Articles Posted in Legislation

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Legislative Elimination of Redevelopment Agencies
As part of its 2011 – 2012 budget proposal, the California Governor’s Office proposed permanently shutting down local redevelopment agencies to free up $1.7 billion of tax increments to apply to the State’s budget deficit. The monies were slated to help fund schools, public safety and transit districts. On June 28, 2011, Governor Jerry Brown signed AB1X26 (the “Dissolution Bill”) and AB1X27 (the “Pay for Continuation Bill”) into law. The Dissolution Bill would permanently eliminate redevelopment agencies by October 1, 2011. The Pay for Continuation Bill allows redevelopment agencies to continue their existence and operation if the city or county that created the redevelopment agency commits to making annual payments to special funds administered by the county auditor controller by November 1, 2011.

Ensuing Litigation
In response to the passage of the Dissolution Bill and the Pay for Continuation Bill (the “Bills”), on July 15, 2011, the California Redevelopment Association, League of California Cities, City of Union City and the City of San Jose (collectively, “CRA”) filed a Petition for Writ of Mandate to the California Supreme Court challenging the Legislature’s adoption of the Bills and seeking an immediate stay of the Bills pending the outcome of the litigation.
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Kerry Shapiro
This three-part blog series on California SB 108, a bill which changes provisions in the Surface Mining and Reclamation Act of 1975 (SMARA) pertaining to “idle” mines, is based on a paper I first presented at the CalCIMA Conference in October 2011. If you have not yet read part one which gives background on the Interim Management Plan problem, or part two which discusses what SB 108 does and who it affects, you will want read those first.

SB 108: Unresolved Problems and Ideas to Address Them

  1. Application to Active Mines. It is arguably inappropriate to designate as “idle” an operation that is generating returns that seem adequate to support continuing operation and defray ultimate reclamation costs. One solution might be to establish a minimum annual quantity of production as a so-called “safe harbor” to qualify a mine as “active” without regard to changes in historical production level. After all, why should a mine be classified as “idle” simply because it now produces less than it used to? Future legislation could establish a minimum quantity of annual production as a “safe harbor” from classifications of “idle” or “abandoned.”

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Published on:

Kerry Shapiro
This three-part blog series on California SB 108, a bill which changes provisions in the Surface Mining and Reclamation Act of 1975 (SMARA) pertaining to “idle” mines, is based on a paper I first presented at the CalCIMA Conference in October 2011. If you have not yet read part one of this three-part series, which gives background on the Interim Management Plan problem, you will want read that first.

SB 108: What it Does

Revised Definition of “Idle”: SB 108 addresses only one of the substantive issues discussed above, by changing the current definition of “Idle” in SMARA Section 2727.1 to look at the curtailment of production by more than 90 percent of the maximum annual production within any of the last five years, rather than by more than 90 percent of the previous historical maximum annual production. See SB 108 (a copy is attached to this paper). This avoids some of the record problems discussed above and likely limits the number of operations falling within the definition of idle.

Additional Renewals of IMPs: Currently SMARA allows for renewal of an IMP for an additional 5-year period. SB 108 clarifies that an IMP may be renewed for additional 5-year periods at the expiration of each 5-year period. SMARA Section 2770(h)(2)(A)

Limited Window to Change Mine Status: Although not a substantive change to address the overall IMP problem, perhaps the most significant and practical benefit of SB 108 is the change of status provision. SB 108 adds new SMARA Section 2777.5, to authorize operators to file amended annual reports for prior years in order to revise mineral production or to change mine status from active to idle. One impact of this is to allow mine operators that may have failed to timely file an IMP in prior years (and thus could be subject to claims by OMR of abandonment notwithstanding resumption of production in subsequent years) to either correct production numbers for prior years (thereby avoiding claims of past idleness and failure to prepare a timely IMP) or to properly identify, i.e., change the status of the mine as having been idle in prior years and allow for the filing of a “retrospective” or “late” IMP (thereby avoiding potential claims of abandonment).
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Published on:

Kerry Shapiro
This three-part blog series on California SB 108, a bill which changes provisions in the Surface Mining and Reclamation Act of 1975 (SMARA) pertaining to “idle” mines, is based on a paper I first presented at the CalCIMA Conference in October 2011.

Background: What is the Interim Management Plan Problem?

SB 108 is designed to address some (but not all) of the problems existing in the current SMARA statutory scheme regulating so-called “idle” mines through the requirement of submitting an interim management plan (“IMP”). Having passed though the legislature without a single no vote, the bill was signed by Governor’ Jerry Brown on October 5, 2011 will be effective on January 1, 2012. This presentation identifies the problems with the current regulation of idle mines though IMP requirements, explains SB 108, including its key terms and the limited window for mine operators to take advantages of SB 108’s “change of status” provisions, and finally identifies IMP problems not addressed by SB 108 and proposes ideas for addressing such problems.
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