BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                       AB 1142|
          |Office of Senate Floor Analyses   |                              |
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                                   THIRD READING 


          Bill No:  AB 1142
          Author:   Gray (D) 
          Amended:  3/16/16 in Senate
          Vote:     21  

           SENATE NATURAL RES. & WATER COMMITTEE:  8-0, 7/14/15
           AYES:  Pavley, Allen, Hertzberg, Hueso, Jackson, Monning,  
            Vidak, Wolk
           NO VOTE RECORDED:  Stone

           SENATE APPROPRIATIONS COMMITTEE:  5-0, 8/27/15
           AYES:  Lara, Beall, Hill, Leyva, Mendoza
           NO VOTE RECORDED:  Bates, Nielsen

           ASSEMBLY FLOOR:  73-1, 6/4/15 - See last page for vote

           SUBJECT:   Mining and geology:  surface mining


          SOURCE:    Author
          
          DIGEST:  This bill makes numerous changes to the state surface  
          mining provisions regarding reclamation plans, financial  
          assurances, annual inspections, and enforcement. It is subject  
          to a contingent enactment provision that is also attached to SB  
          209 (Pavley), another surface mining reform bill.  

          Senate Floor Amendments of 3/16/16 reflect an agreement between  
          the author and Senator Pavley to divide the subject matter of  
          two surface mining bills.  Both bills have been amended to  
          reflect a consensus with the administration, local governments,  
          industry representatives, and conservation groups. Many of the  
          provisions in AB 1142 received policy committee analysis when  








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          considered in SB 209. All of the provisions in both bills were  
          the subject of extensive negotiation by a stakeholder process  
          convened by the administration. 

          ANALYSIS:   


          Existing law: 


            1)  Prohibits surface mining, with exceptions, unless a permit  
              is obtained from, a specified reclamation plan is submitted  
              and approved by, and financial assurances have been approved  
              by the lead agency (usually a local government) for the  
              operation of the surface mining operation. Operators are  
              entitled to be in "substantial compliance" with these  
              provisions. 

            2)  Requires annual inspections of surface mining operations  
              by the lead agency to be performed by a state-licensed  
              architect, civil engineer, landscape architect, or forester.  


            3)  Requires the lead agency to have primary responsibility  
              for enforcement and establishes deadlines when that  
              responsibility is transferred to the director of the  
              Department of Conservation (DOC). 

           This bill: 

            1)  Revises reclamation plan requirements to include more  
              thorough information including maps, dates of initiation and  
              termination of mining, depth of mining, and other data so  
              that they are more likely to be complete. To the extent  
              these documents require preparation by a licensed  
              professional, the bill requires that a licensed professional  
              prepare the document and include his or her license number,  
              signature, and seal. This provision refers to documents  
              prepared by professional engineers, geologists, or land  
              surveyors. 

            2)  Establishes a process for operators to correct  
              deficiencies identified by the DOC in reclamation plans. 








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            3)  Establishes a process for the lead agency to submit  
              reclamation plans to the director for review and for the  
              review and comment of the director back to the lead agency. 

            4)  Revises the financial assurance provisions of the state  
              surface mining law to require upgrades when shown to be  
              necessary by the annual inspections and requires the lead  
              agency to submit the financial assurances to the director. 

            5)  Standardizes the financial assurances cost estimates in a  
              new format that will be developed by the director and  
              approved by the State Mining and Geology Board (board).

            6)  Revises the appeals procedures for review of financial  
              assurances and allows the director to appeal to the board.  
              Incomplete financial assurances may be remanded to the lead  
              agency. 

            7)  Establishes, in cases where the lead agency determines  
              that an operator may be financially incapable of performing  
              reclamation in accordance with a reclamation plan, a  
              procedure to forfeit the financial assurances following a  
              public hearing that meets specified conditions.  

            8)  Requires actual compliance with the act for purposes of  
              determining compliance with the reclamation plan and  
              financial assurances requirements. 

            9)  Requires, for annual inspections, proof of such  
              inspections, and authorizes counties to use their own  
              employees for such inspections assuming those employees meet  
              the inspection training criteria that are also created in  
              this bill. 

            10) Revises and recasts the provisions related to enforcement  
              to eliminate procedural dead-ends that were in the prior  
              law. It also authorizes the director or the board to apply  
              to small claims court to collect unpaid administrative  
              penalties. 

            11) Gives the board more options for oversight of local lead  
              agencies to improve the performance of lead agencies other  
              than removing them from their status as lead agency. 








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            12) Makes many other technical and procedural changes to the  
              state's surface mining law. 

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

          According to the Senate Appropriations Committee, there are  
          unknown costs to the Surface Mining and Reclamation Account  
          (special) for additional review by the director of reclamation  
          plans and financial assurances.


          SUPPORT:   (Verified 3/23/16)


          Associated Builders and Contractors of California
          BoDean Company
          California Asphalt Pavement Association
          California Business Properties Association 
          California Chamber of Commerce
          California Construction and Industrial Materials Association
          California Independent Petroleum Association
          California Labor Federation
          California Manufacturers and Technology Association
          CalPortland Company 
          Cemex
          Environmental Working Group
          Fullerton Chamber of Commerce
          George Reed Inc. 
          Granite 
          Knife River Corporation
          Lehigh Hanson
          Minerals Technologies 
          National Federation of Independent Business
          P.W. Gillibrand Co. 
          Puente Ready Mix
          Robertson's Rock and Sand
          Rural County Representatives of California
          Searles Valley Materials
          Southwest California Legislative Council 
          Specialty Minerals
          Superior Ready Mix
          Teichert Materials
          The Sierra Fund 







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          United Contractors
          Vulcan Materials Company
          Werner Corporation


          OPPOSITION:   (Verified 3/23/16)


          None received


          ARGUMENTS IN SUPPORT:     According to the author, the Governor  
          called for a top to bottom review of the state mining law in his  
          signing message of SB 447 (Lara) in 2013. The author believes  
          this bill strengthens the mining law to ensure effective  
          communication between local lead agencies, the state, and mine  
          operators. The bill sets appropriate and timely inspection  
          schedules, promotes management flexibility while ensuring each  
          facility's compliance obligations are clear, and incorporates  
          numerous concepts from the administration's stakeholder process  
          that are designed to strengthen the review of approvals pursuant  
          to the state's mining law. 


          The California Construction and Industrial Materials Association  
          states that AB 1142 provides clarity and timelines to important  
          existing processes required under existing law. The group, and  
          the other business interests in support, argue that the bill  
          provides clarity regarding the content of reclamation plans and  
          financial assurances but in ways that are flexible enough to  
          allow future approvals for the benefit of operators. 


          A business coalition headed by the California Chamber of  
          Commerce supports the improvements to the inspection process, to  
          the financial assurance provisions, and to the enhanced  
          oversight of the financial assurance provisions, while at the  
          same time ensuring that construction aggregates remain viable  
          and cost-effective. 


          The California Labor Federation supports the bill because the  
          improvements to the state's mining laws minimize impacts to  
          existing jobs. 







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          The Sierra Fund and the Environmental Working Group support this  
          bill because of the improvements made to the inspection,  
          financial assurance, enforcement, and reclamation plan  
          provisions. 


          The California League of Conservation Voters has removed its  
          opposition. 

          ASSEMBLY FLOOR:  73-1, 6/4/15
          AYES:  Achadjian, Travis Allen, Baker, Bigelow, Bloom, Bonilla,  
            Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau,  
            Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly,  
            Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina  
            Garcia, Eduardo Garcia, Gatto, Gipson, Gonzalez, Gray, Grove,  
            Hadley, Harper, Roger Hernández, Holden, Irwin, Jones,  
            Jones-Sawyer, Kim, Lackey, Linder, Lopez, Low, Maienschein,  
            Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Obernolte,  
            O'Donnell, Olsen, Patterson, Perea, Quirk, Ridley-Thomas,  
            Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond,  
            Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins
          NOES:  Levine
          NO VOTE RECORDED:  Alejo, Gomez, Gordon, Nazarian, Rendon, Ting

          Prepared by:William Craven / N.R. & W. / (916) 651-4116
          3/28/16 10:28:57


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