BILL ANALYSIS


                                                         S.B. 776
                                                        By: Brown
                                                          Finance
                                                         03-16-95
                                     Committee Report (Unamended)
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 Texas Natural Resource
Conservation Commission (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 WRTF 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 WRTF is facing a substantial shortfall in funding because
during this biennium it was appropriated approximately $10 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.

PURPOSE

As proposed, S.B. 776 appropriates the sum of $10.9 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 grant any
additional rulemaking authority to a state officer, institution, or
agency.

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 $10.9 million is
appropriated to the Texas Natural Resource Conservation Commission
from the waste tire recycling fund.

SECTION 2. Emergency clause.
           Effective date:  upon passage.