Amended in Senate September 1, 2015

Amended in Senate August 18, 2015

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, 2715.5, 2733, 2770, 2772, 2773.1, 2774,begin delete and 2774.2end deletebegin insert 2774.1, 2774.2, and 2774.4end insert of,begin delete andend delete to add Sections 2736, 2772.1, and 2773.4 to,begin insert and to add and repeal Section 2207.2 of,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.

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;begin delete and,end deletebegin insert andend insert 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.

This bill would revise and recast provisions of the act related to financial assurances and, among other things, wouldbegin delete require financial assurance cost estimates to be submitted for review and include estimates of the time needed to complete reclamation of the mine;end delete 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 financial 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 agency. 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.

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 forfeit the operator’s financial assurances if warranted following that hearing.

begin insert

This bill would require the director, no later than December 31, 2021, to submit a specified report to the Legislature on the expenditure of moneys in the Mine Reclamation Account.

end insert

(2) 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 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 datebegin insert within 12 months of the prior inspection dateend insert for the next annual inspection by the lead agency; 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,begin delete 2018end deletebegin insert 2019end insert, has completed an inspection workshop, as provided; 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 director to providebegin delete an inspection workshop and update workshopend deletebegin insert a training programend insert for lead agency employees who inspect surface mining operations after January 1,begin delete 2018end deletebegin insert 2019end insert. By adding to the duties of a local government acting as a lead agency, 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 leastbegin delete 15end deletebegin insert 30end insert 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 billbegin insert would revise and recast those provisions and, among other things, would revise the timelines and actions related to the issuance of an order to comply andend insert, after the expiration of a specified review period,begin delete wouldend delete 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.

begin insert

(5) This bill would make its operation contingent on the enactment and operation of Senate Bill 209 of the 2015-16 Regular Session.

end insert

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

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

P4    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
6the board from time to time, a report that identifies and contains
7all of the following:

8(1) The name, address, and telephone number of the person,
9company, or other owner of the mining operation.

10(2) The name, address, and telephone number of a designated
11agent who resides in this state, and who will receive and accept
12service of all orders, notices, and processes of the lead agency,
13board, director, or court.

14(3) The location of the mining operation, its name, its mine
15number as issued by the Office of Mine Reclamation or the
16director, its section, township, range, latitude, longitude, and
17approximate boundaries of the mining operation marked on a
18United States Geological Survey 712-minute or 15-minute
19quadrangle map.

20(4) The lead agency.

21(5) The approval date of the mining operation’s reclamation
22plan.

23(6) The mining operation’s status as active, idle, reclaimed, or
24in the process of being reclaimed.

25(7) The commodities produced by the mine and the type of
26mining operation.

27(8) A copy of the previously completed annual inspection form
28and a requestedbegin delete dateend deletebegin insert date, within 12 months of the prior inspection
29date,end insert
for the next annual inspection by the lead agency.

30(9) Proof of financial assurances.

31(10) Ownership of the property, including government agencies,
32if applicable, by the assessor’s parcel number, and total assessed
33value of the mining operation.

P5    1(11) The approximate permitted size of the mining operation
2subject to Chapter 9 (commencing with Section 2710), in acres.

3(12) The approximate total acreage of land newly disturbed by
4the mining operation during the previous calendar year.

5(13) The approximate total of disturbed acreage reclaimed during
6the previous calendar year.

7(14) The approximate total unreclaimed disturbed acreage
8remaining as of the end of the calendar year.

9(15) The total production for each mineral commodity produced
10during the previous year.

11(16) A copy of any approved reclamation plan and any
12amendments or conditions of approval to any existing reclamation
13plan approved by the lead agency.

14(b) (1) Every year, not later than the date established by the
15director, the person submitting the report pursuant to subdivision
16(a) shall forward to the lead agency, upon forms furnished by the
17board, a report that provides all of the information specified in
18 subdivision (a).

19(2) The owner or operator of a mining operation shall allow
20access to the property to any governmental agency or the agent of
21any company providing financial assurances in connection with
22the reclamation plan in order that the reclamation can be carried
23out by the entity or company, in accordance with the provisions
24of the reclamation plan.

25(c) Subsequent reports shall include only changes in the
26information submitted for the items described in subdivision (a),
27except that, instead of the approved reclamation plan, the reports
28shall include any reclamation plan amendments approved during
29the previous year. The reports shall state whether review of a
30reclamation plan, financial assurances, or an interim management
31plan is pending under subdivisionbegin delete (b), (c), (d),end deletebegin insert (b)end insert or (h) of Section
322770, or whether an appeal before the board or lead agency
33governing body is pending under subdivision (e) or (h) of Section
342770. The director shall notify the person submitting the report
35and the owner’s designated agent in writing that the report and the
36fee required pursuant to subdivision (d) have been received, specify
37the mining operation’s mine number if one has not been issued by
38the Office of Mine Reclamation, and notify the person and agent
39of any deficiencies in the report within 90 days of receipt. That
40person or agent shall have 30 days from receipt of the notification
P6    1to correct the noted deficiencies and forward the revised report to
2the director and the lead agency. Any person who fails to comply
3with this section, or knowingly provides incorrect or false
4information in reports required by this section, may be subject to
5an administrative penalty as provided in subdivision (c) of Section
62774.1.

7(d) (1) The board shall impose, by regulation, pursuant to
8paragraph (2), an annual reporting fee on, and method for collecting
9annual fees from, each active or idle mining operation. The
10maximum fee for any single mining operation may not exceed four
11thousand dollars ($4,000) annually and may not be less than one
12hundred dollars ($100) annually, as adjusted for the cost of living
13as measured by the California Consumer Price Index for all urban
14consumers, calendar year averages, using the percentage change
15in the previous year, beginning with the 2005-06 fiscal year and
16annually thereafter.

17(2) (A) The board shall adopt, by regulation, a schedule of fees
18authorized under paragraph (1) to cover the department’s cost in
19carrying out this section and Chapter 9 (commencing with Section
202710), as reflected in the Governor’s proposed Budget, and may
21adopt those regulations as emergency regulations. In establishing
22the schedule of fees to be paid by each active and idle mining
23operation, the fees shall be calculated on an equitable basis
24reflecting the size and type of operation. The board shall also
25consider the total assessed value of the mining operation, the
26acreage disturbed by mining activities, and the acreage subject to
27the reclamation plan.

28(B) Regulations adopted pursuant to this subdivision shall be
29adopted by the board in accordance with the Administrative
30Procedure Act (Chapter 3.5 (commencing with Section 11340) of
31Part 1 of Division 3 of Title 2 of the Government Code). The
32adoption of any emergency regulations pursuant to this subdivision
33shall be considered necessary to address an emergency and shall
34be considered by the Office of Administrative Law to be necessary
35for the immediate preservation of the public peace, health, safety,
36and general welfare.

37(3) The total revenue generated by the reporting fees may not
38exceed, and may be less than, the amount of three million five
39hundred thousand dollars ($3,500,000), as adjusted for the cost of
40living as measured by the California Consumer Price Index for all
P7    1urban consumers, calendar year averages, using the percentage
2change in the previous year, beginning with the 2005-06 fiscal
3year and annually thereafter. If the director determines that the
4revenue collected during the preceding fiscal year was greater or
5less than the cost to operate the program, the board shall adjust
6 the fees to compensate for the overcollection or undercollection
7of revenues.

8(4) (A) The reporting fees established pursuant to this
9subdivision shall be deposited in the Mine Reclamation Account,
10which is hereby created. Any fees, penalties, interest, fines, or
11charges collected by the director or board pursuant to this chapter
12or Chapter 9 (commencing with Section 2710) shall be deposited
13in the Mine Reclamation Account. The money in the account shall
14be available to the department and board, upon appropriation by
15the Legislature, for the purpose of carrying out this section and
16complying with Chapter 9 (commencing with Section 2710), which
17includes, but is not limited to, classification and designation of
18areas with mineral resources of statewide or regional significance,
19reclamation plan and financial assurance review, mine inspection,
20and enforcement.

21(B) (i) In addition to reporting fees, the board shall collect five
22dollars ($5) per ounce of gold and ten cents ($0.10) per ounce of
23silver mined within the state and shall deposit the fees collected
24in the Abandoned Mine Reclamation and Minerals Fund
25Subaccount, which is hereby created in the Mine Reclamation
26Account. The department may expend the moneys in the
27subaccount, upon appropriation by the Legislature, for only the
28purposes of Section 2796.5 and as authorized herein for the
29remediation of abandoned mines.

30(ii) Notwithstanding subdivision (j) of Section 2796.5, fees
31collected pursuant to clause (i) may also be used to remediate
32features of historic abandoned mines and lands that they impact.
33For the purposes of this section, historic abandoned mines are
34mines for which operations have been conducted before January
351, 1976, and include, but are not limited to, historic gold and silver
36mines.

37(5) In case of late payment of the reporting fee, a penalty of not
38less than one hundred dollars ($100) or 10 percent of the amount
39due, whichever is greater, plus interest at the rate of 112 percent
40per month, computed from the delinquent date of the assessment
P8    1until and including the date of payment, shall be assessed. New
2mining operations that have not submitted a report shall submit a
3report prior to commencement of operations. The new operation
4shall submit its fee according to the reasonable fee schedule
5adopted by the board, and the month that the report is received
6shall become that operation’s anniversary month.

7(e) The lead agency, or the board when acting as the lead agency,
8may impose a fee upon each mining operation to cover the
9reasonable costs incurred in implementing this chapter and Chapter
109 (commencing with Section 2710).

11(f) For purposes of this section, “mining operation” means a
12mining operation of any kind or character whatever in this state,
13including, but not limited to, a mining operation that is classified
14as a “surface mining operation” as defined in Section 2735, unless
15excepted by Section 2714. For the purposes of fee collections only,
16“mining operation” may include one or more mines operated by
17a single operator or mining company on one or more sites, if the
18total annual combined mineral production for all sites is less than
19100 troy ounces for precious metals, if precious metals are the
20primary mineral commodity produced, or less than 100,000 short
21tons if the primary mineral commodity produced is not precious
22metals.

23(g) Any information in reports submitted pursuant to subdivision
24(a) that includes or otherwise indicates the total mineral production,
25reserves, or rate of depletion of any mining operation may not be
26disclosed to any member of the public, as defined in subdivision
27(b) of Section 6252 of the Government Code. Other portions of
28the reports are public records unless excepted by statute. Statistical
29bulletins based on these reports and published under Section 2205
30shall be compiled to show, for the state as a whole and separately
31for each lead agency, the total of each mineral produced therein.
32In order not to disclose the production, reserves, or rate of depletion
33from any identifiable mining operation, no production figure shall
34be published or otherwise disclosed unless that figure is the
35aggregated production of not less than three mining operations. If
36the production figure for any lead agency would disclose the
37production, reserves, or rate of depletion of less than three mining
38operations or otherwise permit the reasonable inference of the
39production, reserves, or rate of depletion of any identifiable mining
40operation, that figure shall be combined with the same figure of
P9    1not less than two other lead agencies without regard to the location
2of the lead agencies. The bulletin shall be published annually by
3June 30 or as soon thereafter as practicable.

4(h) The approval of a form by the board pursuant to this section
5is not the adoption of a regulation for purposes of the
6Administrative Procedure Act (Chapter 3.5 (commencing with
7Section 11340) of Part 1 of Division 3 of Title 2 of the Government
8Code) and is not subject to that act.

9begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 2207.2 is added to the end insertbegin insertPublic Resources Codeend insertbegin insert,
10to read:end insert

begin insert
11

begin insert2207.2.end insert  

(a) No later than December 31, 2021, the director
12shall report to the Legislature on the expenditure of moneys in the
13Mine Reclamation Account, created pursuant to Section 2207. The
14report shall include all of the following:

15(1) An overview of how the moneys expended over the prior five
16years have been allocated between classification and designation
17of areas with mineral resources of statewide or regional
18significance, reclamation plan and financial assurance review,
19mine inspection, enforcement, and any other activities that
20constituted more than 5 percent of expenditures.

21(2) Information on the portion of the fees that have been
22collected from small construction aggregate providers with under
2350,000 tons of production.

24(3) Information on the percentage of the fees that have been
25paid by metallic mineral operations.

26(b) This section shall remain in effect only until January 1, 2026,
27and as of that date is repealed, unless a later enacted statute, that
28is enacted before January 1, 2026, deletes or extends that date.

end insert
29

begin deleteSEC. 2.end delete
30begin insertSEC. 3.end insert  

Section 2715.5 of the Public Resources Code is
31amended to read:

32

2715.5.  

(a) The Cache Creek Resource Management Plan, in
33conjunction with a site specific plan deemed consistent by the lead
34agency with the Cache Creek Resource Management Plan, until
35December 31, 2017, shall be considered to be a functional
36equivalent of a reclamation plan for the purposes of this chapter.
37No other reclamation plan shall be required to be reviewed and
38approved for any excavation project subject to the Cache Creek
39Resource Management Plan that is conducted in conformance with
40an approved site specific plan that is consistent with the Cache
P10   1Creek Resource Management Plan and the standards specified in
2that plan governing erosion control, channel stabilization, habitat
3restoration, flood control, or infrastructure maintenance, if that
4plan is reviewed and approved by a lead agency pursuant to this
5chapter.

6(b) For the purposes of this section, the board of supervisors of
7the county in which the Cache Creek Resource Management Plan
8is to be implemented shall prepare and file the annual report
9required to be prepared pursuant to Section 2207.

10(c) Nothing in this section precludes an enforcement action by
11the board or the department brought pursuant to this chapter or
12Section 2207 if the lead agency or the director determines that a
13surface mining operator, acting under the authority of the Cache
14Creek Resource Management Plan, is not in compliance with the
15requirements of this chapter or Section 2207.

16(d) For purposes of this section, “site specific plan” means an
17individual project plan approved by the lead agency that is
18consistent with the Cache Creek Resource Management Plan. Site
19specific plans prepared in conformance with the Cache Creek
20Resource Management Plan shall include, at a minimum, the
21information required pursuant to subdivision (c) of Section 2772,
22shall comply with the requirements of Article 9 (commencing with
23Section 3700) of Subchapter 1 of Chapter 8 of Division 2 of Title
2414 of the California Code of Regulations, and shall be provided
25along with a financial assurance estimate to the department for
26review and comment pursuant to Section 2772.1 or 2773.4, as
27applicable. Notwithstanding the number of days authorized by
28subdivision (b) of Section 2772.1 or subdivision (c) of Section
292773.4, the department shall review the site specific plan and the
30financial assurance estimate and prepare any written comments
31within 15 days from the date of receipt of the plan and the estimate.

32(e) Prior to engaging in an excavation activity in conformance
33with the Cache Creek Resource Management Plan, a surface mining
34operation shall be required to obtain financial assurances that meet
35the requirements of Section 2773.1.

36(f) This section shall remain in effect only until December 31,
372017, and as of that date is repealed, unless a later enacted statute
38that is enacted before December 31, 2017, deletes or extends that
39date.

P11   1

begin deleteSEC. 3.end delete
2begin insertSEC. 4.end insert  

Section 2733 of the Public Resources Code is amended
3to read:

4

2733.  

“Reclamation” means the combined process of land
5treatment that minimizes water degradation, air pollution, damage
6to aquatic or wildlife habitat, flooding, erosion, and other adverse
7effects from surface mining operations, including adverse surface
8effects incidental to underground mines, so that mined lands are
9reclaimed to a usable condition that is readily adaptable for
10alternate land uses and create no danger to public health or safety.
11The process may extend to affected lands surrounding mined lands,
12and may require backfilling, grading, resoiling, revegetation, soil
13compaction, slope stabilization, or other measures.

14

begin deleteSEC. 4.end delete
15begin insertSEC. 5.end insert  

Section 2736 is added to the Public Resources Code,
16to read:

17

2736.  

“Financial assurances” means a current approved
18financial assurance cost estimate and a financial assurance
19mechanism that is at least equal to the current approved financial
20assurance cost estimate.

21

begin deleteSEC. 5.end delete
22begin insertSEC. 6.end insert  

Section 2770 of the Public Resources Code is amended
23to read:

24

2770.  

(a) Except as provided in this section, a person shall not
25conduct surface mining operations unless a permit is obtained
26from, a reclamation plan has been submitted to and approved by,
27and financial assurances for reclamation have been approved by
28the lead agency for the operation pursuant to this article.

29(b) A person with an existing surface mining operation who has
30vested rights pursuant to Section 2776 and who does not have an
31approved reclamation plan shall submit a reclamation plan to the
32lead agency not later than March 31, 1988. If a reclamation plan
33application is not on file by March 31, 1988, the continuation of
34the surface mining operation is prohibited until a reclamation plan
35is submitted to the lead agency. For the purposes of this
36subdivision, a reclamation plan existing prior to January 1, 2016,
37may consist of all or the appropriate sections of any plans or written
38agreements previously approved by the lead agency or another
39agency, together with any additional documents needed to
40substantially meet the requirements of Sections 2772 and 2773
P12   1and the lead agency surface mining ordinance adopted pursuant
2to subdivision (a) of Section 2774, provided that all documents,
3which together were proposed to serve as the reclamation plan,
4are submitted for approval to the lead agency in accordance with
5this chapter.

begin delete

6(c) The review of financial assurances shall not be considered
7a project for purposes of the California Environmental Quality Act
8(Division 13 (commencing with Section 21000)).

9(d) The lead agency’s review of a reclamation plan submitted
10pursuant to subdivision (b) or of financial assurances pursuant to
11subdivision (c) is limited to whether the plan or the financial
12assurances substantially meet the applicable requirements of
13Sections 2772, 2773, 2773.1, and 2773.3 and the lead agency
14surface mining ordinance adopted pursuant to subdivision (a) of
15Section 2774, but, in any event, the lead agency shall require that
16financial assurances for reclamation be sufficient to perform
17reclamation of lands remaining disturbed. Reclamation plans or
18financial assurances determined to substantially meet these
19requirements shall be approved by the lead agency for purposes
20of this chapter. Reclamation plans or financial assurances
21determined not to substantially meet these requirements shall be
22returned to the operator within 60 days. The operator has 60 days
23to revise the plan or financial assurances to address identified
24deficiencies, at which time the revised plan or financial assurances
25shall be returned to the lead agency for review and approval. Except
26as specified in subdivision (e) or (i), unless the operator has filed
27on or before July 1, 1990, an appeal pursuant to subdivision (e)
28with regard to nonapproval of the reclamation plan, or has filed
29on or before January 1, 1994, an appeal pursuant to subdivision
30(e) with regard to nonapproval of financial assurances, and that
31appeal is pending before the board, the continuation of the surface
32mining operation is prohibited until a reclamation plan and
33financial assurances for reclamation are approved by the lead
34agency.

end delete
begin insert

35(c) [Reserved]

end insert
begin insert

36(d) [Reserved]

end insert

37(e) begin insert(1)end insertbegin insertend insertA person who can substantiate, based on the evidence
38of the record, that a lead agency has either (1) failed to act
39according to due process or has relied on considerations not related
40to the specific applicable requirements of Sections 2772,begin insert 2772.1,end insert
P13   1 2773, 2773.1,begin delete and 2773.3end deletebegin insert 2773.3, and 2773.4end insert and the lead agency
2surface mining ordinance adopted pursuant to subdivision (a) of
3Sectionbegin delete 2774,end deletebegin insert 2774end insert in reaching a decision to deny approval of a
4reclamation plan or financial assurances for reclamation,begin insert orend insert (2)
5failed to act within a reasonable time of receipt of a completed
6begin delete application, or (3) failed to review and approve reclamation plans
7or financial assurances as required by subdivision (d) or Sections
82772.1 and 2773.4,end delete
begin insert applicationend insert may appeal that action or inaction
9to the board. begin delete If the director has commented pursuant to Section
102773.4 that a financial assurance cost estimate is inadequate, the
11director may appeal the lead agency’s approval of a financial
12assurance cost estimate on any of the grounds identified in this
13subdivision that were included in the director’s comments pursuant
14to Article 7 (commencing with Section 3680) of Subchapter 1 of
15Chapter 8 of Division 2 of Title 14 of the California Code of
16Regulations.end delete

begin insert

17(2) The director may appeal a lead agency’s approval of a
18financial assurance cost estimate to the board if the director has
19commented pursuant to Section 2773.4 that the financial assurance
20cost estimate is inadequate based on consideration of the following:

end insert
begin insert

21(A) Section 2773.1.

end insert
begin insert

22(B) Article 11 (commencing with Section 3800) of Title 14 of
23the California Code of Regulations.

end insert
begin insert

24(C) The board’s financial assurance guidelines adopted
25pursuant to subdivision (f) of Section 2773.1

end insert
begin insert

26(3) If the approved financial assurance cost estimate applies to
27a reclamation plan approved for a new surface mining operation,
28an expanded surface mining operation, or an interim financial
29assurance due to an order to comply, stipulated or otherwise, the
30operator shall provide a financial assurance mechanism pursuant
31to subdivision (e) of Section 2773.4 in the amount of the approved
32financial assurance cost estimate, notwithstanding an appeal filed
33pursuant to this subdivision and subject to modification pending
34the outcome of the appeal.

end insert
begin insert

35(4) If the approved financial assurance cost estimate is an
36update to an existing approved financial assurance cost estimate,
37the existing financial assurance mechanism shall remain in place
38and shall not be adjusted until a final determination by the board
39on the appeal filed pursuant to this subdivision.

end insert

P14   1(f) begin insert(1)end insertbegin insertend insertThe board may decline to hear an appeal if it determines
2that the appeal raises no substantial issues related to the lead
3agency’sbegin delete review pursuant to this section.end deletebegin insert decision to deny the
4approval of a reclamation plan or financial assurance, on the
5timeliness in reviewing a completed application, or on the approval
6of a financial assurance cost estimate that the director has
7commented is inadequate.end insert

begin insert

8(2) If the board takes up an appeal, the appeal shall be
9scheduled and heard at a public hearing within 45 days of the
10filing of the appeal. If the appeal is filed by the director, a longer
11period may be mutually agreed upon by the board, the appellant,
12the director, and the operator, as applicable.

end insert
begin delete

13(g) Appeals that the board does not decline to hear shall be
14scheduled and heard at a public hearing within 45 days of the filing
15of the appeal or a longer period as may be mutually agreed upon
16by the board and the person filing the appeal. In hearing an appeal,
17the board shall only determine whether the reclamation plan or the
18financial assurances substantially meet the applicable requirements
19of Sections 2772, 2773, 2773.1, and 2773.3 and the lead agency
20surface mining ordinance adopted pursuant to subdivision (a) of
21Section 2774. A reclamation plan or financial assurances
22determined to meet these requirements shall be approved or upheld.
23A reclamation plan or financial assurances determined not to meet
24these requirements shall be returned with a notice of deficiencies,
25to the operator, who shall be granted, once only, a period of 30
26days, or a longer period mutually agreed upon by the operator and
27the board, to correct the noted deficiencies and submit the revised
28reclamation plan or the revised financial assurances to the lead
29agency for review and approval.

end delete
begin insert

30(g) (1) (A) When hearing an appeal filed pursuant to
31subdivision (e), the board shall determine whether the reclamation
32plan or the financial assurance cost estimate substantially meets
33the applicable requirements of Sections 2772, 2772.1, 2773,
342773.1, 2773.3, and 2773.4 and the lead agency’s surface mining
35ordinance adopted pursuant to subdivision (a) of Section 2774.
36The board shall approve or uphold a reclamation plan or financial
37assurance cost estimate determined to meet those applicable
38requirements.

end insert
begin insert

P15   1(B) For purposes of this subdivision, “substantially” means
2actual compliance in respect to the substance and form
3requirements essential to the objectives of this chapter.

end insert
begin insert

4(2) (A) A reclamation plan determined not to meet the
5applicable requirements of Sections 2772, 2772.1, 2773, 2773.1,
62773.3, and 2773.4 and the lead agency’s surface mining ordinance
7adopted pursuant to subdivision (a) of Section 2774 shall be
8returned to the operator with a notice of deficiencies. The operator
9shall be granted, once only, a period of 30 days or a longer period
10mutually agreed upon by the operator and the board to do both of
11the following:

end insert
begin insert

12(i) Correct the noted deficiencies.

end insert
begin insert

13(ii) Submit the revised reclamation plan to the lead agency for
14review and approval.

end insert
begin insert

15(B) Within 10 days of the hearing, the board shall provide notice
16via certified mail to the lead agency, the operator, and the
17department of the board’s determination. The notice shall include
18instructions to the operator to submit to the lead agency for
19approval a revised reclamation plan consistent with the board’s
20determination.

end insert
begin insert

21(3) (A) If the board determines the lead agency’s approved
22financial assurance cost estimate does not meet the requirements
23of Sections 2773.1, 2773.4, Article 11 (commencing with Section
243800) of Chapter 8 of Division 2 of Title 14 of the California Code
25of Regulations, and the board’s financial assurance guidelines
26adopted pursuant to subdivision (f) of Section 2773.1, the board
27shall note the deficiencies, and based on the record, include
28adequate cost estimates for each noted deficiency.

end insert
begin insert

29(B) Within 10 days of the hearing, the board shall provide notice
30via certified mail to the lead agency, the operator, and the
31department of the board’s determination with instructions to the
32operator to submit to the lead agency for approval a revised
33financial assurance cost estimate consistent with the board’s
34determination.

end insert
begin insert

35(C) The lead agency shall approve the revised financial
36assurance cost estimate. That approval shall supersede and void
37the prior approved financial assurance cost estimate.

end insert
begin insert

38(D) A financial assurance mechanism shall be established by
39the operator pursuant to subdivision (e) of Section 2773.4 following
40the approval of the financial assurance cost estimate.

end insert

P16   1(h) (1) Within 90 days of a surface mining operation becoming
2idle, as defined in Section 2727.1, the operator shall submit to the
3lead agency for review and approval an interim management plan.
4The review and approval of an interim management plan shall not
5be considered a project for purposes of the California
6Environmental Quality Act (Division 13 (commencing with Section
721000)). The approved interim management plan shall be
8considered an amendment to the surface mining operation’s
9approved reclamation plan for purposes of this chapter. The interim
10management plan shall provide measures the operator will
11implement to maintain the site in compliance with this chapter,
12including, but not limited to, all permit conditions.

13(2) The interim management plan may remain in effect for a
14period not to exceed five years, at which time the lead agency shall
15do one of the following:

16(A) Renew the interim management plan for an additional period
17not to exceed five years, which may be renewed for one additional
18five-year renewal period at the expiration of the first five-year
19renewal period, if the lead agency finds that the surface mining
20operator has complied fully with the interim management plan.

21(B) Require the operator to commence reclamation in accordance
22with its approved reclamation plan.

23(3) The financial assurances required by Section 2773.1 shall
24remain in effect during the period that the surface mining operation
25is idle. If the surface mining operation is still idle after the
26expiration of its interim management plan, the operator shall
27commence reclamation in accordance with its approved reclamation
28plan.

29(4) Within 60 days of the receipt of the interim management
30 plan or a longer period mutually agreed upon by the lead agency
31and the operator, the lead agency shall review and approve the
32plan in accordance with its ordinance adopted pursuant to
33subdivision (a) of Section 2774, so long as the plan satisfies the
34requirements of this subdivision, and so notify the operator in
35writing. Otherwise, the lead agency shall notify the operator in
36writing of any deficiencies in the plan. The operator shall have 30
37days, or a longer period mutually agreed upon by the operator and
38the lead agency, to submit a revised plan.

39(5) The lead agency shall approve or deny approval of the
40revised interim management plan within 60 days of receipt. If the
P17   1lead agency denies approval of the revised interim management
2plan, the operator may appeal that action to the lead agency’s
3governing body, which shall schedule a public hearing within 45
4days of the filing of the appeal or a longer period mutually agreed
5upon by the operator and the governing body.

6(6) Unless review of an interim management plan is pending
7before the lead agency or an appeal is pending before the lead
8agency’s governing body, a surface mining operation that remains
9idle for over one year after becoming idle, as defined in Section
102727.1, without obtaining approval of an interim management plan
11shall be considered abandoned and the operator shall commence
12and complete reclamation in accordance with the approved
13reclamation plan.

14(i) An enforcement action that may be brought against a surface
15mining operation for operating without an approved reclamation
16plan, financial assurance, or interim management plan shall be
17held in abeyance pending review pursuant to subdivisionbegin delete (b), (d),end delete
18begin insert (b)end insert or (h), or the resolution of an appeal filed with the board
19pursuant to subdivision (e), or with a lead agency governing body
20pursuant to subdivision (h).

21

begin deleteSEC. 6.end delete
22begin insertSEC. 7.end insert  

Section 2772 of the Public Resources Code is amended
23to read:

24

2772.  

(a) The reclamation plan shall be filed with the lead
25agency, on a form provided by the lead agency, by any person who
26owns, leases, or otherwise controls or operates on all or any portion
27of any mined lands and who plans to conduct surface mining
28operations on the lands.

29(b) The reclamation plan shall include a chart identifying the
30page number, chapter, appendix, or other specific location in the
31reclamation plan where content meeting the requirements, as
32applicable, of Sections 2772, 2773, and 2773.3begin insert and Article 1
33(commencing with Section 3500) and Article 9 (commencing with
34 Section 3700) of Chapter 8 of Division 2 of Title 14 of the
35California Code of Regulations,end insert
is located.

36(c) The reclamation plan shall include all of the following
37information and documents:

38(1) The name and address of the operator and the names and
39addresses of any persons designated by the operator as an agent
40for the service of process.

P18   1(2) The anticipated quantity and type of minerals for which the
2surface mining operation is to be conducted.

3(3) The proposed dates for the initiation andbegin delete completionend delete
4begin insert terminationend insert ofbegin delete reclamation activities forend delete the surface mining
5operation.

6(4) The maximum anticipated depth of the surface mining
7operation.

8(5) A reclamation plan map or maps that shall include all of the
9following:

10(A) Size and legal description of the lands that will be affected
11by the surface mining operation and the names and addresses of
12the owners of all surface interests and mineral interests in the lands.

13(B) Clearly defined and accurately drawn property lines,
14setbacks, and the reclamation plan boundary.

15(C) Existing topography and final topography depicted with
16contour lines drawn at appropriate intervals for the site’s
17conditions.

18(D) Detailed geologic description of the area of the surface
19mining operation.

20(E) Location of railroads, utility facilities, access roads,
21temporary roads to be reclaimed, and any roads remaining for the
22 approved end use.

23(F) All maps, diagrams, or calculations that require preparation
24in accordance with the Professional Engineers Act (Chapter 7
25(commencing with Section 6700) of Division 3 of the Business
26and Professions Code), the Geologist and Geophysicist Act
27(Chapter 12.5 (commencing with Section 7800) of Division 3 of
28the Business and Professions Code), or the Professional Land
29Surveyors’ Act (Chapter 15 (commencing with Section 8700) of
30Division 3 of the Business and Professions Code) shall be prepared
31by a California-licensed professional, shall include his or her
32license number and name, and shall bear the signature and seal of
33the licensee.

34(6) A description of and a plan for the type of surface mining
35to be employed and a time schedule that will provide for the
36 completion of surface mining on each segment of the mined lands
37so that reclamation can be initiated at the earliest possible time on
38those portions of the mined lands that will not be subject to further
39disturbance by the surface mining operation.

P19   1(7) A description of the proposed use or potential uses of the
2mined lands after reclamation and evidence that all owners of a
3possessory interest in the land have been notified of the proposed
4use or potential uses.

5(8) A description of the manner in which reclamation, adequate
6for the proposed use or potential uses, will be accomplished,
7including both of the following:

8(A) A description of the manner in which known contaminants
9will be controlled and mining waste will be disposed.

10(B) A description of the manner in which affected streambed
11channels and streambanks will be rehabilitated to a condition that
12minimizes erosion and sedimentation.

13(9) An assessment of the effect of implementation of the
14reclamation plan on future mining in the area.

15(10) A statement that the person submitting the reclamation
16plan accepts responsibility for reclaiming the mined lands in
17accordance with the reclamation plan.

18(11) Any other information that the lead agency may require
19by ordinance.

20(d) An item of information or a document required pursuant to
21subdivision (c) that has already been prepared as part of a permit
22application for the surface mining operation, or as part of an
23environmental document prepared for the project pursuant to the
24California Environmental Quality Act (Division 13 (commencing
25with Section 21000)) may be included in the reclamation plan by
26reference, if that item of information or that document is attached
27to the reclamation plan when the lead agency submits the
28reclamation plan to the director for review. To the extent the
29information, document, or component of a document referenced
30in the reclamation plan is used to meet the requirements of
31subdivision (c) or Section 2773 or 2773.3, the information,
32document, or component of a document shall become part of the
33reclamation plan and shall be subject to all other requirements of
34this article.

35(e) Nothing in this section is intended to limit or expand the
36department’s authority or responsibility to review a document in
37accordance with the California Environmental Quality Act
38(Division 13 (commencing with Section 21000)).

P20   1

begin deleteSEC. 7.end delete
2begin insertSEC. 8.end insert  

Section 2772.1 is added to the Public Resources Code,
3to read:

4

2772.1.  

(a) (1) Prior to approving a surface mining operation’s
5reclamation plan or plan amendment, the lead agency shall submit
6the reclamation plan or plan amendment to the director for review.
7The reclamation plan or plan amendment shall be submitted to the
8director as early as practicable in order to facilitate thebegin insert lead
9agency’send insert
review of the reclamation plan pursuant to the California
10Environmental Quality Act (Division 13 (commencing with Section
1121000)). All documentation for the submission shall be submitted
12to the director at one time.

13(2) An item of information, document, or component of a
14document that has been prepared as part of a permit application
15for the surface mining operation or as part of an environmental
16document prepared for the project pursuant to the California
17Environmental Quality Act (Division 13 (commencing with Section
1821000)) shall be incorporated into the reclamation plan or plan
19amendment if it is used to satisfy the requirements of subdivision
20(c) of Sectionbegin delete 2772 andend deletebegin insert 2772,end insert Sections 2773 and 2773.3,begin delete ifend deletebegin insert and
21Article 1 (commencing with Section 3500) and Article 9
22(commencing with Section 3700) of Chapter 8 of Division 2 of
23 Title 14 of the California Code of Regulations, asend insert
applicable. If
24an item of information, document, or component of a document
25is incorporated, reference to the item shall be added to the chart
26required pursuant to subdivision (b) of Section 2772 and shall be
27properly indexed with the corresponding appendix reference and
28page numbers, if applicable. The item shall be included in an
29appendix to and shall become part of the reclamation plan or plan
30amendment. begin delete A technical report created by a California-licensed
31professional to support variations to the reclamation standards
32adopted by the board pursuant to Section 2773 shall be included
33in an appendix to the reclamation plan or plan amendment bearing
34the California-licensed professional’s stamp or seal, as applicable.end delete

35(3) The lead agency shall certify to the director that the
36reclamation plan or plan amendment is a complete submission and
37is in compliance with all of the following:

38(A) The applicable requirements of this chapter.

39(B) Article 1 (commencing with Section 3500)begin insert and Article 9
40(commencing with Section 3700)end insert
of Chapter 8 of Division 2 of
P21   1Title 14 of the California Code ofbegin delete Regulationsend deletebegin insert Regulations, as
2applicableend insert
.

3(C) The lead agency’s surface mining ordinance in effect at the
4time that the reclamation plan or plan amendment is submitted to
5the director forbegin delete reviewend deletebegin insert review, except if the board is the lead
6agencyend insert
.

7(b) (1) The director shall havebegin delete 15end deletebegin insert 30end insert days from the receipt of
8a reclamation plan or plan amendment to notify the lead agency
9and operator if the submission is incomplete. An incomplete
10submission is one that does not meet the content requirements of
11begin delete subdivision (a) of this section andend delete subdivisions (c) and (d) of
12Sectionbegin delete 2772.end deletebegin insert 2772, Sections 2773 and 2773.3, and Article 1
13(commencing with Section 3500) and Article 9 (commencing with
14Section 3700) of Chapter 8 of Division 2 of Title 14 of the
15California Code of Regulations,end insert
begin insert as applicable.end insert The director’s
16notice shall specifically identify all aspects of the submission that
17are incomplete. begin delete If the submission is incomplete due to the failure
18to include a professionally stamped copy of a technical report,
19map, or diagram that is required to be prepared by a
20California-licensed professional pursuant to subdivision (c) of
21Section 2772, the director shall request a stamped copy of the
22technical report, map, or diagram only, instead of a full
23resubmission of the reclamation plan or plan amendment. The
24review time required pursuant to paragraph (2) shall begin when
25the stamped copy of the technical report, map, or diagram is
26received by the director. The director’s time to review the
27reclamation plan or plan amendment shall commence upon the
28receipt of a submission that contains the item or items identified
29in the director’s notice to the lead agency.end delete

30(2) The director shall havebegin delete 45end deletebegin insert 30end insert daysbegin delete from the receipt of a
31complete reclamation plan or plan amendmentend delete
begin insert after the date the
32director is required to notify the lead agency if the submission is
33incompleteend insert
to prepare written commentsbegin insert on the reclamation plan
34or plan amendmentend insert
if the director chooses.begin delete Theend delete

begin insert

35(3) If the director has issued a notice of incomplete submission
36pursuant to paragraph (1), the director’s time to prepare written
37comments on the reclamation plan or plan amendment shall not
38commence until the director receives each item identified in the
39notice. The director’s time shall include any remaining time
P22   1pursuant to paragraph (1) and the time allowed pursuant to
2paragraph (2).

end insert

3begin insert(4)end insertbegin insertend insertbegin insertTheend insert lead agency shall review and evaluate written comments
4received from the director relating to the reclamation plan or plan
5amendment within a reasonable amount of time.

begin delete

6(3)

end delete

7begin insert(5)end insert (A) The lead agency shall prepare a written response to the
8director’s comments received pursuant to paragraph (2) describing
9the disposition of the major issues raised by the comments. The
10 lead agency shall submit its response to the director at least 30
11days prior to the intended approval of the reclamation plan or plan
12amendment. The lead agency’s response shall include either of the
13following:

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

16(ii) A detailed description of the reasons why the lead agency
17proposes not to adopt the director’s comments.

18(B) Copies of any written comments received and responses
19prepared by the lead agency pursuant to subparagraph (A) shall
20be forwarded to the operator.

begin delete

21(4)

end delete

22begin insert(6)end insert (A) The lead agency shall give the director at least 30 days’
23notice of the time, place, and date of the hearing at which the
24reclamation plan or plan amendment is scheduled to be approved
25by the lead agency.

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

begin delete

30(5) (A) Within 60 days following approval of the reclamation
31plan or plan amendment, the lead agency shall provide the director
32its final response to the director’s written comments and the final
33approved copies of those documents. During that time, the
34department retains all of its powers, duties, and authorities pursuant
35to this chapter.

36(B) The lead agency’s final response shall include an index
37showing permit conditions of approval and binding mitigation
38measures adopted or certified pursuant to the California
39Environmental Quality Act (Division 13 (commencing with Section
4021000)) that are necessary to meet the requirements of subdivision
P23   1(c) of Section 2772 and Sections 2773 and 2773.3. Those
2 conditions of approval and mitigation measures shall be included
3in an appendix to the reclamation plan or plan amendment and
4shall be considered part of the reclamation compliance
5requirements and subject to the annual inspection requirements.
6To the extent those conditions of approval and mitigation measures
7are not subject to separate lead agency or other state or federal
8agency bonding or performance requirements, those conditions
9and measures shall be subject to the financial assurances
10requirements 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.

end delete
begin insert

16(7) (A) Within 30 days following the approval of the reclamation
17plan or plan amendment, the lead agency shall provide the director
18notice of the approval. During that period, the department retains
19all powers, duties, and authorities of this chapter. The lead agency
20shall provide, as soon as practicable but no later than 60 days
21after approval of the reclamation plan or plan amendment, certified
22copies of all maps, diagrams, or calculations, signed and sealed.

end insert
begin insert

23(B) No later than 60 days after the approval of the reclamation
24plan or plan amendment, the lead agency shall provide to the
25director an official copy of the approved reclamation plan or plan
26amendment. The official copy shall incorporate all approved
27modifications to the reclamation plan or plan amendment and
28shall include an index showing any permit conditions of approval
29or binding mitigation measures adopted or certified pursuant to
30the California Environmental Quality Act (Division 13
31(commencing with Section 21000)) that are necessary to meet the
32requirements of subdivision (c) of Section 2772, Sections 2773
33and 2773.3, and Article 1 (commencing with Section 3500) and
34Article 9 (commencing with Section 3700) of Chapter 8 of Division
352 of Title 14 of the California Code of Regulations, as applicable.
36Those conditions of approval and mitigation measures shall be
37included in an appendix to the reclamation plan or plan amendment
38and shall be considered part of the reclamation compliance
39requirements and subject to the annual inspection requirements.

end insert

P24   1(c) To the extent there is a conflict between the comments of a
2trustee agency or a responsible agency that are based on that
3agency’s statutory or regulatory authority and the comments of
4other commenting agencies that are received by the lead agency
5pursuant to the California Environmental Quality Act (Division
613 (commencing with Section 21000)) regarding a reclamation
7plan or plan amendments, the lead agency shall consider only the
8comments of the trustee agency or responsible agency.

9(d) Nothing in this section is intended to limit or expand the
10department’s authority or responsibility to review a document in
11accordance with the California Environmental Quality Act
12(Division 13 (commencing with Section 21000)).

13

begin deleteSEC. 8.end delete
14begin insertSEC. 9.end insert  

Section 2773.1 of the Public Resources Code is
15amended to read:

16

2773.1.  

(a) Lead agencies shall require financial assurances
17of each surface mining operation to ensure reclamation is
18performed in accordance with the surface mining operation’s
19approved reclamation plan, as follows:

20(1) A financial assurance mechanism may take the form of
21surety bonds executed by an admitted surety insurer, as defined
22in subdivision (a) of Section 995.120 of the Code of Civil
23Procedure, irrevocable letters of credit, trust funds, or other forms
24of financial assurances specified by the board pursuant to
25subdivision (e) that the lead agency reasonably determines are
26adequate to perform reclamation in accordance with the surface
27mining operation’s approved reclamation plan.

28(2) The financial assurances shall remain in effect for the
29duration of the surface mining operation and any additional period
30until reclamation is completed.

31(3) The amount of financial assurances required of a surface
32mining operation for any one year shall be reviewed and, if
33necessary, adjusted once each calendar year to account for new
34lands disturbed by surface mining operations, inflation, and
35reclamation of lands accomplished in accordance with the approved
36reclamation plan. An operator shall be required to replace an
37approved financial assurance mechanism to bond for the
38reclamation of the surface mining operation only if the financial
39assurance cost estimate identifies a need to increase the amount
40of the financial assurance mechanism.

begin delete

P25   1(4) Financial assurance cost estimates shall be submitted to the
2lead agency for review on the form adopted by the board by
3regulation pursuant to subdivision (f). The estimates shall include
4estimates of the time needed to complete reclamation of the mine
5in accordance with the approved reclamation plan, including, but
6not limited to, any monitoring studies required by the reclamation
7plan.

end delete
begin delete

8(5)

end delete

9begin insert(4)end insert Each financial assurance mechanism shall be made payable
10to the lead agency and the department. A financial assurance
11mechanism shall not be released without the consent of the lead
12agency and the department. A financial assurance mechanism that
13was approved by the lead agency prior to January 1, 1993, and
14was made payable to the State Geologist shall be considered
15payable to the department for purposes of this chapter. However,
16if a surface mining operation has received approval of its financial
17assurances from a public agency other than the lead agency, the
18lead agency shall deem those financial assurances adequate for
19purposes of this section, or shall credit them toward fulfillment of
20the financial assurances required by this section, if they are made
21payable to the public agency, the lead agency, and the department
22and otherwise meet the requirements of this section. In any event,
23if a lead agency and one or more public agencies exercise
24jurisdiction over a surface mining operation, the total amount of
25financial assurances required by the lead agency and the public
26agencies for any one year shall not exceed that amount that is
27necessary to perform reclamation of lands remaining disturbed.
28For purposes of this paragraph, a “public agency” may include a
29federal agency.

30(b) (1) If the lead agency, or the board when acting as a lead
31agency, has evidence that an operator may be financially incapable
32of completing reclamation in accordance with its approved
33reclamation plan or that the operator may have abandoned the
34surface mining operation without completing reclamation, the lead
35agency orbegin delete boardend deletebegin insert the board, when acting as a lead agency,end insert shall
36conduct a public hearing to determine whether the operator is
37financially capable of completing reclamation in accordance with
38the approved reclamation plan or has abandoned the surface mining
39operation. The hearing shall be noticed to the operator and the
40director at least 30 days prior to the hearing.

P26   1(2) If the lead agency or the board, following the public hearing
2conducted pursuant to paragraph (1), determines that the operator
3is financially incapable of performing reclamation in accordance
4with its approved reclamation plan or has abandoned its surface
5mining operation without completing reclamation, either the lead
6agency or the director shall do all of the following:

7(A) Notify the operator by personal service or certified mail
8that the lead agency or the director intends to take appropriate
9action to forfeit the financial assurances and specify the reasons
10for so doing.

11(B) Proceed to take appropriate action to require forfeiture of
12the financial assurances.

13(C) Use the proceeds from the forfeited financial assurances to
14conduct and complete reclamation in accordance with the approved
15reclamation plan. If the surface mining operation cannot be
16reclaimed in accordance with its approved reclamation plan, or
17the financial assurances are inadequate to reclaim in accordance
18with its approved reclamation plan, the lead agency or director
19may use forfeited financial assurances to reclaim or remediate
20mining disturbances as appropriate for the site conditions as
21determined by both the lead agency and the director. The financial
22 assurances shall not be used for any other purpose. The operator
23is responsible for the costs of conducting and completing
24reclamation in accordance with the approved reclamation plan or
25a remediation plan developed pursuant to this section as determined
26appropriate by both the lead agency and the director that are in
27excess of the proceeds from the forfeited financial assurances.

28(c) Financial assurances shall no longer be required of a surface
29mining operation, and shall be released, upon the written
30concurrence of the lead agency and the director, which shall be
31forwarded to the operator and the institutions providing or holding
32the financial assurance mechanism, that reclamation has been
33completed in accordance with the approved reclamation plan. If a
34surface mining operation is sold or ownership is transferred to
35another person, the existing financial assurances shall remain in
36force and shall not be released by the lead agency and the director
37until new financial assurances are secured from the new owner
38and have been approved by the lead agency in accordance with
39Sections 2770, 2773.1, and 2773.4. Within 90 days of the sale or
40transfer ofbegin delete theend deletebegin insert aend insert surface mining operation, the new operator shall
P27   1begin delete establish or maintainend deletebegin insert submitend insert an appropriate financial assurance
2begin delete mechanism andend deletebegin insert mechanism, which may be the existing mechanism
3if the existing mechanism is payable in the event of the new
4operator’s default, that is subject to review by the lead agency and
5the director pursuant to subdivision (e) of Section 2773.4. Within
615 days of the sale or transfer of a surface mining operation, the
7new operator shallend insert
sign a new statement of reclamation
8responsibility in accordance with paragraph (10) of subdivision
9(c) of Section 2772.

10(d) The lead agency shall have primary responsibility to seek
11forfeiture of financial assurances and to reclaim mine sites pursuant
12to subdivision (b). However, if the board is not the lead agency
13pursuant to Section 2774.4, the director may act to seek forfeiture
14of financial assurances and reclaim mine sites pursuant to
15subdivision (b) only if both of the following occurs:

16(1) The financial incapability of the operator or the abandonment
17of the surface mining operation has come to the attention of the
18director.

19(2) The lead agency has been notified in writing by the director
20of the financial incapability of the operator or the abandonment
21of the surface mining operation for at least 15 days, the lead agency
22has not taken appropriate measures to seek forfeiture of the
23financial assurances and reclaim the mine site, and one of the
24following has occurred:

25(A) The lead agency has been notified in writing by the director
26that failure to take appropriate measures to seek forfeiture of the
27financial assurances or to reclaim the mine site shall result in
28actions being taken against the lead agency under Section 2774.4.

29(B) The director determines that there is a violation that amounts
30to an imminent and substantial endangerment to the public health,
31safety, or to the environment.

32(C) The lead agency notifies the director in writing that its good
33faith attempts to seek forfeiture of the financial assurances have
34not been successful.

35The director shall comply with subdivision (b) in seeking
36forfeiture of financial assurances and reclaiming mine sites.

37(e) The board may adopt regulations specifying financial
38assurance mechanisms other than surety bonds, irrevocable letters
39of credit, and trust funds, which the board determines are
40reasonably available and adequate to ensure reclamation pursuant
P28   1to this chapter, but these mechanisms shall not include financial
2tests or surety bonds executed by one or more personal sureties.
3These mechanisms may include reclamation bond pool programs.

4(f) The board shall adopt or revise guidelines to implement this
5section as necessary. The guidelines are exempt from the
6requirements of the Administrative Procedure Act (Chapter 3.5
7(commencing with Section 11340) of Part 1 of Division 3 of Title
82 of the Government Code), and are not subject to review by the
9Office of Administrative Law.

10

begin deleteSEC. 9.end delete
11begin insertSEC. 10.end insert  

Section 2773.4 is added to the Public Resources Code,
12to read:

13

2773.4.  

(a) (1) Prior to approving the financial assurances for
14a new reclamation plan or adjustments to financial assurances
15based on an amendment to a reclamation plan, the lead agency
16shall submit the financial assurance cost estimate to the director
17for review.

18(2) The lead agency shall provide the director with abegin delete preliminaryend delete
19 determinationbegin delete of whetherend deletebegin insert thatend insert the financial assurance cost estimate
20submitted pursuant to paragraph (1) is adequate, complete, and
21consistent with Sectionbegin delete 2773.1.end deletebegin insert 2773.1, Article 11 (commencing
22with Section 3800) of Chapter 8 of Division 2 of Title 14 of the
23California Code of Regulations, and the board’s financial
24assurance guidelines adopted pursuant to subdivision (f) of Sectionend insert

25begin insert 2773.1.end insert

26(3) All documentation submitted to the director pursuant to this
27subdivision shall be submitted at one time.

28(b) No later thanbegin delete ___end deletebegin insert 15end insert days after receiving a financial
29assurance cost estimate, the director shall notify the lead agency
30and the operator if the submission is incomplete. An incomplete
31submission is one that does not meet the content requirements of
32Sectionbegin delete 2773.1.end deletebegin insert 2773.1, Article 11 (commencing with Section 3800)
33of Chapter 8 of Division 2 of Title 14 of the California Code of
34Regulations, and the board’s financial assurance guidelines
35adopted pursuant to subdivision (f) of Sectionend insert
begin insert 2773.1.end insert The
36director’s notice shall specifically identify all aspects of the
37submission that are incomplete. The director’s time to review the
38financial assurance cost estimate shall commence upon the receipt
39of a submission that contains the aspects identified in the director’s
40notice to the lead agency.

P29   1(c) (1) The director shall havebegin delete ___end deletebegin insert 45end insert days from the date of
2receipt of a complete financial assurance cost estimate to prepare
3written comments if the director chooses.

4(2) The lead agency shall evaluate written comments received
5from the director relating to the financialbegin delete assurancesend deletebegin insert assurance
6cost estimateend insert
within a reasonable amount of time. The lead agency
7shall prepare a written response to the director’s comments
8describing the disposition of the major issues raised by the
9director’s comments.

10(3) The lead agency shall submit its proposed response to the
11director at leastbegin delete ___end deletebegin insert 30end insert days prior to approval of the financial
12assurance cost estimate. The lead agency’s response shall include
13either of the following:

14(A) A description of how the lead agency proposes to adopt the
15director’s comments to the financial assurance cost estimate.

16(B) A detailed description of the reasons why the lead agency
17proposes tobegin delete rejectend deletebegin insert not adoptend insert the director’s comments.

18(4) Copies of any written comments received and responses
19prepared by the lead agency shall be forwarded to the operator.

begin insert

20(5) (A) If the lead agency, in its written response to the
21director’s comments, proposes to not adopt the director’s
22comments relating to the financial assurance cost estimate, the
23director, within 15 days of receipt of the lead agency’s written
24response, may request in writing a consultation with the lead
25agency to discuss the director’s comments and the lead agency’s
26response. The request shall include an invitation to the operator
27to participate in the consultation. The consultation may be
28conducted in person, electronically, telephonically, or by any
29means convenient to the parties.

end insert
begin insert

30(B) If the director requests a consultation pursuant to this
31subdivision, the lead agency shall not approve the financial
32assurance cost estimate until after consulting with the director.
33The consultation shall occur not later than 30 days after the
34director’s request unless an alternate timeframe is mutually agreed
35upon by the director, lead agency, and operator.

end insert
begin delete

36(5)

end delete

37begin insert(6)end insert (A) The lead agency shall give the director at leastbegin delete ___end deletebegin insert 30end insert
38 days’ notice of the time, place, and date of the hearing at which
39the financial assurance cost estimate is scheduled to be approved
40by the lead agency. If no hearing is required by this chapter, local
P30   1ordinance, or other state law, then the lead agency shall provide
2begin delete ___end deletebegin insert 30end insert days’ notice to the director that it intends to approve the
3financial assurance cost estimate.

4(B) The lead agency shall send to the director its final response
5to the director’s comments withinbegin delete ___end deletebegin insert 30end insert days following its
6approval of the financial assurance cost estimate, during which
7time the department retains all of its powers, duties, and authority
8pursuant to this chapter.

9(d) (1) begin insert(A)end insertbegin insertend insertWithinbegin delete ___end deletebegin insert 30end insert days of an annual inspection being
10conducted pursuant to Section 2774, an operator shall provide an
11annual financial assurance cost estimate to the lead agency for
12review.

begin insert

13(B) If the lead agency fails to cause the inspection of the surface
14mining operation on the date requested by the operator pursuant
15to Section 2207 or on an alternate date set by the lead agency
16pursuant to subdivision (c) of Section 2774, the operator shall
17provide an annual financial assurance cost estimate to the lead
18agency for review within 30 days of the missed inspection date,
19unless the lead agency causes the inspection to occur within that
20time period, in which case the operator shall provide an annual
21financial assurance cost estimate to the lead agency within 30
22days of the date of the inspection.

end insert

23(2) begin insert(A)end insertbegin insertend insertWithinbegin delete ___end deletebegin insert 60end insert days of receiving an operator’s annual
24financial assurance cost estimate, the lead agency shall dobegin delete both ofend delete
25begin insert one ofend insert the following:

begin delete

26(A) Review the annual financial assurance cost estimate for
27adequacy and completeness consistent with Section 2773.1.

end delete
begin delete

28(B) Submit the annual financial assurance cost estimate to the
29director for review.

end delete
begin insert

30(i) Deny the financial assurance cost estimate pursuant to
31paragraph (6).

end insert
begin insert

32(ii) Submit the financial assurance cost estimate to the director
33for review.

end insert
begin insert

34(B) The lead agency shall provide the director with a
35determination that the annual financial assurance cost estimate
36submitted is adequate, complete, and consistent with Section
372773.1, Article 11 (commencing with Section 3800) of Chapter 8
38of Division 2 of Title 14 of the California Code of Regulations,
39and the board’s financial assurance guidelines adopted pursuant
40to subdivision (f) of Section 2773.1.

end insert

P31   1(3) All documentation submitted to the director pursuant to this
2subdivision shall be submitted at one time.

begin delete

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

end delete
begin delete

7(5)

end delete

8begin insert(4)end insert Withinbegin delete ___end deletebegin insert 15end insert days of receiving an annual financial
9assurance cost estimate, the director shall notify the lead agency
10and the operator if the submission is incomplete. An incomplete
11submission is one that does not meet the content requirements of
12Sectionbegin delete 2773.1.end deletebegin insert 2773.1, Article 11 (commencing with Section 3800)
13of Chapter 8 of Division 2 of Title 14 of the California Code of
14Regulations, and the board’s financial assurance guidelines
15adopted pursuant to subdivision (f) of Section end insert
begin insert2773.1.end insert The
16director’s notice shall specifically identify all aspects of the
17submission that are incomplete. The director’s time to review the
18annual financial assurance cost estimate shall commence upon the
19receipt of a submission that contains the aspects identified in the
20director’s notice to the lead agency.

begin delete

21(6)

end delete

22begin insert(5)end insert (A) Withinbegin delete ___end deletebegin insert 45end insert days of receiving an operator’s complete
23annual financial assurance cost estimate from the lead agency, the
24director shall prepare written comments on the operator’sbegin insert annualend insert
25 financialbegin delete assurancesend deletebegin insert assurance cost estimateend insert and provide the
26comments to the lead agency and the operator if the director so
27chooses.

28(B) begin insert(i)end insertbegin insertend insertWithinbegin delete ___end deletebegin insert 30end insert days from receiving the director’s written
29comments pursuant to this subdivision, the lead agency shall
30evaluate the written comments and provide the director and
31operator its proposed response to the director.

begin insert

32(ii) The lead agency shall submit its proposed response to the
33director at least 30 days prior to approving the annual financial
34assurance cost estimate. The lead agency’s response shall include
35either of the following:

end insert
begin insert

36(I) A description of how the lead agency proposes to adopt the
37director’s comments to the annual financial assurance cost
38estimate.

end insert
begin insert

39(II) A detailed description of the reasons why the lead agency
40proposes not to adopt the director’s comments.

end insert
begin insert

P32   1(iii) Copies of any written comments received and responses
2prepared by the lead agency pursuant to this subparagraph shall
3be provided to the operator.

end insert
begin insert

4(C) (i) If the lead agency, in its written response to the
5director’s comments, proposes to not adopt the director’s
6comments concerning the annual financial assurance cost estimate,
7the director, within 15 days of receipt of the lead agency’s written
8response, may request in writing a consultation with the lead
9agency to discuss the director’s comments and the lead agency’s
10response. The request shall include an invitation to the operator
11to participate in the consultation. The consultation may be
12conducted in person, electronically, telephonically, or by any
13means convenient to the parties.

end insert
begin insert

14(ii) If the director requests a consultation pursuant to this
15subparagraph, the lead agency shall not approve the annual
16financial assurance cost estimate until after consulting with the
17director. The consultation shall occur not later than 30 days after
18the director’s request unless an alternate timeframe is mutually
19agreed upon by the director, lead agency, and operator.

end insert
begin delete

20(C)

end delete

21begin insert(D)end insertbegin insert(i)end insertbegin insertend insertWithinbegin delete ___end deletebegin insert 60end insert days of receiving the director’s written
22comments,begin insert or of a consultation pursuant to this subdivision,
23whichever is laterend insert
or the due date of the director’s written
24comments ifbegin delete they are notend deletebegin insert none areend insert received, the lead agency shall
25begin delete accept or rejectend deletebegin insert approve or denyend insert an operator’s annual financial
26assurance cost estimate.begin delete In approving a financial assurance cost
27estimate, the lead agency, with the concurrence of the operator,
28may modify the financial assurance cost estimate as necessary to
29correct deficiencies identified by the director or lead agency.end delete

begin insert

30(ii) The lead agency shall give the director at least 30 days’
31notice of the time, place, and date of the hearing at which the
32annual financial assurance cost estimate is scheduled to be
33approved by the lead agency.

end insert
begin insert

34(iii) If no hearing is required by this chapter, local ordinance,
35or other state law, the lead agency shall provide 30 days’ notice
36to the director that it intends to approve the annual financial
37assurance cost estimate.

end insert
begin delete

38(D)

end delete

P33   1begin insert(E)end insert Withinbegin delete ___end deletebegin insert 30end insert days of the lead agency’sbegin delete acceptanceend deletebegin insert approvalend insert
2 of the annual financial assurance cost estimate, the lead agency
3shall send the director its final response to the director’s comments.

begin delete

4(7)

end delete

5begin insert(6)end insert If the lead agency determines an operator’s annual financial
6assurance cost estimate is inadequate, the lead agency shall specify
7the reasons for that determination. The operator shall havebegin delete ___end deletebegin insert 30end insert
8 days to appeal that denial pursuant to subdivision (e) of Section
92770 or provide a revised financial assurance cost estimate
10incorporating the suggested changes to thebegin delete director and theend delete lead
11agency for approval by the lead agencybegin insert pursuant to this sectionend insert.

12(e) (1) Withinbegin delete ___end deletebegin insert 30end insert days of the lead agency’s approval of a
13financial assurance cost estimate pursuant to this section, the
14operator shall provide the lead agency and the director an
15appropriate financial assurance mechanism.begin delete The operator shall
16provide this financial assurance mechanism even if the director
17has appealed the approval pursuant to subdivision (e) of Section
182770. end delete

19(2) begin insert(A)end insertbegin insertend insertWithinbegin delete ___end deletebegin insert 15end insert days of receiving a financial assurance
20mechanism pursuant to this subdivision,begin insert or subdivision (c) of
21Section 2773.1end insert
the lead agency and the director shall review the
22 financial assurance mechanism to determine if the type of
23mechanism, including the release instructions, meets the
24requirements of this chapter.

begin delete

25(3) A financial assurance mechanism utilizing any of the forms
26provided as Appendix D, Appendix E-1, Appendix E-2, Appendix
27E-3, and Appendix F to the guidelines adopted by the board
28pursuant to subdivision (f) of section 2773.1 shall be deemed to
29meet the requirements of this chapter. A financial assurance
30mechanism considered by the lead agency or the director to not
31meet the requirements of this chapter shall be returned to the
32operator with correction instructions as to the type and release
33language of the financial assurance mechanism.

end delete
begin insert

34(B) Financial assurance mechanisms determined to be
35noncompliant with this chapter shall be returned to the operator
36with instructions on how to correct the type or release instructions
37of the financial assurance mechanism.

end insert
begin insert

38(3) By July 1, 2017, the board shall adopt forms to implement
39this subdivision as necessary. The forms shall be subject to the
40requirements of the Administrative Procedure Act (Chapter 3.5
P34   1(commencing with Section 11340) of Part 1 of Division 3 of Title
22 of the Government Code).

end insert
begin insert

3(f) The review and approval of financial assurances pursuant
4to this chapter shall not be considered a project for the purposes
5of the California Environmental Quality Act (Division 13
6(commencing with Section 21000)).

end insert
7

begin deleteSEC. 10.end delete
8begin insertSEC. 11.end insert  

Section 2774 of the Public Resources Code is
9amended to read:

10

2774.  

(a) Every lead agency shall adopt ordinances in
11accordance with state policy that establish procedures for the
12review and approval of reclamation plans and financial assurances
13and the issuance of a permit to conduct surface mining operations,
14except that any lead agency without an active surface mining
15operation in its jurisdiction may defer adopting an implementing
16ordinance until the filing of a permit application. The ordinances
17shall establish procedures requiring at least one public hearing and
18shall be periodically reviewed by the lead agency and revised, as
19necessary, to ensure that the ordinances continue to be in
20accordance with state policy.

21(b) begin deleteSurface end deletebegin insert(1)end insertbegin insertend insertbegin insertThe lead agency shall cause surface end insertmining
22operationsbegin delete shallend deletebegin insert toend insert be inspectedbegin delete annually,end deletebegin insert in intervals of no more
23than 12 months,end insert
solely to determine whether the surface mining
24operation is in compliance with this chapter. The lead agency shall
25cause an inspection to be conducted by a state-licensed geologist,
26state-licensed civil engineer, state-licensed landscape architect,
27state-licensed forester, or a lead agency employee who isbegin insert qualified
28andend insert
experienced in land reclamation and who has not been
29employed by the surface mining operation being inspected in any
30capacity during the previous 12 months, except that abegin insert qualifiedend insert
31 lead agency employee may inspect surface mining operations
32conducted by another department within the local agency. All
33inspections shall be conducted using a form developed by the
34department and approved by the board that includes the
35professional licensing and disciplinary information of the person
36who conducted the inspection. The operator shall be solely
37responsible for the reasonable cost of the inspection. The lead
38agency shall provide a notice of completion of inspection to the
39director within 90 days of conducting the inspection. The notice
40shall contain a statement regarding the surface mining operation’s
P35   1compliance withbegin delete its approved reclamation plan, as described inend delete
2 thisbegin delete chapter,end deletebegin insert chapter andend insert a copy of the completed inspection form,
3andbegin delete which aspects of the surface mining operations, if any, are
4inconsistent with its approved reclamation plan, as described in
5this chapter, and any corrective measures recommended by the
6inspector. Ifend delete
begin insert shall specify, as applicable, all of the following:end insert

begin insert

7(A) Aspects of the surface mining operation, if any, that were
8found to be inconsistent with this chapter but were corrected before
9the submission of the inspection form to the director.

end insert
begin insert

10(B) Aspects of the surface mining operation, if any, that were
11found to be inconsistent with this chapter but were not corrected
12before the submission of the inspection form to the director.

end insert
begin insert

13(C) A statement describing the lead agency’s intended response
14to any aspects of the surface mining operation found to be
15inconsistent with this chapter but were not corrected before the
16submission of the inspection form to the director.

end insert

17begin insert(2)end insertbegin insertend insertbegin insertIfend insert the surface mining operation has a review of its
18reclamation plan, financial assurances, or an interim management
19plan pending under subdivisionbegin delete (b), (c), (d),end deletebegin insert (b)end insert or (h) of Section
202770, or an appeal pending before the board or lead agency
21governing body under subdivision (e) or (h) of Section 2770, the
22notice shall so indicate. The lead agency shall forward to the
23operator a copy of the notice, a copy of the completed inspection
24form, and any supporting documentation, including, but not limited
25to, any inspection report prepared by the geologist, civil engineer,
26landscape architect, forester, orbegin insert qualifiedend insert lead agency employee
27who conducted the inspection.

28(c) If an operator does not request an inspection date on the
29annual report filed pursuant to Section 2207 or if the lead agency
30is unable to cause the inspection of a given surface mining
31operation on the date requested by the operator, the lead agency
32shall provide the operator with a minimum of five days’ written
33notice of a pending inspection or a lesser time period if agreed to
34by the operator.

35(d) begin delete(1)end deletebegin deleteend deleteNo later thanbegin delete Aprilend deletebegin insert Julyend insert 1 of each year, thebegin insert lead agency
36shall submit to theend insert
directorbegin delete shall provide each lead agency with a
37notice listingend delete
begin insert forend insert each active or idle surface mining operation within
38the lead agency’s jurisdictionbegin delete. For each surface mining operation,
39the director shall request and the lead agency shall provide to the
P36   1director, on a form provided by the director, no later than July 1
2of each yearend delete
the following information:

begin delete

3(A)

end delete

4begin insert(1)end insert A copy of any permit or reclamation plan amendments, as
5applicable.

begin delete

6(B)

end delete

7begin insert(2)end insert A statement that there have been no changes during the
8previous year, as applicable.

begin delete

9(C)

end delete

10begin insert(3)end insert The date of each surface mining operation’s last inspection.

begin delete

11(D)

end delete

12begin insert(4)end insert The date of each surface mining operation’s last financial
13assurance review pursuant to Section 2773.1 for each operation
14listed.

begin delete

15(2) The director shall request similar information on any new
16or omitted operations, to be provided to the director no later than
17July 1 of each year.

end delete
begin delete

18(e) (1) After January 1, 2018, a lead agency employee who is
19not a state-licensed geologist, state-licensed civil engineer,
20state-licensed landscape architect, or a state-licensed forester and
21who inspects surface mining operations under this chapter shall
22have completed an inspection workshop or an update workshop
23provided by the director. The director shall provide an adequate
24transition time period for lead agency inspectors to complete the
25update workshop if it becomes necessary.

end delete
begin delete

26(2) Nothing in this subdivision shall be construed to affect or
27impose qualifications or standards on employees designated by a
28local, state, or federal agency to perform inspections of real
29property under separate provisions of local, state, or federal law,
30including, but not limited to, the Porter-Cologne Water Quality
31Control Act (Division 7 (commencing with Section 13000) of the
32Water Code), the federal Clean Water Act (33 U.S.C. Sec. 1251
33et seq.), and the Fish and Game Code, notwithstanding the fact
34that that informational addenda are submitted to lead agencies
35pursuant to this chapter in addition to reclamation plans, including
36materials submitted pursuant to subdivision (d) of Section 2772.

end delete
begin insert

37(e) (1) No later than December 31, 2016, the department shall
38establish a training program for all surface mine inspectors. The
39program shall be designed to include a guidance document,
40developed by the department, in consultation with the board and
P37   1stakeholders, to provide instruction and recommendations to
2surface mine inspectors performing inspections pursuant to
3subdivision (b).

end insert
begin insert

4(2) The training program shall include inspections workshops
5offered by the department in different regions of the state to provide
6practical application of the guidance document material.

end insert
begin insert

7(3) On and after July 1, 2019, all inspectors shall have on file
8with the lead agency and the department a certificate of completion
9of an inspection workshop. An inspector shall attend a workshop
10no later than five years after the date of his or her most recent
11certificate.

end insert
begin insert

12(4) The adoption of the guidance document by the department
13pursuant to this subdivision shall be subject to the requirements
14of the Administrative Procedure Act (Chapter 3.5 (commencing
15with Section 11340) of Part 1 of Division 3 of Title 2 of the
16Government Code).

end insert
17begin insert

begin insertSEC. 12.end insert  

end insert

begin insertSection 2774.1 of the end insertbegin insertPublic Resources Codeend insertbegin insert is
18amended to read:end insert

19

2774.1.  

(a) begin insert(1)end insertbegin insertend insertExcept as provided in subdivision (i) of Section
202770, if the lead agency or the director determines, based upon an
21annual inspection pursuant to Section 2774, or otherwise confirmed
22by an inspection of thebegin insert surfaceend insert mining operation, that a surface
23mining operation is not in compliance with this chapter, the lead
24agency or the director maybegin delete notifyend deletebegin insert issue a notice of that violation
25toend insert
the operatorbegin delete of that violationend delete by personal service or certified
26mail.begin delete If the violation extends beyond 30 days after the date of the
27lead agency’s or the director’s notification,end delete
begin insert If the lead agency
28issues the notice, the lead agency shall send a copy of the notice
29to the director. end insert
begin insertThe noticeend insertbegin insert shall include both of the following:end insert

begin insert

30(A) A description of the violation.

end insert
begin insert

31(B) Actions the operator shall take to correct the violation.

end insert
begin insert

32(2) (A) If a lead agency or the director determines that the time
33to correct the noticed violation will exceed 30 days, the lead agency
34and the operator may enter into a stipulated order to comply, with
35notice sent to the director. If the director initiated the enforcement
36action, the director, after consulting with the lead agency, may
37enter into a stipulated order to comply with the operator. The lead
38agency may, but need not, join the stipulated order with the
39director.

end insert
begin insert

P38   1(B) A stipulated order to comply shall include a schedule and
2time for compliance that the lead agency or the director, as
3applicable, determines is reasonable after taking into account the
4actions and legal processes required to correct the violation.

end insert

5begin insert(3)end insertbegin insertend insertbegin insert(A)end insertbegin insertend insertbegin insertIf the operator does not comply with a notice issued
6pursuant to paragraph (1) within 30 days of being served the notice
7or commit to enter into a stipulated order to comply pursuant to
8paragraph (2) within 30 days of being served the notice,end insert
the lead
9agency or the director may issue an order to comply by personal
10service or certified mail requiring the operator to comply with this
11chapter or, if the operator does not have an approved reclamation
12plan or financial assurances, cease all further surface mining
13activities.

begin delete

14(b)

end delete

15begin insert(B)end insert An orderbegin insert to complyend insert issuedbegin delete under subdivision (a)end deletebegin insert pursuant
16to this paragraphend insert
shallbegin delete notend delete take effectbegin delete until the operator has been
17providedend delete
begin insert 30 days following the service of the order to comply
18unless within those 30 days the operator appeals the order to
19comply and requestsend insert
a hearing before the lead agencybegin delete for orders
20issued by the lead agency, or, board for orders issued by the
21directorend delete
begin insert or the board, depending on who issued the order to complyend insert
22 concerning the alleged violation. An orderbegin insert to complyend insert issuedbegin delete under
23subdivision (a)end delete
begin insert pursuant to this paragraphend insert shall specify begin delete which
24aspects of the surface mine’s activities or operations are
25inconsistent with this chapter, shall specify a time for compliance
26that the lead agency or director determines is reasonable, taking
27into account the seriousness of the violation and any good faith
28efforts to comply with applicable requirements, and shall set a date
29for the hearing, which shall not be sooner than 30 days after the
30date of the order.end delete
begin insert all of the following:end insert

begin insert

31(i) Which aspects of the surface mining operation are
32inconsistent with this chapter.

end insert
begin insert

33(ii) A time for compliance that the lead agency or director
34determines is reasonable, taking into account the seriousness of
35the alleged violation and any good faith efforts to comply with
36applicable requirements.

end insert
begin insert

37(iii) The actions and legal processes required to correct the
38alleged violation.

end insert
begin insert

39(C) An appeal filed pursuant to subparagraph (B) shall be
40noticed and heard at a public hearing within 45 days of the filing
P39   1of the appeal or a longer period as may be mutually agreed upon
2by the operator and the lead agency or the operator and the
3director, depending on who issued the order to comply.

end insert
begin insert

4(b) [Reserved]

end insert

5(c) An operator who violates or fails to comply with an order
6begin insert to complyend insert issued under subdivision (a) after the order’s effective
7begin delete date, as provided in subdivision (b),end deletebegin insert dateend insert or who fails to submit a
8reportbegin insert or pay annual feesend insert to the director or lead agency as required
9by Section 2207, shall be subject to an order by the lead agency
10or the director imposing an administrative penalty of not more
11than five thousand dollars ($5,000) per day, assessed from the
12original date of noncompliance with thisbegin delete chapter orend deletebegin insert chapter,
13includingend insert
Sectionbegin delete 2207.end deletebegin insert 2207, or from the date of the inspection
14when the violation was identified, at the discretion of the issuer
15of the notice of that violation.end insert
The penalty may be imposed
16administratively by the lead agency or the director. In determining
17the amount of the administrative penalty, the lead agency or the
18director shall take into consideration the nature, circumstances,
19extent, and gravity of the violation or violations, any prior history
20of violations, the degree of culpability, economic savings, if any,
21resulting from the violation, and any other matters justice may
22require. Orders setting administrative penalties shall become
23effective upon issuance of thebegin delete orderend deletebegin insert assessmentend insert and payment shall
24be made to the lead agency or the director within 30 days, unless
25the operator petitions the legislative body of the lead agency, the
26board, or the superior court for review as provided in Section
272774.2. An order shall be served by personal service or by certified
28mail upon the operator. Penalties collected by the director shall
29not be used for purposes other than to cover the reasonable costs
30incurred by the director in implementing this chapter or Section
312207.

begin insert

32(d) (1) An operator who violates or fails to comply with an
33order to comply issued pursuant to paragraph (3) of subdivision
34(a) or a stipulated order to comply entered into pursuant to
35paragraph (2) of subdivision (a) after the order’s effective date
36shall be removed from the list published by the department
37pursuant to subdivision (b) of Section 2717.

end insert
begin insert

38(2) If after a public hearing the board or lead agency denies an
39appeal by the operator pursuant to subdivision (b), the operator
40shall be removed 10 working days following the denial of the
P40   1appeal from the list published by the department pursuant to
2subdivision (b) of Section 2717.

end insert
begin insert

3(3) If the operator enters into a stipulated order to comply
4between the operator and the lead agency or the operator and the
5director within 10 working days of the denial of the appeal and
6the stipulated order to comply is consistent with the order to
7comply upheld by the board or lead agency and includes a
8stipulated schedule for compliance, the operator shall remain on
9the list published by the department pursuant to subdivision (b)
10of Section 2717.

end insert
begin insert

11(4) Issuance of a notice pursuant to paragraph (1) of subdivision
12(a) or an order to comply or stipulated order to comply pursuant
13to paragraph (2) or (3) of subdivision (a) shall not disqualify an
14operator from eligibility for placement on the list published by the
15department pursuant to subdivision (b) of Section 2717.

end insert
begin delete

16(d)

end delete

17begin insert(e)end insert If the lead agency or the director determines that the surface
18mine is not in compliance with this chapter, so that the surface
19mine presents an imminent and substantial endangerment to the
20public health or the environment, the lead agency or the Attorney
21General, on behalf of the director, may seek an order from a court
22of competent jurisdiction enjoining that operation.

begin delete

23(e)

end delete

24begin insert(f)end insert Upon a complaint by the director, the department, or the
25board, the Attorney General may bring an action to recover
26administrative penalties under this section, and penalties under
27Section 2207, in any court of competent jurisdiction in this state
28against any person violating any provision of this chapter or Section
292207, or any regulation adopted pursuant to this chapter or Section
302207. The Attorney General may bring this action on his or her
31own initiative if, after examining the complaint and the evidence,
32he or she believes a violation has occurred. The Attorney General
33may also seek an order from a court of competent jurisdiction
34compelling the operator to comply with this chapter and Section
352207.

begin delete

36(f)

end delete

37begin insert(g)end insert (1) The lead agency has primary responsibility for enforcing
38this chapter and Section 2207. In cases where the board is not the
39lead agency pursuant to Section 2774.4, enforcement actions may
40be initiated by the director pursuant to this section only after the
P41   1violation has come to the attention of the director and either of the
2following occurs:

3(A) The lead agency has been notified by the director in writing
4of the violation for at least 30 days, and has not taken appropriate
5enforcement action, which may include failing to issue an order
6to comply within a reasonable time after issuing a notice of
7violation.

8(B) The director determines that there is a violation that amounts
9to an imminent and substantial endangerment to the public health
10or safety, or to the environment.

11(2) The director shall comply with this section in initiating
12enforcement actions.

begin delete

13(g)

end delete

14begin insert(h)end insert Remedies under this section are in addition to, and do not
15supersede or limit, any and all other remedies, civil or criminal.

16

begin deleteSEC. 11.end delete
17begin insertSEC. 13.end insert  

Section 2774.2 of the Public Resources Code is
18amended to read:

19

2774.2.  

(a) Within 30 days of the issuance of an order setting
20administrative penalties under subdivision (c) of Section 2774.1,
21the operator may petition the legislative body of the lead agency,
22if the lead agency has issued the order, or the board for orders
23issued by the director, for review of the order. If the operator does
24not petition for review within the time limits set by this subdivision,
25the order setting administrative penalties shall not be subject to
26review by any court or agency.

27(b) The legislative body of the lead agency or the board shall
28notify the operator by personal service or certified mail whether
29it will review the order setting administrative penalties. In
30reviewing an order pursuant to this section, the record shall consist
31of the record before the lead agency or the director and any other
32relevant evidence which, in the judgment of the legislative body
33or the board, should be considered to effectuate and implement
34the policies of this chapter.

35(c) The legislative body or the board may affirm, modify, or set
36aside, in whole or in part, by its own order an order of the lead
37agency or the director setting administrative penalties reviewed
38by the legislative body or the board pursuant to this section.

39(d) An order of the legislative body or the board issued under
40subdivision (c) shall become effective upon its issuance unless the
P42   1operator petitions the superior court for review as provided in
2 subdivision (e). An order shall be served by personal service or
3by certified mail upon the operator. Payment of an administrative
4penalty that is specified in an order issued pursuant to subdivision
5(c) shall be made to the lead agency or the director within 30 days
6of service of the order. However, the payment shall be held in an
7interest bearing impound account pending the resolution of a
8petition for review filed pursuant to subdivision (e).

9(e) An operator aggrieved by an order of the legislative body
10or the board issued pursuant to subdivision (c) may obtain review
11of the order by filing in the superior court a petition for writ of
12mandate within 30 days following the issuance of the order. An
13operator aggrieved by an order of a lead agency or the director
14setting administrative penalties pursuant to subdivision (c) of
15Section 2774.1, for which the legislative body or board denies
16review, may obtain review of the order in the superior court by
17filing in the court a petition for writ of mandate within 30 days
18following the denial of review. The provisions of Section 1094.5
19of the Code of Civil Procedure shall govern judicial proceedings
20pursuant to this subdivision, except that in every case the court
21shall exercise its independent judgment. If the operator does not
22petition for a writ of mandate within the time limits set by this
23subdivision, an order of the board or the legislative body shall not
24be subject to review by any court or agency.

25(f) (1) After the expiration of the time to petition for review
26pursuant to subdivision (a) or (e), the director or the board acting
27as the lead agency may apply to the small claims court or the
28superior court, depending on the jurisdictional amount, in the
29county where the administrative penalty was imposed for a
30judgment to collect the unpaid administrative penalty imposed
31pursuant to subdivision (c) of Section 2774.1. The application shall
32include all of the following:

33(A) The order setting the administrative penalty pursuant to
34subdivision (c) of Section 2774.1.

35(B) A notice to the operator of the right to petition for review
36of the order.

37(C) Either of the following:

38(i) A declaration from the board that no petition was made or
39that the board declined to review the petition.

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

P43   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.

10begin insert

begin insertSEC. 14.end insert  

end insert

begin insertSection 2774.4 of the end insertbegin insertPublic Resources Codeend insertbegin insert is
11amended to read:end insert

begin delete
12

2774.4.  

(a) If the board finds that a lead agency either has (1)
13approved reclamation plans or financial assurances which are not
14consistent with this chapter, (2) failed to inspect or cause the
15inspection of surface mining operations as required by this chapter,
16(3) failed to seek forfeiture of financial assurances and to carry
17out reclamation of surface mining operations as required by this
18chapter, (4) failed to take appropriate enforcement actions as
19required by this chapter, (5) intentionally misrepresented the results
20of inspections required under this chapter, or (6) failed to submit
21information to the department as required by this chapter, the board
22shall exercise any of the powers of that lead agency under this
23chapter, except for permitting authority.

end delete
24begin insert

begin insert2774.4.end insert  

end insert
begin insert

(a) The board shall exercise some or all of a lead
25agency’s powers under this chapter pursuant to subdivision (c),
26except for permitting authority and vested rights determinations,
27if the board finds that a lead agency has done any of the following:

end insert
begin insert

28(1) Approved reclamation plans or financial assurances that
29are not consistent with this chapter.

end insert
begin insert

30(2) Failed to inspect or cause the inspection of surface mining
31operations as required by this chapter.

end insert
begin insert

32(3) Failed to seek forfeiture of financial assurances and to carry
33out reclamation of surface mining operations as required by this
34chapter.

end insert
begin insert

35(4) Failed to take appropriate enforcement actions as required
36by this chapter.

end insert
begin insert

37(5) Intentionally misrepresented the results of inspections
38required under this chapter.

end insert
begin insert

39(6) Failed to submit information to the department as required
40by this chapter.

end insert

P44   1(b) begin deleteIf, end deletebegin insertThe board shall conduct a public hearingend insertbegin insert end insertno sooner than
2three years after the board has taken action pursuant to subdivision
3begin delete (a), the board finds, after a public hearing, thatend deletebegin insert (a) to determine ifend insert
4 a lead agency has corrected its deficiencies in implementing and
5enforcing thisbegin delete chapter,end deletebegin insert chapterend insert and the rules and regulations
6adopted pursuant to thisbegin delete chapter,end deletebegin insert chapter. If the board finds the
7lead agency has corrected some or all of its deficiencies in
8implementing and enforcing this chapter,end insert
the board shall restore
9to the lead agencybegin insert some or all ofend insert the powers assumed by the board
10pursuant to subdivision (a).

begin delete

11(c) Before taking any action pursuant to subdivision (a), the
12board shall first notify the lead agency of the identified
13deficiencies, and allow the lead agency 45 days to correct the
14deficiencies to the satisfaction of the board. If the lead agency has
15not corrected the deficiencies to the satisfaction of the board within
16the 45-day period, the board shall hold a public hearing within the
17lead agency’s area of jurisdiction, upon a 45-day written notice
18given to the public in at least one newspaper of general circulation
19within the city or county, and directly mailed to the lead agency
20and to all surface mining operators within the lead agency’s
21jurisdiction who have submitted reports as required by Section
222207.

end delete
begin insert

23(c) (1) Before taking any action pursuant to subdivision (a),
24the board shall first notify the lead agency of the identified
25deficiencies and allow the lead agency 45 days to provide a
26response to the board on the identified deficiencies. The board
27may review the lead agency’s response at a regularly scheduled
28meeting.

end insert
begin insert

29(2) (A) If the board is not satisfied with the lead agency’s
30response, the board shall hold a public hearing within the lead
31agency’s area of jurisdiction, upon a 45-day written notice given
32to the public in at least one newspaper of general circulation within
33the city or county and directly mailed to the lead agency and to
34all operators within the lead agency’s jurisdiction who have
35submitted reports as required by Section 2207.

end insert
begin insert

36(B) At the hearing, the board shall determine if the lead agency
37has engaged in the conduct described in subdivision (a). If the
38board finds that the lead agency has engaged in conduct described
39in subdivision (a), the board shall do either of the following:

end insert
begin insert

P45   1(i) Require the lead agency to develop a remedial plan to correct
2the noted deficiencies. The remedial plan shall describe specific
3objectives and corresponding processes designed to address, at a
4minimum, the noted deficiencies and a time that the remedial plan
5will be fully implemented. The board shall set a hearing to review
6the completion of the remedial plan consistent with paragraph (2)
7and subdivisions (d) and (e).

end insert
begin insert

8(ii) Take immediate action pursuant to subdivision (a).

end insert

9(d) Affectedbegin delete surface miningend delete operators and interested persons
10have thebegin delete right,end deletebegin insert rightend insert at the publicbegin delete hearing,end deletebegin insert hearingend insert to present oral
11and written evidence on the matter being considered.begin delete Theend deletebegin insert At the
12public hearing, theend insert
board maybegin delete, at the public hearing,end delete place
13reasonable limits on the right of affectedbegin delete surface miningend delete operators
14and interested persons to question and solicit testimony.

15(e) begin deleteIf, after conducting the public hearing required by
16subdivision (c), end delete
begin insert(1)end insertbegin insertend insertbegin insertIf end insertthe board decides to take action pursuant to
17subdivisionbegin delete (a),end deletebegin insert (a) and exercise some or all of a lead agency’s
18powers under this chapter, except for permitting authority and
19vested rights determinations,end insert
thebegin delete board shall, based on the record
20of the public hearing,end delete
begin insert board, based on the record of the public
21hearing, shallend insert
adopt written findingsbegin delete whichend deletebegin insert thatend insert explain all of the
22following:

begin delete

23(1)

end delete

24begin insert(A)end insert The action to be taken by the board.

begin delete

25(2)

end delete

26begin insert(B)end insert Why the board decided to take the action.

begin delete

27(3)

end delete

28begin insert(C)end insert Why the action is authorizedbegin delete by,end deletebegin insert byend insert and meets the
29requirementsbegin delete of,end deletebegin insert ofend insert subdivision (a).

30begin insert(2)end insertbegin insertend insertIn addition, thebegin insert board’send insert findings shall address the significant
31issues raised, or written evidence presented, by affectedbegin delete surface
32miningend delete
operators, interested persons,begin delete orend delete the leadbegin delete agency.end deletebegin insert agency,
33or the department.end insert
The transcript of testimony and exhibits,
34together with all papers and requests filed in the proceedings, shall
35constitute the exclusive record for decision by the board.

begin insert

36(f) If the board finds at the hearing held pursuant to paragraph
37(2) of subdivision (c) that the lead agency has not completed the
38remedial plan prepared pursuant to clause (i) of subparagraph
39(B) of paragraph (2) of subdivision (c) to the board’s satisfaction,
40the board shall follow the procedures set forth in paragraph (2)
P46   1of subdivision (c) and subdivisions (d) and (e). If the board finds
2at the hearing held pursuant to paragraph (2) of subdivision (c)
3that the lead agency has completed the remedial plan prepared
4pursuant to clause (i) of subparagraph (B) of paragraph (2) of
5subdivision (c) to the board’s satisfaction, the board shall conclude
6the action it has taken pursuant to this section.

end insert
begin delete

7(f)

end delete

8begin insert(g)end insert The lead agency, any affectedbegin delete surface miningend delete operator, or
9any interested person who has presented oral or written evidence
10at the public hearing before the board pursuant to subdivision (d)
11may obtain review of the board’s action taken pursuant to
12subdivision (a) by filing in the superior court a petition for writ of
13mandate within 30 days following the issuance of the board’s
14decision. Section 1094.5 of the Code of Civil Procedure governs
15judicial proceedings pursuant to this subdivision, except that in
16every case the court shall exercise its independent judgment. If a
17petition for a writ of mandate is not filed within the time limits set
18by this subdivision, the board’s action under subdivision (a) shall
19not be subject to review by any court or agency.

20

begin deleteSEC. 12.end delete
21begin insertSEC. 15.end insert  

No reimbursement is required by this act pursuant to
22Section 6 of Article XIII B of the California Constitution because
23a local agency or school district has the authority to levy service
24charges, fees, or assessments sufficient to pay for the program or
25level of service mandated by this act, within the meaning of Section
2617556 of the Government Code.

27begin insert

begin insertSEC. 16.end insert  

end insert
begin insert

This act shall become operative only if both this bill
28and Senate Bill 209 of the 2015-16 Regular Session are enacted
29and become operative.

end insert


O

    93