (commencing with Section
P18   121000)) shall be incorporated into the reclamation plan or plan
2amendment if it is used to satisfy the requirements of subdivision
3(c) of Section 2772 and Sections 2773 and 2773.3, if applicable.
4If an item of information, document, or component of a document
5is incorporated, reference to the item shall be added to the chart
6required pursuant to subdivision (b) of Section 2772 and shall be
7properly indexed with the corresponding appendix reference and
8page numbers, if applicable. The item shall be included in an
9appendix to and shall become part of the reclamation plan or plan
10amendment. A technical report created by a California-licensed
11professional to support variations to the reclamation standards
12adopted by the board pursuant to Section 2773 shall be included
13in an appendix to the reclamation plan or plan amendment bearing
14the California-licensed professional’s stamp or seal, as applicable.

15(3) The lead agency shall certify to the director that the
16reclamation plan or plan amendment is a complete submission
17and is in substantial compliance with all of the following:

18(A) The applicable requirements of this chapter.

19(B) Article 1 (commencing with Section 3500) of Chapter 8 of
20Division 2 of Title 14 of the California Code of Regulations.

21(C) The lead agency’s surface mining ordinance in effect at the
22time that the reclamation plan or plan amendment is submitted to
23the director for review.

24(b) (1) The director shall have 15 days from the receipt of a
25reclamation plan or plan amendment to notify the lead agency and
26operator if the submission is incomplete. An incomplete submission
27is one that does not meet the content requirements of subdivisions
28(c) and (d) of section 2772 and subdivision (a). The director’s
29notice shall specifically identify all aspects of the submission that
30are incomplete. If the submission is incomplete due to the failure
31to include a professionally stamped copy of a technical report,
32map, or diagram that is required to be prepared by a
33California-licensed professional pursuant to subdivision (c) of
34section 2772, the director shall request a stamped copy of the
35technical report, map, or diagram only, instead of a full
36resubmission of the reclamation plan or plan amendment. The
37review time required pursuant to paragraph (2) shall begin when
38the stamped copy of the technical report, map, or diagram is
39received by the director. The director’s time to review the
40reclamation plan or plan amendment shall commence upon the
P19   1receipt of a submission that contains the item or items identified
2in the director’s notice to the lead agency.

3(2) The director shall have 45 days from the receipt of a
4complete reclamation plan or plan amendment to prepare written
5comments if the director chooses. The lead agency shall review
6and evaluate written comments received from the director relating
7to the reclamation plan or plan amendment within a reasonable
8amount of time.

9(3) (A) The lead agency shall prepare a written response to the
10director’s comments received pursuant to paragraph (2) describing
11the disposition of the major issues raised by the comments. The
12lead agency shall submit its response to the director at least 30
13days prior to the intended approval of the reclamation plan or
14plan amendment. The lead agency’s response shall include either
15of the following:

16(i) A description of how the lead agency proposes to adopt the
17 director’s comments to the reclamation plan or plan amendment.

18(ii) A detailed description of the reasons why the lead agency
19proposes not to adopt the director’s comments.

20(B) Copies of any written comments received and responses
21prepared by the lead agency pursuant to subparagraph (A) shall
22be forwarded to the operator.

23(4) (A) The lead agency shall give the director at least 30 days’
24notice of the time, place, and date of the hearing at which the
25reclamation plan or plan amendment is scheduled to be approved
26by the lead agency.

27(B) If no hearing is required by this chapter, the local ordinance,
28or other state law, the lead agency shall provide 30 days’ notice
29to the director that the lead agency intends to approve the
30 reclamation plan or plan amendment.

31(5) (A) Within 60 days following approval of the reclamation
32plan or plan amendment, the lead agency shall provide the director
33its final response to the director’s written comments and the final
34approved copies of those documents. During that time, the
35department retains all of its powers, duties, and authorities
36pursuant to this chapter.

37(B) The lead agency’s final response shall include an index
38showing permit conditions of approval and binding mitigation
39measures adopted or certified pursuant to the California
40Environmental Quality Act (Division 13 (commencing with Section
P20   121000)) that are necessary to meet the requirements of subdivision
2(c) of Section 2772 and Sections 2773 and 2773.3. Those conditions
3of approval and mitigation measures shall be included in an
4appendix to the reclamation plan or plan amendment and shall be
5considered part of the reclamation compliance requirements and
6subject to the annual inspection requirements. To the extent those
7conditions of approval and mitigation measures are not subject
8to separate lead agency or other state or federal agency bonding
9or performance requirements, those conditions and measures shall
10be subject to the financial assurances requirements of this article.

11(6) No later than 60 days after the approval of the reclamation
12plan or plan amendment, the lead agency shall provide an official
13copy of the approved reclamation plan or plan amendment
14incorporating all approved modifications to the reclamation plan
15or plan amendment to the director.

16(c) To the extent there is a conflict between the comments of a
17trustee agency or a responsible agency that are based on that
18agency’s statutory or regulatory authority and the comments of
19other commenting agencies that are received by the lead agency
20pursuant to the California Environmental Quality Act (Division
2113 (commencing with Section 21000)) regarding a reclamation
22plan or plan amendments, the lead agency shall consider only the
23comments of the trustee agency or responsible agency.

24(d) Nothing in this section is intended to limit or expand the
25department’s authority or responsibility to review a document in
26accordance with the California Environmental Quality Act
27(Division 13 (commencing with Section 21000)).

end insert
28

begin deleteSEC. 2.end delete
29begin insertSEC. 8.end insert  

Section 2773.1 of the Public Resources Code is
30amended to read:

31

2773.1.  

(a) Lead agencies shall require financial assurances
32of each surface mining operation to ensure reclamation is
33performed in accordance with the surface mining operation’s
34approved reclamation plan, as follows:

35(1) begin deleteFinancial assurances end deletebegin insertA financial assurance mechanism end insertmay
36take the form of surety bonds executed by an admitted surety
37insurer, as defined in subdivision (a) of Section 995.120 of the
38Code of Civil Procedure, irrevocable letters of credit, trust funds,
39or other forms of financial assurances specified by the board
40pursuant to subdivision (e) that the lead agency reasonably
P21   1determines are adequate to perform reclamation in accordance
2with the surface mining operation’s approved reclamation plan.

3(2) The financial assurances shall remain in effect for the
4duration of the surface mining operation and any additional period
5until reclamation is completed.

6(3) The amount of financial assurances required of a surface
7mining operation for any one year shall be reviewed and, if
8necessary, adjusted once each calendar year to account for new
9lands disturbed by surface mining operations, inflation, and
10reclamation of lands accomplished in accordance with the approved
11reclamation plan. An operator shall be required to replace an
12approved financial assurance mechanism to bond for the
13reclamation of the surface mining operation only if the financial
14assurance cost estimate identifies a need to increase the amount
15of the financial assurance mechanism.

16(4) Financial assurance cost estimates shall be submitted to the
17lead agency for review on the form adopted by the board by
18regulation pursuant to subdivision (f). The estimates shall include
19estimates of the time needed to complete reclamation of the mine
20in accordance with the approved reclamation plan, including, but
21not limited to, any monitoring studies required by the reclamation
22plan.

23(5) begin deleteThe financial assurances end deletebegin insertEach financial assurance
24mechanism end insert
shall be made payable to the lead agency and the
25department.begin delete Financial assurances that wereend deletebegin insert A financial assurance
26mechanism shall not be released without the consent of the lead
27agency and the department. A financial assurance mechanism that
28was end insert
approved by the lead agency prior to January 1, 1993, and
29begin delete wereend deletebegin insert wasend insert made payable to the State Geologist shall be considered
30payable to the department for purposes of this chapter. However,
31if a surface mining operation has received approval of its financial
32assurances from a public agency other than the lead agency, the
33lead agency shall deem those financial assurances adequate for
34purposes of this section, or shall credit them toward fulfillment of
35the financial assurances required by this section, if they are made
36payable to the public agency, the lead agency, and the department
37and otherwise meet the requirements of this section. In any event,
38if a lead agency and one or more public agencies exercise
39jurisdiction over a surface mining operation, the total amount of
40financial assurances required by the lead agency and the public
P22   1agencies for any one year shall not exceed that amount that is
2necessary to perform reclamation of lands remaining disturbed.
3For purposes of this paragraph, a “public agency” may include a
4federal agency.

begin insert

5(b) (1) If the lead agency, or the board when acting as a lead
6agency, has evidence that an operator may be financially incapable
7of completing reclamation in accordance with its approved
8reclamation plan or that the operator may have abandoned the
9surface mining operation without completing reclamation, the lead
10agency or board shall conduct a public hearing to determine
11whether the operator is financially capable of completing
12reclamation in accordance with the approved reclamation plan
13or has abandoned the surface mining operation. The hearing shall
14be noticed to the operator and the director at least 30 days prior
15to the hearing.

end insert
begin delete

16(b)

end delete

17begin insert(2)end insert If the lead agency or the board, followingbegin delete a public hearing,end delete
18begin insert the public hearing conducted pursuant to paragraph (1),end insert
19 determines that the operator is financially incapable of performing
20reclamation in accordance with its approved reclamationbegin delete plan,end delete
21begin insert planend insert or has abandoned its surface mining operation without
22begin delete commencingend deletebegin insert completingend insert reclamation, either the lead agency or
23the director shall do all of the following:

begin delete

24(1)

end delete

25begin insert(A)end insert Notify the operator by personal service or certified mail that
26the lead agency or the director intends to take appropriate action
27to forfeit the financial assurances and specify the reasons for so
28doing.

begin delete

29(2) Allow the operator 60 days to commence or cause the
30commencement of reclamation in accordance with its approved
31reclamation plan and require that reclamation be completed within
32the time limits specified in the approved reclamation plan or some
33other time period mutually agreed upon by the lead agency or the
34director and the operator.

35(3)

end delete

36begin insert(B)end insert Proceed to take appropriate action to require forfeiture of
37the financialbegin delete assurances if the operator does not substantially
38comply with paragraph (2).end delete
begin insert assurances.end insert

begin delete

39(4)

end delete

P23   1begin insert(C)end insert Use the proceeds from the forfeited financial assurances to
2conduct and complete reclamation in accordance with the approved
3reclamation plan.begin insert If the surface mining operation cannot be
4reclaimed in accordance with its approved reclamation plan, or
5the financial assurances are inadequate to reclaim in accordance
6with its approved reclamation plan, the lead agency or director
7may use seized financial assurances to reclaim or remediate mining
8disturbances as appropriate for the site conditions as determined
9by both the lead agency and the director.end insert
The financial assurances
10shall not be used for any other purpose. The operator is responsible
11for the costs of conducting and completing reclamation in
12accordance with the approved reclamation planbegin insert or a remediation
13plan developed pursuant to this section as determined appropriate
14by both the lead agency and the directorend insert
that are in excess of the
15proceeds from the forfeited financial assurances.

16(c) Financial assurances shall no longer be required of a surface
17mining operation, and shall be released, uponbegin insert theend insert written
18begin delete notification byend deletebegin insert concurrence ofend insert the lead agencybegin insert and the directorend insert,
19which shall be forwarded to the operator and thebegin delete director,end delete
20begin insert institutions providing or holding the financial assurance
21mechanism,end insert
that reclamation has been completed in accordance
22with the approved reclamation plan. If abegin insert surfaceend insert mining operation
23is sold or ownership is transferred to another person, the existing
24financial assurances shall remain in force and shall not be released
25by the lead agencybegin insert and the directorend insert until new financial assurances
26are secured from the new owner and have been approved by the
27lead agency in accordance withbegin delete Section 2770.end deletebegin insert Sections 2770,
282773.1, and 2773.4. Within 90 days of the sale or transfer of the
29surface mining operation, the new operator shall establish or
30maintain an appropriate financial assurance mechanism and sign
31a new statement of reclamation responsibility in accordance with
32paragraph (10) of subdivision (c) of Section 2772.end insert

33(d) The lead agency shall have primary responsibility to seek
34forfeiture of financial assurances and to reclaim mine sitesbegin delete underend delete
35begin insert pursuant toend insert subdivision (b). However,begin delete in cases whereend deletebegin insert ifend insert the board
36is not the lead agency pursuant to Section 2774.4, the director may
37act to seek forfeiture of financial assurances and reclaim mine sites
38pursuant to subdivision (b) only if both of the following occurs:

P24   1(1) The financial incapability of the operator or the abandonment
2of thebegin insert surfaceend insert mining operation has come to the attention of the
3director.

4(2) The lead agency has been notified in writing by the director
5of the financial incapability of the operator or the abandonment
6of thebegin insert surfaceend insert mining operation for at least 15 days, the lead agency
7has not taken appropriate measures to seek forfeiture of the
8financial assurances and reclaim the mine site, and one of the
9following has occurred:

10(A) The lead agency has been notified in writing by the director
11that failure to take appropriate measures to seek forfeiture of the
12financial assurances or to reclaim the mine site shall result in
13actions being taken against the lead agency under Section 2774.4.

14(B) The director determines that there is a violation that amounts
15to an imminent and substantial endangerment to the public health,
16safety, or to the environment.

17(C) The lead agency notifies the director in writing that its good
18faith attempts to seek forfeiture of the financial assurances have
19not been successful.

20The director shall comply with subdivision (b) in seeking
21forfeiture of financial assurances and reclaiming mine sites.

22(e) The board may adopt regulations specifying financial
23assurance mechanisms other than surety bonds, irrevocable letters
24of credit, and trust funds, which the board determines are
25reasonably available and adequate to ensure reclamation pursuant
26to this chapter, but these mechanisms shall not include financial
27begin delete tests,end deletebegin insert testsend insert or surety bonds executed by one or more personal
28sureties. These mechanisms may include reclamation bond pool
29programs.

30(f) begin deleteOn or before March 1, 1993, the end deletebegin insertTheend insertbegin insert end insertboard shall adoptbegin insert or
31reviseend insert
guidelines to implement this sectionbegin insert as necessaryend insert. The
32guidelines are exempt from the requirements of the Administrative
33Procedure Act (Chapter 3.5 (commencing with Section 11340) of
34Part 1 of Division 3 of Title 2 of the Government Code), and are
35not subject to review by the Office of Administrative Law.

36begin insert

begin insertSEC. 9.end insert  

end insert

begin insertSection 2773.4 is added to the end insertbegin insertPublic Resources Codeend insertbegin insert,
37to read:end insert

begin insert
38

begin insert2773.4.end insert  

(a) (1) Prior to approving the financial assurances
39for a new reclamation plan or adjustments to financial assurances
40based on an amendment to a reclamation plan, the lead agency
P25   1shall submit the financial assurance cost estimate to the director
2for review.

3(2) The lead agency shall provide the director with a preliminary
4determination of whether the financial assurance cost estimate
5submitted pursuant to paragraph (1) is adequate, complete, and
6consistent with Section 2773.1.

7(3) All documentation submitted to the director pursuant to this
8subdivision shall be submitted at one time.

9(b) No later than 15 days after receiving a financial assurance
10cost estimate, the director shall notify the lead agency and the
11operator if the submission is incomplete. An incomplete submission
12is one that does not meet the content requirements of Section
132773.1. The director’s notice shall specifically identify all aspects
14of the submission that are incomplete. The director’s time to review
15the financial assurance cost estimate shall commence upon the
16receipt of a submission that contains the aspects identified in the
17director’s notice to the lead agency.

18(c) (1) The director shall have 45 days from the date of receipt
19of a complete financial assurance cost estimate to prepare written
20comments if the director chooses.

21(2) The lead agency shall evaluate written comments received
22from the director relating to the financial assurances within a
23reasonable amount of time. The lead agency shall prepare a written
24response to the director’s comments describing the disposition of
25the major issues raised by the director’s comments.

26(3) The lead agency shall submit its proposed response to the
27director at least 30 days prior to approval of the financial
28assurance cost estimate. The lead agency’s response shall include
29either of the following:

30(A) A description of how the lead agency proposes to adopt the
31director’s comments to the financial assurance cost estimate.

32(B) A detailed description of the reasons why the lead agency
33proposes to reject the director’s comments.

34(4) Copies of any written comments received and responses
35prepared by the lead agency shall be forwarded to the operator.

36(5) (A) The lead agency shall give the director at least 30 days’
37notice of the time, place, and date of the hearing at which the
38financial assurance cost estimate is scheduled to be approved by
39the lead agency. If no hearing is required by this chapter, local
40ordinance, or other state law, then the lead agency shall provide
P26   130 days’ notice to the director that it intends to approve the
2financial assurance cost estimate.

3(B) The lead agency shall send to the director its final response
4to the director’s comments within 30 days following its approval
5of the financial assurance cost estimate, during which time the
6department retains all of its powers, duties, and authority pursuant
7to this chapter.

8(d) (1) Within 30 days of an annual inspection being conducted
9pursuant to Section 2774, an operator shall provide an annual
10financial assurance cost estimate to the lead agency for review.

11(2) Within 60 days of receiving an operator’s annual financial
12assurance cost estimate, the lead agency shall do both of the
13following:

14(A) Review the annual financial assurance cost estimate for
15adequacy and completeness consistent with Section 2773.1.

16(B) Submit the annual financial assurance cost estimate to the
17director for review.

18(3) All documentation submitted to the director pursuant to this
19subdivision shall be submitted at one time.

20(4) The lead agency shall provide the director with a preliminary
21determination of whether the annual financial assurance cost
22estimate submitted pursuant to this subdivision is adequate,
23complete, and consistent with Section 2773.1.

24(5) Within 15 days of receiving an annual financial assurance
25cost estimate, the director shall notify the lead agency and the
26operator if the submission is incomplete. An incomplete submission
27is one that does not meet the content requirements of Section
282773.1. The director’s notice shall specifically identify all aspects
29of the submission that are incomplete. The director’s time to review
30the annual financial assurance cost estimate shall commence upon
31the receipt of a submission that contains the aspects identified in
32the director’s notice to the lead agency.

33(6) (A) Within 45 days of receiving an operator’s complete
34annual financial assurance cost estimate from the lead agency,
35the director shall prepare written comments on the operator’s
36financial assurances and provide the comments to the lead agency
37and the operator, if the director so chooses.

38(B) Within 30 days from receiving the director’s written
39comments pursuant to this subdivision, the lead agency shall
P27   1evaluate the written comments and provide the director and
2operator its proposed response to the director.

3(C) Within 60 days of receiving the director’s written comments,
4or the due date of the director’s written comments if they are not
5received, the lead agency shall accept or reject an operator’s
6annual financial assurance cost estimate. In approving a financial
7assurance cost estimate, the lead agency, with the concurrence of
8the operator, may modify the financial assurance cost estimate as
9necessary to correct deficiencies identified by the director or lead
10agency.

11(D) Within 30 days of the lead agency’s acceptance of the
12annual financial assurance cost estimate, the lead agency shall
13send the director its final response to the director’s comments.

14(7) If the lead agency determines an operator’s annual financial
15assurance cost estimate is inadequate, the lead agency shall specify
16the reasons for that determination. The operator shall have 30
17days to appeal that denial pursuant to subdivision (e) of Section
182770 or provide a revised financial assurance cost estimate
19incorporating the suggested changes to the director and the lead
20agency for approval by the lead agency.

21(e) (1) Within 30 days of the lead agency’s approval of a
22financial assurance cost estimate pursuant to this section, the
23operator shall provide the lead agency and the director an
24appropriate financial assurance mechanism. The operator shall
25provide this financial assurance mechanism even if the director
26has appealed the approval pursuant to subdivision (e) of section
272770.

28(2) Within 15 days of receiving a financial assurance mechanism
29pursuant to this subdivision, the lead agency and the director shall
30review the financial assurance mechanism to determine if the type
31of mechanism, including the release instructions, meets the
32requirements of this chapter.

33(3) A financial assurance mechanism utilizing any of the forms
34provided as Appendix D, Appendix E-1, Appendix E-2, Appendix
35E-3, and Appendix F to the guidelines adopted by the board
36pursuant to subdivision (f) of section 2773.1 shall be deemed to
37meet the requirements of this chapter. A financial assurance
38mechanism considered by the lead agency or the director to not
39meet the requirements of this chapter shall be returned to the
P28   1operator with correction instructions as to the type and release
2language of the financial assurance mechanism.

end insert
3

begin deleteSEC. 3.end delete
4begin insertSEC. 10.end insert  

Section 2774 of the Public Resources Code is
5amended to read:

6

2774.  

(a) Every lead agency shall adopt ordinances in
7accordance with state policy that establish procedures for the
8review and approval of reclamation plans and financial assurances
9and the issuance of a permit to conduct surface mining operations,
10except that any lead agency without an active surface mining
11operation in its jurisdiction may defer adopting an implementing
12ordinance until the filing of a permit application. The ordinances
13shall establish procedures requiring at least one public hearing and
14shall be periodically reviewed by the lead agency and revised, as
15necessary, to ensure that the ordinances continue to be in
16accordance with state policy.

17(b) Surface mining operations shall be inspected annually, solely
18to determine whether the surface mining operation is in compliance
19with its reclamation plan as described in subdivision (c) of Section
202772. The lead agency shall cause an inspection to be conducted
21by a state licensed geologist, state licensed civil engineer, state
22licensed landscape architect, state licensed forester, or a lead
23agency employee who is experienced in land reclamation and who
24has not been employed by the surface mining operation being
25inspected in any capacity during the previous 12 months, except
26that a lead agency employee may inspect surface mining operations
27conducted by another department within the local agency. All
28inspections shall be conducted using a form developed by the
29department and approved by the board that includes the
30professional licensing and disciplinary information of the person
31who conducted the inspection. The operator shall be solely
32responsible for the reasonable cost of the inspection. The lead
33agency shall provide a notice of completion of inspection to the
34director within 90 days of conducting the inspection. The notice
35shall contain a statement regarding the surface mining operation’s
36compliance with its approved reclamation plan, as described in
37subdivision (c) of Section 2772, a copy of the completed inspection
38form, and which aspects of the surface mining operations, if any,
39are inconsistent with its approved reclamation plan, as described
40in subdivision (c) of Section 2772, and any corrective measures
P29   1recommended by the inspector. If the surface mining operation
2has a review of its reclamation plan, financial assurances, or an
3interim management plan pending under subdivision (b), (c), (d),
4or (h) of Section 2770, or an appeal pending before the board or
5lead agency governing body under subdivision (e) or (h) of Section
62770, the notice shall so indicate. The lead agency shall forward
7to the operator a copy of the notice, a copy of the completed
8inspection form, and any supporting documentation, including,
9but not limited to, any inspection report prepared by the geologist,
10civil engineer, landscape architect, forester, or lead agency
11employee who conducted the inspection.

begin delete

12(c) Before approving a surface mining operation’s reclamation
13plan or financial assurances, or any amendments to the reclamation
14plan and adjustments to financial assurances based on an
15amendment to a reclamation plan, the lead agency shall submit
16the plan, assurances, or amendments to the director for review.
17The plan or amendments shall be submitted to the director as early
18as practicable in order to facilitate review of the plan pursuant to
19the California Environmental Quality Act (Division 13
20(commencing with Section 21000)). All documentation for that
21submission shall be submitted to the director at one time. When
22the lead agency submits a reclamation plan or plan amendments
23to the director for review, the lead agency shall also submit to the
24director, for use in reviewing the reclamation plan or plan
25amendments, information from any prior final related document
26prepared, adopted, or certified pursuant to the California
27Environmental Quality Act (Division 13 (commencing with Section
2821000)), and shall submit any other pertinent information. The
29lead agency shall certify to the director that the reclamation plan
30is considered complete and in substantial compliance with the
31applicable requirements of this chapter and Article 1 (commencing
32with Section 3500) of Chapter 8 of Division 2 of Title 14 of the
33California Code of Regulations and the lead agency’s mining
34ordinance in effect at the time that the reclamation plan is submitted
35to the director for review.

36(d) (1) The director shall have 30 days from the date of receipt
37of a reclamation plan or plan amendments submitted pursuant to
38subdivision (c), and 45 days from the date of receipt of financial
39assurances submitted pursuant to subdivision (c), to prepare written
40comments, if the director so chooses. The lead agency shall
P30   1evaluate written comments received from the director relating to
2the reclamation plan, plan amendments, or financial assurances
3within a reasonable amount of time.

4(2) The lead agency shall prepare a written response to the
5director’s comments describing the disposition of the major issues
6raised by the director’s comments, and submit the lead agency’s
7proposed response to the director at least 30 days prior to approval
8of the reclamation plan, plan amendment, or financial assurance.
9The lead agency’s response to the director’s comments shall
10describe whether the lead agency proposes to adopt the director’s
11comments to the reclamation plan, plan amendment, or financial
12assurance. If the lead agency does not propose to adopt the
13director’s comments, the lead agency shall specify, in detail, why
14the lead agency proposes not to adopt the comments. Copies of
15any written comments received and responses prepared by the lead
16agency shall be forwarded to the operator. The lead agency shall
17also give the director at least 30 days’ notice of the time, place,
18and date of the hearing before the lead agency at which time the
19reclamation plan, plan amendment, or financial assurance is
20scheduled to be approved by the lead agency. If no hearing is
21required by this chapter, or by the local ordinance, or other state
22law, then the lead agency shall provide 30 days’ notice to the
23director that it intends to approve the reclamation plan, plan
24amendment, or financial assurance. The lead agency shall send to
25the director its final response to the director’s comments within
2630 days following its approval of the reclamation plan, plan
27amendment, or financial assurance, along with final approved
28copies of those documents, during which period the department
29retains all powers, duties, and authorities of this chapter.

30(3) To the extent there is a conflict between the comments of a
31trustee agency or a responsible agency that are based on the
32agency’s statutory or regulatory authority and the comments of
33other commenting agencies that are received by the lead agency
34pursuant to the California Environmental Quality Act (Division
3513 (commencing with Section 21000)) regarding a reclamation
36plan or plan amendments, the lead agency shall consider only the
37comments of the trustee agency or responsible agency.

end delete
begin delete

38(e) (1) 

end delete

39begin insert(c)end insertbegin insertend insert If an operator does not request an inspection date on the
40annual report filed pursuant to Sectionbegin delete 2207,end deletebegin insert 2207end insert or if the lead
P31   1agency is unable to cause the inspection of a given surface mining
2operation on the date requested by the operator, the lead agency
3shall provide the operator with a minimum of five days’ written
4notice of a pending inspection or a lesser time period if agreed to
5by the operator.

begin delete

6(2) Within 30 days of an annual inspection being conducted
7pursuant to this section, each operator shall provide an annual
8financial assurance cost estimate, on the form developed by the
9board by regulation pursuant to subdivision (f) of Section 2773.1,
10to the director and the lead agency for review.

11(3) (A) Within 60 days of the receipt of an operator’s annual
12financial assurance cost estimate, the lead agency shall do both of
13the following:

14(i) Review the annual financial assurance cost estimate for
15adequacy and completeness consistent with Section 2773.1.

16(ii) Submit the annual financial assurance cost estimate to the
17director for review.

18(B) All documentation submitted to the director pursuant to this
19paragraph shall be submitted at one time.

20(C) The lead agency shall provide the director with a preliminary
21determination of whether the annual financial assurance cost
22estimate submitted pursuant to this paragraph is adequate and
23complete consistent with Section 2773.1.

24(4) The director shall have 45 days from the date of receipt of
25the operator’s annual financial assurance cost estimate from the
26lead agency to prepare written comments on the operator’s financial
27assurances and provide the comments to the lead agency and the
28operator. The lead agency shall have 30 days from receipt of the
29director’s comments to evaluate the written comments received
30from the director and provide the director and operator its proposed
31response to the director. The lead agency shall accept or reject a
32surface mining operation’s annual financial assurance cost estimate
33within 60 days of receipt of the director’s comments or the due
34date of the director’s comments if comments are not received. The
35lead agency shall send to the director its final response to the
36director’s comments within 30 days of its acceptance of the annual
37financial assurance cost estimate.

38(5) If the lead agency determines an operator’s annual financial
39assurance cost estimate is inadequate, the lead agency shall specify
40the reasons for that determination. The operator shall have 30 days
P32   1 to appeal that denial pursuant to subdivision (e) of Section 2770
2or provide a revised financial assurance cost estimate incorporating
3the suggested changes to the director and the lead agency for
4approval by the lead agency.

5(6) The operator shall provide the director and the lead agency
6with a revised financial assurances mechanism within 60 days of
7the lead agency’s approval. An operator shall be required to replace
8an approved financial assurance mechanism to bond for the
9reclamation of the surface mining operation only if the financial
10assurance cost estimate identifies a need to increase the amount
11of the financial assurance mechanism.

12(f)

end delete

13begin insert(d)end insert (1) No later than April 1 of each year, the director shall
14provide each lead agency with a notice listing each active or idle
15surface mining operation within the lead agency’s jurisdiction. For
16each surface mining operation, the director shall request and the
17lead agency shall provide to the director, on a form provided by
18the director, no later than July 1 of eachbegin delete year,end deletebegin insert yearend insert the following
19information:

20(A) A copy of any permit or reclamation plan amendments, as
21applicable.

22(B) A statement that there have been no changes during the
23previous year, as applicable.

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

25(D) The date of each surface mining operation’s last financial
26assurance review pursuant to Section 2773.1 for each operation
27listed.

28(2) The director shall request similar information on any new
29or omitted operations, to be provided to the director no later than
30July 1 of each year.

begin delete

31(g) The review and approval of financial assurances pursuant
32to this section shall not be considered a project for purposes of the
33California Environmental Quality Act (Division 13 (commencing
34with Section 21000)).

end delete
begin delete

35(h)

end delete

36begin insert(e)end insert (1) After January 1, 2018, a lead agency employee who is
37not a state-licensed geologist, state-licensed civil engineer,
38state-licensed landscape architect, or a state-license forester and
39who inspects surface mining operations under this chapter shall
40 have completed an inspection workshop or an update workshop
P33   1provided by the director. The director shall provide an adequate
2transition time period for lead agency inspectors to complete the
3update workshop if it becomes necessary.

4(2) Nothing in this subdivision shall be construed to affect or
5impose qualifications or standards on employees designated by a
6local, state, or federal agency to perform inspections of real
7property under separate provisions of local, state, or federal law,
8including, but not limited to, the Porter-Cologne Water Quality
9Control Act (Division 7 (commencing with Section 13000) of the
10Water Code), the federal Clean Water Act (33 U.S.C. Sec. 1251
11et seq.), and the Fish and Game Code, notwithstanding the fact
12that that informational addenda are submitted to lead agencies
13pursuant to this chapter in addition to reclamation plans, including
14materials submitted pursuant to subdivision (d) of Section 2772.

15

begin deleteSEC. 4.end delete
16begin insertSEC. 11.end insert  

Section 2774.2 of the Public Resources Code is
17amended to read:

18

2774.2.  

(a) Within 30 days of the issuance of an order setting
19administrative penalties under subdivision (c) of Section 2774.1,
20the operator may petition that legislative body of the lead agency,
21if the lead agency has issued the order, or the board for orders
22issued by the director, for review of the order. If the operator does
23not petition for review within the time limits set by this subdivision,
24the order setting administrative penalties shall not be subject to
25review by any court or agency.

26(b) The legislative body of the lead agency or the board shall
27notify the operator by personal service or certified mail whether
28it will review the order setting administrative penalties. In
29reviewing an order pursuant to this section, the record shall consist
30of the record before the lead agency or the director and any other
31relevant evidence which, in the judgment of the legislative body
32or the board, should be considered to effectuate and implement
33the policies of this chapter.

34(c) The legislative body or the board may affirm, modify, or set
35aside, in whole or in part, by its own order an order of the lead
36agency or the director setting administrative penalties reviewed
37by the legislative body or the board pursuant to this section.

38(d) An order of the legislative body or the board issued under
39subdivision (c) shall become effective upon its issuance unless the
40operator petitions the superior court for review as provided in
P34   1 subdivision (e). An order shall be served by personal service or
2by certified mail upon the operator. Payment of an administrative
3penalty that is specified in an order issued pursuant to subdivision
4(c) shall be made to the lead agency or the director within 30 days
5of service of the order. However, the payment shall be held in an
6interest bearing impound account pending the resolution of a
7petition for review filed pursuant to subdivision (e).

8(e) An operator aggrieved by an order of the legislative body
9or the board issued pursuant to subdivision (c) may obtain review
10of the order by filing in the superior court a petition for writ of
11mandate within 30 days following the issuance of the order. An
12operator aggrieved by an order of a lead agency or the director
13setting administrative penalties pursuant to subdivision (c) of
14Section 2774.1, for which the legislative body or board denies
15review, may obtain review of the order in the superior court by
16filing in the court a petition for writ of mandate within 30 days
17following the denial of review. The provisions of Section 1094.5
18of the Code of Civil Procedure shall govern judicial proceedings
19pursuant to this subdivision, except that in every case the court
20shall exercise its independent judgment. If the operator does not
21petition for a writ of mandate within the time limits set by this
22subdivision, an order of the board or the legislative body shall not
23be subject to review by any court or agency.

24(f) (1) After the expiration of the time to petition for review
25pursuant to subdivision (a) or (e), the director or the board acting
26as the lead agency may apply to the small claims court or the
27superior court, depending on the jurisdictional amount, in the
28county where the administrative penalty was imposed for a
29judgment to collect the unpaid administrative penalty imposed
30pursuant to subdivision (c) of Section 2774.1. The application shall
31include all of the following:

32(A) The order setting the administrative penalty pursuant to
33subdivision (c) of Section 2774.1.

34(B) A notice to the operator of the right to petition for review
35of the order.

36(C) Either of the following:

37(i) A declaration from the board that no petition was made or
38that the board declined to review the petition.

39(ii) A copy of the final order of the board.

P35   1(2) An application submitted pursuant to this subdivision shall
2constitute a sufficient showing to warrant the issuance of the
3judgment. The court clerk shall enter the judgment immediately
4in conformity with the application.

5(3) The judgment entered pursuant to this subdivision shall have
6the same force and effect as, and shall be subject to all the
7provisions of law relating to, a judgment in a civil action and may
8be enforced in the same manner as any other judgment of the court.
9The court shall make enforcement of the judgment a priority.

10

begin deleteSEC. 5.end delete
11begin insertSEC. 12.end insert  

No reimbursement is required by this act pursuant to
12Section 6 of Article XIII B of the California Constitution because
13a local agency or school district has the authority to levy service
14charges, fees, or assessments sufficient to pay for the program or
15level of service mandated by this act, within the meaning of Section
1617556 of the Government Code.



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