California Assembly Bill AB274 Amended / Bill

 BILL NUMBER: AB 274AMENDED BILL TEXT AMENDED IN SENATE SEPTEMBER 1, 2009 AMENDED IN SENATE JULY 9, 2009 AMENDED IN SENATE JUNE 26, 2009 INTRODUCED BY Assembly Member Portantino FEBRUARY 12, 2009 An act to  add Section 43501.2   amend Sections 48000 and 48001 of, to add Section 48001.5  to, and to add Article 2.1 (commencing with Section 48010) to Chapter 2 of Part 7 of Division 30 of, the Public Resources Code,  and to amend Section 45901 of the Revenue and Taxation Code,  relating to solid waste. LEGISLATIVE COUNSEL'S DIGEST AB 274, as amended, Portantino. Solid waste: landfills: closure plans.  (1) The California Integrated Waste Management Act of 1989, which is administered by the California Integrated Waste Management Board (board), requires the owner or operator of a solid waste landfill, among other things, to prepare an initial estimate of closure and postclosure maintenance costs and to submit to the regional water board, the local law enforcement agency, and the board, a plan for the closure of the solid waste landfill and a plan for the postclosure maintenance of the solid waste landfill. A violation of these provisions is a misdemeanor.   This bill would prohibit the owner or operator of a closed solid waste landfill that is subject to a closure or a postclosure maintenance plan from selling or offering for sale any portion of a closed waste management unit unless the intended purchaser provides evidence, to the satisfaction of the board, of his or her ability to meet the financial assurance requirements of the act. By creating a new crime, the bill would impose a state-mandated local program.   (2) Existing   Existing  law requires an operator of a solid waste disposal facility to pay a quarterly fee to the State Board of Equalization based on the amount of solid waste disposed of at each disposal site. Commencing with the 1995-96 fiscal year, the act requires the  board   California Integrated Waste Management Board  to establish the amount of the fee, as specified, and limits the fee to a maximum of $1.40 per ton. The fees are required to be deposited in the Integrated Waste Management Account in the Integrated Waste Management Fund, and the board is authorized to expend the money in the account, upon appropriation by the Legislature, to administer and implement the act. This bill  ,  on and after January 1,  2011,   2012,  would  ,  authorize an operator of a solid waste disposal facility that is required to meet financial assurance requirements and is in operation on  September 1, 2010,   July 1, 2011,  to elect to participate in the State Solid Waste Postclosure  and Corrective Action  Trust Fund created by this bill. The bill would require that a participating operator pay a fee of $0.12 per ton per disposal site  . The bill would require the fee to be collected in the same manner as the solid  waste disposal fee described above, and require the board to fulfill certain administrative reporting requirements to the state board. The bill would also require  that  would   the fee  be deposited in the fund and made available to the board for expenditure, upon appropriation by the Legislature, for postclosure activities and corrective actions not performed by  the   any owner or  operator  of a solid waste landfill  when  a participating   the owner or  operator fails to comply with the board's final order, the financial assurance mechanisms are inadequate to fund necessary compliance activities, the solid waste landfill was operating pursuant to a valid solid waste facilities permit on or after January 1, 1988, and the board has first used and exhausted  the   all immediately available  financial assurance mechanism provided by the  public  operator. The bill would require that the fee and this act would not be operative  on and  after  July 1, 2010   January 1, 2012,  unless the board  receives,   received,  on or before July 1,  2010,   2011,  letters of participation in the State Solid Waste Postclosure  and Corrective Action  Trust Fund from landfill operators representing at least 50% of the total annual waste disposal  volume   tonnage  in  2009   2010, as determined by the board  .  The bill would make conforming changes.   (3) 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   no  . THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:  SECTION 1.   Section 43501.2 is added to the Public Resources Code, to read: 43501.2. The owner or operator of a closed solid waste landfill that is subject to a closure or a postclosure maintenance plan may not sell or offer for sale any portion of a closed waste management unit unless the intended purchaser provides evidence, to the satisfaction of the board, of his or her ability to meet the financial assurance requirements of Article 4 (commencing with Section 43600) of Chapter 2 of Part 4 of this division.   SECTION 1.  Section 48000 of the   Public Resources Code   is amended to read:  48000. (a) Each operator of a disposal facility shall pay a fee quarterly to the State Board of Equalization which is based on the amount, by weight or volumetric equivalent, as determined by the board, of all solid waste disposed of at each disposal site. (b)  (1)    The fee for solid waste disposed of shall be one dollar and thirty-four cents ($1.34) per ton. Commencing with the 1995-96 fiscal year, the amount of the fee shall be established by the board at an amount that is sufficient to generate revenues equivalent to the approved budget for that fiscal year, including a prudent reserve, but shall not exceed one dollar and forty cents ($1.40) per ton.  (2) On and after January 1, 2012, the amount of the fee established by the board pursuant to paragraph (1) shall be increased by twelve cents ($0.12) per ton for each operator of a solid waste landfill that notifies the board that it elects to participate in the State Solid Waste Postclosure and Corrective Action Trust Fund pursuant to Article 2.1.  (c) The board shall notify the  State Board of Equalization   state board  on the first day of the period in which the rate shall take effect of any rate change adopted pursuant to  this section   paragraphs (1) and (2) of subdivision (b)  . (d) The board and the  State Board of Equalization   state board  shall ensure that all  of  the fees for solid waste imposed pursuant to this section that are collected at a transfer station are paid to the  State Board of Equalization  state board  in accordance with this article.  (e) (1) The fee imposed by paragraph (2) of subdivision (b) shall not be operative after January 1, 2012, unless the board receives, on or before January 1, 2012, letters of participation in the State Solid Waste Postclosure and Corrective Action Trust Fund from landfill operators representing at least 50 percent of the total volume of waste disposed of in 2010.   (2) The board shall notify the state board, on or before January 30, 2012, if the fee imposed by paragraph (2) of subdivision (b) shall become operative, pursuant to paragraph (1).   SEC. 2.   Section 48001 of the   Public Resources Code   is amended to read:  48001. The revenue from the fees paid pursuant to  paragraph (1) of subdivision (b) of  Section 48000 shall, after payment of refunds and administrative costs of collection, be deposited in the Integrated Waste Management Account, which is hereby created in the fund.  SEC. 3.   Section 48001.5 is added to the   Public Resources Code   , to read:   48001.5. (a) The revenue from the fees paid pursuant to paragraph (2) of subdivision (b) of Section 48000 shall, after payment of refunds and administrative costs of collection, be deposited in the State Solid Waste Postclosure and Corrective Action Trust Fund, which is hereby created in the State Treasury. (b) Fees, revenues, and all interest earned shall be available to the board, upon appropriation by the Legislature, to carry out the purposes of Article 2.1, including all of the following: (1) Corrective action and postclosure activities pursuant to subdivision (b) of Section 48011. (2) Administrative costs incurred by the board in implementing Article 2.1. (3) Any startup costs incurred by the board in implementing Article 2.1 that were incurred before fees were paid pursuant to paragraph (2) of subdivision (b) of Section 48000.   SEC. 2.   SEC. 4.  Article 2.1 (commencing with Section 48010) is added to Chapter 2 of Part 7 of Division 30 of the Public Resources Code, to read: Article 2.1. State Solid Waste Postclosure  and Corrective Action  Trust Fund  48010. (a) On and after January 1, 2011, each operator of a solid waste landfill that notifies the board that it elects to participate in the State Solid Waste Postclosure Trust Fund shall pay a fee quarterly to the State Board of Equalization that is based on the amount, by weight or volumetric equivalent, as determined by the board, of all solid waste disposed of at each disposal site. (b) The fee shall be twelve cents ($0.12) per ton and shall be collected in the same manner as the solid waste disposal fee. The board shall deposit proceeds from this fee in the State Solid Waste Postclosure Trust Fund, which is hereby created in the State Treasury. Fee revenues and all interest earned shall be available to the board, upon appropriation by the Legislature, to carry out the purposes of this article. (c) The board shall notify the State Board of Equalization on the first day of the period in which the rate shall take effect and of any rate change adopted pursuant to this section. (d) The board and the State Board of Equalization shall ensure that all the fees for solid waste imposed pursuant to this section that are collected at a transfer station are paid to the State Board of Equalization in accordance with this article.   48011.   48010.  (a) (1) An operator of a landfill that is required to  maintain evidence of financial ability pursuant to Article 4 (commencing with Section 43600) of Chapter 2 of Part 4 and is operating on September 1, 2010,   , that is operating the landfill on July 1, 2011, and  that elects to participate in the State Solid Waste Postclosure  and Corrective Action  Trust Fund pursuant to this article, shall submit written notice to the board on or before  September 1, 2010   July 1, 2011  . (2) An operator of multiple landfills that elects to participate in the State Solid Waste Postclosure  and Corrective Action  Trust Fund is required to submit written notice that includes all of the operator's operating landfills  and all other landfills in which that operator has in common ownership  .  (3) The board shall provide to the state board the name and address, and any other information necessary to administer and collect the fee imposed pursuant to paragraph (2) of subdivision (b) of Section 48000, of every operator of a landfill electing to participate in the State Solid Waste Postclosure and Corrective Action Trust Fund on or before August 31, 2011. (b) If an operator  that is operating a landfill on July 1, 2011, submits a written notification to the board that it  elects to participate after the trust fund fee  goes into effect, the operator shall pay all back fees and a 5 percent penalty.   goes into effect, the operator   shall pay all trust fund fees applicable from January 1, 2012, and a 5 percent penalty before being allowed to participate.  (c) For new landfills that receive a solid waste facility permit after  September 1, 2010,   July 1, 2011,  the operator's election to participate in the State Solid Waste Postclosure  and Corrective Action  Trust Fund shall be submitted in writing to the board before the board concurs  on   in the issuance of  the permit pursuant to Section 44009. (d) All elections  to participate  made by landfill operators pursuant to this section are final, binding, and irrevocable  for those operators and their successors and assignees  .  48012. (a) The board may only expend the   48011.   (a) For the purposes of this article, "solid waste landfill" means a disposal site that is required to maintain evidence of financial ability pursuant to Part 4 (commencing with Section 43600) of Chapter 2 of Part 4.   (b)     The board may expend  money in the State Solid Waste Postclosure  and Corrective Action  Trust Fund to pay for corrective action and postclosure activities that have not been performed by the  owner or  operator of a solid waste landfill  participating in the State Solid Waste Postclosure Trust Fund, and only   ,  upon a determination by the board that all of the following conditions are met: (1) The solid waste landfill owner or operator has failed to comply with a final  enforcement  order issued by the  enforcement age   ncy, the regional water board, or the  board. (2) The financial assurance mechanisms are inadequate to  fund necessary compliance activities   pay for the required corrective action or postclosure maintenance activities or both that action and those activities  . (3) The solid waste landfill was operating pursuant to a valid solid waste facilities permit on or after January 1, 1988, when the state's requirements for solid waste landfill financial assurances went into effect as a result of Assembly Bill 2448 of the 1987-88 Regular Session, and is required to have financial assurances pursuant to  Sections 43600 to 43610.1, inclusive   Article 4 (commencing with Section 43600) of Chapter 2 of Part 4  . (4) The board has first used and exhausted  the   all immediately available  financial assurance mechanisms provided by the public operator.  (5) The solid waste landfill owner and operator are otherwise unable or unwilling to pay, in a timely manner, for the required corrective action or postclosure maintenance activities or both that action and those activities.   (b)  (c)  The board may adopt regulations, if necessary, setting forth additional criteria for making expenditures from the State Solid Waste Postclosure  and Corrective Action  Trust Fund.  (c)   (d)  Notwithstanding Section 10295 of the Public Contract Code, a contract entered into by the board for the purposes of this  section   article  is not subject to approval by the Department of General Services.  (d)   (e)  No liability or obligation is imposed on the state under this  subdivision   article  , and the board shall not incur any obligation beyond the extent to which money is expended from the State Solid Waste Postclosure  and Corrective Action  Trust Fund pursuant to this  section   article  .  (e)   (f)  The board shall, to the maximum extent feasible, recover from the landfill  owner or  operator the amount of money expended from the State Solid Waste Postclosure  and Corrective Action  Trust Fund, including a reasonable amount for any  contract administration costs of the board   board contract administration costs  and an amount equal to the interest that would have been earned on the expended funds  as the result of the operator's failure to comply with the final order issued by the board  . The board shall deposit all funds recovered pursuant to an action authorized by this section into the State Solid Waste Postclosure  and Corrective Action  Trust Fund.  (f)   (g)  The amount of any cost incurred by the board pursuant to this section is recoverable from the landfill  owner or  operator in a civil action brought by the Attorney General pursuant to Section 40432.  (g)     The board may impose a lien on the   (h)     The board may, consistent with Section 48023.5, impose a lien on the owner's or  operator's assets or real property as an additional remedy to recover funds from the operator for expenditures from the State Solid Waste Postclosure  and Corrective Action  Trust Fund.  48013. On or before January 1, 2014, and every two years thereafter  48012.  After January 1, 2015, as part of the annual report required pursuant to Section 40507  , the board shall report  to the Legislature  on expenditures from the State Solid Waste Postclosure  and Corrective Action  Trust Fund, the status of cost recovery actions, and any recommended statutory changes that are  required   necessary  to ensure adequate resources are available to carry out the purposes of the State Solid Waste Postclosure  and Corrective Action  Trust Fund.  48014. (a) The fee imposed by Section 48010 and this article shall not be operative after July 1, 2010 unless the board receives on or before July 1, 2010, letters of participation in the State Solid Waste Postclosure Trust Fund from landfill operators representing at least 50 percent of the total annual waste disposal volume in 2009. (b)   48013.  An operator of multiple landfills  that   who  is required to maintain evidence of financial ability pursuant to Article 4 (commencing with Section 43600) of Chapter 2 of Part 4 and  that are operating on July 1, 2010, is required to include all of the operator's operating landfills in the letter of participation.   whose landfills are operating on July 1, 2010, shall include all other landfills in which that operator has in   common ownership in the letter of participation.   SEC. 5.   Section 45901 of the   Revenue and Taxation Code   is amended to read:  45901. All fees, interest, and penalties imposed and all amounts of fee required to be paid to the state pursuant to Section 45051 shall be paid to the board in the form of remittances payable to the State Board of Equalization of the State of California. The board shall transmit the payments  to the Treasurer for deposit in the Integrated Waste Management Account in the Integrated Waste Management Fund.   in the following manner:   (a) The payments from the fees paid pursuant to paragraph (1) of subdivision (b) of Section 48000 of the Public Resources Code and related interest and penalties shall be transmitted to the Treasurer for deposit in the Integrated Waste Management Account in the Integrated Waste Management Fund.   (b) The payments from the fees paid pursuant to paragraph (2) of subdivision (b) of Section 48000 of the Public Resources Code and related interest and penalties shall be transmitted to the State Solid Waste Postclosure and Corrective Action Trust Fund.   SEC. 3.   No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.