AB 57

Current law requires the owner of a landfill to maintain proof of financial

responsibility to ensure the availability of funds to cover the costs of closing the

landfill and maintaining the property after the landfill is closed. The Department

of Natural Resources (DNR) must approve the proof of financial responsibility.

Under current law, one method of providing proof of financial responsibility is

an established escrow account, which under DNR's rules may include securities

issued by the federal government.

Under this bill, an escrow account established by the owner of a landfill to

provide proof of financial responsibility may include, in addition to securities issued

by the federal government, debt securities issued by an instrumentality of the

federal government that have the highest rating assigned by a nationally recognized

rating agency; bonds issued by the State of Wisconsin; and corporate bonds that have

the highest rating assigned by a nationally recognized rating agency. Corporate

bonds may not be used to provide more than 50 percent of the required amount of

proof of financial responsibility.

Under current DNR rules, another method of providing proof of financial

responsibility is an irrevocable trust, which may include securities issued by the

federal government.

Under this bill, an irrevocable trust established by the owner of a landfill to

provide proof of financial responsibility may include, in addition to securities issued

by the federal government, securities issued by an instrumentality of the federal

government that have the highest rating assigned by a nationally recognized rating

agency; bonds issued by the State of Wisconsin; and corporate bonds that have the

highest rating assigned by a nationally recognized rating agency. Corporate bonds

may not be used to provide more than 50 percent of the required amount of proof of

financial responsibility.