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.