74R11680 E
By Saunders H.B. No. 2846
Substitute the following for H.B. No. 2846:
By Saunders C.S.H.B. No. 2846
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the waste tire recycling program.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 361.471, Health and Safety Code, is
1-5 amended to read as follows:
1-6 Sec. 361.471. DEFINITIONS. In this subchapter:
1-7 (1) "Fund" means the waste tire recycling fund.
1-8 (2) "Green tire" means the casing form of a tire that
1-9 has not been cured or does not have a tread or marking of any kind.
1-10 (3) "Good used tire" means a used tire, not including
1-11 a recapped or retreaded tire, suitable for continued use for its
1-12 original intended purpose.
1-13 24 (4) "Manufacturer reject tire" means a tire rendered
1-14 defective in the manufacturing process, whether the tire is
1-15 determined to be defective before or after consumer purchase.
1-16 (5) <(4)> "Mobile tire shredder" means equipment
1-17 mounted on wheels or skid-mounted and hauled from place to place to
1-18 split, shred, or quarter used or scrap tires.
1-19 (6) <(5)> "Scrap tire" has the meaning assigned by
1-20 Section 361.112.
1-21 (7) "Waste tire energy recovery facility" means a
1-22 facility at which whole used or scrap tires or shredded tires are
1-23 used as a fuel, including:
1-24 (A) a cement kiln;
2-1 (B) a utility boiler;
2-2 (C) a pulp and paper mill;
2-3 (D) a cogeneration facility; or
2-4 (E) another facility designated by the
2-5 commission.
2-6 (8) <(6)> "Waste tire facility" means a facility
2-7 registered by the commission under Section 361.477 at which scrap
2-8 tires are collected and shredded to facilitate the future
2-9 extraction of useful materials for recycling, reuse, or energy
2-10 recovery and are stored in a waste tire storage facility or a
2-11 facility that recycles, reuses, or recovers the energy from the
2-12 shredded tire pieces.
2-13 (9) <(7)> "Waste tire processor" means:
2-14 (A) a waste tire facility; or
2-15 (B) a mobile tire shredder that splits, shreds,
2-16 or quarters tires and deposits the split, shredded, or quartered
2-17 tires for eventual recycling, reuse, or energy recovery at:
2-18 (i) a waste tire storage facility
2-19 registered by the commission under Section 361.112; or
2-20 (ii) a waste tire facility.
2-21 (10) <(8)> "Waste tire storage facility" means a
2-22 facility registered by the commission under Section 361.477 at
2-23 which whole used or scrap tires or shredded tire pieces are
2-24 collected and stored to facilitate the future extraction of useful
2-25 material for recycling, reuse, or recovery. The term does not
2-26 include a marine dock, rail yard, or trucking facility used to
2-27 store tires that are awaiting shipment to a person for recycling,
3-1 reuse, or energy recovery for 30 days or less.
3-2 (11) <(9)> "Waste tire transporter" means a person who
3-3 collects and transports used or scrap tires or scrap tire pieces
3-4 for storage or disposal.
3-5 (12) <(10)> "Weighed tire" means a unit of weight for
3-6 shredded scrap tires that is equal to 18.7 pounds.
3-7 SECTION 2. Section 361.472, Health and Safety Code, is
3-8 amended by amending Subsections (a), (c), (d), (h), (i), and (j)
3-9 and by adding Subsection (k) to read as follows:
3-10 (a) Until September 1, 1999, a <A> wholesale or retail tire
3-11 dealer, a person in the business of selling good used tires for use
3-12 on a vehicle, or a person in the business of selling used vehicles
3-13 or used vehicle parts who sells or offers to sell new or good
3-14 used tires not for resale shall collect at the time and place of
3-15 sale a waste tire recycling fee for each <new> tire sold as
3-16 follows:
3-17 (1) $2 for each new tire that has a rim diameter of 12
3-18 inches or more but less than 17.5 inches and $1 for each good used
3-19 tire that has a rim diameter of 12 inches or more but less than
3-20 17.5 inches;
3-21 (2) $3.50 for each new tire that has a rim diameter of
3-22 17.5 inches or greater, other than an off-the-road tire intended
3-23 for use on heavy machinery, including an earthmover, a
3-24 loader/dozer, a grader, or mining equipment <but less than 25
3-25 inches>; and
3-26 (3) $2 for a new motorcycle tire, regardless of the
3-27 rim diameter.
4-1 (c) A fee may not be assessed for:
4-2 (1) a recapped or retreaded tire; or
4-3 (2) a bicycle tire.
4-4 (d) A person <dealer> required to collect a fee under this
4-5 section:
4-6 (1) shall list as a separate item on an invoice a fee
4-7 due under this section; and
4-8 (2) except as provided by Subsection (e), on or before
4-9 the 20th day of the month following the end of each calendar month
4-10 and on a form and in the manner prescribed by the comptroller,
4-11 shall file a report with and shall remit to the comptroller the
4-12 amount of fees collected during the preceding calendar month.
4-13 (h) A waste tire recycling fee is imposed on the storage,
4-14 use, or consumption in this state of a <new> tire at the same rate
4-15 as provided by Subsection (a), except when purchased for the
4-16 purpose of resale.
4-17 (i) A person storing, using, or consuming a <new> tire in
4-18 this state is liable for the waste tire recycling fee as defined in
4-19 this section and is responsible for reporting and paying the fee to
4-20 the comptroller in the same manner as a person required to collect
4-21 this fee, as provided in Subsections (d)(2) and (e).
4-22 (j) A person storing, using, or consuming a <new> tire in
4-23 this state is not further liable for the waste tire recycling fee
4-24 imposed by Subsection (a) if the person:
4-25 (1) pays the fee to:
4-26 (A) a person who is required to collect the fee
4-27 under Subsection (a) and who is <wholesaler or retailer> engaged in
5-1 business in this state; or
5-2 (B) another person authorized by the comptroller
5-3 to collect the fee; and
5-4 (2) receives <from the wholesaler, retailer, or other
5-5 person> a purchaser's receipt from the person to whom the fee was
5-6 paid.
5-7 (k) Effective September 1, 1999, a wholesale or retail tire
5-8 dealer, a person in the business of selling good used tires for use
5-9 on a vehicle, or a person in the business of selling used vehicles
5-10 or used vehicle parts who sells or offers to sell new or good used
5-11 tires not for resale shall collect at the time and place of sale a
5-12 waste tire recycling fee for each tire sold as follows:
5-13 (1) $1 for each new tire that has a rim diameter of 12
5-14 inches or more but less than 17.5 inches and 50 cents for each good
5-15 used tire that has a rim diameter of 12 inches or more but less
5-16 than 17.5 inches;
5-17 (2) $2.50 for each new tire that has a rim diameter of
5-18 17.5 inches or more, other than an off-the-road tire intended for
5-19 use on heavy machinery, including an earthmover, a loader/dozer, a
5-20 grader, or mining equipment; and
5-21 (3) $1 for a new motorcycle tire regardless of the rim
5-22 diameter.
5-23 SECTION 3. Section 361.4725, Health and Safety Code, is
5-24 amended to read as follows:
5-25 Sec. 361.4725. REGISTRATION; FEE. A person who applies to
5-26 the commission to register a waste tire storage facility, a waste
5-27 tire energy recovery facility storage site, or a fixed or mobile
6-1 tire processor, or applies to renew or amend the registration, must
6-2 pay a fee of $500.
6-3 SECTION 4. Section 361.473, Health and Safety Code, is
6-4 amended by adding Subsection (d) to read as follows:
6-5 (d) The comptroller and commission jointly shall develop and
6-6 implement an enforcement program to pursue the collection of
6-7 delinquent fees assessed under Section 361.472.
6-8 SECTION 5. Section 361.475, Health and Safety Code, is
6-9 amended by amending Subsections (d), (e), (f), and (i) to read as
6-10 follows:
6-11 (d) The fund may be used only to <pay>:
6-12 (1) pay waste tire processors, waste tire energy
6-13 recovery facility owners or operators, or waste tire recyclers that
6-14 meet the requirements for payment under Section 361.477, 361.4771,
6-15 or 361.4772 and rules adopted under those sections <that section>;
6-16 (2) pay the commission's reasonable and necessary
6-17 administrative costs of performing its duties under this subchapter
6-18 in an amount not to exceed six percent of the money annually
6-19 accruing to the fund; and
6-20 (3) pay the comptroller's reasonable and necessary
6-21 administrative costs of performing the comptroller's duties under
6-22 this subchapter in an amount not to exceed two percent of the money
6-23 annually accruing to the fund.
6-24 (e) Registration fees received under Section 361.4725 shall
6-25 be allocated to the commission for its reasonable and necessary
6-26 costs associated with reviewing applications for registration of
6-27 and with registering:
7-1 (1) fixed and mobile tire processing facilities and
7-2 storage sites; and
7-3 (2) waste tire energy recovery facility storage sites.
7-4 (f) The fund may not be used to reimburse shredding or
7-5 burning of:
7-6 (1) innertubes;
7-7 (2) scrap rubber products;
7-8 (3) green tires;
7-9 (4) industrial solid waste, excluding waste tires;
7-10 (5) oversized tires, as defined by commission rule,
7-11 unless the oversized tires are collected from a priority
7-12 enforcement list site; <or>
7-13 (6) manufacturer reject tires; or
7-14 (7) nonpneumatic tires.
7-15 (i) If the commission has reason to believe that the <fund>
7-16 balance of money appropriated from the fund will fall below
7-17 $500,000, the commission may:
7-18 (1) suspend the requirement to reimburse priority
7-19 enforcement list tires shredded in excess of the minimum percentage
7-20 identified in Section 361.477(c)(3)(C); <or>
7-21 (2) limit the number of waste tires for which a
7-22 processor or waste tire energy recovery facility owner or operator
7-23 will be reimbursed; or
7-24 (3) discontinue paid carryover under Sections
7-25 361.477(d) and (i) and Section 361.4771(f).
7-26 SECTION 6. Sections 361.477(b), (c), (d), (g), (h), (i),
7-27 (j), (k), and (l), Health and Safety Code, are amended to read as
8-1 follows:
8-2 (b) If the total number of used or scrap tires or tire
8-3 pieces contained in illegal scrap tire sites that are identified on
8-4 the priority enforcement list is below 2,500,000 <500,000> tires,
8-5 the commission may pay <more than> 85 cents or an appropriate
8-6 amount determined by the commission for each weighed tire to
8-7 processors with whom the commission has contracted to remove and
8-8 shred scrap tires and scrap tire pieces from priority enforcement
8-9 list sites. The 2,500,000 <500,000> tire limit does not include
8-10 those tires contained in sites under commission enforcement or
8-11 attorney general action or that require corrective action or
8-12 remedial action in response to a release or threat of release of
8-13 hazardous substances. In acting under this subsection, the
8-14 commission may contract with processors on a regional or
8-15 site-specific basis. The contracts shall be procured through a
8-16 competitive bid process conducted in accordance with the provisions
8-17 of the State Purchasing and General Services Act (Article 601b,
8-18 Vernon's Texas Civil Statutes) applicable to contracts for
8-19 services. Notwithstanding Subsection (c), while the commission is
8-20 using a competitive bid process for assignment of sites listed on
8-21 the priority enforcement list, the priority enforcement list
8-22 requirements of Subsection (c)(3)(C) do not apply to an application
8-23 for payment. The commission may elect not to enter into contracts
8-24 under this subsection. The contracts may be only for the removal
8-25 and shredding of tires from priority enforcement list sites.
8-26 (c) A waste tire processor that desires to receive payment
8-27 under this section for tires shredded by the processor during a
9-1 calendar month must:
9-2 (1) apply to the commission for registration in
9-3 accordance with forms prescribed by the commission;
9-4 (2) apply to the commission for payment on forms
9-5 prescribed by the commission or, on a voluntary basis, apply by a
9-6 removable storage medium stored in an industry standard file format
9-7 acceptable to the commission;
9-8 (3) demonstrate as required by rules adopted under
9-9 this section that:
9-10 (A) all tires for which payment is sought have
9-11 been shredded to an industry standard two-inch minus <a> particle
9-12 size or, if approved by the commission, shredded to an alternative
9-13 particle size set by a contract requirement related to recycling or
9-14 end use of the particles <not larger than nine square inches>;
9-15 (B) not less than 50 <25> percent of those tires
9-16 were collected from generators, unless this requirement is
9-17 suspended by the commission on consideration of service needs
9-18 contained in a contract drafted under Subsection (b); and
9-19 (C) if the total number of whole used or scrap
9-20 tires or shredded tire pieces contained in illegal waste tire sites
9-21 that are identified on the priority enforcement list exceeds
9-22 2,500,000 <500,000> tires for more than 60 <30> consecutive days,
9-23 not less than 15 percent and not more than 30 percent of those
9-24 tires were collected from scrap tire sites listed on the priority
9-25 enforcement list;
9-26 (4) provide any other information the commission
9-27 determines is needed to accomplish the purposes of this subchapter,
10-1 including a monthly report of scrap tires or tire pieces shredded,
10-2 subtotaled by tire count or weight, for each generator number and
10-3 priority enforcement list number;
10-4 (5) demonstrate that energy recovery activities in the
10-5 state are in compliance with applicable air emission control rules
10-6 and standards <as adopted by the Texas Air Control Board>; and
10-7 (6) provide financial assurance deemed adequate by the
10-8 commission that corresponds to:
10-9 (A) the payment appropriate for the number of
10-10 scrap tires the processor anticipates shredding in the next
10-11 calendar month; or
10-12 (B) the number of scrap tires the waste tire
10-13 storage site owner or operator anticipates accepting for storage in
10-14 the next calendar month.
10-15 (d) A waste tire processor that in any month exceeds the
10-16 minimum requirement of Subsection (c)(3)(C) may <shall> receive
10-17 <a> credit only for paid carryover in <for> the amount in excess of
10-18 the requirement that may be used to meet the minimum requirement
10-19 during a later month. The commission by rule may prescribe the
10-20 method of applying credits accrued under this subsection.
10-21 (g) Except as provided by <Notwithstanding> Section 361.486,
10-22 the commission may reimburse a processor for shredded scrap tires
10-23 if the processor has a binding agreement to deliver the shredded
10-24 scrap tires to a person to recycle or reuse or to use for energy
10-25 recovery within 180 days after the date of reimbursement. The
10-26 commission shall suspend subsequent shredding reimbursements to a
10-27 processor that fails to deliver the tire shreds to an identified
11-1 end-use market before the 181st day after the date of
11-2 reimbursement. The commission may not resume suspended
11-3 reimbursements until the processor makes all delinquent deliveries.
11-4 (h) The commission may not pay a waste tire processor for
11-5 processing scrap tires if <the commission determines that the
11-6 processor>:
11-7 (1) the commission field office and central office
11-8 program staff have not reviewed and approved for further processing
11-9 by the commission all information submitted to the commission by
11-10 the waste tire processor as required by Subsection (c) or rules
11-11 adopted under this section; or
11-12 (2) the commission determines that the processor:
11-13 (A) has not provided adequate financial
11-14 assurance;
11-15 (B) <(2)> does not have adequate fire
11-16 protection; or
11-17 (C) <(3)> is causing an imminent danger to
11-18 public health or welfare.
11-19 (i) A waste tire processor that in any month exceeds the
11-20 generator percentage of the allocated number of waste tires
11-21 assigned for reimbursement purposes may accrue credit only for paid
11-22 generator carryover in the amount in excess of the requirement that
11-23 may be used to meet the allocation maximum during a later month.
11-24 The commission by rule may prescribe the method of applying
11-25 carryover credit accrued under this section <shall issue to an
11-26 applicant all processing and storage registrations necessary to
11-27 begin operations and obtain reimbursement from the fund if the
12-1 applicant, on or before March 10, 1993:>
12-2 <(1) had an application pending for a new processing
12-3 facility that was reviewed by the commission and found to be in
12-4 general technical compliance;>
12-5 <(2) had an application pending for a new storage
12-6 facility with a total capacity in excess of 7 million waste tire
12-7 units; and>
12-8 <(3) had expended or committed in excess of $1 million
12-9 in total project costs>.
12-10 (j) The commission shall adopt rules to manage payments from
12-11 the fund to prevent depletion of the fund. Rules adopted under
12-12 this subsection shall consider<:>
12-13 <(1)> appropriate payments to processors that reflect
12-14 the varying amounts of money available in the fund. The commission
12-15 shall allocate for a processor the lower number of tires computed
12-16 after considering:
12-17 (1) the monthly average percentage of shredded tires
12-18 the processor has forwarded to an end-use or recycling market;
12-19 and<;>
12-20 (2) a waste tire processor's monthly average number of
12-21 tires for which the processor has been reimbursed historically<;>
12-22 <(3) a waste tire processor's shredding and storage
12-23 capacity; and>
12-24 <(4) the date the waste tire processor was
12-25 registered>.
12-26 (k) <If a waste tire processor does not fully use its
12-27 monthly allocation for reimbursement, the commission may assign the
13-1 unused portion of the allocation to another waste tire processor
13-2 who can demonstrate having underutilized shredding and storage
13-3 capacity available for service to rural counties in this state.>
13-4 <(l)> A person receiving payment from the fund may <only>
13-5 receive more than 85 cents per waste tire unit only under
13-6 Subsection (b). Notwithstanding Subsection (b):
13-7 (1) a person registered as a processor may not receive
13-8 from the fund more than 85 cents per weighed tire;
13-9 (2) a person registered as an energy recovery facility
13-10 may not receive from the fund more than 85 cents per weighed tire;
13-11 and
13-12 (3) a person registered under the useful product
13-13 reimbursement program may not receive from the fund more than 85
13-14 cents per weighed tire.
13-15 SECTION 7. Section 361.4771, Health and Safety Code, is
13-16 amended to read as follows:
13-17 Sec. 361.4771. PAYMENT TO PERSON RECOVERING ENERGY FROM
13-18 WHOLE WASTE TIRES. (a) The commission each month shall pay a
13-19 waste tire energy recovery facility owner or operator who is in
13-20 compliance with this section and rules adopted under this section
13-21 an amount equal to 85 cents for each weighed tire the facility used
13-22 for energy recovery during the preceding calendar month.
13-23 (b) The commission shall adopt rules to implement this
13-24 section, including rules governing the registration and application
13-25 procedures. The rules shall include a voluntary alternative
13-26 process for making a payment application by the use of an industry
13-27 standard file format removable storage medium. To receive a
14-1 payment under this section, a waste tire energy recovery facility
14-2 owner or operator must:
14-3 (1) apply to the commission for registration in the
14-4 manner and on forms prescribed by commission rule;
14-5 (2) apply to the commission for payment in a manner
14-6 and on forms prescribed by commission rule;
14-7 (3) demonstrate that all tires for which the owner or
14-8 operator applies for payment are whole waste tires;
14-9 (4) send the commission a monthly report of the number
14-10 of whole waste tires used for energy recovery, subtotaled by tire
14-11 count or by weight attributed to each generator number;
14-12 (5) demonstrate that the energy recovery activities
14-13 comply with applicable air emission control standards and rules;
14-14 (6) provide financial assurance as provided by
14-15 commission rule adequate to reflect the number of waste tires that
14-16 exceeds the 30-day supply authorized by Section 361.112 that the
14-17 facility owner or operator anticipates accepting for storage; and
14-18 (7) provide the commission any other information the
14-19 commission requires by rule.
14-20 (c) A waste tire energy recovery facility may not store
14-21 waste tires at a site at which the owner or operator intends to
14-22 burn or store waste tires until the commission has determined that
14-23 the owner or operator is in compliance with this chapter and all
14-24 applicable commission requirements.
14-25 (d) The commission may not pay a waste tire energy recovery
14-26 facility owner or operator for using waste tires if:
14-27 (1) the commission field office and central office
15-1 program staff have not reviewed and approved for further processing
15-2 by the commission all information submitted to the commission by
15-3 the waste tire energy recovery facility owner or operator as
15-4 required by Subsection (b) or rules adopted under this section; or
15-5 (2) the commission determines that the facility:
15-6 (A) has not provided adequate financial
15-7 assurance;
15-8 (B) does not have adequate fire protection; or
15-9 (C) is causing an imminent danger to public
15-10 health or welfare.
15-11 (e) The commission shall adopt rules to manage payments from
15-12 the fund to prevent depletion of the fund. The commission shall
15-13 pay reimbursements under Section 361.477 to processors having
15-14 established end-use markets and pay reimbursements under this
15-15 section and Section 361.4772 before making other payments from the
15-16 fund. After reimbursements under this section and under Section
15-17 361.4772 are paid, the commission may use the allocation method
15-18 provided by Section 361.477(j) to manage other payments from the
15-19 fund.
15-20 (f) A registered waste tire energy recovery facility shall
15-21 comply with all the provisions relating to PEL site cleanup and
15-22 closure contained in Section 361.477.
15-23 (g) This section expires September 1, 1999 <FOR SHREDDING
15-24 OUTSIDE OF STATE. Effective September 1, 1994, the commission may
15-25 reimburse a registered waste tire processor for shredding tires
15-26 generated in this state and shredded outside this state if the
15-27 processor:>
16-1 <(1) meets all requirements that apply to a waste tire
16-2 processor who shreds tires within this state;>
16-3 <(2) monthly reimburses the state for reasonable and
16-4 necessary costs incurred by an agency of the state for such related
16-5 to the out-of-state facility regulatory activities as are deemed
16-6 necessary by such agency;>
16-7 <(3) voluntarily submits to the commission's
16-8 enforcement authority as necessary to ensure compliance with this
16-9 subchapter; and>
16-10 <(4) agrees to maintain evidence of financial
16-11 responsibility under Section 361.479 in an amount equal to twice
16-12 the amount that would be required of an in-state waste tire
16-13 processor>.
16-14 SECTION 8. Section 361.4772, Health and Safety Code, is
16-15 amended to read as follows:
16-16 Sec. 361.4772. PAYMENT FOR RECYCLING <BALING> TIRES.
16-17 (a) The commission by rule may establish a program to reimburse
16-18 from the fund a waste tire recycler in an amount not to exceed 85
16-19 cents for each weighed tire that the waste tire recycler processes
16-20 to make a useful product.
16-21 (b) The following items are not products eligible for
16-22 reimbursement under a program established under this section:
16-23 (1) crumb rubber;
16-24 (2) powdered rubber;
16-25 (3) a tire-derived fuel;
16-26 (4) buffing dust;
16-27 (5) a retreaded or recapped tire; and
17-1 (6) an item identified in commission rules as
17-2 ineligible for reimbursement <Effective March 1, 1994, a registered
17-3 waste tire processor who bales whole tires for energy recovery
17-4 purposes is eligible for reimbursement at a rate of 25 cents for
17-5 each tire if the processor meets the requirements of this
17-6 subchapter that apply to a waste tire processor including
17-7 provisions for financial assurance for such baled tires. The
17-8 commission shall adopt rules to determine the amount of financial
17-9 assurance required under this section to apply to baled tires or
17-10 whole tires stored for baling. A processor seeking reimbursement
17-11 under this section for baling tires may not, directly or
17-12 indirectly, receive additional reimbursement from the fund for the
17-13 shredding of such baled tires>.
17-14 SECTION 9. Section 361.479, Health and Safety Code, is
17-15 amended to read as follows:
17-16 Sec. 361.479. EVIDENCE OF FINANCIAL RESPONSIBILITY. (a) A
17-17 waste tire storage facility registered by the commission <under
17-18 Section 361.112> or a waste tire facility that accepts shredded
17-19 scrap tires for storage or for processing for recycling, reuse, or
17-20 energy recovery shall submit to the commission evidence of
17-21 financial responsibility in an amount adequate to assure proper
17-22 cleanup and closure of the facility.
17-23 (b) A waste tire recycling facility owner or operator who
17-24 anticipates accepting an amount of shredded tire pieces for storage
17-25 that exceeds the 30-day supply authorized by Section 361.112 shall
17-26 submit to the commission evidence of financial responsibility in an
17-27 amount adequate to assure proper cleanup and closure of the
18-1 facility.
18-2 (c) A facility subject to Subsection (a) or (b) shall submit
18-3 to the commission an estimate of the total amount of shredded
18-4 <scrap tires and> tire pieces measured by weighed tire that the
18-5 facility will store or process, the maximum number of out-of-state
18-6 tires the facility will store, and the estimated cost, using that
18-7 total amount, of cleaning up and closing the facility.
18-8 (d) <(c)> The commission shall evaluate and may amend an
18-9 estimate submitted under Subsection (c) <(b)> and shall determine
18-10 for each facility the amount for which evidence of financial
18-11 responsibility is required.
18-12 (e) <(d)> Evidence of financial responsibility may be in the
18-13 form of:
18-14 (1) a performance bond or a letter of credit
18-15 acceptable to the commission that is from a financial institution,
18-16 a trust fund, or insurance for a privately owned facility; or
18-17 (2) a self-insurance test designed by the commission
18-18 for a publicly owned facility. A person who makes an initial
18-19 request for reimbursement from the waste tire recycling fund on or
18-20 after September 1, 1993, must provide evidence of financial
18-21 responsibility for the full amount determined under Subsection (d)
18-22 <(c)>.
18-23 SECTION 10. Section 361.480, Health and Safety Code, is
18-24 amended to read as follows:
18-25 Sec. 361.480. TIRE COLLECTION FEE PROHIBITED. A waste tire
18-26 transporter or mobile tire shredder may not charge a fee to a
18-27 wholesale or retail dealer for collecting for delivery to a waste
19-1 tire facility, waste tire energy recovery facility, or waste tire
19-2 recycling facility or for collecting and shredding used or scrap
19-3 tires a tire dealer accepts from purchasers of tires <accepted> for
19-4 temporary storage <by the dealer from purchasers of new tires>.
19-5 SECTION 11. Section 361.481, Health and Safety Code, is
19-6 amended to read as follows:
19-7 Sec. 361.481. PROHIBITION ON OUT-OF-STATE TIRES; PENALTY.
19-8 (a) A waste tire processor may not claim payment under Section
19-9 361.477 for shredding out-of-state tires. A waste tire energy
19-10 recovery facility owner or operator may not claim payment under
19-11 Section 361.4771 for burning out-of-state tires.
19-12 (b) A waste tire generator that the commission determines
19-13 has used a manifest and commission generator number to pass
19-14 out-of-state tires is not eligible for the free collection and
19-15 transportation of waste tires generated at the generator's place of
19-16 business. In addition to any administrative, civil, or criminal
19-17 enforcement action, the commission shall require the generator to
19-18 pay for:
19-19 (1) collection and transportation of generated tires;
19-20 and
19-21 (2) shredding or burning of generated tires at the
19-22 applicable rate specified in Section 361.477 or 361.4771.
19-23 (c) A waste tire processor or waste tire energy recovery
19-24 facility owner or operator whom the commission determines has
19-25 accepted out-of-state tires on manifests using a commission
19-26 generator number is subject to an administrative, civil, or
19-27 criminal enforcement action.
20-1 (d) A waste tire transporter that the commission determines
20-2 has transported out-of-state tires using a commission-approved
20-3 manifest or transporter number is subject to an administrative,
20-4 civil, or criminal enforcement action.
20-5 SECTION 12. Section 361.482, Health and Safety Code, is
20-6 amended to read as follows:
20-7 Sec. 361.482. PROHIBITION ON DISPOSAL OF SHREDDED TIRES IN
20-8 LANDFILL. A person <waste tire processor> may not dispose of whole
20-9 used or scrap tires that are eligible for reimbursement under this
20-10 chapter or shredded tire pieces for which reimbursement has been
20-11 paid under this subchapter <scrap tires> in a landfill, including a
20-12 Type VIII-S tire monofill <if the processor has received payment
20-13 under Section 361.477 for shredding the tires>.
20-14 SECTION 13. Section 361.4832, Health and Safety Code, is
20-15 amended to read as follows:
20-16 Sec. 361.4832. ADMINISTRATIVE PENALTY; <AND> ORDER FOR
20-17 CORRECTIVE ACTION; SUSPENSION OF REGISTRATION. (a) If a person
20-18 violates this subchapter or a rule adopted or order issued under
20-19 this subchapter the commission may:
20-20 (1) assess against the person an administrative
20-21 penalty under Section 361.252; or
20-22 (2) order the person to take a corrective action.
20-23 (b) The executive director may suspend a registration of or
20-24 reimbursement payment to a waste tire processor, waste tire
20-25 transporter, waste tire generator, waste tire recycling facility,
20-26 or waste tire energy recovery facility on the initiation of an
20-27 enforcement proceeding and while the proceeding is pending for the
21-1 violation of this subchapter or a rule adopted or order issued
21-2 under this subchapter.
21-3 SECTION 14. Section 361.486, Health and Safety Code, is
21-4 amended by amending Subsection (a) and adding Subsection (f) to
21-5 read as follows:
21-6 (a) Notwithstanding Section 361.496, on <On> and after
21-7 January 1, 1996, each applicant for a <for all> new, amended, and
21-8 renewal processing registration and each existing <applications,
21-9 the> processor must identify those persons who will accept the
21-10 processor's shredded <scrap> tire pieces for recycling or reuse or
21-11 to use the shredded scrap tires for energy recovery. The
21-12 commission shall reimburse a processor for only those shredded
21-13 tires that the commission determines are committed to a legitimate
21-14 end user.
21-15 (f) This section does not apply to a waste tire energy
21-16 recovery facility owner or operator.
21-17 SECTION 15. Section 361.487, Health and Safety Code, is
21-18 amended to read as follows:
21-19 Sec. 361.487. REIMBURSEMENT RESTRICTIONS. (a) A processor
21-20 seeking reimbursement under Section 361.477 shall process and store
21-21 the whole used or scrap tires or <scrap> tire pieces in the state.
21-22 A waste tire energy recovery facility owner or operator seeking
21-23 reimbursement under Section 361.4771 shall store and burn the whole
21-24 used or scrap tires or shredded tire pieces in the state.
21-25 (b) The commission shall treat whole used or scrap tires and
21-26 shredded <scrap> tire pieces generated in Texas, removed from
21-27 Texas, and subsequently reintroduced to Texas as out-of-state scrap
22-1 tires for the purposes of this subchapter.
22-2 <(c) Scrap tires and scrap tire pieces that are shredded and
22-3 for which a person is reimbursed may not be disposed of in a Type
22-4 VIII-S tire monofill.>
22-5 SECTION 16. Section 361.492, Health and Safety Code, is
22-6 amended to read as follows:
22-7 Sec. 361.492. ACCEPTANCE OF USED TIRES ON SALE OF TIRES <NEW
22-8 TIRE WHOLESALERS AND RETAILERS>. (a) A wholesale or retail tire
22-9 dealer, or a person in the business of selling new or good used
22-10 tires for use on a vehicle or selling used vehicle parts <person
22-11 selling new tires> as described in Section 361.472(a) shall accept
22-12 from customers, without charge, used tires of the type and in a
22-13 quantity at least equal to the number of <new> tires the customer
22-14 purchases.
22-15 (b) This section does not require a person to accept a used
22-16 tire from a customer who purchases a new or used vehicle on which
22-17 the tires purchased are mounted.
22-18 SECTION 17. Section 361.493, Health and Safety Code, is
22-19 amended to read as follows:
22-20 Sec. 361.493. CONFIDENTIALITY. Information submitted to the
22-21 commission in accordance with Section 361.477(g) or Section
22-22 361.486(a) or (d), and any report generated by the commission
22-23 based on the information, is confidential and is not subject to
22-24 disclosure under Chapter 552, Government Code <424, Acts of the
22-25 63rd Legislature, Regular Session, 1973 (Article 6252-17a, Vernon's
22-26 Texas Civil Statutes)>, and the commission shall protect the
22-27 information accordingly.
23-1 SECTION 18. Section 361.495, Health and Safety Code, is
23-2 amended to read as follows:
23-3 Sec. 361.495. FISCAL AUDITS. The <ENSURING CAPACITY. Not
23-4 later than October 1 of each odd-numbered year, the> commission
23-5 biennially shall perform a fiscal audit of each waste tire
23-6 processor, waste tire recycling facility, and waste tire energy
23-7 recovery facility owner or operator to ensure fiscal responsibility
23-8 and accountability regarding reimbursements made under Section
23-9 361.477. The person audited shall bear the costs of the audits
23-10 <determine the total shredding capacity of all registered waste
23-11 tire processors. If the commission determines that the shredding
23-12 capacity is less than the previous year's reimbursed waste tire
23-13 units, the commission may issue registrations to waste tire
23-14 processors until the anticipated shredding capacity equals the
23-15 previous year's reimbursed waste tire units. If the commission
23-16 determines that the shredding capacity exceeds the previous year's
23-17 reimbursed waste tire units, the commission may not issue a
23-18 registration to a new waste tire processor until the next capacity
23-19 assessment is completed>.
23-20 SECTION 19. Subchapter P, Chapter 361, Health and Safety
23-21 Code, is amended by adding Sections 361.496 and 361.497 to read as
23-22 follows:
23-23 Sec. 361.496. NEW OR EXPANDED PROCESSING OPERATION. A new
23-24 processor or registered processor that seeks to establish a new
23-25 processing facility or expand a processing operation in the state
23-26 must:
23-27 (1) be capable of providing collection and
24-1 transportation of waste tires from registered generators in all the
24-2 state's rural counties as defined by the United States Census
24-3 Bureau; and
24-4 (2) identify and have available for use an end-use or
24-5 recycling market in the application for a new or amended
24-6 registration.
24-7 Sec. 361.497. EXPIRATION. This subchapter expires December
24-8 31, 1997.
24-9 SECTION 20. Subchapter P, Chapter 361, Health and Safety
24-10 Code, is amended by adding Section 361.498 to read as follows:
24-11 Sec. 361.498. COMMUNITY SERVICE. Persons seeking
24-12 reimbursement from the waste tire recycling fund shall perform
24-13 community service on an annual basis. Community service includes
24-14 cooperation with local civic groups to clean up abandoned tire
24-15 sites that are not classified as priority enforcement list sites.
24-16 The tires collected under this subsection are eligible for
24-17 reimbursement.
24-18 SECTION 21. Section 2, Article 9009b, Revised Statutes, is
24-19 amended by adding Subsection (c) to read as follows:
24-20 (c) A person may not sell, convey, or otherwise transfer to
24-21 a metals recycling activity a motor vehicle or a motor vehicle that
24-22 has been junked, flattened, dismantled, or changed so that it has
24-23 lost its character as a motor vehicle if the motor vehicle
24-24 includes, contains, or encloses a tire or scrap tire. This
24-25 subsection does not apply to the sale, conveyance, or transfer of a
24-26 motor vehicle or a junked, flattened, dismantled, or changed motor
24-27 vehicle from another state.
25-1 SECTION 22. Section 361.4773, Health and Safety Code, is
25-2 repealed.
25-3 SECTION 23. (a) Except as provided by Subsection (b) of
25-4 this section, this Act takes effect September 1, 1995.
25-5 (b) The amendment to Section 361.477(g), Health and Safety
25-6 Code, made by this Act takes effect July 1, 1996.
25-7 SECTION 24. The importance of this legislation and the
25-8 crowded condition of the calendars in both houses create an
25-9 emergency and an imperative public necessity that the
25-10 constitutional rule requiring bills to be read on three several
25-11 days in each house be suspended, and this rule is hereby suspended.