BILL ANALYSIS �
AB 1609
Page 1
Date of Hearing: May 9, 2012
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 1609 (Lara) - As Amended: April 25, 2012
Policy Committee: Natural
ResourcesVote:9-0
Urgency: No State Mandated Local Program:
No Reimbursable: No
SUMMARY
This bill changes the criteria by which the Department of
Conservation must keep a surface mining operation on the "AB
3098" list of surface mining operations compliant with the
Surface Mining and Reclamation Act (SMARA) and expands and
alters the appeal process for surface mining operations removed
from the list. Specifically, this bill:
1)Adds to the surface mining operations that must be included on
the AB 3098 list those surface mining operations in compliance
with an order addressing SMARA noncompliance.
2)Requires the department to give notice to a surface mining
operator not to be included on the AB 3098 list or to be
removed from the list.
3)Requires the department to maintain on the AB 3098 list a
surface mining operation that appeals the department's
decision within 30 days of the notice described above, if the
appeal has not been pending more than 180 days.
4)Expands the reasons for which a surface mining operation may
appeal the department's decision to exclude the operation from
the AB 3098 list.
5)Requires appeals to be heard in public within 60 days of
filing the appeal, unless the department and appellant agree
to a longer period.
6)Allows the department to dismiss an appeal that is based on
assertions that have been adjudicated, or that are being
AB 1609
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adjudicated, by the State Mining and Geology Board.
FISCAL EFFECT
To implement this bill, the department would incur
administrative work beyond its existing workload. New or
increased activities would include providing notice to surface
mining operations not to be included on the AB 3098 list,
tracking appeals for purposes of the 30-day appeal right, and
costs to administer a greater number of appeals.
While it is reasonable to expect list exclusion appeals to
increase as a result of this bill, the extent of this increase
is unknown. The department estimates a potential increase of 40
additional appeals annually, which, in addition to the other new
or increased responsibilities created by this bill, would
require two full time staff to administer at an annual cost of
approximately $300,000. Because statute caps the fees that fund
the department's mining regulatory activities, these costs would
result in cost pressure that would lead to reductions in some
undefined area of departmental activity.
COMMENTS
1)Rationale . The author intends this bill to allow
SMARA-compliant surface mining operators to remain on the AB
3098 list and continue doing business with public entities and
to provide a transparent process of notification and appeal of
proposed removals from the AB 3098 list.
2)Background. The Surface Mining and Reclamation Act
establishes policies for the permitting and regulation of
surface mining operations and the protection of the state's
resources. SMARA requires the department to publish, at least
quarterly, a list that identifies surface mining operations
compliant with SMARA requirements or that are subject to an
appeal of alleged SMARA violation pending before the board.
The list is known as the AB 3098 list in honor of the bill
that allows public agencies to acquire sand, gravel or
aggregate from only those surface mining operations included
on the AB 3098 list. SMARA authorizes a surface mining
operation excluded by the department from the AB 3098 list to
appeal the exclusion decision to the State Mining and Geology
Board, for limited causes.
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The surface mining industry reports that more than two-fifths
of its product is consumed by public entities, so exclusion
from the AB 3098 list can have painful business consequences.
Some industry representatives complain that a surface mining
operation may be removed from the list even though the
operation has entered into a binding agreement with regulators
to correct SMARA violations. In addition, some industry
representatives decry the lack of formal notice of the
department's intent to remove an operation from the AB 3098
list or of an adequate process to appeal a proposed removal.
3)Support . This bill is supported by the California
Construction and Industrial Materials Association and industry
representatives.
4)There is no opposition formally registered to this bill.
Analysis Prepared by : Jay Dickenson / APPR. / (916) 319-2081