By:  Estes                                                        S.B. No. 1407
	(In the Senate - Filed March 10, 2005; March 21, 2005, read 
first time and referred to Committee on Natural Resources; 
April 18, 2005, reported favorably by the following vote:  Yeas 9, 
Nays 0; April 18, 2005, sent to printer.)


A BILL TO BE ENTITLED

AN ACT


relating to the demonstration of financial assurance by a local 
government in relation to the operation of a municipal solid waste 
landfill facility.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter C, Chapter 361, Health and Safety 
Code, is amended by adding Section 361.0855 to read as follows:
	Sec. 361.0855.  DEMONSTRATION OF FINANCIAL ASSURANCE. 
(a)  In this section:
		(1)  "Bonds" means financial obligations issued by a 
local government, including general obligation bonds, revenue 
bonds, and certificates of obligation.
		(2)  "Local government" includes:                                      
			(A)  a local government corporation created under 
Chapter 431, Transportation Code, to act on behalf of a local 
government; and
			(B)  a conservation and reclamation district 
created under Section 59, Article XVI, Texas Constitution.
	(b)  Notwithstanding any requirement of the commission for 
the demonstration of financial assurance, a local government that 
owns or operates a municipal solid waste landfill facility 
regulated by this chapter is considered to have satisfied all 
requirements of the commission for the demonstration of financial 
assurance in relation to closure, post-closure, or corrective 
action, if the local government:
		(1)  establishes and passes a financial test in 
accordance with commission rules; and
		(2)  demonstrates that the outstanding bonds of the 
local government that are not secured by insurance, a letter of 
credit, or any other collateral or guarantee have a current rating 
of AAA, AA, A, or BBB as determined by Standard and Poor's or Aaa, 
Aa, A, or Baa as determined by Moody's.
	(c)  A local government must demonstrate financial assurance 
under this section:
		(1)  before the date of the initial receipt of waste at 
the facility; or
		(2)  as soon as practicable if, on the effective date of 
this section, the facility was in operation and had received waste.
	SECTION 2.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2005.



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