By Kuempel H.B. No. 2446
76R2951 JJT-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to regulation of the storage, processing, use, and
1-3 disposal of scrap tires; providing administrative, civil, and
1-4 criminal penalties.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Subtitle B, Title 5, Health and Safety Code, is
1-7 amended by adding Chapter 374 to read as follows:
1-8 CHAPTER 374. SCRAP TIRE RECYCLING AND DISPOSAL
1-9 SUBCHAPTER A. GENERAL PROVISIONS
1-10 Sec. 374.001. DEFINITIONS. In this chapter:
1-11 (1) "Commission" means the Texas Natural Resource
1-12 Conservation Commission.
1-13 (2) "Dealer" means a person in the business of selling
1-14 to ultimate consumers:
1-15 (A) new, good used, or restored tires; or
1-16 (B) new motor vehicles with tires mounted.
1-17 (3) "Executive director" means the executive director
1-18 of the commission.
1-19 (4) "Generator" includes:
1-20 (A) a person that accepts scrap tires for
1-21 storage;
1-22 (B) a fleet operator;
1-23 (C) a person that retreads, recaps, or restores
1-24 used or scrap tires;
2-1 (D) a tire manufacturer;
2-2 (E) a tire wholesaler; and
2-3 (F) a dealer.
2-4 (5) "Process" means:
2-5 (A) the shredding of whole scrap tires to render
2-6 the tires into a form for the extraction of useful material for
2-7 recycling or energy recovery; or
2-8 (B) the use of whole scrap tires for energy
2-9 recovery.
2-10 (6) "Recycling" means a process by which a scrap tire
2-11 is returned to use in the form of raw material or a product.
2-12 (7) "Sale" includes:
2-13 (A) any transfer, exchange, or barter of a tire
2-14 to an ultimate consumer for money or other consideration; and
2-15 (B) a donation of a tire for a gift or an
2-16 advertising purpose.
2-17 (8) "Scrap tire" means a tire that is no longer
2-18 suitable for its originally intended purpose or that is defective
2-19 or unfit for use on a motor vehicle.
2-20 Sec. 374.002. REPORT. Before September 1, 2002, and before
2-21 September 1 of every subsequent third year, the commission shall:
2-22 (1) develop a report on the administration and
2-23 effectiveness of the program implemented under this chapter; and
2-24 (2) present the report to the:
2-25 (A) governor;
2-26 (B) lieutenant governor; and
2-27 (C) speaker of the house of representatives.
3-1 Sec. 374.003. COMMISSION AUTHORITY GENERALLY. The
3-2 commission by rule shall manage the transportation, processing, and
3-3 disposal of scrap tires in the state to:
3-4 (1) control disease vectors and other public health
3-5 nuisances associated with scrap tires; and
3-6 (2) abate public health nuisances and risks to the
3-7 public health and safety and the environment associated with scrap
3-8 tires.
3-9 Sec. 374.004. DECLARATION OF NUISANCE. A site that contains
3-10 more than 100 tires and at which control of disease vectors is not
3-11 adequate is a public nuisance and is subject to abatement
3-12 procedures.
3-13 Sec. 374.005. MITIGATION OF COMMISSION RULE BY EXECUTIVE
3-14 DIRECTOR. (a) If the executive director determines that a
3-15 commission rule adopted under this chapter is unduly burdensome to
3-16 industry or overly interferes with commerce, the executive director
3-17 may override the rule.
3-18 (b) The executive director shall publish a notice in the
3-19 Texas Register that the executive director has overridden the
3-20 commission rule adopted under this chapter. The notice must:
3-21 (1) cite and state the substance of the rule
3-22 overridden;
3-23 (2) state the executive director's objection to the
3-24 rule as applied or as adopted;
3-25 (3) set out a new rule that the executive director
3-26 determines will apply in place of the commission rule; and
3-27 (4) be published in the Texas Register before the 21st
4-1 day preceding the date the new rule takes effect.
4-2 (c) A new rule set out by the executive director under this
4-3 section is effective until the commission adopts another rule on
4-4 the same subject.
4-5 (Sections 374.006-374.020 reserved for expansion
4-6 SUBCHAPTER B. REGISTRATION REQUIREMENTS
4-7 Sec. 374.021. REGISTRATION REQUIRED FOR SCRAP TIRE STORAGE.
4-8 (a) A person may not store or accumulate more than 100 scrap tires
4-9 under circumstances where the tires are exposed to the elements
4-10 unless the person is a scrap tire storage facility registered under
4-11 this subchapter.
4-12 (b) Notwithstanding Subsection (a), the commission by rule
4-13 shall establish appropriate exceptions to the scrap tire storage
4-14 facility registration requirement for:
4-15 (1) a tire dealer that accumulates not more than 1,500
4-16 scrap tires at the dealer's place of business, including all
4-17 contiguous land, buildings or other structures, or other
4-18 appurtenances used in the dealer's business to sell, repair, refit,
4-19 treat, or handle new, retreaded, or used tires;
4-20 (2) a tire retreader that accumulates not more than
4-21 2,500 scrap tires at the retreader's place of business, including
4-22 all contiguous land, buildings or other structures, or other
4-23 appurtenances used in the retreader's business to sell, repair,
4-24 refit, treat, or handle new, retreaded, or used tires;
4-25 (3) a service station that accumulates not more than
4-26 500 scrap tires at the service station's place of business,
4-27 including all contiguous land, buildings or other structures, or
5-1 other appurtenances used in the service station's business to sell,
5-2 repair, refit, treat, or handle new, retreaded, or used tires; and
5-3 (4) other businesses as the commission determines are
5-4 appropriate.
5-5 (c) The commission by rule shall ensure that the storage of
5-6 scrap tires at unregistered sites is done in a manner that controls
5-7 disease vectors associated with scrap tires.
5-8 (d) A scrap tire storage facility shall pay a registration
5-9 fee of $500.
5-10 (e) Registration under this section is effective for 60
5-11 months.
5-12 Sec. 374.022. REGISTRATION REQUIRED FOR SCRAP TIRE
5-13 COLLECTION SITES. A person may not operate a site to collect used
5-14 or scrap tires for temporary storage unless the site is registered
5-15 as a scrap tire collection site in accordance with commission
5-16 rules.
5-17 Sec. 374.023. REGISTRATION REQUIRED FOR SCRAP TIRE FACILITY.
5-18 (a) A person may not process scrap tires unless the person is
5-19 registered in accordance with commission rules as a scrap tire
5-20 facility. The commission may establish separate registration
5-21 requirements for fixed or mobile scrap tire processing operations.
5-22 (b) A scrap tire facility shall pay a registration fee of
5-23 $500.
5-24 (c) Registration under this section is effective for 60
5-25 months.
5-26 Sec. 374.024. REGISTRATION REQUIRED FOR SCRAP TIRE DISPOSAL.
5-27 A person may not dispose of scrap tires at a site unless the site
6-1 is registered as a scrap tire facility in accordance with
6-2 commission rules.
6-3 Sec. 374.025. REGISTRATION REQUIRED FOR GENERATOR. (a) A
6-4 generator shall register with the commission in accordance with
6-5 commission rules.
6-6 (b) An application for registration under this section must
6-7 include:
6-8 (1) the name of the owner of the business and the
6-9 business name;
6-10 (2) the business mailing address and the business
6-11 street address or a description of the location;
6-12 (3) the taxpayer identification number of the
6-13 business; and
6-14 (4) a registration fee of $25 for each location.
6-15 (c) The registration fee is due semiannually.
6-16 (d) A generator shall give the commission written notice of
6-17 any change in the registration information on or before the 15th
6-18 day after the date of the change.
6-19 Sec. 374.026. REGISTRATION REQUIRED FOR SCRAP TIRE
6-20 TRANSPORTER. (a) A person may not transport scrap tires or scrap
6-21 tire pieces unless the person is registered as a scrap tire
6-22 transporter in accordance with commission rules.
6-23 (b) An application for registration under this section must
6-24 include:
6-25 (1) the name of the owner of the business and the
6-26 business name;
6-27 (2) the business mailing address and the business
7-1 street address or a description of the location; and
7-2 (3) a registration fee of $100.
7-3 (c) The registration fee is due semiannually.
7-4 (Sections 374.027-374.040 reserved for expansion
7-5 SUBCHAPTER C. REGULATION OF GENERATORS
7-6 Sec. 374.041. ACCEPTANCE AND DISPOSITION OF SCRAP TIRES;
7-7 EXCEPTIONS. (a) A generator shall accept from a consumer of tires
7-8 a number of scrap tires equal to the number of tires the generator
7-9 sells to the consumer.
7-10 (b) A generator shall make scrap tires accepted from a
7-11 consumer available to a registered scrap tire facility.
7-12 (c) Subsection (b) does not apply to:
7-13 (1) good used tires the generator separates from scrap
7-14 tires for the purpose of reselling the good used tires; or
7-15 (2) scrap tires a consumer requests to be returned to
7-16 the consumer.
7-17 (d) A generator shall require a consumer who retains tires
7-18 the generator dismounted in connection with a sale of tires to fill
7-19 out a form prescribed by the commission that states the consumer
7-20 retained the tires. The generator shall retain the form for at
7-21 least three years and make the form available to the commission in
7-22 accordance with commission rules.
7-23 Sec. 374.042. RESPONSIBILITIES OF GENERATOR. (a) A
7-24 generator shall:
7-25 (1) ensure that scrap tires accepted or collected by
7-26 the generator are transported to a registered scrap tire facility
7-27 by a registered scrap tire transporter; and
8-1 (2) initiate and maintain a record of each shipment of
8-2 scrap tires from the generator.
8-3 (b) A generator's records under Subsection (a)(2) must be in
8-4 the form of a manifest initiated and maintained in the manner
8-5 provided by commission rules. The manifest must include:
8-6 (1) the name, address, and generator registration
8-7 number of the person that generated the scrap tires;
8-8 (2) the date the scrap tires were collected;
8-9 (3) the weight or count of scrap tires collected for
8-10 transportation;
8-11 (4) the name and registration number of the registered
8-12 transporter;
8-13 (5) the place, registration number, location, and name
8-14 of the operator of the scrap tire facility to which the scrap tires
8-15 were transported and the date the scrap tires were transported; and
8-16 (6) the name and signature of a representative of the
8-17 receiving scrap tire facility, with a statement acknowledging
8-18 receipt of the scrap tires and noting the weight of the tires.
8-19 (c) The generator shall retain copies of the manifest for at
8-20 least three years and make the copies available to the commission
8-21 in accordance with commission rules.
8-22 Sec. 374.043. STORAGE BY GENERATOR. (a) A generator may
8-23 store scrap tires accepted or collected under this subchapter for a
8-24 period not to exceed 90 days.
8-25 (b) A generator may not store more than:
8-26 (1) 500 tires on the ground; or
8-27 (2) 1,500 tires in a lockable container.
9-1 (Sections 374.044-374.060 reserved for expansion
9-2 SUBCHAPTER D. REGULATION OF SCRAP TIRE TRANSPORTERS
9-3 Sec. 374.061. COLLECTION OF TIRES. (a) A scrap tire
9-4 transporter may not collect tires from a generator that is not
9-5 registered under this chapter unless the transporter has received
9-6 special written authorization from the commission to make a
9-7 particular shipment from a person or site that is not registered.
9-8 (b) Reports to the commission concerning tires transported
9-9 under special authorization must be made separately from reports
9-10 concerning scrap tires otherwise transported under this chapter in
9-11 accordance with commission rules.
9-12 Sec. 374.062. TRANSPORTATION MANIFEST. (a) A scrap tire
9-13 transporter shall initiate and maintain a manifest for each
9-14 shipment of scrap tires in accordance with commission rules.
9-15 (b) A manifest must include:
9-16 (1) the name and address of the person that generated
9-17 the scrap tires;
9-18 (2) the generator's registration number;
9-19 (3) the date the scrap tires were collected;
9-20 (4) the weight or count of scrap tires collected for
9-21 transportation;
9-22 (5) the name and registration number of the registered
9-23 transporter;
9-24 (6) the place, registration number, location, and name
9-25 of the operator of the scrap tire facility to which the scrap tires
9-26 were transported and the date the scrap tires were transported; and
9-27 (7) the name and signature of a representative of the
10-1 scrap tire facility, with a statement acknowledging receipt of the
10-2 scrap tires and noting the weight of the tires.
10-3 (c) The scrap tire transporter shall retain copies of the
10-4 manifest for at least three years and make the copies available to
10-5 the commission in accordance with commission rules.
10-6 (Sections 374.063-374.080 reserved for expansion
10-7 SUBCHAPTER E. REGULATION OF SCRAP TIRE FACILITIES
10-8 Sec. 374.081. PROCESSING OF SCRAP TIRES. A scrap tire
10-9 facility shall process all scrap tires before the 91st day after
10-10 the date the tires are received.
10-11 Sec. 374.082. VERIFICATION OF TRANSPORTER. (a) A scrap
10-12 tire facility shall verify that a scrap tire transporter that
10-13 collects tires from the facility or delivers tires to the facility
10-14 is a registered scrap tire transporter.
10-15 (b) The commission each quarter shall provide each
10-16 registered scrap tire facility with a current list of registered
10-17 scrap tire transporters.
10-18 Sec. 374.083. MANIFEST AND REPORTING. (a) A scrap tire
10-19 facility shall maintain for at least three years and make available
10-20 to the commission as provided by commission rule copies of
10-21 manifests for tire shipments received.
10-22 (b) The facility shall ensure that information on the
10-23 manifest is complete and report to the commission any violation
10-24 noted.
10-25 (c) The commission shall respond to a violation report under
10-26 this section before the 31st day after the date the commission
10-27 receives the report.
11-1 Sec. 374.084. REPORTING BY WEIGHT. All reports concerning
11-2 amounts of scrap tires by a scrap tire facility must be in terms of
11-3 the weight of the scrap tires or scrap tire pieces.
11-4 Sec. 374.085. ACCEPTANCE OF SCRAP TIRES. A scrap tire
11-5 facility may not accept scrap tires from a generator or transporter
11-6 that is not registered under this chapter except as provided by
11-7 commission rules. The commission by rule shall require that
11-8 information concerning tires accepted from an unregistered person
11-9 be reported separately from information concerning scrap tires
11-10 accepted otherwise under this chapter.
11-11 Sec. 374.086. COLLECTION AND TRANSPORTATION NETWORK. (a) A
11-12 scrap tire facility shall establish a collection and transportation
11-13 network in accordance with commission rules.
11-14 (b) A scrap tire facility shall collect scrap tires from
11-15 dealers, landfill collection sites, and municipal and county
11-16 collection sites. Scrap tires collected by a facility must be
11-17 transported to the facility.
11-18 (c) A scrap tire facility may not charge a fee to collect
11-19 scrap tires under Subsection (b) from a dealer.
11-20 (d) A person may not charge a fee to a registered scrap tire
11-21 facility for the collection of scrap tires.
11-22 (Sections 374.087-374.100 reserved for expansion
11-23 SUBCHAPTER F. REGULATION OF SCRAP TIRE STORAGE FACILITIES
11-24 AND COLLECTION SITES
11-25 Sec. 374.101. MANIFESTS. (a) A scrap tire storage facility
11-26 shall:
11-27 (1) maintain copies of the manifest for each shipment
12-1 of scrap tires received in accordance with commission rules; and
12-2 (2) ensure that information on the manifest is
12-3 complete.
12-4 (b) The facility shall maintain the manifests for at least
12-5 three years and make the manifests available to the commission in
12-6 accordance with commission rules.
12-7 Sec. 374.102. REPORTING BY WEIGHT. All reports concerning
12-8 amounts of scrap tires or scrap tire pieces by a scrap tire storage
12-9 facility must be in terms of the weight of the scrap tires or scrap
12-10 tire pieces.
12-11 Sec. 374.103. STORAGE CAPACITY. (a) A scrap tire storage
12-12 facility may not store more scrap tires or scrap tire pieces than
12-13 the maximum capacity authorized by the commission for the facility.
12-14 (b) A scrap tire facility that stores more than the maximum
12-15 capacity authorized by the commission for the facility may not
12-16 accept additional scrap tires or scrap tire pieces until the
12-17 commission determines that scrap tires, in amounts sufficient to
12-18 bring the facility into compliance with the limitation on capacity,
12-19 have been removed from the facility and transported to another
12-20 scrap tire facility for processing or to a scrap tire recycler for
12-21 recycling or energy recovery.
12-22 (c) A scrap tire facility may not store more than a 180-day
12-23 supply of scrap tires or scrap tire pieces as determined by the
12-24 executive director in accordance with commission rules.
12-25 (d) Notwithstanding Subsection (c), a scrap tire facility
12-26 registered with the commission after January 1, 1998, may store a
12-27 greater supply of scrap tires or scrap tire pieces if the facility
13-1 has special authorization granted by the commission. The facility
13-2 must apply to the commission for the authorization. The commission
13-3 may grant the authorization only to the extent that the facility
13-4 has a contract to supply tires or tire pieces for an approved end
13-5 use.
13-6 (e) Notwithstanding Subsection (c), a scrap tire facility
13-7 registered with the commission on or before January 1, 1998, that
13-8 has remained active since that date is not limited to a 180-day
13-9 supply of scrap tires and scrap tire pieces. The facility may
13-10 store any amount of scrap tires and scrap tire pieces authorized
13-11 under its registration, but may not increase that amount until the
13-12 facility reregisters under this chapter.
13-13 Sec. 374.104. STORAGE AT COLLECTION SITE. A scrap tire
13-14 collection site may not store more than 2,500 used or scrap tires.
13-15 The tires must be stored in a lockable container. The commission
13-16 by rule shall ensure that storage of scrap tires at a scrap tire
13-17 collection site is for temporary storage only.
13-18 (Sections 374.105-374.120 reserved for expansion
13-19 SUBCHAPTER G. SCRAP TIRE RECYCLING FEES
13-20 Sec. 374.121. SCRAP TIRE RECYCLING FEES. (a) A person that
13-21 makes a retail sale of a new or good used tire for a motor vehicle
13-22 and a person that sells not for resale a new or used motor vehicle
13-23 with new tires mounted shall collect:
13-24 (1) a fee of $2 for each new tire sold with a rim
13-25 diameter of 17.5 inches or less;
13-26 (2) a fee of $3.50 for each new or good used tire sold
13-27 with a rim diameter greater than 17.5 inches but not more than 26
14-1 inches;
14-2 (3) a fee of $1 for each good used tire sold with a
14-3 rim diameter of 17.5 inches or less;
14-4 (4) a fee of $1 for each motorcycle tire; and
14-5 (5) a fee for each tire sold with a rim diameter of 26
14-6 inches or greater in an amount provided by a rate sheet adopted by
14-7 the commission.
14-8 (b) The rate sheet described by Subsection (a)(5) shall
14-9 establish fees for tires of a given size in an amount equal to 10
14-10 cents for each pound a typical tire of that size weighs, as
14-11 determined by the commission. Tires are subject to a fee imposed
14-12 according to the rate sheet only if the commission determines that:
14-13 (1) the scrap tires of that size can be shredded for
14-14 recycling or energy recovery; or
14-15 (2) the whole scrap tire of that size can be consumed
14-16 for energy recovery.
14-17 (c) A fee may not be charged under this section for:
14-18 (1) a recapped or retreaded tire;
14-19 (2) a bicycle tire; or
14-20 (3) a solid industrial tire.
14-21 Sec. 374.122. METHOD OF COLLECTION. (a) A person required
14-22 to collect a fee under this subchapter shall add the fee to the
14-23 price of the tires sold and include the fee as a separately listed
14-24 item on the invoice when a tire is sold.
14-25 (b) Though the fee is paid by the purchaser of a tire, the
14-26 person required to collect the fee is liable to the comptroller for
14-27 the full aggregate amount of the fees due for all tires sold.
15-1 (c) The fees imposed by this subchapter are due and payable
15-2 to the comptroller, and shall be remitted to the comptroller in
15-3 accordance with rules adopted by the comptroller, on or before the
15-4 20th day of the month after the month in which the tires are sold.
15-5 (d) A person required to collect a fee under this subchapter
15-6 shall:
15-7 (1) retain an invoice or other record of each sale of
15-8 tires for at least three years and make the invoice or other record
15-9 available to the comptroller at any reasonable time as provided by
15-10 rules of the comptroller; and
15-11 (2) make other reports as the comptroller by rule
15-12 requires.
15-13 Sec. 374.123. AUDITS. The comptroller may perform random
15-14 audits of persons who may be required to collect or remit a fee
15-15 under this subchapter.
15-16 Sec. 374.124. PENALTY FOR NONPAYMENT OF FEE. (a) A person
15-17 that does not file a report or remit a fee as required by this
15-18 subchapter or a rule adopted under this subchapter is liable to the
15-19 comptroller for a civil penalty of five percent of the amount
15-20 payable.
15-21 (b) If the person does not file a report or remit a fee
15-22 before the 30th day after the date the report or remittance is due,
15-23 the person is liable to the comptroller for an additional civil
15-24 penalty of five percent of the amount payable.
15-25 (c) If a person's failure to report or remit a fee under
15-26 this subchapter is attributable to fraud or the person's intent to
15-27 evade the application of this subchapter, the person is liable to
16-1 the comptroller for an additional civil penalty of 75 percent of
16-2 the amount payable.
16-3 (Sections 374.125-374.140 reserved for expansion
16-4 SUBCHAPTER H. SCRAP TIRE RECYCLING FUND
16-5 Sec. 374.141. FUND. (a) The scrap tire recycling fund is a
16-6 special fund in the treasury outside of the general revenue fund.
16-7 The comptroller shall administer the fund. Money in the fund may
16-8 not become part of the general budget of the commission or another
16-9 state agency or transferred to the commission or another state
16-10 agency for a purpose not included in this subchapter. Money in the
16-11 fund may not become part of the general revenue fund except as
16-12 provided by this subchapter.
16-13 (b) The fund is exempt from the application of Sections
16-14 403.095 and 404.071, Government Code. Interest earned on the fund
16-15 shall be credited to the fund.
16-16 (c) The comptroller shall deposit to the credit of the fund:
16-17 (1) registration fees received by the commission under
16-18 this chapter;
16-19 (2) all money received by the comptroller under
16-20 Subchapter G, including fees and penalties;
16-21 (3) interest attributable to the investment of money
16-22 in the fund; and
16-23 (4) money the comptroller receives in the form of a
16-24 gift, grant, or other payment that is intended to be used for the
16-25 purposes of this chapter.
16-26 Sec. 374.142. USE OF FUND FOR ADMINISTRATIVE COSTS. Money
16-27 that accrues to the fund may be used to pay:
17-1 (1) the commission's reasonable and necessary
17-2 administrative costs under this chapter in an amount not to exceed
17-3 five percent of the money that accrues to the fund annually; and
17-4 (2) the comptroller's reasonable and necessary
17-5 administrative costs under this chapter in an amount not to exceed
17-6 three percent of the money that accrues to the fund annually.
17-7 Sec. 374.143. PAYMENTS FROM FUND FOR SCRAP TIRE RECYCLING.
17-8 (a) Money in the fund may be used to pay:
17-9 (1) a registered scrap tire facility that has
17-10 processed scrap tires under this chapter for recycling or energy
17-11 recovery in accordance with Subchapter I;
17-12 (2) a registered scrap tire recycler that demonstrates
17-13 that the recycler applied scrap tires or scrap tire pieces to an
17-14 approved end use in accordance with Subchapter I; or
17-15 (3) costs of cleaning up enforcement scrap tire sites
17-16 or related projects.
17-17 (b) Money may be used to pay a cost under Subsection (a)(3)
17-18 only if:
17-19 (1) the fund contains money in an amount sufficient to
17-20 pay the costs; and
17-21 (2) the amount of money paid in any year under
17-22 Subsection (a)(3) does not exceed 15 percent of the money that
17-23 accrues to the fund in that year.
17-24 (Sections 374.144-374.160 reserved for expansion
17-25 SUBCHAPTER I. PAYMENTS TO FACILITIES AND RECYCLERS
17-26 Sec. 374.161. PAYMENTS TO SCRAP TIRE FACILITIES. (a) The
17-27 commission shall pay a scrap tire facility for each ton of scrap
18-1 tires the facility processes. The facility must comply with this
18-2 chapter and rules adopted and orders issued under this chapter to
18-3 be eligible for payment.
18-4 (b) The commission by rule shall set the rate of payment as
18-5 provided by this subsection. Beginning on September 1, 2003, the
18-6 commission semiannually shall escalate the fee amounts according to
18-7 the cost of living index as determined by the commission. The
18-8 rates of payment under the rules before the cost of living
18-9 escalation must be:
18-10 (1) except as otherwise provided by this section, $95
18-11 for each ton of scrap tires processed;
18-12 (2) $70 for each ton of whole scrap tires processed by
18-13 energy recovery; and
18-14 (3) an amount established by a contract between the
18-15 commission and the facility for each ton of scrap tires processed
18-16 that were collected in a region the commission identifies as a
18-17 region underserved by tire collection services.
18-18 (c) The commission may determine the rate for payments under
18-19 Subsection (b)(3) by making a request for proposal and bids or by
18-20 another method determined by the commission.
18-21 Sec. 374.162. APPLICATION FOR PROCESSING PAYMENT. A scrap
18-22 tire facility must apply for payment under this subchapter. The
18-23 applicant must demonstrate that:
18-24 (1) all scrap tires for which payment is requested:
18-25 (A) have been processed by energy recovery;
18-26 (B) have been processed to meet specifications
18-27 for recycling or end use; or
19-1 (C) will be sold, supplied, or used for
19-2 recycling or energy recovery; and
19-3 (2) the scrap tire facility has not exceeded its
19-4 approved storage amount of scrap tires or scrap tire pieces.
19-5 Sec. 374.163. APPROVED END USES OF SCRAP TIRES. (a) The
19-6 commission shall encourage and promote approved end uses of scrap
19-7 tires generated in the state. The commission by rule shall list
19-8 approved categories of end uses of scrap tires eligible for
19-9 payments under this subchapter. The approved end uses must
19-10 include:
19-11 (1) energy recovery;
19-12 (2) civil engineering uses, including:
19-13 (A) landfill leachate projects;
19-14 (B) septic system projects;
19-15 (C) highway projects approved by the Texas
19-16 Department of Transportation; and
19-17 (D) other uses determined by the executive
19-18 director in accordance with commission guidelines; and
19-19 (3) the manufacture of a product using material
19-20 derived from scrap tires.
19-21 (b) The executive director may approve an end use as
19-22 eligible for payment under this subchapter in accordance with
19-23 commission categories and guidelines. A scrap tire recycler may
19-24 apply for approval of an end use not identified by commission
19-25 rules. The executive director shall approve or deny approval of
19-26 the end use before the 61st day after the date the request is
19-27 received by the commission. If the executive director denies
20-1 approval of an end use, the executive director shall provide the
20-2 applicant with a written explanation of the reason for the denial.
20-3 Sec. 374.164. PAYMENTS TO TIRE RECYCLERS. (a) The
20-4 commission shall pay a scrap tire recycler for each ton of scrap
20-5 tires the recycler applies to an end use approved by the
20-6 commission. The recycler must comply with this chapter and rules
20-7 adopted and orders issued under this chapter to be eligible for
20-8 payment.
20-9 (b) The commission shall set the rates of payment by rule as
20-10 provided by this subsection. The rates of payment under the rules
20-11 must be:
20-12 (1) for energy recovery of shredded scrap tires, $20
20-13 for each ton;
20-14 (2) for thermal decomposition of shredded scrap tires,
20-15 $20 for each ton;
20-16 (3) for a civil engineering use of shredded scrap
20-17 tires, $10 for each ton; and
20-18 (4) for the manufacture of a product using shredded
20-19 tires or material derived from scrap tires, $10 for each ton.
20-20 Sec. 374.165. APPLICATION FOR END USE PAYMENT. (a) In this
20-21 section, a 30-day supply of scrap tire pieces is an amount equal to
20-22 the average of the amount of tires applied to an approved end use
20-23 in each of the six months immediately preceding the month for which
20-24 the supply is computed. A 30-day supply of scrap tire pieces for a
20-25 scrap tire recycler that has not been in continuous operation for
20-26 six months is an amount approved by the commission after the
20-27 commission reviews and evaluates the recycler's estimated 30-day
21-1 supply, submitted as provided by commission rule.
21-2 (b) A scrap tire recycler must apply for payment for an end
21-3 use under this subchapter. The applicant must:
21-4 (1) apply on forms and in the manner the commission by
21-5 rule prescribes;
21-6 (2) demonstrate that all shredded scrap tire pieces
21-7 for which payment is requested have been applied to an approved end
21-8 use and report the number of tons applied to each end use;
21-9 (3) demonstrate that any energy recovery activity for
21-10 which payment is requested complies with air pollutant emission
21-11 control statutes, rules, and standards; and
21-12 (4) provide the commission evidence of financial
21-13 responsibility in an amount adequate to ensure proper cleanup and
21-14 closure of the recycling facility, if the recycler anticipates
21-15 accepting an amount of shredded tire pieces that exceeds the
21-16 recycling facility's 30-day supply.
21-17 Sec. 374.166. RESTRICTIONS ON PAYMENT FOR END USE. (a) The
21-18 commission may not pay a scrap tire recycler for end use of
21-19 shredded tire pieces if:
21-20 (1) the commission field office and central office
21-21 program staff have not reviewed and approved for further processing
21-22 by the commission all information provided by the recycler under
21-23 this subchapter or rules adopted under this subchapter; or
21-24 (2) the recycler does not have appropriate
21-25 authorization from the commission to:
21-26 (A) perform energy recovery at the energy
21-27 recovery facility site;
22-1 (B) recycle shredded tire pieces in a civil
22-2 engineering application that is not an approved end use; or
22-3 (C) recycle shredded tire pieces into
22-4 manufactured products from material derived from a source other
22-5 than shredded tire pieces.
22-6 (b) The commission shall manage payments from the fund in
22-7 accordance with a plan adopted by rule to prevent depletion of the
22-8 fund so as to conserve money for payments to scrap tire facilities.
22-9 (c) The commission shall grant a credit to a scrap tire
22-10 recycler for end use payments that exceed a payment limitation
22-11 established under Subsection (b). The credit must carry over to
22-12 the following calendar or fiscal year to be paid when money is
22-13 available to make the payment.
22-14 (d) Notwithstanding Section 374.164, the commission may not
22-15 pay for:
22-16 (1) the use of shredded scrap tires in a land
22-17 reclamation project;
22-18 (2) the production of crumb rubber from scrap tires or
22-19 shredded scrap tire pieces; or
22-20 (3) the baling of scrap tires.
22-21 Sec. 374.167. LIMITATION ON STORAGE BY RECYCLER. A scrap
22-22 tire recycler may not store more than a 30-day supply of shredded
22-23 tire pieces at a site at which the recycler intends to apply the
22-24 pieces to an approved end use unless the recycler is also
22-25 registered with the commission as a scrap tire storage facility.
22-26 (Sections 374.168-374.180 reserved for expansion
22-27 SUBCHAPTER J. CLEANUP OF ENFORCEMENT SCRAP TIRE SITES
23-1 Sec. 374.181. COUNTY INVENTORY OF ILLEGAL DISPOSAL SITES. A
23-2 county shall make a biennial inventory of places in the county
23-3 where scrap tires have been illegally disposed of. The county
23-4 shall report the inventory and supplemental information as provided
23-5 by commission rule.
23-6 Sec. 374.182. LIST OF ENFORCEMENT SITES. (a) The executive
23-7 director shall compile the county inventories into a list of
23-8 enforcement scrap tire sites.
23-9 (b) The executive director shall:
23-10 (1) make an estimate of the amount of tires in each
23-11 site on the list; and
23-12 (2) identify the location of the site, the legal
23-13 description of the property, the distance of the site from major
23-14 highways, and the distance of the site from the nearest
23-15 municipality.
23-16 (c) For each site on the list, the executive director shall
23-17 assess the degree to which the site presents a hazard to the public
23-18 or the environment.
23-19 (d) The commission shall rate listed enforcement scrap tire
23-20 sites according to their risk to public health, safety, or the
23-21 environment.
23-22 Sec. 374.183. REMOVAL OF ENFORCEMENT SITE TIRES. A person
23-23 may not remove tires from a listed enforcement scrap tire site
23-24 unless the tires are transported to a registered scrap tire
23-25 facility.
23-26 Sec. 374.184. ACCESS TO POSSIBLE ENFORCEMENT SITE. (a) The
23-27 commission or an employee or agent of the commission may enter
24-1 public or private property at any reasonable time to inspect,
24-2 investigate, or remediate any condition related to illegal disposal
24-3 of scrap tires or scrap tire pieces.
24-4 (b) The executive director shall give notice of the
24-5 commission's intent to enter private property under Subsection (a).
24-6 Notice must be sent by certified mail to the last known address of
24-7 the owner of the property as indicated by county property records
24-8 before the 10th day preceding the date the commission or an
24-9 employee or agent of the commission enters the property.
24-10 (c) A member of the commission or an employee or agent of
24-11 the commission who enters private property under this section
24-12 shall:
24-13 (1) observe any rules concerning safety, internal
24-14 security, and fire protection established at the property; and
24-15 (2) if the property is an individual's residence, make
24-16 a reasonable attempt to:
24-17 (A) notify the management or person in charge of
24-18 the entry to the property; and
24-19 (B) exhibit credentials.
24-20 Sec. 374.185. CONTRACT TO CLEAN UP SITE. (a) The
24-21 commission shall choose a registered scrap tire facility to clean
24-22 up an enforcement scrap tire site by means of a request for
24-23 proposal and bidding process.
24-24 (b) The commission shall award a contract to one or more
24-25 scrap tire facilities to clean up an enforcement scrap tire site.
24-26 The contract shall specify the compensation to be provided for
24-27 contract services.
25-1 (c) The contracting facility must apply for payment under
25-2 the contract with a monthly report as provided in the contract and
25-3 by commission rules. The application and report must include:
25-4 (1) documentation on collection activities at the
25-5 enforcement site for the reporting period;
25-6 (2) the name of the facility's owner and of the person
25-7 making the application and report;
25-8 (3) the facility's address and registration number;
25-9 (4) the manifest ticket for each load of scrap tires
25-10 or scrap tire pieces from the enforcement site; and
25-11 (5) an accurate report of the total weight and monthly
25-12 total weight of scrap tires collected from the site and processed.
25-13 (d) Processing of scrap tires from an enforcement scrap tire
25-14 site may be performed only by a registered scrap tire facility.
25-15 (e) The commission shall review the report and application
25-16 on receipt and shall pay the contracting facility not later than
25-17 the 20th day after the date the report and application are
25-18 received.
25-19 (Sections 374.186-374.200 reserved for expansion
25-20 SUBCHAPTER K. DISPOSAL OF SCRAP TIRES AND TIRE PIECES
25-21 Sec. 374.201. LANDFILL DISPOSAL PROHIBITED. (a) Except as
25-22 provided by Sections 374.202 and 374.203, scrap tires or scrap tire
25-23 pieces may not be disposed of in a landfill of any type.
25-24 (b) Whole scrap tires may not be placed in a monofill or
25-25 land reclamation project.
25-26 Sec. 374.202. EXCEPTION FOR SCRAP TIRE PIECES. Scrap tire
25-27 pieces may be disposed of in a landfill if:
26-1 (1) the landfill that accepts the tires or tire pieces
26-2 is registered with the commission and has a permit or permit
26-3 modification under which landfilling of tires is allowed;
26-4 (2) the largest piece disposed of is not larger than
26-5 one-sixth the original size of the tire from which the piece is
26-6 separated;
26-7 (3) the tires are placed apart from other municipal
26-8 solid waste; and
26-9 (4) the landfill has collected all municipal solid
26-10 waste fees mandated by the state.
26-11 Sec. 374.203. EXCEPTION FOR CERTAIN TIRES. Section 374.201
26-12 does not apply to:
26-13 (1) off-the-road tires disposed of in accordance with
26-14 a plan approved by the commission;
26-15 (2) solid tires; and
26-16 (3) manufacturer's reject tires disposed of in
26-17 accordance with a plan approved by the commission.
26-18 Sec. 374.204. LANDFILL OR RECLAMATION PROJECT AS ENFORCEMENT
26-19 SITE. The commission shall declare a site to be an enforcement
26-20 scrap tire site if:
26-21 (1) the site is a monofill or land reclamation
26-22 project; and
26-23 (2) the site contains whole scrap tires that have been
26-24 exposed to the open air after they were disposed of or used in the
26-25 site.
26-26 (Sections 374.205-374.220 reserved for expansion
26-27 SUBCHAPTER L. AUDITS
27-1 Sec. 374.221. AUDIT OF SCRAP TIRE FACILITY OR RECYCLER. The
27-2 commission semiannually may perform an audit of each scrap tire
27-3 facility or scrap tire recycler to ensure fiscal responsibility and
27-4 accountability regarding payments made under this chapter.
27-5 Sec. 374.222. AUDITS OF GENERATOR OR DEALER. The
27-6 comptroller semiannually may perform a random compliance audit of a
27-7 generator or tire dealer to ensure fiscal responsibility and
27-8 accountability regarding payments made under this chapter.
27-9 Sec. 374.223. OWED AMOUNTS. If the commission determines
27-10 after an audit under this subchapter that the commission is due a
27-11 refund from a person paid under this chapter, the commission may
27-12 withhold any amount of a future payment due that person until the
27-13 amount to be refunded is satisfied.
27-14 (Sections 374.224-374.240 reserved for expansion
27-15 SUBCHAPTER M. FINANCIAL RESPONSIBILITY
27-16 Sec. 374.241. EVIDENCE REQUIRED. A scrap tire recycler that
27-17 anticipates accepting for storage more than a 30-day supply of
27-18 whole scrap tires or tire pieces and a scrap tire facility shall
27-19 provide to the commission and maintain evidence of financial
27-20 responsibility in an amount adequate to ensure proper cleanup and
27-21 closure of the recycling or scrap tire facility.
27-22 Sec. 374.242. ESTIMATED COST OF CLEANUP AND CLOSURE. A
27-23 scrap tire recycler or a scrap tire facility described by Section
27-24 374.241 shall give the commission an estimate of the total weight
27-25 of scrap tires and tire pieces the facility will store and the
27-26 estimated cost of cleaning up and closing the facility.
27-27 Sec. 374.243. OLDER FACILITIES. A scrap tire facility
28-1 registered before September 1, 1999, is considered to be in
28-2 substantial compliance with this subchapter until the facility's
28-3 registration is due for renewal if the facility has an approval
28-4 letter from the commission renewing the registration.
28-5 Sec. 374.244. FORM OF EVIDENCE. Evidence of financial
28-6 responsibility may be in the form of:
28-7 (1) a performance bond, surety bond, or letter of
28-8 credit that is from a financial institution, trust fund, or insurer
28-9 for a privately owned facility and is accepted by the commission;
28-10 or
28-11 (2) a cash payment of the full cost of cleanup and
28-12 closure determined under Section 374.242.
28-13 (Sections 374.245-374.260 reserved for expansion
28-14 SUBCHAPTER N. ENFORCEMENT
28-15 Sec. 374.261. REVOCATION OF REGISTRATION. (a) The
28-16 commission may suspend or revoke the registration of a scrap tire
28-17 facility or scrap tire recycler or deny an application for
28-18 registration of a scrap tire facility or scrap tire recycler for:
28-19 (1) failure to maintain complete or accurate records;
28-20 (2) falsification of a record;
28-21 (3) illegal disposal of tires or tire pieces;
28-22 (4) violation of this chapter or a rule adopted or
28-23 order issued under this chapter;
28-24 (5) failure to complete the work under contract at an
28-25 enforcement scrap tire site or related to the cleanup or closure of
28-26 an enforcement scrap tire site; or
28-27 (6) failure to account for recycling, reuse, or energy
29-1 recovery activities.
29-2 (b) The commission may suspend, revoke, or deny an
29-3 application for registration of a generator, scrap tire
29-4 transporter, scrap tire storage facility, or scrap tire collection
29-5 site for:
29-6 (1) failure to maintain a complete and accurate record
29-7 of scrap tire shipments;
29-8 (2) falsification of scrap tire shipping records;
29-9 (3) delivery of scrap tires to a facility that is not
29-10 registered under this chapter;
29-11 (4) violation of this chapter or a rule adopted or
29-12 order issued under this chapter;
29-13 (5) illegal disposal of scrap tires; or
29-14 (6) collection or transportation of scrap tires
29-15 without registration under this chapter.
29-16 Sec. 374.262. CIVIL PENALTY. (a) A person that violates
29-17 this chapter or a rule adopted or order issued under this chapter
29-18 is liable for a civil penalty of not less than $200 and not more
29-19 than $10,000 for each violation and each day of a continuing
29-20 violation.
29-21 (b) A person that interferes with a duty of the commission
29-22 or an employee or agent of the commission under Section 374.184 is
29-23 liable for a civil penalty of not less than $200 and not more than
29-24 $10,000 for each occurrence.
29-25 Sec. 374.263. ADMINISTRATIVE PENALTY. (a) The commission
29-26 may assess an administrative penalty against a person who violates
29-27 this chapter or a rule adopted or order issued under this chapter.
30-1 (b) Notwithstanding Subsection (a), the commission may not
30-2 impose the administrative penalty if a local government has brought
30-3 and is diligently prosecuting a suit against the person for the
30-4 same acts of violation.
30-5 (c) In determining the amount of a penalty against a person
30-6 under this section, the commission shall consider:
30-7 (1) the economic viability of the person;
30-8 (2) the economic benefit the person gained by the
30-9 violation;
30-10 (3) the severity of the violation, including the
30-11 injury the violation caused, or the potential injury the violation
30-12 threatened, to persons, property, or public health;
30-13 (4) the person's compliance history and record of
30-14 violations;
30-15 (5) efforts the person has taken to correct the
30-16 violation;
30-17 (6) the amount necessary to deter future violations;
30-18 and
30-19 (7) any other matter justice may require.
30-20 (d) The amount of the penalty may not be less than the value
30-21 of the economic benefit the person gained by the violation.
30-22 (e) The enforcement of the penalty may be stayed during the
30-23 time the order is under judicial review if the person pays the
30-24 penalty to the clerk of the court or files a supersedeas bond with
30-25 the court in the amount of the penalty. A person who cannot afford
30-26 to pay the penalty or file the bond may stay the enforcement by
30-27 filing an affidavit in the manner required by the Texas Rules of
31-1 Civil Procedure for a party who cannot afford to file security for
31-2 costs, subject to the right of the commission to contest the
31-3 affidavit as provided by those rules.
31-4 (f) A proceeding to impose the penalty is considered to be a
31-5 contested case under Chapter 2001, Government Code.
31-6 Sec. 374.264. FORFEITURE. A motor vehicle, container, or
31-7 machine used by a person in committing an offense under Section
31-8 374.265(a) is subject to seizure and forfeiture as provided by
31-9 Chapter 59, Code of Criminal Procedure, as if the vehicle,
31-10 container, or machine were contraband as defined by that chapter.
31-11 Sec. 374.265. CRIMINAL PENALTIES. (a) A person commits an
31-12 offense if the person disposes of more than 50 scrap tires for a
31-13 commercial purpose in violation of this chapter or a rule adopted
31-14 under this chapter. An offense under this subsection is a felony
31-15 of the third degree. In addition to imprisonment or a fine imposed
31-16 for the offense, the court that finds a person guilty of an offense
31-17 under this subsection may order the person to:
31-18 (1) remove or render harmless the scrap tires the
31-19 person disposed of in committing the offense;
31-20 (2) repair or restore property damaged by the disposal
31-21 of tires in committing the offense or pay damages to a person
31-22 injured by the disposal of tires in committing the offense; or
31-23 (3) perform community service activities related to:
31-24 (A) removing at the person's expense scrap tires
31-25 that were disposed of illegally; or
31-26 (B) restoring an area polluted by scrap tires
31-27 that were disposed of illegally.
32-1 (b) A person commits an offense if the person disposes of
32-2 more than 50 scrap tires in violation of this chapter or a rule
32-3 adopted under this chapter. An offense under this subsection is a
32-4 Class A misdemeanor. In addition to ordering confinement in jail
32-5 or imposing a fine for the offense, the court that finds a person
32-6 guilty of an offense under this subsection:
32-7 (1) shall give notice of the conviction to the
32-8 Department of Public Safety of the State of Texas, if the person
32-9 used a motor vehicle in committing the offense; and
32-10 (2) may order the person to:
32-11 (A) remove the scrap tires the person disposed
32-12 of in committing the offense and dispose of the tires at a
32-13 registered scrap tire facility at the person's expense; or
32-14 (B) perform community service activities.
32-15 Sec. 374.266. ORDERS. The commission may issue an order
32-16 against any person who violates this chapter or a rule adopted
32-17 under this chapter.
32-18 Sec. 374.267. INJUNCTIVE RELIEF. The commission may bring
32-19 an action in district court for injunctive relief against a scrap
32-20 tire generator, a tire dealer, a scrap tire transporter, a scrap
32-21 tire facility, or a scrap tire recycler required to register under
32-22 this chapter if the commission finds that the person required to
32-23 register is:
32-24 (1) violating this chapter, a rule adopted or order
32-25 issued under this chapter, or a condition of registration under
32-26 this chapter;
32-27 (2) creating a public nuisance; or
33-1 (3) threatening:
33-2 (A) human or animal health; or
33-3 (B) the environment.
33-4 Sec. 374.268. DEPOSIT OF PENALTIES. Each penalty collected
33-5 under this subchapter and any interest paid on a penalty shall be
33-6 deposited to the credit of the scrap tire recycling fund.
33-7 Sec. 374.269. COUNTY OR MUNICIPAL ENFORCEMENT. A county or
33-8 municipality may assign to an employee any authority the county or
33-9 municipality has to enforce this chapter if the employee's other
33-10 assigned duties involve ensuring compliance with or enforcing a
33-11 code or ordinance.
33-12 SECTION 2. This Act takes effect September 1, 1999.
33-13 SECTION 3. The importance of this legislation and the
33-14 crowded condition of the calendars in both houses create an
33-15 emergency and an imperative public necessity that the
33-16 constitutional rule requiring bills to be read on three several
33-17 days in each house be suspended, and this rule is hereby suspended.