SB594: Bill Text

SB594,1,8 An Act to amend 20.370 (2) (dt), 20.370 (2) (dz), 25.45 and 144.443 (3) (c); and to create 144.443 (3m), 144.443 (11) (a) 5. and 144.443 (11) (am) 5. of the statutes; relating to: creating a fiscal capacity method for political subdivisions to establish proof of financial responsibility for compliance with closure, long-term care and corrective action requirements for solid waste disposal facilities and hazardous waste facilities, failure to comply with closure, long-term care and corrective action requirements and making an appropriation.

Analysis by the Legislative Reference Bureau

Under current law, the owner or operator of a solid waste disposal facility (landfill) or a hazardous waste disposal facility is required to maintain proof of financial responsibility for the costs of closing the facility and of caring for the facility after it is closed (for example, monitoring groundwater quality). The owner or operator of a hazardous waste storage or treatment facility is required to maintain proof of financial responsibility for the costs of closing the facility. The owner or operator of a hazardous waste storage, treatment or disposal facility from which a discharge has occurred is required to maintain proof of financial responsibility for the costs of corrective action to protect human health and the environment from the discharge. Current law authorizes several methods for providing proof of financial responsibility, including providing a bond or a letter of credit. A business or utility may provide proof of financial responsibility by satisfying specified financial tests, including measures of net worth and creditworthiness.

This bill establishes a fiscal capacity method for cities, villages, towns and counties (political subdivisions) to establish proof of financial responsibility related to the ownership or operation of a landfill or hazardous waste facility. A political subdivision may provide proof of financial responsibility under this method by satisfying tests related to the amount of its indebtedness; the property tax levy that would be required to pay for closure, long-term care and corrective action requirements; and the political subdivision's bond ratings.

If a political subdivision that uses the fiscal capacity method of providing proof of financial responsibility fails to comply with closure, long-term care or corrective action requirements, this bill requires the department of administration to collect the amounts necessary to pay for compliance by deducting those amounts from any state payments due the political subdivision.

For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB594, s. 1 Section 1. 20.370 (2) (dt) of the statutes is amended to read:

SB594,2,5 20.370 (2) (dt) Solid waste management — closure and long-term care. From the waste management fund, all moneys received under s. 144.443 (11) (a) 1., 3. and, 4. and 5. for compliance with closure and long-term care requirements under s. 144.443 (11) (b) 1.

SB594, s. 2 Section 2. 20.370 (2) (dz) of the statutes is amended to read:

SB594,2,10 20.370 (2) (dz) Solid waste management — corrective action; moneys recovered from assessments and legal action. From the waste management fund, all moneys received under s. 144.443 (11) (am) 3. and, 4. and 5. for compliance with corrective action requirements under s. 144.443 (11) (bm).

SB594, s. 3 Section 3. 25.45 of the statutes is amended to read:

SB594,3,3 25.45 Waste management fund. There is established a separate nonlapsible trust fund designated as the waste management fund, to consist of the tonnage fees imposed under s. 144.441 (3), 1989 stats., except for tonnage fees paid by a nonapproved facility, as defined in s. 144.441 (1) (c); waste management base fees imposed under s. 144.441 (5), 1989 stats.; and all moneys received or recovered under s. 144.443 (11) (a) 1., 3. or, 4. and 5. and (am) 1., 3. and, 4. and 5. Moneys in the waste management fund shall be used for the purposes specified under s. 144.441 (6) (d) to (h).

SB594, s. 4 Section 4. 144.443 (3) (c) of the statutes is amended to read:

SB594,3,8 144.443 (3) (c) Changes. The owner or operator may change from one standard method of establishing proof of financial responsibility under par. (a) to another or to a net worth method of establishing proof of financial responsibility under sub. (3m) or (4).

SB594, s. 5 Section 5. 144.443 (3m) of the statutes is created to read:

SB594,3,12 144.443 (3m) Fiscal capacity method of establishing proof of financial responsibility for political subdivisions. (a) Definition. In this subsection, "political subdivision" means a city, village, town or county.

SB594,3,15 (b) Criteria for fiscal capacity method. A political subdivision may establish proof of financial responsibility required under sub. (2) (a), (c) or (d) by applying to the department and meeting all of the following criteria:

SB594,3,21 1. The aggregate amount of indebtedness of the political subdivision is less than the maximum indebtedness allowed under s. 67.03 (1), by an amount that is at least 6 times the estimated total costs of compliance with the closure and any long-term care requirements specified in the plan of operation or the approved plan under s. 144.64 (2m) plus 6 times the costs of any corrective action required under s. 144.735.

SB594,4,2 2. The estimated annual cost of compliance with the closure and any long-term care requirements specified in the plan of operation or the approved plan under s. 144.64 (2m) plus the costs of any corrective action required under s. 144.735, if paid entirely by property tax revenues, will not require a property tax levy of more than 10 cents per $1,000 of the value of taxable property located in the political subdivision as equalized for state purposes.

SB594,4,5 3. In the most recent bond ratings before the determination under par. (d) is made, the political subdivision has not received a bond rating of less than "A" from the Moody's investor service or less than "A" from Standard and Poor's corporation.

SB594,4,9 (c) Application. A political subdivision that seeks to establish proof of financial responsibility utilizing the fiscal capacity method shall submit an application to the department as a part of the initial license application and annually thereafter, that includes all information necessary to demonstrate compliance with par. (b).

SB594,4,13 (d) Department determination under fiscal capacity method. 1. If the department determines that a political subdivision complies with the criteria in par. (b), then the department shall find that the political subdivision satisfies the requirements for proof of financial responsibility for the year.

SB594,4,17 2. If the department determines that the political subdivision does not comply with par. (b), the department shall issue findings of fact to support this determination and provide the political subdivision with an opportunity for a hearing.

SB594,4,23 3. In order to continue to meet the fiscal capacity requirements each year, a political subdivision shall reapply under par. (c). Subsequent determinations by the department shall take into consideration any changes in the plan of operation and adjustments to the estimated total cost of compliance with closure and any long-term care or corrective action requirements because of inflation or other changes.

SB594,5,3 4. Whenever the department has reason to believe that a political subdivision no longer satisfies the fiscal capacity requirements, it may require the political subdivision to submit information and materials to show compliance.

SB594,5,7 5. If a political subdivision does not comply with the criteria in par. (b) during the annual review or at any special review, the political subdivision shall establish proof of financial responsibility utilizing one of the standard methods under sub. (3) within 90 days after the department issues its findings.

SB594,5,9 (e) Variances. The department may not grant a variance to any requirement of this subsection.

SB594,5,14 (f) Joint ownership. If a solid waste disposal facility or hazardous waste facility is owned or operated by more than one political subdivision, any of the political subdivisions may seek to establish proof of financial responsibility under this subsection. The requirements of this subsection apply to each political subdivision in proportion to its interest in the facility.

SB594, s. 6 Section 6. 144.443 (11) (a) 5. of the statutes is created to read:

SB594,6,3 144.443 (11) (a) 5. And if the owner or operator received approval to use the fiscal capacity method of proving financial responsibility under sub. (3m), the department shall notify the department of administration of the amount, as determined under sub. (3m), necessary to pay for the costs of complying with the closure and long-term care requirements of the plan of operation or approved plan under s. 144.64 (2m). After receiving notice from the department, the department of administration shall collect the amounts due by deducting those amounts from any state payments due the political subdivision or may add a special charge to the amount of taxes apportioned to and levied upon the county under s. 70.60. The department of administration shall deposit those amounts in the waste management fund. The amounts collected under this subdivision from state payments due the political subdivision shall be collected from the amount of payments due after collection of any principal repayment or interest payments under s. 144.2415 (11) (b).

SB594, s. 7 Section 7. 144.443 (11) (am) 5. of the statutes is created to read:

SB594,6,17 144.443 (11) (am) 5. And if the owner or operator received approval to use the fiscal capacity method of proving financial responsibility under sub. (3m), the department shall determine the amounts necessary to pay for the costs of complying with corrective action requirements under s. 144.735 and shall notify the department of administration of those amounts. After receiving notice from the department, the department of administration shall collect the amounts due by deducting those amounts from any state payments due the political subdivision or may add a special charge to the amount of taxes apportioned to and levied upon the county under s. 70.60. The department of administration shall deposit those amounts in the waste management fund. The amounts collected under this subdivision from state payments due the political subdivision shall be collected from the amount of payments due after collection of any principal repayment or interest payments under s. 144.2415 (11) (b).

SB594,6,18 (End)