Provides that, beginning July 1, 2006, the state parks and recreation commission and the department of fish and wildlife shall establish a pilot program to evaluate the impacts of small scale prospecting and mining on ocean beaches. The pilot program shall be conducted from July 1, 2006, through July 1, 2008.

Directs the state parks and recreation commission, in consultation with the department of fish and wildlife, to establish two demonstration areas in appropriate beach areas in the seashore conservation area to allow small scale prospecting and mining for purposes of the pilot program.

Provides that, by October 1, 2008, the department of fish and wildlife shall report its findings and recommendations regarding the impacts of small scale prospecting and mining on the beach ecology to the state parks and recreation commission. The department shall consider public input prior to finalizing their findings and recommendations.

Requires the state parks and recreation commission and the department of fish and wildlife to report their findings and recommendations on the impacts of small scale prospecting and mining on ocean beaches to the appropriate committees of the legislature by December 1, 2008.