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.