LRB-2534/1
RCT:eev:jm
2013 - 2014 LEGISLATURE
September 17, 2013 - Introduced by Representatives Milroy, Mursau, Doyle,
Bewley, Smith, Clark, Wachs and Hulsey, cosponsored by Senators Jauch
and Shilling. Referred to Committee on Environment and Forestry.
AB376,1,3
1An Act to amend 289.41 (6) (a); and
to create 289.41 (6) (m) of the statutes;
2relating to: the net worth method of providing proof of financial responsibility
3for certain solid waste facilities.
Analysis by the Legislative Reference Bureau
Current law requires the operator of a solid waste facility to provide proof of
financial responsibility for the costs of the care, maintenance, and monitoring of the
facility after it is closed. Instead of providing proof of financial responsibility by
providing a bond, escrow account, or letter of credit, a company may establish the
proof through what is called the net worth method, that is, by showing that the
company complies with specified financial criteria, including having a net worth of
at least $10,000,000. One of the other criteria requires a specified ratio of net fixed
assets to total tangible assets. Current law provides exceptions or alternatives to
some of the financial criteria in specified circumstances.
This bill provides alternate financial criteria for using the net worth method of
providing proof of financial responsibility for a company that does not satisfy the
current criterion for the ratio of net fixed assets to total tangible assets but that
satisfies the other current financial criteria. The alternate criteria may be used by
a company that operates a solid waste facility that processes waste wood if more than
50 percent of the waste wood is processed to be used for energy recovery (fuel). The
alternate criteria include a required ratio of short-term assets to short-term
liabilities.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB376,1
1Section
1. 289.41 (6) (a) of the statutes is amended to read:
AB376,2,62
289.41
(6) (a)
Compliance. Except as provided under par. (j), (k),
or (L)
, or (m) 3or sub. (7), calculations and determinations based on data and information provided
4in the opinion of the certified public accountant are required to establish that the
5company satisfies each of the criteria under pars. (b) to (i) in order to comply with
6minimum financial standards.
AB376,2
7Section
2. 289.41 (6) (m) of the statutes is created to read:
AB376,2,128
289.41
(6) (m)
Alternative criteria for waste wood facility. Paragraph (d) does
9not apply to a company that owns a solid waste facility that processes waste wood if
10more than 50 percent, by volume, of the waste wood is processed to be used for energy
11recovery and the company satisfies the criteria under pars. (b), (c), and (e) to (i), and
12the following criteria:
AB376,2,1413
1. The quotient of short-term assets divided by short-term liabilities at the end
14of the company's most recent fiscal year equals or exceeds 4.0.
AB376,2,1915
2. The quotient of the sum of net income plus interest expense, plus
16depreciation, plus amortization, less capital expenditures, less dividends for the
17company's most recently completed fiscal year divided by the sum of interest
18expenses and mandatory payments on funded debt for that year equals or exceeds
194.0.
