By Brown S.B. No. 1440
74R4409 JJT-D
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 (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 are used as a fuel,
1-23 including:
1-24 (A) a cement kiln;
2-1 (B) a utility boiler;
2-2 (C) a pulp and paper mill; or
2-3 (D) another facility designated by the
2-4 commission.
2-5 (8) <(6)> "Waste tire facility" means a facility
2-6 registered by the commission under Section 361.477 at which scrap
2-7 tires are collected and shredded to facilitate the future
2-8 extraction of useful materials for recycling, reuse, or energy
2-9 recovery and are stored in a waste tire storage facility or a
2-10 facility that recycles, reuses, or recovers the energy from the
2-11 shredded tire pieces.
2-12 (9) <(7)> "Waste tire processor" means:
2-13 (A) a waste tire facility; or
2-14 (B) a mobile tire shredder that splits, shreds,
2-15 or quarters tires and deposits the split, shredded, or quartered
2-16 tires for eventual recycling, reuse, or energy recovery at:
2-17 (i) a waste tire storage facility
2-18 registered by the commission under Section 361.112; or
2-19 (ii) a waste tire facility.
2-20 (10) <(8)> "Waste tire storage facility" means a
2-21 facility registered by the commission under Section 361.477 at
2-22 which whole used or scrap tires or shredded tire pieces are
2-23 collected and stored to facilitate the future extraction of useful
2-24 material for recycling, reuse, or recovery. The term does not
2-25 include a marine dock, rail yard, or trucking facility used to
2-26 store tires that are awaiting shipment to a person for recycling,
2-27 reuse, or energy recovery for 30 days or less.
3-1 (11) <(9)> "Waste tire transporter" means a person who
3-2 collects and transports used or scrap tires or scrap tire pieces
3-3 for storage or disposal.
3-4 (12) <(10)> "Weighed tire" means a unit of weight for
3-5 shredded scrap tires that is equal to 18.7 pounds.
3-6 SECTION 2. Sections 361.472(a), (b), (c), (d), (h), (i), and
3-7 (j), Health and Safety Code, are amended to read as follows:
3-8 (a) A wholesale or retail tire dealer, a person in the
3-9 business of selling good used tires for use on a vehicle, or a
3-10 person in the business of selling used vehicles or used vehicle
3-11 parts who sells or offers to sell new or good used tires not for
3-12 resale shall collect at the time and place of sale a waste tire
3-13 recycling fee for each <new> tire sold as follows:
3-14 (1) $2 for each new tire that has a rim diameter of 12
3-15 inches or more but less than 17.5 inches and $1 for each good used
3-16 tire that has a rim diameter of 12 inches or more but less than
3-17 17.5 inches;
3-18 (2) $3.50 for each new tire that has a rim diameter of
3-19 17.5 inches or more but less than 25 inches; <and>
3-20 (3) $2 for a new motorcycle tire, regardless of the
3-21 rim diameter; and
3-22 (4) $3.50 for a new agricultural equipment tire with a
3-23 load range of C through F or a ply between 2 and 12, regardless of
3-24 the rim diameter.
3-25 (b) The sale of a tire as original equipment in the
3-26 manufacture of a new vehicle is a sale for resale. The sale of a
3-27 new or good used tire with a used vehicle is a sale of the tire not
4-1 for resale.
4-2 (c) A fee may not be assessed for:
4-3 (1) a recapped or retreaded tire; or
4-4 (2) a bicycle tire.
4-5 (d) A person <dealer> required to collect a fee under this
4-6 section:
4-7 (1) shall list as a separate item on an invoice a fee
4-8 due under this section; and
4-9 (2) except as provided by Subsection (e), on or before
4-10 the 20th day of the month following the end of each calendar month
4-11 and on a form and in the manner prescribed by the comptroller,
4-12 shall file a report with and shall remit to the comptroller the
4-13 amount of fees collected during the preceding calendar month.
4-14 (h) A waste tire recycling fee is imposed on the storage,
4-15 use, or consumption in this state of a <new> tire at the same rate
4-16 as provided by Subsection (a), except when purchased for the
4-17 purpose of resale.
4-18 (i) A person storing, using, or consuming a <new> tire in
4-19 this state is liable for the waste tire recycling fee as defined in
4-20 this section and is responsible for reporting and paying the fee to
4-21 the comptroller in the same manner as a person required to collect
4-22 this fee, as provided in Subsections (d)(2) and (e).
4-23 (j) A person storing, using, or consuming a <new> tire in
4-24 this state is not further liable for the waste tire recycling fee
4-25 imposed by Subsection (a) if the person:
4-26 (1) pays the fee to:
4-27 (A) a person who is required to collect the fee
5-1 under Subsection (a) and who is <wholesaler or retailer> engaged in
5-2 business in this state; or
5-3 (B) another person authorized by the comptroller
5-4 to collect the fee; and
5-5 (2) receives <from the wholesaler, retailer, or other
5-6 person> a purchaser's receipt from the person to whom the fee was
5-7 paid.
5-8 SECTION 3. Section 361.473, Health and Safety Code, is
5-9 amended by adding Subsection (d) to read as follows:
5-10 (d) The comptroller and commission jointly shall develop and
5-11 implement an enforcement program to pursue the collection of
5-12 delinquent fees assessed under Section 361.472.
5-13 SECTION 4. Section 361.475, Health and Safety Code, is
5-14 amended by amending Subsections (d), (e), (f), and (i) and adding
5-15 Subsection (k) to read as follows:
5-16 (d) The fund may be used only to pay:
5-17 (1) waste tire processors or waste tire energy
5-18 recovery facility owners or operators that meet the requirements
5-19 for payment under Section 361.477 or 361.4771 and rules adopted
5-20 under those sections <that section>;
5-21 (2) the commission's reasonable and necessary
5-22 administrative costs of performing its duties under this subchapter
5-23 in an amount not to exceed six percent of the money annually
5-24 accruing to the fund; <and>
5-25 (3) the comptroller's reasonable and necessary
5-26 administrative costs of performing the comptroller's duties under
5-27 this subchapter in an amount not to exceed two percent of the money
6-1 annually accruing to the fund;
6-2 (4) grants for research and development or grants for
6-3 new recycling company start-up costs; and
6-4 (5) a person who meets requirements for payment under
6-5 Section 361.4772.
6-6 (e) Registration fees received under Section 361.4725 shall
6-7 be allocated to the commission for its reasonable and necessary
6-8 costs associated with reviewing applications for registration of
6-9 and with registering:
6-10 (1) fixed and mobile tire processing facilities and
6-11 storage sites; and
6-12 (2) waste tire energy recovery facility storage sites.
6-13 (f) The fund may not be used to reimburse shredding or
6-14 burning of:
6-15 (1) innertubes;
6-16 (2) scrap rubber products;
6-17 (3) green tires;
6-18 (4) industrial solid waste, excluding waste tires;
6-19 (5) oversized tires, as defined by commission rule,
6-20 unless the oversized tires are collected from a priority
6-21 enforcement list site; <or>
6-22 (6) manufacturer reject tires; or
6-23 (7) nonpneumatic tires.
6-24 (i) If the commission has reason to believe that the fund
6-25 balance will fall below $500,000, the commission may:
6-26 (1) suspend the requirement to reimburse priority
6-27 enforcement list tires shredded in excess of the minimum percentage
7-1 identified in Section 361.477(c)(3)(C); or
7-2 (2) limit the number of waste tires for which a
7-3 processor or waste tire energy recovery facility owner or operator
7-4 will be reimbursed.
7-5 (k) The commission shall ensure that adequate money is
7-6 available in the fund to cover the administrative costs of
7-7 processor and generator program reviews and generator and
7-8 transporter training.
7-9 SECTION 5. Sections 361.477(b), (c), (d), (g), (h), (i),
7-10 (j), (k), and (l), Health and Safety Code, are amended to read as
7-11 follows:
7-12 (b) If the total number of used or scrap tires or tire
7-13 pieces contained in illegal scrap tire sites that are identified on
7-14 the priority enforcement list is below 2,500,000 <500,000> tires,
7-15 the commission may pay <more than> 85 cents or an appropriate
7-16 amount determined by the commission for each weighed tire to
7-17 processors with whom the commission has contracted to remove and
7-18 shred scrap tires and scrap tire pieces from priority enforcement
7-19 list sites. The 2,500,000 <500,000> tire limit does not include
7-20 those tires contained in sites under commission enforcement or
7-21 attorney general action or that require corrective action or
7-22 remedial action in response to a release or threat of release of
7-23 hazardous substances. In acting under this subsection, the
7-24 commission may contract with processors on a regional or
7-25 site-specific basis. The contracts shall be procured through a
7-26 competitive bid process conducted in accordance with the provisions
7-27 of the State Purchasing and General Services Act (Article 601b,
8-1 Vernon's Texas Civil Statutes) applicable to contracts for
8-2 services. If the commission implements a competitive bid process
8-3 for assignment of sites listed on the priority enforcement list,
8-4 the priority enforcement list requirements of Subsection (c)(3)(C)
8-5 do not apply to a processor that is not involved in the competitive
8-6 bid process. The commission may elect not to enter into contracts
8-7 under this subsection. The contracts may be only for the removal
8-8 and shredding of tires from priority enforcement list sites.
8-9 (c) A waste tire processor that desires to receive payment
8-10 under this section for tires shredded by the processor during a
8-11 calendar month must:
8-12 (1) apply to the commission for registration in
8-13 accordance with forms prescribed by the commission;
8-14 (2) apply to the commission for payment on forms
8-15 prescribed by the commission or, on a voluntary basis, apply by a
8-16 removable storage medium stored in an industry standard file format
8-17 acceptable to the commission;
8-18 (3) demonstrate as required by rules adopted under
8-19 this section that:
8-20 (A) all tires for which payment is sought have
8-21 been shredded to an industry standard <a> particle size of two
8-22 inches by two inches or, if approved by the commission, shredded to
8-23 an alternative particle size set by a contract requirement related
8-24 to recycling or end use of the particles <not larger than nine
8-25 square inches>;
8-26 (B) not less than 50 <25> percent of those tires
8-27 were collected from generators, unless this requirement is
9-1 suspended by the commission on consideration of service needs
9-2 contained in a contract drafted under Subsection (b); and
9-3 (C) if the total number of whole used or scrap
9-4 tires or shredded tire pieces contained in illegal waste tire sites
9-5 that are identified on the priority enforcement list exceeds
9-6 2,500,000 <500,000> tires for more than 60 <30> consecutive days,
9-7 not less than 15 percent and not more than 30 percent of those
9-8 tires were collected from scrap tire sites listed on the priority
9-9 enforcement list;
9-10 (4) provide any other information the commission
9-11 determines is needed to accomplish the purposes of this subchapter,
9-12 including a monthly report of scrap tires or tire pieces shredded,
9-13 subtotaled by tire count or weight, for each generator number and
9-14 priority enforcement list number;
9-15 (5) demonstrate that energy recovery activities in the
9-16 state are in compliance with applicable air emission control rules
9-17 and standards <as adopted by the Texas Air Control Board>; and
9-18 (6) provide financial assurance deemed adequate by the
9-19 commission that corresponds to:
9-20 (A) the payment appropriate for the number of
9-21 scrap tires the processor anticipates shredding in the next
9-22 calendar month; or
9-23 (B) the number of scrap tires the waste tire
9-24 storage site owner or operator anticipates accepting for storage in
9-25 the next calendar month.
9-26 (d) A waste tire processor that in any month exceeds the
9-27 minimum requirement of Subsection (c)(3)(C) may <shall> receive
10-1 <a> credit only for paid carryover in <for> the amount in excess of
10-2 the requirement that may be used to meet the minimum requirement
10-3 during a later month. The commission by rule may prescribe the
10-4 method of applying credits accrued under this subsection.
10-5 (g) Except as provided by <Notwithstanding> Section 361.486,
10-6 the commission may reimburse a processor for shredded scrap tires
10-7 if the processor has a binding agreement to deliver the shredded
10-8 scrap tires to a person to recycle or reuse or to use for energy
10-9 recovery within 180 days after the date of reimbursement. The
10-10 commission shall suspend subsequent shredding reimbursements to a
10-11 processor that fails to deliver the tire shreds to an identified
10-12 end-use market before the 181st day after the date of
10-13 reimbursement. The commission may not resume suspended
10-14 reimbursements until the processor makes all delinquent deliveries.
10-15 (h) The commission may not pay a waste tire processor for
10-16 processing scrap tires if <the commission determines that the
10-17 processor>:
10-18 (1) the commission field office and central office
10-19 program staff have not reviewed and approved for further processing
10-20 by the commission all information submitted to the commission by
10-21 the waste tire processor as required by Subsection (c) or rules
10-22 adopted under this section; or
10-23 (2) the commission determines that the processor:
10-24 (A) has not provided adequate financial
10-25 assurance;
10-26 (B) <(2)> does not have adequate fire
10-27 protection; or
11-1 (C) <(3)> is causing an imminent danger to
11-2 public health or welfare.
11-3 (i) A waste tire processor that in any month exceeds the
11-4 generator percentage of the allocated number of waste tires
11-5 assigned for reimbursement purposes may accrue credit only for paid
11-6 generator carryover in the amount in excess of the requirement that
11-7 may be used to meet the allocation maximum during a later month.
11-8 The commission by rule may prescribe the method of applying
11-9 carryover credit accrued under this section <shall issue to an
11-10 applicant all processing and storage registrations necessary to
11-11 begin operations and obtain reimbursement from the fund if the
11-12 applicant, on or before March 10, 1993:>
11-13 <(1) had an application pending for a new processing
11-14 facility that was reviewed by the commission and found to be in
11-15 general technical compliance;>
11-16 <(2) had an application pending for a new storage
11-17 facility with a total capacity in excess of 7 million waste tire
11-18 units; and>
11-19 <(3) had expended or committed in excess of $1 million
11-20 in total project costs>.
11-21 (j) The commission shall adopt rules to manage payments from
11-22 the fund to prevent depletion of the fund. Rules adopted under
11-23 this subsection shall consider<:>
11-24 <(1)> appropriate payments to processors that reflect
11-25 the varying amounts of money available in the fund. The commission
11-26 shall allocate for a processor the lower number of tires computed
11-27 after considering:
12-1 (1) the monthly average percentage of shredded tires
12-2 the processor has forwarded to an end-use or recycling market;
12-3 and<;>
12-4 (2) a waste tire processor's monthly average number of
12-5 tires for which the processor has been reimbursed historically<;>
12-6 <(3) a waste tire processor's shredding and storage
12-7 capacity; and>
12-8 <(4) the date the waste tire processor was
12-9 registered>.
12-10 (k) The commission each month shall pay a waste tire
12-11 processor that shreds scrap tires collected from a registered
12-12 generator located in a rural county as defined by the United States
12-13 Census Bureau and that complies with the rules adopted under this
12-14 section an amount equal to 95 cents for each weighed tire from that
12-15 source shredded in the preceding calendar month <If a waste tire
12-16 processor does not fully use its monthly allocation for
12-17 reimbursement, the commission may assign the unused portion of the
12-18 allocation to another waste tire processor who can demonstrate
12-19 having underutilized shredding and storage capacity available for
12-20 service to rural counties in this state>.
12-21 (l) A person receiving payment from the fund may <only>
12-22 receive more than 85 cents per waste tire unit only under
12-23 Subsection (b) or (k). Notwithstanding Subsections (b) and (k):
12-24 (1) a person registered as a processor may not receive
12-25 from the fund more than 85 cents per weighed tire;
12-26 (2) a person registered as an energy recovery facility
12-27 may not receive from the fund more than 45 cents per weighed tire;
13-1 and
13-2 (3) a person registered under the useful product
13-3 reimbursement program may not receive from the fund more than 50
13-4 cents per weighed tire.
13-5 SECTION 6. Section 361.4771, Health and Safety Code, is
13-6 amended to read as follows:
13-7 Sec. 361.4771. PAYMENT TO PERSON RECOVERING ENERGY FROM
13-8 WHOLE WASTE TIRES. (a) The commission each month shall pay a
13-9 waste tire energy recovery facility owner or operator who is in
13-10 compliance with this section and rules adopted under this section
13-11 an amount equal to 45 cents for each weighed tire the facility used
13-12 for energy recovery during the preceding calendar month.
13-13 (b) The commission shall adopt rules to implement this
13-14 section, including rules governing the registration and application
13-15 procedures. The rules shall include a voluntary alternative
13-16 process for making a payment application by the use of an industry
13-17 standard file format removable storage medium. To receive a
13-18 payment under this section, a waste tire energy recovery facility
13-19 owner or operator must:
13-20 (1) apply to the commission for registration in the
13-21 manner and on forms prescribed by commission rule;
13-22 (2) apply to the commission for payment in a manner
13-23 and on forms prescribed by commission rule;
13-24 (3) demonstrate that all tires for which the owner or
13-25 operator applies for payment are whole waste tires;
13-26 (4) send the commission a monthly report of the number
13-27 of whole waste tires used for energy recovery, subtotaled by tire
14-1 count or by weight attributed to each generator number;
14-2 (5) demonstrate that the energy recovery activities
14-3 comply with applicable air emission control standards and rules;
14-4 (6) provide financial assurance as provided by
14-5 commission rule adequate to reflect the number of waste tires that
14-6 exceeds the 30-day supply authorized by Section 361.112 that the
14-7 facility owner or operator anticipates accepting for storage; and
14-8 (7) provide the commission any other information the
14-9 commission requires by rule.
14-10 (c) A waste tire energy recovery facility may not store
14-11 waste tires at a site at which the owner or operator intends to
14-12 burn or store waste tires until the commission has determined that
14-13 the owner or operator is in compliance with this chapter and all
14-14 applicable commission requirements.
14-15 (d) The commission may not pay a waste tire energy recovery
14-16 facility owner or operator for using waste tires until the
14-17 commission finds that the facility:
14-18 (1) has adequate financial assurance;
14-19 (2) has adequate fire protection; and
14-20 (3) does not present an imminent danger to public
14-21 health or welfare.
14-22 (e) The commission shall adopt rules to manage payments from
14-23 the fund to prevent depletion of the fund. In adopting the rules,
14-24 the commission shall consider:
14-25 (1) appropriate payments to waste tire energy recovery
14-26 facility owners and operators that reflect the varying amount of
14-27 money available in the fund; and
15-1 (2) a percentage of the monthly average number of
15-2 tires used by the waste tire energy recovery facility owner or
15-3 operator for energy recovery.
15-4 (f) A waste tire energy recovery facility owner or operator
15-5 that exceeds in a month the generator percentage of the allocated
15-6 number of waste tires assigned for reimbursement purposes may
15-7 receive only paid generator credit carryover in the amount in
15-8 excess of the requirement that may be used to meet the allocation
15-9 maximum during a later month. The commission by rule may prescribe
15-10 the method of applying paid generator carryover accrued under this
15-11 section.
15-12 (g) The commission each month shall pay a waste tire energy
15-13 recovery facility owner or operator that burns whole used or scrap
15-14 tires collected from a registered generator located in a rural
15-15 county as defined by the United States Census Bureau and that
15-16 complies with the rules adopted under this section an amount equal
15-17 to 55 cents for each weighed tire from that source burned by that
15-18 facility in the preceding calendar month <OR SHREDDING OUTSIDE OF
15-19 STATE. Effective September 1, 1994, the commission may reimburse a
15-20 registered waste tire processor for shredding tires generated in
15-21 this state and shredded outside this state if the processor:>
15-22 <(1) meets all requirements that apply to a waste tire
15-23 processor who shreds tires within this state;>
15-24 <(2) monthly reimburses the state for reasonable and
15-25 necessary costs incurred by an agency of the state for such related
15-26 to the out-of-state facility regulatory activities as are deemed
15-27 necessary by such agency;>
16-1 <(3) voluntarily submits to the commission's
16-2 enforcement authority as necessary to ensure compliance with this
16-3 subchapter; and>
16-4 <(4) agrees to maintain evidence of financial
16-5 responsibility under Section 361.479 in an amount equal to twice
16-6 the amount that would be required of an in-state waste tire
16-7 processor>.
16-8 SECTION 7. Section 361.4772, Health and Safety Code, is
16-9 amended to read as follows:
16-10 Sec. 361.4772. PAYMENT FOR RECYCLING <BALING> TIRES.
16-11 (a) The commission by rule may establish a program to reimburse
16-12 from the fund a waste tire recycler in an amount not to exceed 50
16-13 cents for each weighed tire that the waste tire recycler processes
16-14 to make a useful product.
16-15 (b) The commission shall adopt rules to manage payments from
16-16 the useful product reimbursement account of the fund to prevent
16-17 depletion of the fund. The following items are not products
16-18 eligible for reimbursement under a program established under this
16-19 section:
16-20 (1) crumb rubber;
16-21 (2) powdered rubber;
16-22 (3) a tire-derived fuel;
16-23 (4) buffing dust;
16-24 (5) a retreaded or recapped tire; and
16-25 (6) an item identified in commission rules as
16-26 ineligible for reimbursement <Effective March 1, 1994, a registered
16-27 waste tire processor who bales whole tires for energy recovery
17-1 purposes is eligible for reimbursement at a rate of 25 cents for
17-2 each tire if the processor meets the requirements of this
17-3 subchapter that apply to a waste tire processor including
17-4 provisions for financial assurance for such baled tires. The
17-5 commission shall adopt rules to determine the amount of financial
17-6 assurance required under this section to apply to baled tires or
17-7 whole tires stored for baling. A processor seeking reimbursement
17-8 under this section for baling tires may not, directly or
17-9 indirectly, receive additional reimbursement from the fund for the
17-10 shredding of such baled tires>.
17-11 SECTION 8. Section 361.478(a), Health and Safety Code, is
17-12 amended to read as follows:
17-13 (a) Beginning January 1, 1997 <1996>, and every two years
17-14 after that date, the commission shall evaluate according to
17-15 standards adopted by commission rule the recycling and energy
17-16 recovery activities of each waste tire processor that received
17-17 payment from the waste tire recycling fund.
17-18 SECTION 9. Section 361.479, Health and Safety Code, is
17-19 amended to read as follows:
17-20 Sec. 361.479. EVIDENCE OF FINANCIAL RESPONSIBILITY. (a) A
17-21 waste tire storage facility registered by the commission <under
17-22 Section 361.112> or a waste tire facility that accepts shredded
17-23 scrap tires for storage or for processing for recycling, reuse, or
17-24 energy recovery shall submit to the commission evidence of
17-25 financial responsibility in an amount adequate to assure proper
17-26 cleanup and closure of the facility.
17-27 (b) A waste tire recycling facility owner or operator who
18-1 anticipates accepting a number or amount of whole used or scrap
18-2 tires or shredded tire pieces for storage that exceeds the 30-day
18-3 supply authorized by Section 361.112 shall submit to the commission
18-4 evidence of financial responsibility in an amount adequate to
18-5 assure proper cleanup and closure of the facility.
18-6 (c) A facility subject to Subsection (a) or (b) shall submit
18-7 to the commission an estimate of the total amount of whole used
18-8 tires, whole scrap tires, and shredded <scrap tires and> tire
18-9 pieces measured by weighed tire that the facility will store or
18-10 process, the maximum number of out-of-state tires the facility will
18-11 store, and the estimated cost, using that total amount, of cleaning
18-12 up and closing the facility.
18-13 (d) <(c)> The commission shall evaluate and may amend an
18-14 estimate submitted under Subsection (c) <(b)> and shall determine
18-15 for each facility the amount for which evidence of financial
18-16 responsibility is required.
18-17 (e) <(d)> Evidence of financial responsibility may be in the
18-18 form of:
18-19 (1) a performance bond or a letter of credit
18-20 acceptable to the commission that is from a financial institution,
18-21 a trust fund, or insurance for a privately owned facility; or
18-22 (2) a self-insurance test designed by the commission
18-23 for a publicly owned facility. A person who makes an initial
18-24 request for reimbursement from the waste tire recycling fund on or
18-25 after September 1, 1993, must provide evidence of financial
18-26 responsibility for the full amount determined under Subsection (d)
18-27 <(c)>.
19-1 SECTION 10. Section 361.480, Health and Safety Code, is
19-2 amended to read as follows:
19-3 Sec. 361.480. TIRE COLLECTION FEE PROHIBITED. A waste tire
19-4 transporter or mobile tire shredder may not charge a fee <to a
19-5 wholesale or retail dealer> for collecting for delivery to a waste
19-6 tire facility, waste tire energy recovery facility, or waste tire
19-7 recycling facility or for collecting and shredding used or scrap
19-8 tires a tire dealer accepts from purchasers of tires <accepted> for
19-9 temporary storage <by the dealer from purchasers of new tires>.
19-10 SECTION 11. Section 361.481, Health and Safety Code, is
19-11 amended to read as follows:
19-12 Sec. 361.481. PROHIBITION ON OUT-OF-STATE TIRES; PENALTY.
19-13 (a) A waste tire processor may not claim payment under Section
19-14 361.477 for shredding out-of-state tires. A waste tire energy
19-15 recovery facility owner or operator may not claim payment under
19-16 Section 361.4771 for burning out-of-state tires.
19-17 (b) A waste tire generator that the commission determines
19-18 has used a manifest and commission generator number to pass
19-19 out-of-state tires is not eligible for the free collection and
19-20 transportation of waste tires generated at the generator's place of
19-21 business. In addition to any administrative, civil, or criminal
19-22 enforcement action, the commission shall require the generator to
19-23 pay for:
19-24 (1) collection and transportation of generated tires;
19-25 and
19-26 (2) shredding or burning of generated tires at the
19-27 applicable rate specified in Section 361.477 or 361.4771.
20-1 (c) A waste tire processor or waste tire energy recovery
20-2 facility owner or operator whom the commission determines has
20-3 accepted out-of-state tires on manifests using a commission
20-4 generator number is subject to an administrative, civil, or
20-5 criminal enforcement action.
20-6 (d) A waste tire transporter that the commission determines
20-7 has transported out-of-state tires using a commission-approved
20-8 manifest or transporter number is subject to an administrative,
20-9 civil, or criminal enforcement action.
20-10 SECTION 12. Section 361.482, Health and Safety Code, is
20-11 amended to read as follows:
20-12 Sec. 361.482. PROHIBITION ON DISPOSAL OF SHREDDED TIRES IN
20-13 LANDFILL. A person <waste tire processor> may not dispose of whole
20-14 used or scrap tires that are eligible for reimbursement under this
20-15 chapter or shredded tire pieces for which reimbursement has been
20-16 paid under this subchapter <scrap tires> in a landfill, including a
20-17 Type VIII-S tire monofill <if the processor has received payment
20-18 under Section 361.477 for shredding the tires>.
20-19 SECTION 13. Section 361.4832, Health and Safety Code, is
20-20 amended to read as follows:
20-21 Sec. 361.4832. ADMINISTRATIVE PENALTY; <AND> ORDER FOR
20-22 CORRECTIVE ACTION; SUSPENSION OF REGISTRATION. (a) If a person
20-23 violates this subchapter or a rule adopted or order issued under
20-24 this subchapter the commission may:
20-25 (1) assess against the person an administrative
20-26 penalty under Section 361.252; or
20-27 (2) order the person to take a corrective action.
21-1 (b) The executive director may suspend a registration of or
21-2 reimbursement payment to a waste tire processor, waste tire
21-3 transporter, waste tire generator, waste tire recycling facility,
21-4 or waste tire energy recovery facility on the initiation of an
21-5 enforcement proceeding and while the proceeding is pending for the
21-6 violation of this subchapter or a rule adopted or order issued
21-7 under this subchapter.
21-8 SECTION 14. Section 361.485, Health and Safety Code, is
21-9 amended to read as follows:
21-10 Sec. 361.485. REPORT. (a) Not later than February 1 of
21-11 each odd-numbered year, the commission shall report to the governor
21-12 and the legislature on the administration of the program
21-13 established under this subchapter and its effectiveness in cleaning
21-14 up existing scrap tire sites and in preventing new scrap tire
21-15 sites.
21-16 (b) The commission shall include in the report the
21-17 commission's recommendation, based on the commission's evaluation
21-18 of the rate of inflation during the preceding two years, as to
21-19 whether an adjustment to the fee assessed on the sale of tires or
21-20 to the rate of reimbursement paid to a waste tire processor or
21-21 waste tire energy recovery facility owner or operator is warranted.
21-22 SECTION 15. Section 361.486, Health and Safety Code, is
21-23 amended by amending Subsection (a) and adding Subsections (f) and
21-24 (g) to read as follows:
21-25 (a) Notwithstanding Section 361.496, on <On> and after
21-26 January 1, 1997 <1996>, each applicant for a <for all> new,
21-27 amended, and renewal processing registration and each existing
22-1 <applications, the> processor must identify those persons who will
22-2 accept the processor's shredded <scrap> tire pieces for recycling
22-3 or reuse or to use the shredded scrap tires for energy recovery.
22-4 The commission shall reimburse a processor for only those shredded
22-5 tires that the commission determines are committed to a legitimate
22-6 end user.
22-7 (f) The commission by rule shall implement a graduated scale
22-8 that provides for a quarterly reduction in the reimbursement rate
22-9 for weighed tires based on the percentage of the processor's
22-10 shredded tire pieces that are sent to an end-use or recycling
22-11 market. The commission shall apply the graduated scale to
22-12 reimbursements made from January 1 to December 31, 1996. On and
22-13 after January 1, 1997, the commission may reimburse a processor
22-14 only for shredded tires that the commission determines are
22-15 committed to an end-use or recycling market.
22-16 (g) This section does not apply to a waste tire energy
22-17 recovery facility owner or operator.
22-18 SECTION 16. Section 361.487, Health and Safety Code, is
22-19 amended to read as follows:
22-20 Sec. 361.487. REIMBURSEMENT RESTRICTIONS. (a) A processor
22-21 seeking reimbursement under Section 361.477 shall process and store
22-22 the whole used or scrap tires or shredded <scrap> tire pieces in
22-23 the state. A waste tire energy recovery facility owner or operator
22-24 seeking reimbursement under Section 361.4771 shall store and burn
22-25 the whole used or scrap tires or shredded tire pieces in the state.
22-26 (b) The commission shall treat whole used or scrap tires and
22-27 shredded <scrap> tire pieces generated in Texas, removed from
23-1 Texas, and subsequently reintroduced to Texas as out-of-state scrap
23-2 tires for the purposes of this subchapter.
23-3 <(c) Scrap tires and scrap tire pieces that are shredded and
23-4 for which a person is reimbursed may not be disposed of in a Type
23-5 VIII-S tire monofill.>
23-6 SECTION 17. Section 361.492, Health and Safety Code, is
23-7 amended to read as follows:
23-8 Sec. 361.492. ACCEPTANCE OF USED TIRES ON SALE OF TIRES <NEW
23-9 TIRE WHOLESALERS AND RETAILERS>. (a) A wholesale or retail tire
23-10 dealer, or a person in the business of selling new or good used
23-11 tires for use on a vehicle or selling used vehicle parts <person
23-12 selling new tires> as described in Section 361.472(a) shall accept
23-13 from customers, without charge, used tires of the type and in a
23-14 quantity at least equal to the number of <new> tires the customer
23-15 purchases.
23-16 (b) This section does not require a person to accept a used
23-17 tire from a customer who purchases a new or used vehicle on which
23-18 the tires purchased are mounted.
23-19 SECTION 18. Section 361.493, Health and Safety Code, is
23-20 amended to read as follows:
23-21 Sec. 361.493. CONFIDENTIALITY. Information submitted to the
23-22 commission in accordance with Section 361.477(g) or Section
23-23 361.486(a) or (d), and any report generated by the commission
23-24 based on the information, is confidential and is not subject to
23-25 disclosure under Chapter 552, Government Code <424, Acts of the
23-26 63rd Legislature, Regular Session, 1973 (Article 6252-17a, Vernon's
23-27 Texas Civil Statutes)>, and the commission shall protect the
24-1 information accordingly.
24-2 SECTION 19. Section 361.495, Health and Safety Code, is
24-3 amended to read as follows:
24-4 Sec. 361.495. FISCAL AUDITS. The <ENSURING CAPACITY. Not
24-5 later than October 1 of each odd-numbered year, the> commission
24-6 biennially shall perform a fiscal audit of each waste tire
24-7 processor, waste tire recycling facility, and waste tire energy
24-8 recovery facility owner or operator to ensure fiscal responsibility
24-9 and accountability regarding reimbursements made under Sections
24-10 361.477 and 361.4771. The person audited shall bear the costs of
24-11 the audits <determine the total shredding capacity of all
24-12 registered waste tire processors. If the commission determines that
24-13 the shredding capacity is less than the previous year's reimbursed
24-14 waste tire units, the commission may issue registrations to waste
24-15 tire processors until the anticipated shredding capacity equals the
24-16 previous year's reimbursed waste tire units. If the commission
24-17 determines that the shredding capacity exceeds the previous year's
24-18 reimbursed waste tire units, the commission may not issue a
24-19 registration to a new waste tire processor until the next capacity
24-20 assessment is completed>.
24-21 SECTION 20. Subchapter P, Chapter 361, is amended by adding
24-22 Section 361.496 to read as follows:
24-23 Sec. 361.496. NEW OR EXPANDED PROCESSING OPERATION. A new
24-24 processor or registered processor that seeks to establish a new
24-25 processing facility or expand a processing operation in the state
24-26 must:
24-27 (1) be capable of providing collection and
25-1 transportation of waste tires from registered generators in all the
25-2 state's rural counties as defined by the United States Census
25-3 Bureau; and
25-4 (2) identify and have available for use an end-use or
25-5 recycling market in the application for a new or amended
25-6 registration.
25-7 SECTION 21. Section 361.4773, Health and Safety Code, is
25-8 repealed.
25-9 SECTION 22. (a) Except as provided by Subsection (b) of
25-10 this section, this Act takes effect September 1, 1995.
25-11 (b) The amendment to Section 361.477(g), Health and Safety
25-12 Code, made by this Act takes effect July 1, 1996.
25-13 SECTION 23. The importance of this legislation and the
25-14 crowded condition of the calendars in both houses create an
25-15 emergency and an imperative public necessity that the
25-16 constitutional rule requiring bills to be read on three several
25-17 days in each house be suspended, and this rule is hereby suspended.