Amended in Senate May 7, 2014

Amended in Senate April 22, 2014

Senate Bill No. 1270

Introduced by Senator Pavley

February 21, 2014

An act to amend Sections 607, 677, 2006, 2207, 2208, 2209, 2210, 2732.5, 2733, 2770, 2772, 2773.1, 2774, 2774.1, 2774.3, and 2774.4 of, and to add Section 2006.5 to, the Public Resources Code, relating to mining.

LEGISLATIVE COUNSEL’S DIGEST

SB 1270, as amended, Pavley. Surface mining operations.

(1) Under existing law, the Department of Conservation, under the supervision of the Director of Conservation, is comprised of various entities, including the State Mining and Geology Board, and the work of the department is divided into divisions including the California Geological Survey and the Office of Mine Reclamation. Existing law requires the board to nominate, and the director to appoint, the State Geologist to advise the director regarding technical, scientific, and engineering issues, including the scientific quality of the products and activities of the California Geological Survey, and requires the State Geologist to meet specific qualifications.

This bill would require the board to nominate at least 2 individuals for appointment begin delete , end delete as the State Geologist and would make begin delete that individual end delete begin insert the State Geologist end insert responsible for the management of the California Geological Survey. The bill would also designate the Office of Mine Reclamation as the Division of Mines, would require the director to appoint a State Mine Inspector to be responsible for the management of the Division of Mines, and would prescribe the specific qualifications for that person.

(2) Existing law requires the owner of operator of a mining operation to forward annually to the director and the lead agency a report that provides specified information with respect to the mining operation.

This bill would require, among other changes, that begin insert the end insert report begin delete to end delete be submitted to the State Mine Inspector and the lead agency. The bill would additionally require the State Mine Inspector to submit to the board and the director an annual report relating to abandoned mines, as provided.

(3) The Surface Mining and Reclamation Act of 1975, administered by the board, prohibits a person, with exceptions, from conducting surface mining operations unless, among other things, a permit, as defined, is obtained from, a reclamation plan, as specified, is submitted to and approved by, and financial assurances for reclamation have been approved by, the lead agency for the operation. Existing law provides an appeals process for decisions of the lead agency in approval or denial of approval of a reclamation plan.

This bill would instead make the lead agency or begin insert , in certain circumstances, end insert the State Mine begin delete Inspector, in certain circumstances, end delete begin insert Inspector end insert responsible for reviewing and approving financial assurances in surface mining operations and would require the lead agency or the State Mine Inspector to take specified actions in seeking forfeiture of those financial assurances. The bill would also provide an appeals process for the State Mine Inspector’s approval or denial of approval of financial assurances. The bill would require a portion of the reclamation plan to be certified by a registered professional geologist, geophysicist, or civil engineer and to include a schedule with time limits for completing reclamation, as begin delete specified, and end delete begin insert specified. The bill end insert would require the lead agency or the State Mine Inspector to determine a time period for reclamation to be complete in certain circumstances. By imposing additional duties on lead agencies, this bill would impose a state-mandated local program. For purposes of the act, the bill would also revise the definition of permit.

(4) Existing law requires the lead agency to conduct an inspection of a surface mining operation within 6 months of receipt by the lead agency of the annual report described in begin insert paragraph end insert (2) above. Under existing law, if the lead agency or the director determines that a surface mining operation is not in compliance, the lead agency or director is required to notify the operator of that violation.

This bill would also require the State Mine Inspector, in certain circumstances, to conduct an inspection of those operations within 6 months of receipt of the report by the State Mine Inspector and to provide notice of the inspection to the lead agency. The bill would require the notice of violation to include, among other things, specific remedial steps to be taken to correct the noncompliance and also information on the time to comply.

(5) Existing law requires the board to assume the powers and duties under the act of the lead agency if, following a public hearing, as prescribed, the board finds deficiencies in the lead agency’s implementation and enforcement of the act.

This bill would require the board, in those circumstances, to assign those powers and duties to the State Mine Inspector. The bill would also authorize a lead agency to unilaterally and voluntarily relinquish its responsibilities under the act and would require the State Mine Inspector to assume those responsibilities. The bill would authorize the lead agency to resume its relinquished role if certain requirements are met.

(6) Existing law requires the board to adopt a schedule of fees to cover the department’s costs of carrying out specified provisions and to impose an annual reporting fee on each mining operation, not to exceed $4,000 annually for any single mining operation and not to be less than $100. Existing law requires the board to adjust the fees if the director determines the resources collected were greater to or less than the department’s costs.

This bill would require that an annual reporting fee, which would also be required to cover the board’s costs, as provided, on each mining operation not be less than $1,000 or more than an unspecified amount and would require the fee to be based on a cost per acre as determined by the board. The bill would require the board to adjust the fees if the State Mine Inspector determines the revenues collected were greater to or less than the department’s costs.

(7) 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.  

The Legislature finds and declares the following:

(a) Since its passage, the implementation of the Surface Mining
and Reclamation Act of 1975 has depended on coordinated
administrative efforts by local governments, the Department of
Conservation, and the State Mining and Geology Board. Two of
the major goals of the act are to encourage production and
conservation of minerals in California, and to ensure reclamation
of mined lands.

(b) The essential components of the act for each of the more
than 2,000 mines in California are annual inspections, reclamation
plans for mines that have ceased production, and a financial surety
mechanism to pay for reclamation in the event the operator is
unable or fails to do so.

(c) It is the intent of the Legislature that siting decisions for
mines and the approval of reclamation plans for those mines remain
with local governments.

(d) The act provides for approval procedures for financial
assurances and reclamation plans that depend on active inspections,
remediation of compliance shortfalls, and appropriate updates to
financial assurance commitments. Based on a review of official
state data, industry and government analysts agree that the goals
of the act are not being achieved because of multiple failures in
the internal processes of this important legislation. As examples:

(1) Twenty-five percent of mines that have closed have not
begun reclamation. This includes about 100 mines in the state.

(2) Inspection rates by counties who serve as lead agencies
under the act, over a multiyear period, range from 66 percent to
74 percent, inclusive, but 12 counties have inspection rates below
50 percent.

(3) Data on inspections by cities that serve as lead agencies
under the act, over the same multiyear period, indicate that 22
cities have inspected all of their mines annually, 25 cities have an
inspection rate below 50 percent, and 14 cities have never inspected
a mine.

(4) Financial assurance documents that ensure the ability to pay
for mine reclamation are not routinely updated. The adjustment
rate for counties is about 27 percent, based on official data, and
about 20 percent for cities.

(e) It is the intent of the Legislature to retain the existing
structure of the act while improving the statutory relationships
between state and local government entities by strengthening the
interconnections between inspections, financial assurances, and
reclamation plans, in order to ensure improved compliance with
the provisions of this important law.

SEC. 2.  

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. 3.  

Section 677 of the Public Resources Code is amended
to read:

677.  

(a) The board shall nominate at least two individuals to
serve as State Geologist. The director shall appoint the State
Geologist, who shall be responsible for the management of the
California Geological Survey. The State Geologist shall either be
registered in compliance with the Geologist and Geophysicist Act
(Chapter 12.5 (commencing with Section 7800) of Division 3 of
the Business and Professions Code) at least one year from the date
of appointment, or the Board for Professional Engineers, Land
Surveyors, and Geologists may, upon the review of academic and
professional experience, grant registration. The State Geologist
shall possess general knowledge of mineral resources, structural
geology, seismology, engineering geology, and related disciplines
in science and engineering, and the reclamation of mined lands
and waters. The State Geologist shall advise the director regarding
technical, scientific, and engineering issues, including the scientific
quality of the products and activities of the California Geological
Survey.

(b) A State Mine Inspector shall be appointed by the director
and shall be responsible for the management of the Division of
Mines. The State Mine Inspector shall either be registered in
compliance with the Geologist and Geophysicist Act (Chapter 12.5
(commencing with Section 7800) of Division 3 of the Business
and Professions Code) or the Professional Engineers Act (Chapter
7 (commencing with Section 6700) of Division 3 of the Business
and Professions Code) at least one year from the date of
appointment, or the Board for Professional Engineers, Land
Surveyors, and Geologists may, upon the review of academic and
professional experience, grant registration. The State Mine
Inspector shall possess general knowledge of mining, mineral
resources, structural geology, seismology, engineering geology,
and related disciplines in science and engineering, and the
reclamation of mined lands and waters. The State Mine Inspector
shall advise the director regarding technical, scientific, and
engineering issues, including the scientific quality of the products
and activities of the Division of Mines.

SEC. 4.  

Section 2006 of the Public Resources Code is amended
to read:

2006.  

“State Geologist” means the individual holding the office
created by subdivision (a) of Section 677.

SEC. 5.  

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

2006.5.  

“State Mine Inspector” means the individual holding
the office created by subdivision (b) of Section 677.

SEC. 6.  

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 State Mine Inspector annually,
not later than a date established by the State Mine Inspector, 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, State Mine Inspector, or court.

(3) The location of the mining operation, its name, its mine
number as issued by the State Mine Inspector, 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. All annual inspections conducted
on or after July 1, 2015, shall be certified by a registered
professional geologist, geophysicist, or civil engineer who either
works for the local lead agency or the division or, if not employed
by the local lead agency, has not worked for a mining operation
in the jurisdiction of the local agency for at least one year.

(9) Proof of financial assurances.

(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
State Mine Inspector, 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), (c), (d), 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 State Mine Inspector 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 State Mine Inspector, 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 reports to the State Mine Inspector 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
minimum fee for any single mining operation may not be less than
one thousand dollars ($1,000) 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, beginning with the 2014-15 fiscal
year and annually thereafter.

(2) (A) The board shall adopt, by regulation, a schedule of fees
authorized under paragraph (1) to cover the department’s and
board’s costs in carrying out this section and Chapter 9
(commencing with Section 2710), as reflected in the Governor’s
Budget, and may adopt those regulations as emergency regulations.
The board’s costs shall be reflected separately in a format approved
by the Department of Finance and shall be displayed in the annual
budget proposed by the Governor. In establishing the schedule of
fees to be paid by each active and idle mining operation, the board
shall consider and establish a cost per acre on an equitable basis
reflecting the size and type of operation, the acreage disturbed and
undisturbed by mining activities, the acreage subject to the
reclamation plan, and other factors addressed by the approved
reclamation plan. The fee for each active and idle mining operation
shall not exceed ____ dollars ($____).

(B) Regulations adopted pursuant to this subdivision shall be
adopted by the board in accordance with 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 ____ dollars ($____),
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 2005-06 fiscal year and annually thereafter
and shall be based on a cost per acre, subject to the approved
reclamation plan, as determined by the board pursuant to paragraph
(2). If the State Mine Inspector 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 State Mine Inspector or board pursuant
to this chapter or Chapter 9 (commencing with Section 2710) shall
be deposited in the Mine Reclamation Account. The moneys 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) On or before January 1, 2018, and each year thereafter, the
State Mine Inspector shall submit to the board and the director a
report on the activities of the Abandoned Mines Land Unit. This
report shall include, but is not limited to, all of the following:

(i) The number and location of known abandoned mines
identified along with any associated features and supporting
documentation.

(ii) Type of mine site and minerals or materials mined.

(iii) Summary of assessment and overall mitigation activities
and mitigation activities per site performed to date.

(iv) Prioritized assessment of sites that present an imminent
danger to public health, safety, and welfare, and to the environment.

(v) Available funding and efforts to obtain funding to mitigate
high-risk sites.

(vi) Planned activities for upcoming year.

(C) (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 or State Mine Inspector when
acting as the lead agency pursuant to Section 2774.4, 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 whatsoever 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 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. 7.  

Section 2208 of the Public Resources Code is amended
to read:

2208.  

The State Mine Inspector, State Geologist, director, or
a qualified assistant may at any time enter or examine any and all
mines, quarries, wells, mills, reduction works, refining works, and
other mineral properties or working plants in this state in order to
gather data to comply with the provisions of this chapter.

SEC. 8.  

Section 2209 of the Public Resources Code is amended
to read:

2209.  

The director or the State Geologist may fix a price upon
and dispose of to the public all publications of the division,
including reports, bulletins, maps, registers, or other publications.
The price shall approximate the cost of publication and distribution.
The director or the State Geologist may also furnish the
publications of the division to public libraries without cost and
may exchange publications with geological surveys, scientific
societies, and other like bodies.

SEC. 9.  

Section 2210 of the Public Resources Code is amended
to read:

2210.  

All money received by the division and the State
Geologist from sales of publications issued by the division shall
be deposited at least once each month in the State Treasury to the
credit of the General Fund.

SEC. 10.  

Section 2732.5 of the Public Resources Code is
amended to read:

2732.5.  

“Permit” means a land use authorization from, or
approval by, a lead agency, the absence of which would preclude
surface mining operations.

SEC. 11.  

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;
may require backfilling, grading, resoiling, revegetation, soil
compaction, stabilization, or other measures; and shall be certified
by a registered professional geologist, geophysicist, or civil
engineer.

SEC. 12.  

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 begin delete current end delete reclamation plan has been submitted to and
approved by, and begin delete current end delete financial assurances for reclamation have
been approved by, the lead agency for the operation begin insert pursuant to
this article end insert . Where the State Mine Inspector has assumed the lead
agency’s authority pursuant to Section 2774.4, surface mining
operations shall not be conducted unless, in addition to having a
permit approved by the lead agency, the person has a current
reclamation plan and financial assurances for reclamation approved
by the State Mine Inspector.

(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. For purposes of this subdivision,
a reclamation plan may consist of all or the appropriate sections
of any plans or written agreements previously approved by the
lead agency or another agency, together with any additional
documents needed to substantially meet the requirements of
Sections 2772 and 2773 and the lead agency surface mining
ordinance adopted pursuant to subdivision (a) of Section 2774,
provided that all documents which together were proposed to serve
as the reclamation plan are submitted for approval to the lead
agency in accordance with this chapter.

(c) The lead agency shall administratively review, at least
annually, and make any changes, to ensure financial assurances
for all surface mining operations within its jurisdiction are in
accordance with subdivision (d). If the State Mine Inspector has
assumed the lead agency’s authority pursuant to Section 2774.4,
a person operating a surface mining operation within begin delete such end delete begin insert the end insert lead
agency’s jurisdiction shall submit financial assurances for
reclamation to the State Mine Inspector within 60 days after the
State Mine Inspector’s assumption for review and approval in
accordance with subdivision (d). The State Mine Inspector shall
administratively review, at least annually, and make any changes,
to ensure financial assurances for all mining operations for which
the State Mine Inspector has authority pursuant to Section 2774.4
are in accordance with subdivision (d). The review of existing
financial assurances shall not be considered a project for purposes
of Division 13 (commencing with Section 21000).

(d) The review of a reclamation plan submitted pursuant to
subdivision (b) or the review of financial assurances pursuant to
subdivision (c) is limited to whether the plan or the financial
assurances substantially 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, but, in any event, the lead agency or the State Mine Inspector,
as the case may be, shall require that financial assurances for
reclamation be sufficient to perform reclamation of lands remaining
disturbed. For purposes of this chapter, reclamation plans or
financial assurances determined to substantially meet these
requirements shall be approved. Reclamation plans or financial
assurances determined not to substantially meet these requirements
shall be returned to the operator within 60 days. The operator shall
have 60 days to revise the plan or financial assurances to address
identified deficiencies, at which time the revised plan or financial
assurances shall be returned to the lead agency, or the State Mine
Inspector, as the case may be, for review and approval, or the
revised reclamation plan shall be returned to the director for review
and approval. Except as specified in subdivision (e) or (i), the
continuation of the surface mining operation is prohibited until a
reclamation plan and financial assurances for reclamation are
approved.

(e) (1) A person who, based on the evidence of the record,
claims that a lead agency has (A) 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 approve
or deny approval of a reclamation plan, (B) failed to act within a
reasonable time of receipt of a completed application, or (C) failed
to review and approve reclamation plans as required by
subdivisions (c) and (d), may appeal that action or inaction to the
board.

(2) A person who, based on the evidence of the record, claims
that the State Mine Inspector has either (A) 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, in reaching a decision to approve or deny approval of
financial assurances, or (B) failed to review and approve financial
assurances as required by subdivisions (c) and (d), 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
or the State Mine Inspector’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 substantially 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 operator 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
financial assurances to the lead agency or the State Mine Inspector,
as the case may be, 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 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 surface mining 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), (c),
(d), 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. 13.  

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 developed by the board, with provisions for
additional information provided at the discretion of 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) All documentation for the reclamation plan shall be
submitted by the lead agency to the department at one time.

(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 and termination of
surface mining operation.

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

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

(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, as
certified by a registered professional geologist, geophysicist, or
civil engineer, pursuant to Section 2733, including both of the
following:

(A) A description of the manner in which 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
minimizing erosion and sedimentation will occur.

(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) A schedule with time limits, updated annually, for
completing reclamation in accordance with the reclamation plan
and the then-current condition of the mining site.

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

(d) An item of information or a document required pursuant to
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
Division 13 (commencing with Section 21000), may be included
in the reclamation plan by reference, if that item of information
or that document is attached to the reclamation plan when the lead
agency submits the reclamation plan to the director for review. To
the extent that the information or document referenced in the
reclamation plan is used to meet the requirements of subdivision
(c), the information or document shall become part of the
reclamation plan and shall be subject to all other requirements of
this article.

(e) Nothing in this section is intended to limit or expand the
department’s authority or responsibility to review a document in
accordance with Division 13 (commencing with Section 21000).

SEC. 14.  

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

2773.1.  

(a) Financial assurances, based on the most recent
inspection by the lead agency or the State Mine Inspector, as the
case may be, shall be required 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 assurances 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 the lead
agency or the State Mine Inspector, as the case may be, 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) (A) The amount of financial assurances required of a surface
mining operation for any one year shall be adjusted annually by
the lead agency or the State Mine Inspector, as the case may be,
to account for new lands disturbed by surface mining operations,
inflation, and reclamation of lands accomplished in accordance
with the approved reclamation plan.

(B) The annual adjustment of financial assurances is not subject
to the procedures specified in paragraph (3) of subdivision (d) of
Section 2774 unless made in response to an amendment to an
existing reclamation plan.

(4) The financial assurances shall be made payable to the lead
agency and the department. Financial assurances 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
or the State Mine Inspector, as the case may be, 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 or the State Mine Inspector, as the case may be, and
the public agencies for any one year shall not exceed that amount
that is necessary to perform reclamation of lands remaining
disturbed. For purposes of this paragraph, a “public agency” may
include a federal agency but does not include the State Mine
Inspector.

(b) If the lead agency or the board, following a 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 commencing
reclamation, either the lead agency or the State Mine Inspector
shall do all of the following:

(1) Notify the operator by personal service or certified mail that
the lead agency or the State Mine Inspector intends to take
appropriate action to forfeit the financial assurances and specify
the reasons for so doing.

(2) (A) Allow the operator 60 days to commence or cause the
commencement of reclamation in accordance with its approved
reclamation plan and require that reclamation be completed within
the time limits specified in the approved reclamation plan or some
other time period mutually agreed upon by the lead agency or the
State Mine Inspector and the operator.

(B) If no time period is specified in the reclamation plan, or if
the time period specified is determined by the lead agency or the
State Mine Inspector to be inappropriate for the condition of the
site, the lead agency or the Sate Mine Inspector shall determine a
time period for reclamation to be completed if an agreement for
such a time period cannot be reached between the lead agency or
the State Mine Inspector and the operator.

(3) Proceed to take appropriate action to require forfeiture of
the financial assurances if the operator does not substantially
comply with paragraph (2).

(4) Use the proceeds from the forfeited financial assurances to
conduct and complete reclamation in accordance with the approved
reclamation plan. In no event shall the financial assurances be used
for any other purpose. The operator is responsible for the costs of
conducting and completing reclamation in accordance with the
approved reclamation plan that are in excess of the proceeds from
the forfeited financial assurances.

(c) Financial assurances shall no longer be required of a surface
mining operation, and shall be released, upon written notification
by the lead agency, with the written concurrence of the State Mine
Inspector, which shall be forwarded to the operator, that
reclamation has been completed in accordance with the approved
reclamation plan. If a 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
or the State Mine Inspector until new financial assurances are
secured from the new owner and have been approved by the lead
agency or the State Mine Inspector, as the case may be, in
accordance with Section 2770.

(d) (1) The lead agency shall have primary responsibility to
seek forfeiture of 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 State Mine
Inspector may act to seek forfeiture of financial assurances and
reclaim mine sites pursuant to subdivision (b) only if both of the
following occurs:

(A) The financial incapability of the operator or the
abandonment of the mining operation has come to the attention of
the State Mine Inspector.

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

(i) The lead agency has been notified in writing by the State
Mine Inspector that failure to take appropriate measures to seek
forfeiture of the financial assurances or to reclaim the mine site
shall result in actions being taken against the lead agency under
Section 2774.4.

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

(iii) The lead agency notifies the State Mine Inspector in writing
that its good faith attempts to seek forfeiture of the financial
assurances have not been successful.

(2) The State Mine Inspector, in seeking forfeiture of financial
assurances and reclaiming mine sites, shall do all of the following:

(A) Notify the operator by personal service or certified mail
that the State Mine Inspector intends to take appropriate action to
forfeit the financial assurances and specify the reasons for so doing.

(B) (i) Allow the operator 60 days to commence or cause the
commencement of reclamation in accordance with its approved
reclamation plan and require that reclamation be completed within
the time limits specified in the approved reclamation plan or some
other time period mutually agreed upon by the State Mine Inspector
and the operator.

(ii) If no time period is specified in the reclamation plan, or if
the time period specified is determined by the State Mine Inspector
to be inappropriate for the condition of the site, the State Mine
Inspector shall determine a time period for reclamation to be
completed if an agreement for such a time period cannot be reached
between the State Mine Inspector and the operator pursuant to
clause (i).

(C) Proceed to take appropriate action to require forfeiture of
the financial assurances if the operator does not substantially
comply with subparagraph (B).

(D) Use the proceeds from the forfeited financial assurances to
conduct and complete reclamation in accordance with the approved
reclamation plan. In no event shall the financial assurances be used
for any other purpose. The operator shall be responsible for the
costs of conducting and completing reclamation in accordance
with the approved reclamation plan that are in excess of the
proceeds from the forfeited financial assurances.

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

(f) The board shall adopt, and update as required, guidelines to
implement this section. The guidelines are exempt from the
requirements of 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. 15.  

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,
as well as receipt of financial assurances approved by the State
Mine Inspector when authorized pursuant to Section 2774.4, 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, with notice to the board of any changes, to ensure that
the ordinances continue to be in accordance with state policy.

(b) 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. In no event shall the
lead agency inspect a surface mining operation less than once in
any calendar year. The lead agency shall cause any inspection to
be conducted by a state licensed geologist, or state licensed 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. If a lead agency operates a surface mine, the inspector
shall not have been an employee of the lead agency in any capacity
during the previous 12 months. All inspections shall be conducted
using a form developed by the department and approved by the
board that shall include the professional licensing and disciplinary
information of the person who conducted the inspection. The
operator shall be solely responsible for the reasonable cost of the
inspection. The lead agency shall notify the State Mine Inspector
within 30 days of the date of completion of the inspection that the
inspection has been conducted. The 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. If the surface mining
operation has a review of its reclamation plan, financial assurances,
or an interim management plan pending under subdivision (b), (c),
(d), 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 notice shall so indicate. The lead agency shall
forward to the operator a copy of the notice, a copy of the
completed inspection form, and any supporting documentation,
including, but not limited to, any inspection report prepared by the
geologist or civil engineer who conducted the inspection. A lead
agency’s failure to comply with the requirements of this section
shall be cause for action pursuant to Section 2774.4.

(c) Where, pursuant to Section 2774.4, the State Mine Inspector
has assumed a lead agency’s authority, inspections shall be carried
out in accordance with subdivision (b). The operator shall be solely
responsible for the reasonable cost of the inspection. The State
Mine Inspector shall notify the lead agency within 30 days of the
date of completion of the inspection that the inspection has been
conducted. The 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. If the surface mining operation has
a review of its reclamation plan, financial assurances, or an interim
management plan pending under subdivision (b), (c), (d), 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 notice shall so indicate. The State Mine Inspector shall
forward to the operator a copy of the notice, a copy of the
completed inspection form, and any supporting documentation,
including, but not limited to, any inspection report prepared by the
geologist or civil engineer who conducted the inspection.

(d) Before approving a surface mining operation’s reclamation
plan, financial assurances, including existing financial assurances
reviewed by the lead agency pursuant to subdivision (c) of Section
2770, or any plan amendments, the lead agency shall submit the
plan, assurances, or amendments to the State Mine Inspector for
review. All documentation for that submission shall be submitted
to the State Mine Inspector at one time. When the lead agency
submits a reclamation plan or plan amendments to the State Mine
Inspector for review, the lead agency shall also submit to the State
Mine Inspector, for use in reviewing the reclamation plan or plan
amendments, information from any related document prepared,
adopted, or certified pursuant to Division 13 (commencing with
Section 21000), and shall submit any other pertinent information.
The lead agency shall certify in writing to the State Mine Inspector
that the reclamation plan is complete and in compliance with the
applicable requirements of this chapter and Article 1 (commencing
with Section 3500) of Chapter 8 of Division 2 of Title 14 of the
California Code of Regulations and the lead agency’s mining
ordinance in effect at the time that the reclamation plan is submitted
to the State Mine Inspector for review.

(e) (1) The State Mine Inspector shall have 30 days from the
date of receipt of a complete reclamation plan or complete plan
amendments and financial assurances submitted pursuant to
subdivision (d) to prepare written comments, if the State Mine
Inspector so chooses. The lead agency shall evaluate written
comments received from the State Mine Inspector relating to the
reclamation plan, plan amendments, or financial assurances within
a reasonable amount of time.

(2) The lead agency shall prepare a written response to the State
Mine Inspector’s comments describing the disposition of the major
issues raised by the State Mine Inspector’s comments, and submit
the lead agency’s proposed response to the State Mine Inspector
at least 30 days prior to approval of the reclamation plan, plan
amendment, or financial assurances. The lead agency’s response
to the State Mine Inspector’s comments shall describe whether the
lead agency proposes to adopt the State Mine Inspector’s comments
to the reclamation plan, plan amendment, or financial assurances.
If the lead agency does not propose to adopt the State Mine
Inspector’s comments, the lead agency shall specify, in detail, why
the lead agency proposes not to adopt the comments. Copies of
any written comments received and responses prepared by the lead
agency shall be forwarded to the operator. The lead agency shall
also give the State Mine Inspector at least 30 days’ notice of the
time, place, and date of the hearing before the lead agency at which
the reclamation plan, plan amendment, or financial assurances
may be approved by the lead agency. If no hearing is required by
this chapter, or by the local ordinance, or other state law, then the
lead agency shall provide 30 days’ notice to the State Mine
Inspector that it intends to approve the reclamation plan, plan
amendment, or financial assurances. If the State Mine Inspector
is dissatisfied with the lead agency’s approval, the State Mine
Inspector may seek judicial review of that approval pursuant to
Section 1094.5 of the Code of Civil Procedure within 30 days of
notice of the lead agency’s action. Lead agency approval of a
reclamation plan, plan amendment, or financial assurances that is
inconsistent with this chapter shall be cause for action under
Section 2774.4, whether judicial review of the approval was
obtained or not.

(3) (A) Prior to approving initial financial assurances for a
reclamation plan or any amendments, pursuant to subdivision (a)
of Section 2770, the State Mine Inspector shall have 45 days from
the date of receipt of a complete reclamation plan or complete plan
amendments submitted pursuant to subdivision (c) to prepare
financial assurances for reclamation pursuant to the proposed
reclamation plan and to submit the proposed financial assurances
to the lead agency for review.

(B) The lead agency shall have 30 days from the date of its
receipt of the financial assurances to evaluate the financial
assurances prepared by the State Mine Inspector and to submit
written comments, if the lead agency so chooses.

(C) The State Mine Inspector shall evaluate any written
comments received from the lead agency pursuant to subparagraph
(B) and shall prepare a written response to the lead agency’s
comments, describing the disposition of the major issues raised
by the lead agency’s comments. The response shall indicate
whether the State Mine Inspector proposes to adopt the lead
agency’s comments or, if not, shall specify, in detail, why the State
Mine Inspector does not propose to adopt the lead agency’s
comments. Copies of any written comments received and responses
prepared by the State Mine Inspector shall be forwarded to the
operator. The State Mine Inspector shall submit the response and
the approved financial assurances to the lead agency and to the
operator within 30 days of receipt of the lead agency’s comments.

(4) To the extent that there is a conflict between the comments
of a trustee agency or a responsible agency that are based on the
agency’s statutory or regulatory authority and the comments of
other commenting agencies that are received by the lead agency
pursuant to 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.

(e) A lead agency shall notify the State Mine Inspector 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 of each year, the lead agency shall submit
to the State Mine Inspector 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 State Mine Inspector the
information required under this section shall be cause for action
under Section 2774.4.

SEC. 16.  

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 State Mine Inspector 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 State Mine Inspector shall notify the operator
of that violation by personal service or certified mail. The notice
of violation shall specify the remedial steps to be taken to correct
any noncompliance identified in the notice, as well as a reasonable
time for compliance of each instance of noncompliance if
compliance cannot reasonably be attained within 30 days of the
date of the notice. If a violation extends beyond 30 days after the
date of the lead agency’s or the State Mine Inspector’s notification,
unless the operator has accepted a scope of work and schedule,
agreed to by the lead agency or the State Mine Inspector, for
achieving compliance, the lead agency or the State Mine Inspector
shall 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, to
cease all further mining activities.

(b) An order issued under subdivision (a) shall not take effect
until the operator has been provided a hearing before the lead
agency for orders issued by the lead agency, or board for orders
issued by the State Mine Inspector, concerning the alleged
violation. An order issued under subdivision (a) 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 State Mine Inspector determines is
reasonable, taking into account the seriousness of the violation
and any good faith efforts to comply with applicable requirements,
and shall set a date for the hearing, which shall not be sooner than
30 days after the date of the order.

(c) Following the issuance of an order under subdivision (a),
the lead agency or the State Mine Inspector shall be entitled to
access to the mining operation to inspect the status of compliance
with the order. Entitlement to access shall be without further notice
than the order, and shall end only when the lead agency or the
State Mine Inspector determines that compliance with the order
has been attained or the order is reversed on appeal, whichever is
sooner.

(d) An operator who violates or fails to comply with an order
issued under subdivision (a) after the order’s effective date, as
provided in subdivision (b), or who fails to submit a report to the
State Mine Inspector or lead agency as required by Section 2207,
shall be subject to an order by the lead agency or the State Mine
Inspector imposing an administrative penalty of not more than five
thousand dollars ($5,000) per day, assessed from the original date
of noncompliance with this chapter or Section 2207. The penalty
may be imposed administratively by the lead agency or the State
Mine Inspector. In determining the amount of the administrative
penalty, the lead agency or the State Mine Inspector 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. Orders setting
administrative penalties shall become effective upon issuance of
the order and payment shall be made to the lead agency or the
State Mine Inspector 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 order shall be
served by personal service or by certified mail upon the operator.
Penalties collected by the State Mine Inspector shall not be used
for purposes other than to cover the reasonable costs incurred by
begin delete the end delete the board or the State Mine Inspector in implementing this
chapter or Section 2207.

(e) If the lead agency or the State Mine Inspector 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 State Mine
Inspector, may seek an order from a court of competent jurisdiction
enjoining that operation.

(f) Upon a complaint by the department, the State Mine
Inspector, 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 and to cease operation until compliance is proven.

(g) (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, or in cases where the State
Mine Inspector has not assumed authority for mine inspections
and determining financial assurance amounts pursuant to Section
2774.4, enforcement actions may be initiated by the State Mine
Inspector pursuant to this section only after the violation has come
to the attention of the State Mine Inspector and either of the
following occurs:

(A) The lead agency has been notified by the State Mine
Inspector 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 State Mine Inspector 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)  begin delete Where end delete begin insert If end insert the board or the State Mine Inspector is the lead
agency pursuant to Section 2774.4, the board or the State Mine
Inspector, as the case may be, has sole responsibility for enforcing
this chapter and Section 2207.

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

SEC. 17.  

Section 2774.3 of the Public Resources Code is
amended to read:

2774.3.  

The board shall review lead agency ordinances that
establish permit and reclamation procedures, and any proposed
changes thereto, to determine whether each ordinance or proposed
change is in accordance with state policy, and shall certify the
ordinance or proposed change as being in accordance with state
policy if it adequately meets, or imposes requirements more
stringent than, the California surface mining and reclamation
policies and procedures established by the board pursuant to this
chapter. Proposed changes to lead agency ordinances shall not be
effective until certified by the board pursuant to this section.

SEC. 18.  

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

2774.4.  

(a) If the board finds that a lead agency either has (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 seek forfeiture of financial assurances and to carry
out 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, or (6) failed to submit
information to the department as required by this chapter, including
annually certifying to the board all of the following: (A) that the
lead agency has approved an adequate reclamation plan and
financial assurances, including any amendments thereto, for each
mining operation in its jurisdiction, (B) that its mineral resources
management plan complies with applicable law and has been
adopted in accordance with Section 2762, and (C) that all notices
required pursuant to Section 2772.7 have been recorded, the board
shall assign to the State Mine Inspector the authority to exercise
any of the powers of that agency under this chapter, except for
permitting authority.

(b) Until January 1, 2016, in cases where the board has assumed
authority to exercise the powers of the lead agency under this
chapter, except for permitting authority, the board shall continue
to do so. Thereafter, the board shall assign those powers to the
State Mine Inspector.

(c) If, no sooner than three years after the board has taken action
pursuant to subdivision (a), the board finds, after a public hearing,
that a lead agency has corrected its deficiencies in implementing
and enforcing this chapter, and the rules and regulations adopted
pursuant to this chapter, the board shall restore to the lead agency
the powers assumed by the State Mine Inspector pursuant to
subdivision (a).

(d) Before taking any action pursuant to subdivision (a), the
board shall first notify the lead agency of the identified
deficiencies, and allow the lead agency 45 days to correct the
deficiencies to the satisfaction of the board. If the lead agency has
not corrected the deficiencies to the satisfaction of the board within
the 45-day period, the board shall 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 surface mining operators within the lead agency’s
jurisdiction who have submitted reports as required by Section
2207.

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

(f) If, after conducting the public hearing required by subdivision
(d), the board decides to take action pursuant to subdivision (a),
the board shall, based on the record of the public hearing, adopt
written findings which explain all of the following:

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

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

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

In addition, the findings shall address the significant issues
raised, or written evidence presented, by affected surface mining
operators, interested persons, or the lead agency. 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.

(g) The lead agency, any affected surface mining operator, or
any interested person who has presented oral or written evidence
at the public hearing before the board pursuant to subdivision (e)
may obtain review of the board’s action taken pursuant to
subdivision (a) by filing in the superior court a petition for 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.

(h) (1) A lead agency may unilaterally and voluntarily relinquish
any or all of its responsibilities under this chapter, and the State
Mine Inspector shall assume those responsibilities.

(2) (A) No sooner than three years after relinquishing its lead
agency responsibilities, the lead agency may request the board to
authorize it to resume its role as a lead agency.

(B) If the board finds, after holding a public hearing as described
in subdivision (e), that the lead agency has corrected all
deficiencies, if any, pursuant to subdivision (a) in implementing
and enforcing this chapter and its implementing regulations, the
board shall restore to the agency the lead agency powers assumed
by the State Mine Inspector pursuant to this subdivision.

SEC. 19.  

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.