Amended in Assembly July 16, 2015

Amended in Assembly July 7, 2015

Amended in Senate May 12, 2015

Amended in Senate March 19, 2015

Senate Bill No. 209

Introduced by Senator Pavley

February 11, 2015

An act to amend Sections 607, 2207, 2714, 2733, 2770, 2772, 2773.1, 2774, 2774.1, 2774.4, and 2776 of, and to add Sections 2006.5, 2736, 2772.1, and 2773.4 to, the Public Resources Code, relating to surface mining.

LEGISLATIVE COUNSEL’S DIGEST

SB 209, as amended, Pavley. Surface mining: inspections: financial assurances: reclamation plans.

(1) Existing law establishes the Office of Mine Reclamation within the Department of Conservation. Existing law requires the State Mining and Geology Board to impose, by regulation, an annual reporting fee on the operators of all active and idle mining operations. Existing law requires the maximum amount of the annual fee imposed on each mining operation to not exceed $4,000. Existing law limits the maximum amount of the total revenue generated from the reporting fee to no more than $3,500,000, as specified.

This bill would instead establish the Division of Mines within the department under the direction of the Supervisor of Mines and Reclamation. The bill also would raise the maximum amount of the annual reporting fee to $10,000 per mining operation, except as specified. The bill would raise the maximum amount of the total revenue generated from the reporting fee to $8,000,000, as specified.

(2) 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 final reclamation plan to the Director of Conservation, to incorporate specified items of information and documents in the submitted reclamation plan within certain timeframes; and require the director to take certain actions upon receiving a proposed final 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 also would require a lead agency or the board to conduct a specified public hearing if the lead agency has evidence that an operator is financially incapable of performing reclamation in accordance with its approved reclamation plan or that the operator has abandoned a surface mining operation without completing reclamation and to take appropriate actions to seize the operator’s financial assurances.

This bill would revise and recast provisions of the act related to the proof of financial assurances, as defined, and, among other things, would require an operator to establish an appropriate financial assurance mechanism within 30 days of a sale or transfer of a surface mining operation; require a lead agency to submit a surface mining operation’s proposed financial assurance cost estimate with a specified report 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 would require the Department of Conservation and the board, in consultation with begin insert the end insert Board begin delete of end delete begin insert for end insert Professional begin delete Engineers and end delete begin insert Engineers, end insert Land Surveyors, begin insert and Geologists, end insert to adopt regulations that set forth the minimum qualifications for a person conducting an inspection of a surface mining operation, as specified. The bill also would require the department to establish, no later than July 1, 2016, a training program for all surface mine inspectors, as specified.

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

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

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

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

SECTION 1.  

Section 607 of the Public Resources Code is
amended to read:

607.  

The work of the department shall be divided into at least
the following:

(a) California Geological Survey.

(b) Division of Oil, Gas, and Geothermal Resources.

(c) Division of Land Resource Protection.

(d) Division of Mines.

SEC. 2.  

Section 2006.5 is added to the Public Resources Code,
to read:

2006.5.  

“Supervisor of Mines and Reclamation” means the
individual directing the Division of Mines established pursuant to
subdivision (d) of Section 607.

SEC. 3.  

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

2207.  

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

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

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

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

(4) The lead agency.

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

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

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

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

(9) Proof of the most recently approved financial cost estimate
and the approved financial assurance cost mechanism.

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

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

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

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

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

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

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

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

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

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

(d) (1) The board shall impose, by regulation, pursuant to
paragraph (2), an annual reporting fee on, and method for collecting
annual fees from, each active or idle mining operation. The
maximum fee for any single mining operation may not exceed ten
thousand dollars ($10,000) annually and may not be less than one
hundred dollars ($100) annually, as adjusted for the cost of living
as measured by the California Consumer Price Index for all urban
consumers, calendar year averages, using the percentage change
in the previous year, except that the maximum fee for any single
mining operation shall not exceed six thousand dollars ($6,000)
in the 2016-17 fiscal year and eight thousand dollars ($8,000) in
the 2017-18 fiscal year.

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

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

(3) The total revenue generated by the reporting fees may not
exceed, and may be less than, the amount of eight million dollars
($8,000,000), as adjusted for the cost of living as measured by the
California Consumer Price Index for all urban consumers, calendar
year averages, using the percentage change in the previous year,
beginning with the 2016-17 fiscal year and annually thereafter. If
the director determines that the revenue collected during the
preceding fiscal year was greater or less than the cost to operate
the program, the board shall adjust the fees to compensate for the
overcollection or undercollection of revenues.

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

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

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

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

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

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

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

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

SEC. 4.  

Section 2714 of the Public Resources Code is amended
to read:

2714.  

This chapter does not apply to any of the following
activities:

(a) Excavations or grading of lands conducted for farming.

(b) Onsite excavation and onsite earthmoving activities that are
integral and necessary for the construction of structures and that
are undertaken to prepare a site for the construction of those
structures, including landscaping or other land improvements
associated with those structures, including the related excavation,
grading, compaction, or the creation of fills, road cuts, and
embankments, whether or not surplus materials are exported from
the site, subject to all of the following conditions:

(1) All required permits for the construction and any associated
landscaping or related land improvements have been approved by
a public agency in accordance with applicable provisions of state
law and locally adopted plans and ordinances, including, but not
limited to, the California Environmental Quality Act (Division 13
(commencing with Section 21000)).

(2) The lead agency’s approval of the construction project
included consideration of the onsite excavation and onsite
earthmoving activities pursuant to the California Environmental
Quality Act (Division 13 (commencing with Section 21000)).

(3) The approved construction project is consistent with the
general plan or zoning of the site.

(4) Surplus materials shall not be exported from the site unless
and until actual construction work has commenced and shall cease
if it is determined that construction activities have terminated, have
been indefinitely suspended, or are no longer being actively
pursued.

(c) Operation of a plant site used for mineral processing,
including associated onsite structures, equipment, machines, tools,
or other materials, including the onsite stockpiling and onsite
recovery of mined materials, subject to all of the following
conditions:

(1) The plant site is located on lands designated for industrial
or commercial uses in the applicable county or city general plan.

(2) The plant site is located on lands zoned industrial or
commercial or are contained within a zoning category intended
exclusively for industrial activities by the applicable city or county.

(3) None of the minerals being processed are being extracted
onsite.

(4) All reclamation work has been completed pursuant to the
approved reclamation plan for any mineral extraction activities
that occurred onsite after January 1, 1976.

(d) Prospecting for or the extraction of minerals for commercial
purposes where the removal of overburden or mineral product
totals less than 1,000 cubic yards in any one location and the total
surface area disturbed is less than one acre.

(e) Surface mining operations that are required by federal law
in order to protect a mining claim, if those operations are conducted
solely for that purpose.

(f) Any other surface mining operations that the board
determines to be of an infrequent nature and that involve only
minor surface disturbances.

(g) The solar evaporation of sea water or bay water for the
production of salt and related minerals.

(h) Emergency excavations or grading conducted by the
Department of Water Resources or the begin delete Reclamation end delete Central Valley
Flood Protection Board for the purpose of averting, alleviating,
repairing, or restoring damage to property due to imminent or
recent floods, disasters, or other emergencies.

(i) (1) Surface mining operations conducted on lands owned
or leased, or upon which easements or rights-of-way have been
obtained, by the Department of Water Resources for the purpose
of the State Water Resources Development System or flood control,
and surface mining operations on lands owned or leased, or upon
which easements or rights-of-way have been obtained, by the
Central Valley Flood Protection Board for the purpose of flood
control, if the Department of Water Resources adopts, after
submission to and consultation with, the department, a reclamation
plan for lands affected by these activities, and those lands are
reclaimed in conformance with the standards specified in
regulations of the board adopted pursuant to this chapter. The
Department of Water Resources shall provide an annual report to
the department by the date specified by the department on these
mining activities.

(2) Nothing in this subdivision shall require the Department of
Water Resources or the Central Valley Flood Protection Board to
obtain a permit or secure approval of a reclamation plan from any
city or county in order to conduct surface mining operations
specified in paragraph (1). Nothing in this subdivision shall
preclude the bringing of an enforcement action pursuant to Section
2774.1, if it is determined that a surface mine operator, acting
under contract with the Department of Water Resources or the
begin delete Reclamation end delete Central Valley Flood Protection Board on lands other
than those owned or leased, or upon which easements or
rights-of-way have been obtained, by the Department of Water
Resources or the begin delete Reclamation end delete Central Valley Flood Protection
Board, is otherwise not in compliance with this chapter.

(j) (1) Excavations or grading for the exclusive purpose of
obtaining materials for roadbed construction and maintenance
conducted in connection with timber operations or forest
management on land owned by the same person or entity. This
exemption is limited to excavation and grading that is conducted
adjacent to timber operation or forest management roads and shall
not apply to onsite excavation or grading that occurs within 100
feet of a Class One watercourse or 75 feet of a Class Two
watercourse, or to excavation for materials that are, or have been,
sold for commercial purposes.

(2) This exemption shall be available only if slope stability and
erosion are controlled in accordance with subdivision (f) of Section
3704 and subdivision (d) of Section 3706 of Title 14 of the
California Code of Regulations and, upon closure of the site, the
person closing the site implements, where necessary, revegetation
measures and postclosure uses in consultation with the Department
of Forestry and Fire Protection.

(k) Excavations, grading, or other earthmoving activities in an
oil or gas field that are integral to and necessary for ongoing
operations for the extraction of oil or gas that comply with all of
the following conditions:

(1) The operations are being conducted in accordance with
Division 3 (commencing with Section 3000).

(2) The operations are consistent with any general plan or zoning
applicable to the site.

(3) The earthmoving activities are within oil or gas field
properties under a common owner or operator.

(4) No excavated materials are sold for commercial purposes.

(l) (1) The immediate excavation or grading of lands affected
by a natural disaster for the purpose of restoring those lands to
their prior condition.

(2) The immediate removal of material deposited by a flood
onto lands being farmed for the purpose of restoring those lands
to their prior condition.

SEC. 5.  

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

2733.  

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

SEC. 6.  

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

2736.  

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

SEC. 7.  

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

2770.  

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

(b) A person with an existing surface mining operation who has
vested rights pursuant to Section 2776 and who does not have an
approved reclamation plan shall submit a reclamation plan to the
lead agency not later than March 31, 1988. If a reclamation plan
application is not on file by March 31, 1988, the continuation of
the surface mining operation is prohibited until a reclamation plan
is submitted to the lead agency.

(c) [Reserved]

(d) [Reserved]

(e) A person who, based on the evidence of the record, can
substantiate that a lead agency has either (1) failed to act according
to due process or has relied on considerations not related to the
specific applicable requirements of Sections 2772, 2773, and
2773.1, and the lead agency surface mining ordinance adopted
pursuant to subdivision (a) of Section 2774, in reaching a decision
to deny approval of a reclamation plan or financial assurances for
reclamation, or (2) failed to act within a reasonable time of receipt
of a completed application, may appeal that action or inaction to
the board.

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

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

(h) (1) Within 90 days of a surface mining operation becoming
idle, as defined in Section 2727.1, the operator shall submit to the
lead agency for review and approval an interim management plan.
The review and approval of an interim management plan shall not
be considered a project for purposes of the California
Environmental Quality Act (Division 13 (commencing with Section
21000)). The approved interim management plan shall be
considered an amendment to the surface mining operation’s
approved reclamation plan for purposes of this chapter. The interim
management plan shall provide measures the operator will
implement to maintain the site in compliance with this chapter,
including, but not limited to, all permit conditions.

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

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

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

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

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

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

(6) Unless review of an interim management plan is pending
before the lead agency or an appeal is pending before the lead
agency’s governing body, a surface mining operation that remains
idle for over one year after becoming idle, as defined in Section
2727.1, without obtaining approval of an interim management plan
shall be considered abandoned and the operator shall commence
and complete reclamation in accordance with the approved
reclamation plan.

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

SEC. 8.  

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

2772.  

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

(b) [Reserved]

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

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

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

(3) The proposed dates for the initiation of mining operations
and the completion of mining and reclamation of the surface mining
operation.

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

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

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

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

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

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

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

(F) All maps, diagrams, or calculations that require preparation
in accordance with the Professional Engineers Act (Chapter 7
(commencing with Section 6700) of Division 3 of the Business
and Professions Code), the Geologist and Geophysicist Act
(Chapter 12.5 (commencing with Section 7800) of Division 3 of
the Business and Professions Code), or the Professional Land
Surveyors’ Act (Chapter 15 (commencing with Section 8700) of
Division 3 of the Business and Professions Code) shall be prepared
by begin delete a end delete begin insert an appropriately licensed end insert California-licensed professional,
shall include his or her license number and name, and shall bear
the signature and seal of the licensee.

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

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

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

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

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

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

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

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

(d) An item of information or a document required pursuant to
this chapter, including subdivision (c), that has already been
prepared as part of a permit application for the surface mining
operation, or as part of an environmental document prepared for
the project pursuant to the California Environmental Quality Act
(Division 13 (commencing with Section 21000)), or required as a
condition of approval, shall be included in the reclamation plan.
Regulatory aspects that are solely of a local concern shall not be
included in the reclamation plan. To the extent the information or
document referenced in the reclamation plan is used to meet the
requirements of this chapter, including subdivision (c), the
information or document shall become part of the reclamation plan
and shall be subject to all other requirements of this chapter.

(e) This section does not limit or expand the Supervisor of Mines
and Reclamation’s authority or responsibility to review a document
in accordance with the California Environmental Quality Act
(Division 13 (commencing with Section 21000)).

SEC. 9.  

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

2772.1.  

(a) (1) Prior to approving a surface mining operation’s
reclamation plan or plan amendments, the lead agency shall submit
the proposed final reclamation plan or amendments to the director
for review. All documentation for the submission shall be submitted
to the director at one time.

(2) An item of information or a document required pursuant to
this chapter, including subdivision (c) of Section 2772, that has
been prepared as part of a permit application for the surface mining
operation, not including aspects that are solely of a local concern,
or as part of an environmental document prepared for the project
pursuant to the California Environmental Quality Act (Division
13 (commencing with Section 21000)) shall be incorporated into
the proposed final reclamation plan. An item of information or a
document that is incorporated shall be inserted into the
corresponding section of the proposed final reclamation plan or
attached to the proposed final reclamation plan with a specific
reference in the corresponding section of the proposed final
reclamation plan. Any information or document incorporated into
the proposed final reclamation plan shall become part of the
approved reclamation plan and shall be subject to all other
requirements of this article.

(3) The lead agency shall certify to the director that the proposed
final reclamation plan is a complete submission and is in
compliance with all of the following:

(A) The applicable requirements of this chapter, including
subdivision (c) of Section 2772.

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

(C) The lead agency’s surface mining ordinance in effect at the
time that the proposed final reclamation plan is submitted to the
director for review.

(b) (1) The director shall have 30 days from the date of receipt
of a proposed final reclamation plan or plan amendments submitted
pursuant to subdivision (a) to prepare written comments if the
director chooses.

(2) If the director determines that the lead agency’s submission
pursuant to begin delete this end delete subdivision (a) is incomplete or that the submission
includes maps, begin delete diagrams end delete begin insert diagrams, end insert or calculations that require
preparation by begin delete a California licensed end delete begin insert an appropriately licensed
California-licensed end insert professional, the director shall return the
submission to the lead agency. The director shall identify the
incomplete components or those maps, diagrams, or calculations
that require completion by begin delete a California licensed end delete begin insert an appropriately
licensed California-licensed end insert professional. The review by the
director pursuant to paragraph (1) shall not begin until the director
receives a complete submission, including maps, diagrams, or
calculations prepared by begin delete a California licensed end delete begin insert an appropriately
licensed California-licensed end insert professional.

(3) (A) The lead agency shall review and evaluate and prepare
a written response to the director’s comments received pursuant
to paragraph (1) describing the disposition of the major issues
raised by the comments. The lead agency shall submit the lead
agency’s response to the director at least 30 days prior to the
intended approval of the proposed final reclamation plan or plan
amendment. The lead agency’s response shall include either of the
following:

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

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

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

(C) (i) The lead agency shall give the director at least 30 days’
notice of the time, place, and date of the hearing at which the
proposed final reclamation plan or plan amendment is scheduled
to be approved by the lead agency.

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

(D)  Within 30 days following approval of the reclamation plan,
the lead agency shall provide the director notice of the approval
and a statement that identifies any additional conditions or other
permit requirements imposed upon the surface mining operation.
During that time, the department shall retain all of its powers,
duties, and authorities pursuant to this chapter. The lead agency
shall provide, as soon as practicable, but no later than 60 days after
approval of the reclamation plan, both of the following:

(i) Certified copies of all maps, diagrams, or calculations signed
and sealed by begin delete a end delete begin insert an appropriately licensed end insert California-licensed
professional.

(ii) A certified copy of the approved reclamation plan
incorporating all approved modifications to the proposed final
reclamation plan.

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

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

(d) This section does not limit or expand the Supervisor of Mines
and Reclamation’s authority or responsibility to review a document
in accordance with the California Environmental Quality Act
(Division 13 (commencing with Section 21000)).

SEC. 10.  

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

2773.1.  

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

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

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

(3) The amount of financial assurances required of a surface
mining operation for any one year shall be adjusted annually to
account for new lands disturbed by surface mining operations,
inflation, and reclamation of lands accomplished in accordance
with the approved reclamation plan.

(4) Each financial assurance mechanism shall be made payable
to the lead agency and the department. A financial assurance
mechanism shall not be released without the written consent of
the lead agency and the department. Financial assurance
mechanisms that were approved by the lead agency prior to January
1, 1993, and were made payable to the State Geologist shall be
considered payable to the department for purposes of this chapter.
However, if a surface mining operation has received approval of
its financial assurances from a public agency other than the lead
agency, the lead agency shall deem those financial assurances
adequate for purposes of this section, or shall credit them toward
fulfillment of the financial assurances required by this section, if
they are made payable to the public agency, the lead agency, and
the department and otherwise meet the requirements of this section.
In any event, if a lead agency and one or more public agencies
exercise jurisdiction over a surface mining operation, the total
amount of financial assurances required by the lead agency and
the public agencies for any one year shall not exceed that amount
which is necessary to perform reclamation of lands remaining
disturbed. For purposes of this paragraph, a “public agency” may
include a federal agency.

(b) (1) If the lead agency has evidence that an operator is
financially incapable of performing reclamation in accordance
with its approved reclamation land or that the operator has
abandoned the surface mining operation without completing
reclamation, the lead agency or the board shall conduct a public
hearing with notice of the hearing provided to the operator and the
department at least 30 days prior to the hearing.

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

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

(B) (i) Proceed to take appropriate action to seize the financial
assurances and use the proceeds from the financial assurances to
conduct and complete reclamation in accordance with the approved
reclamation plan.

(ii) If the surface mining operation cannot be reclaimed in
accordance with its approved reclamation plan or the financial
assurances are inadequate to reclaim in accordance with the
approved reclamation plan, the lead agency or the director may
use the proceeds of the financial assurances to reclaim or remediate
mining disturbances as appropriate for the site conditions, as
determined by the lead agency and the director. The proceeds of
the financial assurances shall not be used for any other purpose.

(iii) The operator is responsible for the costs of conducting and
completing reclamation in accordance with the approved
reclamation plan or a remediation plan developed pursuant to this
section, as determined to be appropriate by the lead agency and
director, that are in excess of the proceeds of the financial
assurances.

(c) Financial assurances shall no longer be required of a surface
mining operation, and shall be released, upon written concurrence
by the lead agency and the director, which shall be forwarded to
the operator, that reclamation has been completed in accordance
with the approved reclamation plan. If a begin insert surface end insert mining operation
is sold or ownership is transferred to another person, the existing
financial assurances shall remain in force and shall not be released
by the lead agency and the director until new financial assurances
are secured from the new owner and have been approved by the
lead agency in accordance with Sections 2770 and 2773.1. Within
30 days of the sale or transfer of the surface mining operation, the
new operator shall establish an appropriate financial assurance
mechanism and sign a new statement pursuant to paragraph (10)
of subdivision (c) of Section 2772.

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

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

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

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

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

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

The director shall comply with subdivision (b) in seizing the
financial assurances and reclaiming mine sites.

(e) The board may adopt regulations specifying financial
assurance mechanisms other than surety bonds, irrevocable letters
of credit, and trust begin delete funds, end delete begin insert funds end insert that the board determines are
reasonably available and adequate to ensure reclamation pursuant
to this chapter, but these mechanisms shall not include solely
financial tests or surety bonds executed by one or more personal
sureties. These mechanisms may include reclamation bond pool
programs or corporate financial tests, as described in subdivision
(f), combined with additional financial assurance mechanisms, as
identified in this section, that together ensure the completion of
reclamation in accordance with the approved reclamation plan.

(f) (1) Corporate financial tests shall provide for no more than
75 percent of the financial assurance cost estimate approved within
the last year. Use of a financial test shall meet all of the following
requirements:

(A) Be annually approved by both the lead agency and the
director and may be disallowed by either the lead agency or the
director.

(B) Include an assessment from an independent certified public
accountant using generally accepted accounting principles in the
United States.

(2) Corporate financial tests shall only be allowed after the board
adopts a regulation that establishes a comprehensive analysis of a
corporation’s financial status that includes financial net worth;
income; liabilities, including other environmental assurances; and
assets located within the United States. The regulation shall include
additional measures to provide the lead agency or the director with
begin insert the end insert recovery of costs associated with the full collection and
satisfaction of the financial assurance mechanisms.

(3) A surface mining operation shall have at least 25 percent of
the financial assurance cost estimate or four million dollars
($4,000,000), whichever is greater, in an acceptable financial
assurance mechanism other than a corporate financial test.

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

SEC. 11.  

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

2773.4.  

(a) (1) Prior to approving the financial assurances of
a surface mining operation pursuant to Sections 2770 and 2773.1,
the lead agency shall submit the proposed financial assurance cost
estimate, with a statement that it is adequate to reclaim the surface
mining operation in accordance with the approved reclamation
plan, to the director for review. All documentation for that
submission shall be complete and submitted to the director at one
time.

(2) If the director determines that the lead agency’s submission
pursuant to paragraph (1) is incomplete, the director shall return
the submission to the lead agency, specifically noting those
elements of the cost estimate that are incomplete. The review by
the director pursuant to subdivision (b) shall not begin until the
director receives a complete submission.

(b) The director shall have 45 days from the date of receipt of
a complete financial assurances cost estimate pursuant to
subdivision (a) to prepare written comments or request a
reassessment if the director chooses.

(c) (1) (A) If the director can demonstrate that the proposed
financial assurance cost estimate is inadequate to reclaim the
surface mining operation in accordance with the approved
reclamation plan, the director may request a reassessment by the
lead agency.

(B) If the director requests a reassessment of a financial
assurance cost estimate, the lead agency shall reassess and resubmit
the proposed financial assurance cost estimate within 45 days of
the director’s request.

(2) If the lead agency or operator disagrees with the director’s
request for reassessment, or the director determines that a financial
assurance cost estimate resubmitted pursuant to this subdivision
remains inadequate, the lead agency, operator, or director may
request a review hearing by the board.

(3) Financial assurance costs estimates shall not be approved
pending the director’s request for reassessment pursuant to this
subdivision.

(4) Financial assurance cost estimates determined to be
inadequate by the board shall be returned to the lead agency for
reassessment and resubmission to the director pursuant to this
section. Financial assurance cost estimates determined to be
adequate by the board may be approved by the lead agency.

(d) (1) The lead agency shall prepare a written response to the
director’s comments, if any, describing the disposition of the major
issues raised by the director’s comments. The lead agency shall
submit its proposed response to the director at least 30 days prior
to approval of the financial assurance cost estimate and shall
include either of the following:

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

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

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

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

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

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

(e) (1) Within 30 days of begin insert the end insert lead begin delete agency end delete begin insert agency’s end insert approval of
the financial assurance cost estimate, the operator shall provide
the lead agency and the director an appropriate financial assurance
mechanism that is at least equal to the approved financial assurance
cost estimate.

(2) Within 15 days of receipt of a financial assurance
mechanism, the lead agency and the director shall review the
financial assurance mechanism to determine if the type of
mechanism, including release instructions, complies with the
requirements of this chapter.

(3) Financial assurance mechanisms determined to be
noncompliant with this chapter shall be returned to the operator,
with instructions on how to correct the type or release instructions
of the financial assurance mechanism.

(f) To the extent there is a conflict between the comments of a
trustee agency or a responsible agency that are based on that
agency’s statutory or regulatory authority and the comments of
other commenting agencies that are received by the lead agency
pursuant to the California Environmental Quality Act (Division
13 (commencing with Section 21000)) regarding a financial
assurance cost estimate or financial assurance mechanism, the lead
agency shall consider only the comments of the trustee agency or
responsible agency.

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

SEC. 12.  

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

2774.  

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

(b) (1) The lead agency shall conduct an inspection of a surface
mining operation within six months of receipt by the lead agency
of the surface mining operation’s report submitted pursuant to
Section 2207, solely to determine whether the surface mining
operation is in compliance with this chapter. A lead agency shall
not inspect a surface mining operation less than once in any
calendar year. The lead agency shall cause an inspection to be
conducted by an individual begin delete who end delete qualified pursuant to paragraph
(2), including, but not limited to, a begin delete state licensed end delete begin insert state-licensed end insert
geologist or begin delete state licensed end delete begin insert state-licensed end insert civil engineer, who is
experienced in land reclamation and who has not been employed
by a surface mining operation within the jurisdiction of the lead
agency in any capacity during the previous 12 months, except that
a lead agency employee who is not an independent contractor may
inspect surface mining operations within the local agency provided
the employee satisfies the provisions of paragraph (2) and
subdivision (c). All inspections shall be conducted using a form
developed by the department and approved by the board that
includes the relevant professional licensing and disciplinary
information of the person qualified pursuant to paragraph (2) who
conducted the inspection. The operator shall be solely responsible
for the reasonable cost of the inspection. The lead agency shall
notify the director within 60 days of the date of completion of the
inspection that the inspection has been conducted. The inspection
notice shall contain a statement regarding the surface mining
operation’s compliance with this chapter, shall include a copy of
the completed inspection form, and shall specify which aspects of
the surface mining operations, if any, are inconsistent with this
chapter and those noncompliant aspects that have been corrected
following the inspection, with proof of correction. For each
remaining noncompliant aspect, the lead agency shall provide to
the director a copy of the notice of violation, the notice of violation
combined with an order to comply pursuant to Section 2774.1, or
a statement that indicates the lead agency does not intend to initiate
an enforcement action pursuant to Section 2774.1. If the surface
mining operation has a review of its reclamation plan, financial
assurances, or an interim management plan pending under
subdivision (b) or (h) of Section 2770, or an appeal pending before
the board or lead agency governing body under subdivision (e) or
(h) of Section 2770, the inspection notice shall so indicate. The
lead agency shall forward to the operator a copy of the inspection
notice, a copy of the completed inspection form, and any supporting
documentation, including, but not limited to, any inspection report
prepared by the individual qualified pursuant to paragraph (2).

(2) (A) The department and the board, in consultation with the
Board begin delete of Professional Engineers and Land Surveyors end delete begin insert for
Professional Engineers, Land Surveyors, and Geologists end insert , shall
adopt regulations that set forth the minimum qualifications for a
person conducting an inspection of a surface mining operation
pursuant to this chapter. The regulations shall delineate those
aspects of an inspection that require the inspector to meet state
licensure requirements.

(B) Beginning January 1 of the year following adoption of the
regulations required pursuant to subparagraph (A), but not less
than 180 days after adoption, all surface mine inspections shall be
performed by a qualified individual.

(c) (1) On or before July 1, 2016, the department shall establish
a training program for all surface mine inspectors. The program
shall be designed to include a guidance document, developed by
the department and approved by the board, to provide instruction
and recommendations to surface mine inspectors performing
inspections pursuant to subdivision (b).

(2) The training program shall include no less than four
inspection workshops per year, offered by the department, in
different regions of the state, to provide practical application of
the guidance document material.

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

(d) In addition to subdivision (b), lead agencies or the Supervisor
of Mines and Reclamation may inspect at any time begin delete all end delete begin insert a end insert surface
mining begin delete operations end delete begin insert operation end insert to determine if the operation is in
compliance with this chapter and Section 2207.

(e) The approval of the guidance document by the board
pursuant to subdivision (c) is not the adoption of a regulation for
the purposes of the Administrative Procedure Act (Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title
2 of the Government Code) and is not subject to that chapter.

SEC. 13.  

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

2774.1.  

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

(b) An order to comply issued under subdivision (a) shall take
effect 30 days following service unless the operator within that
30-day period requests a hearing before the lead agency for orders
issued by the lead agency, or the board for orders issued by the
director, concerning the alleged violation. An order to comply
shall specify which aspects of the surface mine’s activities or
operations are inconsistent with this chapter, shall specify a time
for compliance that the lead agency or director determines is
reasonable, not to exceed two years, taking into account the
seriousness of the violation and any good faith efforts to comply
with applicable requirements, and may include an administrative
penalty imposed pursuant to subdivision (c). If a lead agency or
the director determines compliance with an order to comply will
exceed two years, the board may specify a longer period based on
an application and showing of good cause.

(c) (1) In an order to comply pursuant to subdivision (b), the
lead agency or the director may impose an administrative penalty
of not more than five thousand dollars ($5,000) per day, assessed
from the original date of noncompliance with this chapter. The
penalty may be imposed administratively by the lead agency or
the director. In determining the amount of the administrative
penalty, the lead agency or the director shall take into consideration
the nature, circumstances, extent, and gravity of the violation or
violations, any prior history of violations, the degree of culpability,
economic savings, if any, resulting from the violation, and any
other matters justice may require.

(2) If an operator fails to comply with an order to comply that
did not originally impose an administrative penalty, or if an
operator fails to submit a report or pay annual fees to the director
or lead agency pursuant to Section 2207, the lead agency or director
may impose an administrative penalty pursuant to this paragraph.
The administrative penalty shall become effective upon issuance
of the assessment and payment shall be made to the lead agency
or the director within 30 days, unless the operator petitions the
legislative body of the lead agency, the board, or the superior court
for review as provided in Section 2774.2. An assessment shall be
served by personal service or by certified mail upon the operator.

(3) Penalties collected by the director shall not be used for
purposes other than to cover the reasonable costs incurred by the
director in implementing this chapter or Section 2207.

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

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

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

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

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

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

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

SEC. 14.  

Section 2774.4 of the Public Resources Code is
amended to read:

2774.4.  

(a) The board shall exercise some or all of a lead
agency’s powers under this chapter pursuant to subdivision (c),
except for permitting authority and vested rights determinations
pursuant to Section 2776, if the board finds that a lead agency has
done any of the following:

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

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

(3) Failed to seize the financial assurances and to carry out the
reclamation of surface mining operations as required by this
chapter.

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

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

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

(b) The board shall conduct a public hearing no sooner than
three years after the board has taken action pursuant to subdivision
(a) to determine if a lead agency has corrected its deficiencies in
implementing and enforcing this chapter and the rules and
regulations adopted pursuant to this chapter or has developed a
program that will adequately administer this chapter and Section
2207. If the board finds sufficient evidence of correction or the
development of a program to adequately implement this chapter
and Section 2207, the board shall restore to the lead agency some
or all of the powers assumed by the board pursuant to subdivision
(a).

(c) Before taking any action pursuant to subdivision (a), the
board shall first conduct a hearing, providing 30 days’ notice to
the lead agency, and shall determine if the lead agency has engaged
in conduct described in subdivision (a). If the board finds that the
lead agency has engaged in conduct described in subdivision (a),
the board shall do either of the following:

(1) (A) Require the lead agency to develop a remedial plan to
correct the noted deficiencies. The remedial plan shall describe
specific objectives and corresponding processes designed to
address, at a minimum, the noted deficiencies and a time that the
remedial plan will be fully implemented.

(B) The board shall set a hearing to review the completion of
the remedial plan consistent with paragraph (2) and subdivisions
(d) and (e).

(2) Take immediate action pursuant to subdivision (a) and hold
a public hearing within the lead agency’s area of jurisdiction, upon
a 45-day written notice given to the public in at least one newspaper
of general circulation within the city or county and directly mailed
to the lead agency and to all operators within the lead agency’s
jurisdiction who have submitted reports as required by Section
2207.

(d) Affected operators and interested persons have the right at
the public hearing to present oral and written evidence on the
matter being considered. The board, at the public hearing, may
place reasonable limits on the right of affected operators and
interested persons to question and solicit testimony.

(e) (1)  begin delete The end delete begin insert If the end insert board decides to take action pursuant to
subdivision (a) and exercise some or all of a lead agency’s powers
pursuant to this chapter, except for permitting authority and vested
rights determinations pursuant to Section 2776, the board shall,
based on the record of the public hearing, adopt written findings
that explain all of the following:

(A) The action to be taken by the board.

(B) Why the board decided to take the action.

(C) Why the action is authorized by and meets the requirements
of subdivision (a).

(2) In addition, the findings shall address the significant issues
raised or written evidence presented by affected operators,
interested persons, the lead agency, or the department and findings
from any review of the lead agency’s administrative and
enforcement program. The transcript of testimony and exhibits,
together with all papers and requests filed in the proceedings, shall
constitute the exclusive record for decision by the board.

(f) If the board finds that the lead agency has not satisfactorily
completed the remedial plan prepared pursuant to paragraph (1)
of subdivision (c), the board shall follow the procedures set forth
in paragraph (2) of subdivision (c) and subdivisions (d) and (e).

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

SEC. 15.  

Section 2776 of the Public Resources Code is
amended to read:

2776.  

(a) (1) A person who has obtained a vested right to
conduct surface mining operations prior to January 1, 1976, shall
not be required to secure a permit pursuant to this chapter as long
as the vested right continues and as long as no substantial changes
are made in the operation except in accordance with this chapter.
A person shall be deemed to have vested rights if, prior to January
1, 1976, the person has, in good faith and in reliance upon a permit
or other authorization, if the permit or other authorization was
required, diligently commenced surface mining operations and
incurred substantial liabilities for work and materials necessary
for the surface mining operations. Expenses incurred in obtaining
the enactment of an ordinance in relation to a particular operation
or the issuance of a permit shall not be deemed liabilities for work
or materials.

(2) A lead agency shall maintain records associated with a vested
right determination.

(b) The reclamation plan required to be filed pursuant to
subdivision (b) of Section 2770 shall apply to operations conducted
after January 1, 1976, or to be conducted.

(c) Nothing in this chapter shall be construed as requiring the
filing of a reclamation plan for or the reclamation of mined lands
on which surface mining operations were conducted prior to
January 1, 1976.

SEC. 16.  

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