SB594,1,8 1An Act to amend 20.370 (2) (dt), 20.370 (2) (dz), 25.45 and 144.443 (3) (c); and
2to create 144.443 (3m), 144.443 (11) (a) 5. and 144.443 (11) (am) 5. of the
3statutes; relating to: creating a fiscal capacity method for political
4subdivisions to establish proof of financial responsibility for compliance with
5closure, long-term care and corrective action requirements for solid waste
6disposal facilities and hazardous waste facilities, failure to comply with closure,
7long-term care and corrective action requirements and making an
8appropriation.
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 1Section 1. 20.370 (2) (dt) of the statutes is amended to read:
SB594,2,52 20.370 (2) (dt) Solid waste management — closure and long-term care. From
3the waste management fund, all moneys received under s. 144.443 (11) (a) 1., 3. and,
44. and 5. for compliance with closure and long-term care requirements under s.
5144.443 (11) (b) 1.
SB594, s. 2 6Section 2. 20.370 (2) (dz) of the statutes is amended to read:
SB594,2,107 20.370 (2) (dz) Solid waste management — corrective action; moneys recovered
8from assessments and legal action.
From the waste management fund, all moneys
9received under s. 144.443 (11) (am) 3. and, 4. and 5. for compliance with corrective
10action requirements under s. 144.443 (11) (bm).
SB594, s. 3 11Section 3. 25.45 of the statutes is amended to read:
SB594,3,3 1225.45 Waste management fund. There is established a separate nonlapsible
13trust fund designated as the waste management fund, to consist of the tonnage fees
14imposed under s. 144.441 (3), 1989 stats., except for tonnage fees paid by a
15nonapproved facility, as defined in s. 144.441 (1) (c); waste management base fees
16imposed under s. 144.441 (5), 1989 stats.; and all moneys received or recovered under

1s. 144.443 (11) (a) 1., 3. or, 4. and 5. and (am) 1., 3. and, 4. and 5. Moneys in the waste
2management fund shall be used for the purposes specified under s. 144.441 (6) (d)
3to (h).
SB594, s. 4 4Section 4. 144.443 (3) (c) of the statutes is amended to read:
SB594,3,85 144.443 (3) (c) Changes. The owner or operator may change from one standard
6method of establishing proof of financial responsibility under par. (a) to another or
7to a net worth method of establishing proof of financial responsibility under sub. (3m)
8or
(4).
SB594, s. 5 9Section 5. 144.443 (3m) of the statutes is created to read:
SB594,3,1210 144.443 (3m) Fiscal capacity method of establishing proof of financial
11responsibility for political subdivisions.
(a) Definition. In this subsection,
12"political subdivision" means a city, village, town or county.
SB594,3,1513 (b) Criteria for fiscal capacity method. A political subdivision may establish
14proof of financial responsibility required under sub. (2) (a), (c) or (d) by applying to
15the department and meeting all of the following criteria:
SB594,3,2116 1. The aggregate amount of indebtedness of the political subdivision is less
17than the maximum indebtedness allowed under s. 67.03 (1), by an amount that is at
18least 6 times the estimated total costs of compliance with the closure and any
19long-term care requirements specified in the plan of operation or the approved plan
20under s. 144.64 (2m) plus 6 times the costs of any corrective action required under
21s. 144.735.
SB594,4,222 2. The estimated annual cost of compliance with the closure and any long-term
23care requirements specified in the plan of operation or the approved plan under s.
24144.64 (2m) plus the costs of any corrective action required under s. 144.735, if paid
25entirely by property tax revenues, will not require a property tax levy of more than

110 cents per $1,000 of the value of taxable property located in the political
2subdivision as equalized for state purposes.
SB594,4,53 3. In the most recent bond ratings before the determination under par. (d) is
4made, the political subdivision has not received a bond rating of less than "A" from
5the Moody's investor service or less than "A" from Standard and Poor's corporation.
SB594,4,96 (c) Application. A political subdivision that seeks to establish proof of financial
7responsibility utilizing the fiscal capacity method shall submit an application to the
8department as a part of the initial license application and annually thereafter, that
9includes all information necessary to demonstrate compliance with par. (b).
SB594,4,1310 (d) Department determination under fiscal capacity method. 1. If the
11department determines that a political subdivision complies with the criteria in par.
12(b), then the department shall find that the political subdivision satisfies the
13requirements for proof of financial responsibility for the year.
SB594,4,1714 2. If the department determines that the political subdivision does not comply
15with par. (b), the department shall issue findings of fact to support this
16determination and provide the political subdivision with an opportunity for a
17hearing.
SB594,4,2318 3. In order to continue to meet the fiscal capacity requirements each year, a
19political subdivision shall reapply under par. (c). Subsequent determinations by the
20department shall take into consideration any changes in the plan of operation and
21adjustments to the estimated total cost of compliance with closure and any
22long-term care or corrective action requirements because of inflation or other
23changes.
SB594,5,3
14. Whenever the department has reason to believe that a political subdivision
2no longer satisfies the fiscal capacity requirements, it may require the political
3subdivision to submit information and materials to show compliance.
SB594,5,74 5. If a political subdivision does not comply with the criteria in par. (b) during
5the annual review or at any special review, the political subdivision shall establish
6proof of financial responsibility utilizing one of the standard methods under sub. (3)
7within 90 days after the department issues its findings.
SB594,5,98 (e) Variances. The department may not grant a variance to any requirement
9of this subsection.
SB594,5,1410 (f) Joint ownership. If a solid waste disposal facility or hazardous waste facility
11is owned or operated by more than one political subdivision, any of the political
12subdivisions may seek to establish proof of financial responsibility under this
13subsection. The requirements of this subsection apply to each political subdivision
14in proportion to its interest in the facility.
SB594, s. 6 15Section 6. 144.443 (11) (a) 5. of the statutes is created to read:
SB594,6,316 144.443 (11) (a) 5. And if the owner or operator received approval to use the
17fiscal capacity method of proving financial responsibility under sub. (3m), the
18department shall notify the department of administration of the amount, as
19determined under sub. (3m), necessary to pay for the costs of complying with the
20closure and long-term care requirements of the plan of operation or approved plan
21under s. 144.64 (2m). After receiving notice from the department, the department
22of administration shall collect the amounts due by deducting those amounts from any
23state payments due the political subdivision or may add a special charge to the
24amount of taxes apportioned to and levied upon the county under s. 70.60. The
25department of administration shall deposit those amounts in the waste management

1fund. The amounts collected under this subdivision from state payments due the
2political subdivision shall be collected from the amount of payments due after
3collection of any principal repayment or interest payments under s. 144.2415 (11) (b).
SB594, s. 7 4Section 7. 144.443 (11) (am) 5. of the statutes is created to read:
SB594,6,175 144.443 (11) (am) 5. And if the owner or operator received approval to use the
6fiscal capacity method of proving financial responsibility under sub. (3m), the
7department shall determine the amounts necessary to pay for the costs of complying
8with corrective action requirements under s. 144.735 and shall notify the
9department of administration of those amounts. After receiving notice from the
10department, the department of administration shall collect the amounts due by
11deducting those amounts from any state payments due the political subdivision or
12may add a special charge to the amount of taxes apportioned to and levied upon the
13county under s. 70.60. The department of administration shall deposit those
14amounts in the waste management fund. The amounts collected under this
15subdivision from state payments due the political subdivision shall be collected from
16the amount of payments due after collection of any principal repayment or interest
17payments under s. 144.2415 (11) (b).
SB594,6,1818 (End)
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