Local Enforcement Agency Correspondence

Change in Ownership/Operator Through Stock Transfer or Acquisition

Clarification of LEA Advisory No. 47

Date: February 20, 1998

To: All Local Enforcement Agencies

California Integrated Waste Management Board (Board) staff would like to clarify whether the acquisition by stock transfer necessitates a name change on the face of the Solid Waste Facility Permit for a solid waste facility. As discussed in LEA Advisory No. 47, Public Resources Code (PRC) 44005(a) and Title 27 California Code of Regulations (CCR), Section 21630 (a) refer to an owner/operator of a solid waste facility who plans to "encumber, sell, transfer or convey" a solid waste facility. A stock transfer/acquisition by definition is a sale or transfer (California Corporations Code, Section 25017(a)). Thus a change in ownership of a solid waste facility by stock transfer/acquisition is covered by PRC 44005(a) and 27 CCR 21630 (a), even though a stock transfer/acquisition is not specifically listed in these sections.

Pursuant to PRC 44005 and 27 CCR 21630, a change in ownership does not necessarily trigger an action with regard to the permit. The statutes/regulations provide that an owner/operator is to notify the Board and the LEA 45 days before the anticipated transfer. The anticipated new owner/operator submits an affidavit certifying that: the facilities will be operated in accordance with the existing permit and conditioning documents; all new information is correct; and financial assurance and operating liability requirements have been met.

If the LEA and Board staff determine that the facility can be operated in compliance with the permit and CEQA, and that financial assurances and operating liability requirements have been met, the LEA can change the permit pursuant to PRC 44005(c) to reflect the new owner, without having to take an action with regard to the permit. Note that even if the language in the permit prohibits transfer, AB59 supersedes this prohibition and the permit can be transferred to a new owner or operator.

If the owner/operator fail to notify the Board and the LEA 45 days before the transfer and the new owner/operator fail to submit the affidavit, then both parties are in violation of PRC 44005 and 27 CCR 21630. An action with regard to the permit is not necessary unless actual site operations have changed to the extent that the facility is no longer operating within the terms and conditions of the permit. If it is determined that the facility is operating outside of the current permit, then revising the permit would be necessary.

New owners/operators of recently acquired solid waste facilities should comply with the notification requirements in PRC 44005 and 27 CCR 21630 within 30 days. As long as the LEA and Board determine that the facility is in compliance with requirements for financial assurances, operating liability, CEQA, and permit terms, then the LEA can simply change the name on the permits. If the new owner/operator fails to submit the required information, then the LEA should issue a notice and order citing violations of PRC 44005 and 27 CCR 21630.

Please attach this letter to LEA Advisory No. 47 for further clarification. If you have any questions regarding this issue, please contact your Permitting and Inspection Branch liaison.

Sincerely,

Original signed by:

Dorothy Rice
Deputy Director
Permitting and Enforcement Division

Cc: Kathryn Tobias, CIWMB Legal Office
      Don Dier, CIWMB Permitting and Inspection Branch

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