BILL ANALYSIS



C.S.S.B. 776
By: Brown (Saunders)
April 17, 1995
Committee Report (Substituted)


BACKGROUND

The Waste Tire Recycling Fund (WTRF) is a state program that
provides compensation to entities which process used tires.  The
WTRF may only be used to pay for reimbursement to processors for
shredding tires, administrative costs of the Texas Natural Resource
Conservation Commission (TNRCC) (not to exceed 6 percent of total
receipts), and the administrative costs of the state comptroller
(not to exceed 2 percent of total receipts).  The WTRF is funded by
a $2.00 fee added to the price of new tires and a $3.50 fee added
to the price of new truck tires. Processors are reimbursed $0.85
for each weighted tire equivalent (an average car tire weighs 18.7
pounds).

The WTRF is facing a substantial shortfall in funding because
during this biennium the TNRCC was appropriated approximately $10.9
million less than the revenues it has collected from the fee on new
tire sales.  Because tire processors have filed claims for
reimbursement which exceed the specific amount appropriated, the
fund will be exhausted unless it can have access to the
unappropriated revenue in the WTRF.

Of the $10.9 million estimated to come in over the appropriated
amount, $1.565 million was remaining balance from FY '94 and had
been counted in the Comptroller's certification.  The remaining
$9.34 million in estimated revenue for FY '95 was not counted by
the Comptroller for certification and therefore will not cost
against the Appropriations bill.

PURPOSE

This bill appropriates the sum of $9.34 million from the waste tire
recycling fund, in addition to amounts previously appropriated, to
the Texas Natural Resource Conservation Commission.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly
grant any additional rulemaking authority to a state officer,
department, agency or institution.

SECTION BY SECTION ANALYSIS

SECTION 1.  Provides that in addition to amounts previously
appropriated under the current General Appropriations Act or other
law for the current fiscal biennium, the sum of $9.34 million is
appropriated to the Texas Natural Resource Conservation Commission
from the waste tire recycling fund.

SECTION 2.  Contingency clause:  this act takes effect only if HB
2846 or SB 1440, 74th Legislature, becomes law.

SECTION 3.  Effective date:  the first date HB 2846 or SB 1440
becomes law.

SECTION 4.  Emergency clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute makes the emergency appropriation contingent upon
passage of HB 2846 or SB 1440 which makes changes to the waste tire
recycling program.


SUMMARY OF COMMITTEE ACTION

SB 776 was considered in a full committee public hearing on April
5, 1995.  Dan Pearson, Executive Director of the TNRCC and Jennifer
Sidnell, WTR Program of the TNRCC testified on the bill.  The bill
was left pending in committee.  The bill was taken up and
considered again in a full committee public hearing on April 12,
1995.  Chairman Junell offered a committee substitute which was
adopted without objection.  No witnesses testified on the bill. 
The motion to report the bill, as substituted, favorably to the
Committee on Calendars carried by a vote of 18 ayes, 0 nays, 0 PNV,
and 9 absent.