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.