CHAPTER 101 Substitute for HOUSE BILL No. 2686 An  Act concerning solid waste; relating to certain industrial waste; amending K.S.A. 2001 Supp. 65-3407, 65-3415b and 65-3415f and repealing the existing sections. Be it enacted by the Legislature of the State of Kansas:

      Section  1. K.S.A. 2001 Supp. 65-3407 is hereby amended to read as
follows: 65-3407. (a) Except as otherwise provided by K.S.A. 2001 Supp.
65-3407c and amendments thereto, no person shall construct, alter or
operate a solid waste processing facility or a solid waste disposal area of
a solid waste management system, except for clean rubble disposal sites,
without first obtaining a permit from the secretary.

      (b) Every person desiring to obtain a permit to construct, alter or
operate a solid waste processing facility or disposal area shall make ap-
plication for such a permit on forms provided for such purpose by the
rules and regulations of the secretary and shall provide the secretary with
such information as necessary to show that the facility or area will comply
with the purpose of this act. Upon receipt of any application and payment
of the application fee, the secretary, with advice and counsel from the
local health authorities and the county commission, shall make an inves-
tigation of the proposed solid waste processing facility or disposal area
and determine whether it complies with the provisions of this act and any
rules and regulations and standards adopted thereunder. The secretary
also may consider the need for the facility or area in conjunction with the
county or regional solid waste management plan. If the investigation re-
veals that the facility or area conforms with the provisions of the act and
the rules and regulations and standards adopted thereunder, the secretary
shall approve the application and shall issue a permit for the operation of
each solid waste processing or disposal facility or area set forth in the
application. If the facility or area fails to meet the rules and regulations
and standards required by this act the secretary shall issue a report to the
applicant stating the deficiencies in the application. The secretary may
issue temporary permits conditioned upon corrections of construction
methods being completed and implemented.

      (c) Before reviewing any application for permit, the secretary shall
conduct a background investigation of the applicant. The secretary shall
consider the financial, technical and management capabilities of the ap-
plicant as conditions for issuance of a permit. The secretary may reject
the application prior to conducting an investigation into the merits of the
application if the secretary finds that:

      (1) The applicant currently holds, or in the past has held, a permit
under this section and while the applicant held a permit under this section
the applicant violated a provision of subsection (a) of K.S.A. 65-3409, and
amendments thereto; or

      (2) the applicant previously held a permit under this section and that
permit was revoked by the secretary; or

      (3) the applicant failed or continues to fail to comply with any of the
provisions of the air, water or waste statutes, including rules and regula-
tions issued thereunder, relating to environmental protection or to the
protection of public health in this or any other state or the federal gov-
ernment of the United States, or any condition of any permit or license
issued by the secretary; or if the secretary finds that the applicant has
shown a lack of ability or intention to comply with any provision of any
law referred to in this subsection or any rule and regulation or order or
permit issued pursuant to any such law as indicated by past or continuing
violations; or

      (4) the applicant is a corporation and any principal, shareholder, or
other person capable of exercising total or partial control of such corpo-
ration could be determined ineligible to receive a permit pursuant to
subsection (c)(1), (2) or (3) above.

      (d) Before reviewing any application for a permit, the secretary may
request that the attorney general perform a comprehensive criminal back-
ground investigation of the applicant; or in the case of a corporate appli-
cant, any principal, shareholder or other person capable of exercising total
or partial control of the corporation. The secretary may reject the appli-
cation prior to conducting an investigation into the merits of the appli-
cation if the secretary finds that serious criminal violations have been
committed by the applicant or a principal of the corporation.

      (e)  (1) The fees for a solid waste processing or disposal permit shall
be established by rules and regulations adopted by the secretary. The fee
for the application and original permit shall not exceed $5,000. Except as
provided by paragraph (2), the annual permit renewal fee shall not ex-
ceed $2,000. No refund shall be made in case of revocation. In establish-
ing fees for a construction and demolition landfill, the secretary shall
adopt a differential fee schedule based upon the volume of construction
and demolition waste to be disposed of at such landfill. All fees shall be
deposited in the state treasury and credited to the solid waste manage-
ment fund. A city, county, other political subdivision or state agency shall
be exempt from payment of the fee but shall meet all other provisions of
this act.

      (2) The annual permit renewal fee for a solid waste disposal area
which is permitted by the secretary, owned and operated by the facility
generating the waste and used only for industrial waste generated by such
facility shall be not less than $1,000 nor more than $4,000. In establishing
fees for such disposal areas, the secretary shall adopt a differential fee
schedule based upon the characteristics of the disposal area sites.

      (f) Plans, designs and relevant data for the construction of solid waste
processing facilities and disposal sites shall be prepared by a professional
engineer licensed to practice in Kansas and shall be submitted to the
department for approval prior to the construction, alteration or operation
of such facility or area. In adopting rules and regulations, the secretary
may specify sites, areas or facilities where the environmental impact is
minimal and may waive such preparation requirements provided that a
review of such plans is conducted by a professional engineer licensed to
practice in Kansas.

      (g) Each permit granted by the secretary, as provided in this act, shall
be subject to such conditions as the secretary deems necessary to protect
human health and the environment and to conserve the sites. Such con-
ditions shall include approval by the secretary of the types and quantities
of solid waste allowable for processing or disposal at the permitted loca-
tion.

      (h) As a condition of granting a permit to operate any processing
facility or disposal area for solid waste, the secretary shall require the
permittee to: (1) Provide a trust fund, surety bond guaranteeing pay-
ment, irrevocable letter of credit or insurance policy, to pay the costs of
closure and postclosure care; or (2) pass a financial test or obtain a finan-
cial guarantee from a related entity, to guarantee the future availability
of funds to pay the costs of closure and postclosure care. The secretary
shall prescribe the methods to be used by a permittee to demonstrate
sufficient financial strength to become eligible to use a financial test or a
financial guarantee procedure in lieu of providing the financial instru-
ments listed in (1) above. Solid waste processing facilities or disposal
areas, except municipal solid waste landfills, may also demonstrate finan-
cial assurance for closure and postclosure care costs by use of ad valorem
taxing power. In addition, the secretary shall require the permittee to
provide liability insurance coverage during the period that the facility or
area is active, and during the term of the facility or area is subject to
postclosure care, in such amount as determined by the secretary to insure
the financial responsibility of the permittee for accidental occurrences at
the site of the facility or area. Any such liability insurance as may be
required pursuant to this subsection or pursuant to the rules and regu-
lations of the secretary shall be issued by an insurance company author-
ized to do business in Kansas or by a licensed insurance agent operating
under authority of K.S.A. 40-246b, and amendments thereto, and shall
be subject to the insurer's policy provisions filed with and approved by
the commissioner of insurance pursuant to K.S.A. 40-216, and amend-
ments thereto, except as authorized by K.S.A. 40-246b, and amendments
thereto. Nothing contained in this subsection shall be deemed to apply
to any state agency or department or agency of the federal government.

      (i)  (1) Permits granted by the secretary as provided by this act shall
not be transferable except as follows:

      (A) A permit for a solid waste disposal area may be transferred if the
area is permitted for only solid waste produced on site from manufactur-
ing and industrial processes or on-site construction or demolition activi-
ties and the only change in the permit is a name change resulting from a
merger, acquisition, sale, corporate restructuring or other business trans-
action.

      (B) A permit for a solid waste disposal area or a solid waste processing
facility may be transferred if the secretary approves of the transfer based
upon information submitted to the secretary sufficient to conduct a back-
ground investigation of the new owner as specified in subsections (c) and
(d) of K.S.A. 65-3407, and amendments thereto, and a financial assurance
evaluation as specified in subsection (h) of K.S.A. 65-3407, and amend-
ments thereto. Such information shall be submitted to the secretary not
more than one year nor less than 60 days before the transfer. If the
secretary does not approve or disapprove the transfer within 30 days after
all required information is submitted to the secretary, the transfer shall
be deemed to have been approved.

      (2) Permits granted by the secretary as provided by this act shall be
revocable or subject to suspension whenever the secretary shall determine
that the solid waste processing or disposal facility or area is, or has been
constructed or operated in violation of this act or the rules and regulations
or standards adopted pursuant to the act, or is creating or threatens to
create a hazard to persons or property in the area or to the environment,
or is creating or threatens to create a public nuisance, or upon the failure
to make payment of any fee required under this act.

      (3) The secretary also may revoke, suspend or refuse to issue a permit
when the secretary determines that past or continuing violations of the
provisions of K.S.A. 65-3409, subsection (c)(3) of K.S.A. 65-3407 or
K.S.A. 65-3424b, and amendments thereto, have been committed by a
permittee, or any principal, shareholder or other person capable of ex-
ercising partial or total control over a permittee.

      (j) Except as otherwise provided by subsection (i)(1), the secretary
may require a new permit application to be submitted for a solid waste
processing facility or a solid waste disposal area in response to any change,
either directly or indirectly, in ownership or control of the permitted real
property or the existing permittee.

      (k) In case any permit is denied, suspended or revoked the person,
city, county or other political subdivision or state agency may request a
hearing before the secretary in accordance with K.S.A. 65-3412, and
amendments thereto.

      (l)  (1) No permit to construct or operate a solid waste disposal area
shall be issued on or after the effective date of this act if such area is
located within 1/2 mile of a navigable stream used for interstate commerce
or within one mile of an intake point for any public surface water supply
system.

      (2) Any permit, issued before the effective date of this act, to con-
struct or operate a solid waste disposal area is hereby declared void if
such area is not yet in operation and is located within 1/2 mile of a navi-
gable stream used for interstate commerce or within one mile of an intake
point for any public surface water supply system.

      (3) The provisions of this subsection shall not be construed to pro-
hibit: (A) Issuance of a permit for lateral expansion onto land contiguous
to a permitted solid waste disposal area in operation on the effective date
of this act; (B) issuance of a permit for a solid waste disposal area for
disposal of a solid waste by-product produced on-site; (C) renewal of an
existing permit for a solid waste area in operation on the effective date
of this act; or (D) activities which are regulated under K.S.A. 65-163
through 65-165 or 65-171d, and amendments thereto.

      (m) Before reviewing any application for a solid waste processing fa-
cility or solid waste disposal area, the secretary shall require the following
information as part of the application:

      (1) Certification by the board of county commissioners or the mayor
of a designated city responsible for the development and adoption of the
solid waste management plan for the location where the processing facility
or disposal area is or will be located that the processing facility or disposal
area is consistent with the plan. This certification shall not apply to a solid
waste disposal area for disposal of only solid waste produced on site from
manufacturing and industrial processes or from on-site construction or
demolition activities.

      (2) If the location is zoned, certification by the local planning and
zoning authority that the processing facility or disposal area is consistent
with local land use restrictions or, if the location is not zoned, certification
from the board of county commissioners that the processing facility or
disposal area is compatible with surrounding land use.

      (3) For a solid waste disposal area permit issued on or after July 1,
1999, proof that the permittee owns the land where the disposal area will
be located, if the disposal area is: (A) A municipal solid waste landfill; or
(B) a solid waste disposal area that has: (i) A leachate or gas collection or
treatment system; (ii) waste containment systems or appurtenances with
planned maintenance schedules; or (iii) an environmental monitoring sys-
tem with planned maintenance schedules or periodic sampling and anal-
ysis requirements. This requirement shall not apply to a permit for lateral
or vertical expansion contiguous to a permitted solid waste disposal area
in operation on July 1, 1999, if such expansion is on land leased by the
permittee before April 1, 1999.

      Sec.  2. K.S.A. 2001 Supp. 65-3415b is hereby amended to read as
follows: 65-3415b. (a) There is hereby imposed a state solid waste tonnage
fee of $1.00 for each ton or equivalent volume of solid waste disposed of
at any solid waste disposal area in this state other than solid waste enu-
merated in subsection (c) or solid waste disposal authorized by the sec-
retary pursuant to subsection (a) of K.S.A. 65-3407c, and amendments
thereto.

      (b) There is hereby imposed a state solid waste tonnage fee of $1.00
for each ton or equivalent volume of solid waste transferred out of Kansas
through a transfer station, other than waste enumerated in subsection (c).

      (c) The fees imposed by this section shall not apply to:

      (1) Any waste tire, as defined by K.S.A. 65-3424, and amendments
thereto, disposed in or at a permitted solid waste disposal area;

      (2) any of the following wastes sludges from public drinking water
supply treatment plants, when disposed of at a monofill permitted by the
department:

      (A) sludges from public drinking water supply treatment plants;

      (B) cement kiln dust from the manufacture of portland and masonry
cement;

      (C) flue gas desulfurization sludge, fly ash and bottom ash from coal-
fired electric generating facilities; and

      (D) foundry sand secretary;

      (3) clean rubble;

      (4) solid waste solely consisting of vegetation from land clearing and
grubbing, utility maintenance and seasonal or storm-related cleanup but
such exception shall not apply to yard waste; and

      (5) construction and demolition waste disposed of by the federal gov-
ernment, by the state of Kansas, or by any city, county or other unit of
local government in the state of Kansas, or by any person on behalf
thereof; and

      (6) industrial waste disposed of at a solid waste disposal area which
is permitted by the secretary, owned and operated by the facility gener-
ating the waste and used only for industrial waste generated by such
facility.

      (d) The operator of a solid waste disposal area or transfer station shall
pay the fee imposed by this section.

      (e) The secretary of health and environment shall administer, enforce
and collect the fee imposed by this section. The secretary shall have the
authority to waive such fee when large quantities of waste are generated
due to major natural disasters such as floods, tornados and fires unless
persons paying such fees are able to recover such fees from the federal
government. Except as otherwise provided by subsections (a) and (b), all
laws and rules and regulations of the secretary of revenue relating to the
administration, enforcement and collection of the retailers' sales tax shall
apply to such fee insofar as they can be made applicable. The secretary
of health and environment shall adopt any other rules and regulations as
necessary for the efficient and effective administration, enforcement and
collection thereof.

      (f) The secretary of health and environment shall remit all moneys
collected from fees imposed pursuant to subsections (a) and (b) to the
state treasurer in accordance with the provisions of K.S.A. 75-4215, and
amendments thereto. Upon receipt of each such remittance, the state
treasurer shall deposit the entire amount in the state treasury to the credit
of the solid waste management fund created by K.S.A. 65-3415a, and
amendments thereto.

      Sec.  3. K.S.A. 2001 Supp. 65-3415f is hereby amended to read as
follows: 65-3415f. (a) As used in this section, terms have the meanings
provided by K.S.A. 65-3402 and amendments thereto.

      (b) In addition to any other fee provided by law, the board of county
commissioners of any county may impose, by resolution adopted pursuant
to this section, a solid waste tonnage fee for each ton or equivalent volume
of solid waste disposed of at any solid waste disposal area operated by
such county. Such fees shall not apply to:

      (1) Any waste tire, as defined by K.S.A. 65-3424 and amendments
thereto, disposed in or at a permitted solid waste disposal area;

      (2) any of the following wastes when disposed of at a monofill per-
mitted by the department: (A) Sludges from public drinking water supply
treatment plants; (B) cement kiln dust from the manufacture of portland
and masonry cement; (C) flue gas desulfurization sludge, fly ash and bot-
tom ash from coal-fired electric generating facilities; and (D) foundry
sand;

      (3) clean rubble;

      (4) solid waste solely consisting of vegetation from land clearing and
grubbing, utility maintenance and seasonal or storm-related cleanup but
such exception shall not apply to yard waste; and

      (5) construction and demolition waste disposed of by the state of Kan-
sas or by any city or county in the state of Kansas, or by any person on
behalf thereof any solid waste exempted from the state solid waste tonnage
fee imposed by K.S.A. 65-3415b, and amendments thereto.

      (c) Fees imposed pursuant to this section shall be collected by the
county and deposited in a special fund in the county treasury. All interest
earned on moneys in the fund shall also be deposited in the fund. If there
is more than one solid waste disposal area in the county where fees are
imposed pursuant to this section, a separate fund for each such disposal
area shall be maintained from the fees collected from such disposal area.
Money in the fund shall be used only for payment of costs of closure,
postclosure actions and contamination remediation associated with the
solid waste disposal area until the secretary determines that all require-
ments for closure, postclosure actions and contamination remediation as-
sociated with the disposal area have been met.

      (d) The board of county commissioners, by resolution, may modify,
discontinue or reinstate the fee authorized by this section.

      (e) Transfer or expenditure of moneys in a special fund provided for
by this section for any purpose other than authorized by this section is a
class A nonperson misdemeanor and constitutes grounds for forfeiture of
public office.

      (f) If two or more counties jointly operate a solid waste disposal area,
the fee provided for by this section on solid waste disposed of at such
disposal area may be imposed, modified, discontinued or reinstated only
if a majority of the board of county commissioners of each county jointly
operating the disposal area votes to impose, modify, discontinue or re-
instate the fee. 
Sec.  4. K.S.A. 2001 Supp. 65-3407, 65-3415b and 65-3415f are
hereby repealed.
 Sec.  5. This act shall take effect and be in force from and after its
publication in the Kansas register.

Approved May 13, 2002.
 Published in the Kansas Register May 23, 2002.
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