By Eckels                                             H.B. No. 1321
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the waste tire recycling program; providing for civil
    1-3  penalties and injunctive relief.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Subchapter P, Chapter 361, Health and Safety
    1-6  Code, is amended to read as follows:
    1-7              SUBCHAPTER P.  WASTE TIRE RECYCLING PROGRAM
    1-8        Sec. 361.471.  Definitions.  In this subchapter:
    1-9              (1)  "Commission" means the Texas Water Commission or
   1-10  its successor agencies.
   1-11              (2)  "Fund" means the waste tire recycling fund.
   1-12              (3)  "Green tire" means the casing form of a tire that
   1-13  has not been cured and/or does not have a tread or marking of any
   1-14  kind.
   1-15              (4) <(2)>  "Mobile tire shredder" means equipment
   1-16  mounted on wheels or skid-mounted and hauled from place to place to
   1-17  split, shred, or quarter used or scrap tires.
   1-18              (5) <(3)>  "Scrap tire" has the meaning assigned by
   1-19  Section 361.112.
   1-20              (6) <(4)>  "Waste tire facility" means a facility
   1-21  registered <permitted> by the commission <department> under Section
   1-22  361.112 at which scrap tires are collected or deposited and
   1-23  shredded  to  facilitate  the future extraction of useful materials
    2-1        Sec. 361.472.  Waste Tire Recycling Fees.  (a)(1)  A
    2-2  wholesale or retail tire dealer who sells or offers to sell new
    2-3  tires not for resale shall collect at the time and place of sale a
    2-4  waste tire recycling fee <of $2> for each new <automobile, van,
    2-5  bus, truck, trailer, semitrailer, truck tractor and semitrailer
    2-6  combination, or recreational vehicle> tire sold as follows:
    2-7                    (A)  $2 for each tire with <that has> a rim
    2-8  diameter equal to or greater than 12 inches but less than 19.5 <26>
    2-9  inches; and
   2-10                    (B)  $5 for each tire with a rim diameter equal
   2-11  to or greater than 19.5 inches but less than 25 inches, for each
   2-12  truck tire with a rim diameter of 17 inches, and for any other
   2-13  truck tires as identified by the commission.
   2-14              (2)  The sale of a tire as original equipment in the
   2-15  manufacture of new vehicles is a sale for resale.
   2-16        (b)  <A dealer required to collect a fee under this section
   2-17  may retain 2-1/2  cents from each fee the dealer collects.  A
   2-18  dealer shall account for amounts retained under this subsection in
   2-19  the manner prescribed by the comptroller.>
   2-20        <(c)>  A dealer required to collect a fee under this section:
   2-21              (1)  shall list as a separate item on an invoice a fee
   2-22  due under this section; and
   2-23              (2)  except as provided by Subsection (c) <(d)>, on or
   2-24  before the 20th day of the month following the end of each calendar
   2-25  month  and  on  a  form  and  in  the   manner  prescribed  by  the
    3-1        (h)  A person storing, using, or consuming a new tire in this
    3-2  state is liable for the waste tire recycling fee as defined in this
    3-3  section and is responsible for reporting and paying the fee to the
    3-4  comptroller in the same manner as a person required to collect this
    3-5  fee, as provided in Subsections (b)(2) and (c).
    3-6        (i)  A person storing, using, or consuming a new tire in this
    3-7  state is not further liable for the waste tire recycling fee
    3-8  imposed by Subsection (a) if the person pays the fee to a
    3-9  wholesaler or retailer engaged in business in this state or another
   3-10  person authorized by the comptroller to collect the fee and
   3-11  receives from the wholesaler, retailer, or other person a
   3-12  purchaser's receipt.
   3-13        Sec. 361.473.  Enforcement; Penalties.  (a)  A person who
   3-14  does not file a report as provided by Section 361.472 or who
   3-15  possesses a fee collected or payable under that section and who
   3-16  does not remit the fee to the comptroller at the time and in the
   3-17  manner required by that section and rules of the comptroller shall
   3-18  pay a penalty of five percent of the amount of the fee due and
   3-19  payable.  If the person does not file the report or pay the fee
   3-20  before the 30th day after the date on which the fee or report is
   3-21  due, the person shall pay a penalty of an additional five percent
   3-22  of the amount of the fee due and payable.
   3-23        (b)  Chapters 101 and 111 through 113, Tax Code, and Sections
   3-24  153.006 and 153.007, Tax Code, apply to the administration,
   3-25  payment, collection, and enforcement of fees under this section in
    4-1  subchapter in an amount not to exceed six percent of the money
    4-2  annually accruing to the fund; however, the registration fees
    4-3  received under Section 361.472(d) shall be allocated to the
    4-4  commission for its reasonable and necessary costs associated with
    4-5  reviewing and issuing fixed and mobile processing applications and
    4-6  storage site applications; and
    4-7              (3)  the comptroller's reasonable and necessary
    4-8  administrative costs of performing the comptroller's duties under
    4-9  this subchapter in an amount not to exceed two percent of the money
   4-10  annually accruing to the fund.
   4-11        (e)  The fund may not be used to reimburse shredding of:
   4-12              (1)  innertubes;
   4-13              (2)  scrap rubber products;
   4-14              (3)  green tires;
   4-15              (4)  industrial solid waste, excluding waste tires; or
   4-16              (5)  oversized tires, as defined by commission rule.
   4-17        (f)  The commission may classify special authorization tires,
   4-18  as defined by commission rule, as priority enforcement list tires.
   4-19        (g)  The fund shall maintain a balance of not less than
   4-20  $500,000.
   4-21        (h)  If the commission has reason to believe that the fund
   4-22  balance will fall below $500,000, the commission may:
   4-23              (1)  suspend the requirement to reimburse priority
   4-24  enforcement list tires shredded in excess of the minimum percentage
   4-25  identified in Section 361.477(b)(2)(B); or than 30 percent of those
    5-1  tires were collected from scrap tire sites <dumps> listed on the
    5-2  commission's <department's> priority enforcement list;
    5-3              (3)  on and after January 1, 1995, demonstrate to the
    5-4  commission that shredded scrap tire pieces for which reimbursement
    5-5  is sought were delivered to a person that either recycles or reuses
    5-6  the shredded scrap tires or utilizes the shredded scrap tires for
    5-7  energy recovery;
    5-8              (4)  provide any other information the commission
    5-9  <department> determines is needed to accomplish the purposes of
   5-10  this subchapter; <and>
   5-11              (5) <(4)>  demonstrate that energy recovery activities
   5-12  are in compliance with applicable air emission control rules and
   5-13  standards as adopted by the Texas Air Control Board; and
   5-14              (6)  provide financial assurance deemed adequate by the
   5-15  commission, which assurance shall correspond to the payment
   5-16  appropriate for the number of scrap tires the processor anticipates
   5-17  shredding or the waste tire storage site owner or operator
   5-18  anticipates accepting for storage in the next calendar month.
   5-19        (c)  A waste tire processor that in any month exceeds the <25
   5-20  percent> minimum requirement of Subsection (b)(2) shall receive a
   5-21  credit for the amount in excess of the requirement <25 percent>
   5-22  that may be used to meet the minimum requirement during a later
   5-23  month.  The commission <board of health> by rule may prescribe the
   5-24  method of applying credits accrued under this subsection.
   5-25  preceding period of operation <five years>.
    6-1        (c)  A waste tire processor that receives payment under this
    6-2  subchapter <Section 361.477> during any two-year <five-year> period
    6-3  and that after evaluation is not certified by the commission
    6-4  <department> under Subsection (b) as eligible for payment under
    6-5  this subchapter <Section 361.477> may not receive payment under
    6-6  this subchapter <that section> for the next two <five> years.
    6-7        (d)  The commission <board of health> by rule may establish a
    6-8  procedure by which a waste tire processor can reestablish
    6-9  eligibility for payment under this subchapter <Section 361.477>.
   6-10        Sec. 361.479.  Evidence of Financial Responsibility.  (a)  A
   6-11  waste tire storage facility registered by the commission
   6-12  <department> under Section 361.112 or a waste tire facility that
   6-13  accepts shredded scrap tires for storage or for processing for
   6-14  recycling, reuse, or energy recovery shall submit to the commission
   6-15  <department> evidence of financial responsibility in an amount
   6-16  adequate to assure proper cleanup and <or> closure of the facility.
   6-17        (b)  A facility subject to Subsection (a) shall submit to the
   6-18  commission <department> an estimate of the total amount of shredded
   6-19  scrap tires or scrap tire pieces measured by weighed tire that the
   6-20  facility will store or process and the estimated cost, using that
   6-21  total amount, of cleaning up and <or> closing the facility.
   6-22        (c)  The commission <department> shall evaluate and may amend
   6-23  an estimate submitted under Subsection (b) and <by order> shall
   6-24  determine for each facility the amount for which evidence of
   6-25  corrective action for each violation and is liable for a civil
    7-1  penalty of up to $25,000 and corrective action for each violation.
    7-2        (b)  The attorney general or the prosecuting attorney in the
    7-3  county in which the alleged violation occurs may bring suit to
    7-4  recover the civil penalty imposed under Subsection (a).
    7-5        (c)  The commission may bring suit to mandate the corrective
    7-6  action required or recover administrative penalties imposed under
    7-7  Subsection (a).
    7-8        (d)  An administrative or civil <A> penalty collected under
    7-9  this section shall be deposited to the credit of the waste tire
   7-10  recycling fund.
   7-11        Sec. 361.484.  Rules.  The commission <board of health> may
   7-12  adopt rules reasonably necessary to implement this subchapter.
   7-13        Sec. 361.485.  Report.  Not later than February 1 of each
   7-14  odd-numbered year, the commission <department> shall report to the
   7-15  governor and the legislature on the administration of the program
   7-16  established under this subchapter and its effectiveness in cleaning
   7-17  up existing scrap tire dumps and in preventing new scrap tire
   7-18  dumps.
   7-19        Sec. 361.486.  RECYCLING EFFORTS.  (a)  On and after
   7-20  January 1, 1995, all new, amended, and renewal processing
   7-21  registrations shall require the processor to identify those persons
   7-22  that, by contract, will accept the processor's shredded scrap tire
   7-23  pieces either to recycle or reuse the shredded scrap tires or to
   7-24  utilize the shredded scrap tires for energy recovery.  The tires.
   7-25        Sec. 361.489.  IMMEDIATE REMOVAL AND REMEDIAL ACTION BY THE
    8-1  COMMISSION.  (a)  If after investigation the commission finds that
    8-2  there exists a situation caused by the illegal dumping of scrap
    8-3  tires that is causing or may cause imminent and substantial
    8-4  endangerment to the public health and safety or the environment and
    8-5  that the immediacy of the situation makes it prejudicial to the
    8-6  public interest to delay action until an administrative order can
    8-7  be issued to potentially responsible parties or until a judgment
    8-8  can be entered in an appeal of an administrative order, the
    8-9  commission may, with the funds available to the commission from the
   8-10  waste tire recycling fund, undertake immediate remediation of the
   8-11  site.
   8-12        (b)  If a person ordered to eliminate an imminent and
   8-13  substantial danger to the public health and safety or the
   8-14  environment has failed to do so within the time limits specified in
   8-15  the order or any extension of time approved by the commission, the
   8-16  commission may implement a remedial program for the site.
   8-17        (c)  The commission may recover against all responsible
   8-18  parties reasonable expenses for undertaking immediate removal under
   8-19  Subsection (a) or for implementing a remedial action order under
   8-20  Subsection (b).
   8-21        (d)  The commission shall file the cost recovery action no
   8-22  later than one year after immediate-removal or remedial-action
   8-23  measures are completed.  responsible for their actions.
   8-24        (c)  Whenever it appears that a person has violated or is
   8-25  violating or is threatening to violate any provision of this
    9-1  subchapter or any rule, permit, or order of the commission, the
    9-2  executive director may have a civil suit instituted in district
    9-3  court for injunctive relief to restrain the person from continuing
    9-4  the violation or threat of violation.
    9-5        Sec. 361.491.  NEW TIRE WHOLESALERS AND RETAILERS.  Any
    9-6  person selling new tires as described in Section 361.472(a) shall
    9-7  accept from customers, without charge, used scrap tires of the type
    9-8  and in a quantity at least equal to the number of new tires
    9-9  purchased, if offered by customers.
   9-10        SECTION 2.  The importance of this legislation and the
   9-11  crowded condition of the calendars in both houses create an
   9-12  emergency and an imperative public necessity that the
   9-13  constitutional rule requiring bills to be read on three several
   9-14  days in each house be suspended, and this rule is hereby suspended,
   9-15  and that this Act take effect and be in force from and after its
   9-16  passage, and it is so enacted.