By Kuempel                                            H.B. No. 3483
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the 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.  This article shall be known as the Scrap Tire
 1-7     Recycling Management Act.
 1-8           SECTION 2.  The following terms shall have the following
 1-9     meaning:
1-10                 (1)  "Business" means any trade, occupation, activity,
1-11     or enterprise engaged in the sale of tires in Texas.
1-12                 (2)  "Commission" means the department responsible for
1-13     the implementation of this act.
1-14                 (3)  "Generators or Dealers" means any person, firm, or
1-15     corporation engaged within Texas in the business of selling or
1-16     offering for sale to the ultimate consumer motor vehicle tires,
1-17     including motor vehicle dealer licensed to sell new motor vehicles.
1-18                 (4)  "End Users" means the person or entity that uses
1-19     whole scrap tires, shredded tire pieces, which include civil
1-20     engineering applications or practices, energy recovery, thermal
1-21     decomposition, the manufacture of a product with economic value,
 2-1     approved land reclamation projects using shredded tires, or other
 2-2     processes or products that the commission by rule determines meet
 2-3     the objectives of this act. This term does not include the
 2-4     production of crumb rubber or the bailing of tires.
 2-5                 (5)  "Enforcement scrap tires" means any scrap tire
 2-6     that has been discarded that is not part of the daily waste stream
 2-7     generated from dealers, or that has not been deposited at a
 2-8     designated scrap tire collection site.
 2-9                 (6)  "Enforcement scrap tire site" means a
2-10     non-permitted tire storage area as identified by state authorities,
2-11     or any site containing scrap tires which have been illegally
2-12     disposed or discarded, and which is not a wholesale or retail
2-13     dealer or a registered scrap tire collection site.
2-14                 (7)  "Land reclamation projects using shredded tires"
2-15     means an approved project by the commission that fills,
2-16     rehabilitates, improves and/or restores already excavated,
2-17     deteriorated or disturbed land, which uses no more than 50% by
2-18     volume of tire pieces along with inert fill material, for the
2-19     purpose of restoring the land to its approximate natural grade and
2-20     to prepare or reclaim the land for re-use.
2-21                 (8)  "Manufacture reject tire" means a tire rendered
2-22     defective in the manufacturing process, whether the tire is
2-23     determined to be defective before or after consumer purchase.
2-24                 (9)  "Motor vehicle" means an automobile, truck, van,
2-25     bus, trailer, semi-trailer combination, recreational vehicle, or
 3-1     any other vehicle operated on the roads of Texas used to transport
 3-2     persons or property.
 3-3                 (10)  "New tire" means an originally manufactured tire
 3-4     and shall not include any re-manufactured, recapped, or otherwise
 3-5     restored tire.
 3-6                 (11)  "Person" means any individual, firm, trust,
 3-7     partnership, company, corporation, association, state agency or
 3-8     local governing agency, or any public or private legal entity.
 3-9                 (12)  "Place of business" means all contiguous land,
3-10     buildings, structures, or other appurtenance, whether temporary or
3-11     permanent, used in the business of selling, repairing, refitting,
3-12     retreading, or otherwise handling new or used tires.
3-13                 (13)  "Process" means the act of shredding whole scrap
3-14     tires which alters the form of the tires for the future extraction
3-15     of useful materials for recycling or energy recovery, whole tires
3-16     used for energy recovery and which renders the tires unfit for use
3-17     on a motor vehicle or for harborage of disease vectors.
3-18                 (14)  "Processed tire" means a tire, which has been
3-19     shredded to a particle size that can be utilized for future reuse,
3-20     recycling or energy recovery.
3-21                 (15)  "Purchaser" means any individual, firm, trust,
3-22     partnership, company, corporation association, state agency, or
3-23     local governing agency, or any public or private legal entity who
3-24     buys new or used tires.
3-25                 (16)  "Recycling" means any process by which scrap
 4-1     tires are collected, separated, stored, recovered, or processed and
 4-2     re-used or returned to use in the form of raw materials or
 4-3     products.
 4-4                 (17)  "Scrap tire" means a tire that is no longer
 4-5     suitable for its original intended purpose or determined to be
 4-6     defective or unfit for use on a motor vehicle.
 4-7                 (18)  "Scrap tire collection site" means a site,
 4-8     designated by the commission, where used or scrap tires are
 4-9     collected from the public as a temporary storage site that stores
4-10     less that 2,500 tires at any given time.
4-11                 (19)  "Scrap tire facility" means a permitted site
4-12     where discarded scrap tires are collected or deposited for
4-13     processing by shredding, whole tire consumption or other approved
4-14     method, which alters the form of the tires for the future
4-15     extraction of useful materials for recycling or energy recovery.
4-16                 (20)  "Scrap tire storage facility" means a facility
4-17     registered by the commission at which whole scrap tires or shredded
4-18     tire pieces are collected and stored to facilitate the future
4-19     extraction of useful material for recycling, reuse, or energy
4-20     recovery.
4-21                 (21)  "Scrap tire transporter" means any person who
4-22     collects or transports scrap tires. This term does not include the
4-23     transportation of processed shredded tire material to end users.
4-24                 (22)  "Tire" means a continuous solid or pneumatic
4-25     rubber covering which is used for encircling the wheel of a motor
 5-1     vehicle.
 5-2           SECTION 3.  GENERAL RULE MAKING AUTHORITY.
 5-3           (a)  In order to adequately control disease vectors and other
 5-4     public health nuisances associated with transportation storage,
 5-5     processing and disposal of scrap tires within Texas and to abate
 5-6     such nuisances menacing public health and the environment, the
 5-7     Commission is authorized to adopt rules for scrap tire management
 5-8     to include, but not be limited to, scrap tire storage,
 5-9     transportation, processing, recycling and/or disposal practices and
5-10     management standards for scrap tire facility construction and
5-11     management; registration requirements for scrap tire storage,
5-12     transportation, and processing documentation requirements for
5-13     generators or dealers, scrap tire processors or transporters.
5-14           (b)  No person shall accumulate or store more than 100 scrap
5-15     tires exposed to the elements at any site unless said person makes
5-16     application for, and receives from the commission, a tire storage
5-17     registration pursuant to requirements of the rules of the
5-18     Commission.  Exceptions shall be made for:
5-19                 (1)  a tire dealer with no more than 1,500 scrap tires
5-20     accumulated at the place of business at any one time;
5-21                 (2)  a tire retreader with no more than 2,500 scrap
5-22     tires accumulated at the place of business at any one time;
5-23                 (3)  a service station where tires are removed from, or
5-24     refitted to, motor vehicles with more than 500 scrap tires
5-25     accumulated at the place of business at one time; or
 6-1                 (4)  other business as deemed appropriate by the
 6-2     Commission, provided that adequate measures for disease vector
 6-3     control are employed in accordance with rules adopted by the
 6-4     Commission. It shall be the responsibility of the owner/operator of
 6-5     the business to prevent the generation of disease vectors from the
 6-6     place of business.
 6-7           (c)  A scrap tire collection site shall not operate in the
 6-8     state except under a registration obtained from the Commission
 6-9     pursuant to the rules adopted.
6-10           (d)  Any site upon which more than 100 tires are deposited,
6-11     placed, or stored subject to the elements, whether registered or
6-12     not, whether publicly or privately owned, and which does not
6-13     receive effective control of disease vectors shall be considered a
6-14     public nuisance and shall be subject to abatement procedures.
6-15           (e)  No person shall collect or process scrap tires in the
6-16     state under this act until the person makes application for and
6-17     receives a scrap tire facility registration form from the
6-18     Commission.
6-19           (f)  It shall be unlawful for any person to dispose of whole
6-20     tires at a landfill in the state or at a site not permitted or
6-21     registered by the Commission to receive scrap tires.
6-22           (g)  All persons, individuals, corporations, or public
6-23     entities who dispose of scrap tires regulated by this act shall do
6-24     so only at a scrap tire facility, registered by the Commission, who
6-25     engages in tire processing for energy recovery or recycling.
 7-1           (h)  If the executive director determines that the adopted
 7-2     rules are burdensome to industry or is overly interfering with
 7-3     commerce then he may alter any adopted rule in order to ensure that
 7-4     the goals of this act are achieved.
 7-5           SECTION 4.  GENERATORS OR DEALERS OF SCRAP TIRES.
 7-6           (a)  For the purpose of this subchapter, a generator or
 7-7     dealer of scrap tires shall be a person that accepts scrap tires
 7-8     for storage, is a fleet operator, or is a new or used tire
 7-9     retailer, wholesaler, manufacturer, or retreader.
7-10           (b)  Generators or dealers shall be responsible to accept
7-11     scrap tires from the consumer and assess a reasonable disposal fee,
7-12     equal to the number of tires sold and make those tires available to
7-13     a registered scrap tire facility.
7-14           (c)  Generators or dealers of scrap tires responsibilities
7-15     shall be;
7-16                 (1)  each generator of dealer shall be responsible for
7-17     ensuring that scrap tires they collect are transported by a
7-18     registered transporter of scrap tires and share in the
7-19     responsibilities that scrap tires are delivered to a registered
7-20     scrap tire facility.
7-21                 (2)  all scrap tires shall be transported, manifested
7-22     and delivered to a facility approved by the Commission for
7-23     receiving scrap tires.
7-24                 (3)  generators or dealers may collect a fee upon the
7-25     sale of a whole tire to be utilized to pay for the collection,
 8-1     transportation, and processing of the generated scrap tires from
 8-2     the purchaser of the whole tire.
 8-3                 (4)  generators or dealers shall maintain records and
 8-4     an affidavit stating the name, social security number, address, and
 8-5     tire count from the purchaser if the following occur;
 8-6                       (A)  the purchaser who purchased the tires
 8-7     without having them mounted at the location of purchase;
 8-8                       (B)  the purchaser of tires requests to take the
 8-9     scrap tires with him in which case the purchaser shall state on the
8-10     affidavit the reason for not leaving the scrap tires with the
8-11     generator or dealer or;
8-12                       (C)  if the purchaser refuses to pay a reasonable
8-13     recycling fee for the scrap tires he generates then that purchaser
8-14     is required to sign an affidavit stating so and the generator or
8-15     dealer shall submit the individual's name and a copy of the
8-16     affidavit to the regional office of the Commission and;
8-17                       (D)  a purchaser who is found to be in violation
8-18     of this act shall be subject to the penalties of Section 19 of this
8-19     and any other rule adopted by the Commission.
8-20           (d)  Generators or dealers of scrap tires shall:
8-21                 (1)  contact the Commission, identify his or her
8-22     business as a scrap tire generator, provide the business name,
8-23     mailing address, street address, or physical location, and the city
8-24     in which he or she is located;
8-25                 (2)  submit their business tax I.D. as a registration
 9-1     number to the Commission;
 9-2                 (3)  pay a $25.00 (twenty-five dollars) registration
 9-3     fee per location biannually to the Commission;
 9-4                 (4)  and notify the Commission within 15 days, in
 9-5     writing, of any changes to generator or dealer information
 9-6     contained in the Commission records.
 9-7           (e)  Generators or dealers of scrap tires shall initiate and
 9-8     maintain a record of each individual collection in the form of a
 9-9     manifest that shall include;
9-10                 (1)  name and address of the person who generated the
9-11     scrap tires and date collected;
9-12                 (2)  a generator or dealer business tax I.D. number;
9-13                 (3)  the weight or count of scrap tires collected for
9-14     transportation;
9-15                 (4)  name of individual who is collecting, transporting
9-16     and depositing scrap tires and the Commission's transporter number;
9-17                 (5)  date and place where the scrap tires were
9-18     deposited;
9-19                 (6)  permit number or registration number, location and
9-20     operator of the facility where scrap tires were deposited;
9-21                 (7)  name and signature of the facility representative
9-22     acknowledging receipt of the scrap tires and weight received.
9-23           (f)  Manifest copies shall be retained by the generators or
9-24     dealers, transporters, and facility operators for three (3) years
9-25     and made available to the Commission or the Comptroller upon
 10-1    request.
 10-2          (g)  Generators or dealers of scrap tires may store those
 10-3    same tires at their location where they are generated for a period
 10-4    not greater than 90 days, and where those scrap tires do not exceed
 10-5    500 tires on the ground or 1,500 scrap tires in an enclosed
 10-6    lockable container.
 10-7          (h)  Generators or dealers of scrap tires shall be subject to
 10-8    random audits by the Commission as to compliance of the requirement
 10-9    set forth in this act.
10-10          (i)  Generators or dealers found to be in violation of this
10-11    act may have their registration revoked, face fines up to not less
10-12    than $200.00 and not more than $10,000.00 per violation, and also
10-13    be subject to the penalties specified in Section 19 of this act.
10-14          SECTION 5.  TRANSPORTERS OF SCRAP TIRES.
10-15          (a)  For the purposes of this subchapter, a transporter of
10-16    whole scrap tires shall include, but are not limited to, measures
10-17    utilizing roadway, rail, and water facilities.
10-18          (b)  Persons who plan to transport scrap tires after the
10-19    effective date of this act shall register with the Commission prior
10-20    to commencing operations and shall submit the  following:
10-21                (1)  identifying himself or herself in the business of
10-22    transporting whole scrap tires;
10-23                (2)  provide his or her business name, mailing address,
10-24    street address or location, and the city in which he or she is
10-25    located;
 11-1                (3)  pay a $100.00 (one-hundred dollars) maximum
 11-2    registration fee biannually to the Commission.
 11-3          (c)  Transporters delivery requirements of scrap tires shall
 11-4    include;
 11-5                (1)  depositing scrap tires at a registered scrap tire
 11-6    facility where the operator of the facility agrees to receive scrap
 11-7    tires;
 11-8                (2)  possess an agreement with an individual facility
 11-9    or class of facilities to receive scrap tires.
11-10          (d)  Transporters shall initiate a manifest that shall
11-11    include;
11-12                (1)  name and address of the person who generated the
11-13    scrap tires and date collected;
11-14                (2)  a generator or dealer business tax I.D. number;
11-15                (3)  the weight or count of scrap tires collected;
11-16                (4)  name of individual who is collecting, transporting
11-17    and depositing scrap  tires and the Commission's transporter
11-18    number;
11-19                (5)  date and place where the scrap tires were
11-20    deposited;
11-21                (6)  permit number or registration number, location and
11-22    operator of the facility where scrap tires were deposited;
11-23                (7)  name and signature of the facility representative
11-24    acknowledging receipt of the scrap tires and weight received,
11-25          (e)  Manifest copies shall be retained by the generator,
 12-1    transporters, and facility operators for three (3)  years and made
 12-2    available to the Commission upon request.
 12-3          (f)  Transporters of scrap tires found to be in violation of
 12-4    this act may have their registration revoked, face fines up to not
 12-5    less than $200.00  and no more than $10,000.00 per violation and
 12-6    also be subjected to the penalties specified in Section 19 of this
 12-7    Act.
 12-8          (g)  Transporters may not collect tires from generators or
 12-9    dealers who do not have a registration from the Commission.
12-10          (h)  Commercial haulers who transport scrap tires from a
12-11    scrap tire facility to an end user are not required to register.
12-12          SECTION 6.  SCRAP TIRE FACILITIES.
12-13          (a)  For the purposes of this subchapter, a scrap tire
12-14    facility shall be applicable to persons, individuals, corporations,
12-15    or public entities who process whole scrap tires or scrap tire
12-16    pieces for the use of recycling or energy recovery.
12-17          (b)  A registration shall be required from the Commission for
12-18    a scrap tire facility.
12-19          (c)  A scrap tire facility shall pay a registration fee of
12-20    $500.00 (five-hundred dollars) and the registration shall be valid
12-21    for 60 months at which time the scrap tire facility shall apply for
12-22    a renewed registration.
12-23          (d)  All scrap tire facilities shall process all scrap tires
12-24    within (90) ninety days after receipt.
12-25          (e)  Operators of scrap tire facilities shall ensure that the
 13-1    scrap tire transporters who deposit scrap tires at their facilities
 13-2    are properly registered with the Commission and the Commission
 13-3    shall provide a scrap tire facility an approved transporters
 13-4    quarterly.
 13-5          (f)  Scrap tire facilities shall maintain copies of manifests
 13-6    received from transporters of scrap tires and shall insure that the
 13-7    information is completed on the manifests as pertaining to Section
 13-8    4(e) and Section 5(d) of this Act and shall report any observed
 13-9    violation of this Act to the Commission and the Commission shall
13-10    have 30 days to respond to any violation reported.
13-11          (g)  The reporting activities of the scrap tire facility
13-12    shall be documented in terms of weight.
13-13          (h)  All documentation is to be kept by the scrap tire
13-14    facility for a period of (3) three years and made available for the
13-15    Commission's inspection.
13-16          (i)  Scrap tire facilities shall not accept tires from
13-17    generators or transporters who do not have a registration form from
13-18    the Commission and shall report to the Commission those individuals
13-19    who do no have registrations as required by this act.
13-20          (j)  Scrap tire facilities found to be in violation of this
13-21    act may have their registration revoked, face fines up to not less
13-22    than $200.00 and no more than $10,000.00 per violation and also be
13-23    subjected to the penalties specified in Section 19 of this act.
13-24          SECTION 7.  SCRAP TIRE STORAGE FACILITY.
13-25          (a)  For the purposes of this subchapter, a scrap tire
 14-1    storage facility shall be applicable to persons, individuals,
 14-2    corporations, or public entities who store whole scrap tires or
 14-3    scrap tire pieces for the use of recycling or energy recovery.
 14-4          (b)  A registration form shall be required from the
 14-5    Commission for a scrap tire storage facility.
 14-6          (c)  A scrap tire storage facility shall pay a registration
 14-7    fee of $500.00 (five-hundred dollars) and the registration shall be
 14-8    valid for 60 months at which time the scrap tire facility shall
 14-9    apply for a renewed registration.
14-10          (d)  Scrap tire storage facilities shall maintain copies of
14-11    manifests received from transporters of scrap tires and shall
14-12    insure that the information is completed on the manifests as
14-13    pertaining to Section 4(e) and Section 5(d) of this act.
14-14          (e)  The reporting activities of the scrap tire storage
14-15    facility shall be documented in terms of weight.
14-16          (f)  All documentation is to be kept by the scrap tire
14-17    storage facility for a period of three (3) years and made available
14-18    for the Commission's inspection.
14-19          (g)  A scrap tire storage facility shall not exceed the
14-20    registered storage capacity approved by the Commission.
14-21          (h)  A scrap tire storage facility that exceeds their storage
14-22    capacity shall immediately cease accepting additional whole scrap
14-23    tires or shredded tire pieces until the scrap tire storage facility
14-24    can demonstrate to the Commission that volumes of whole scrap tires
14-25    or shredded tire pieces have been removed from the scrap tire
 15-1    storage facility to an approved end user or other approved means
 15-2    which reduces the stored volume to less than total approved
 15-3    capacity.
 15-4          (i)  Scrap tire storage facilities requesting a new
 15-5    registration from the Commission after January 1, 1998 shall be
 15-6    required to limit their storage area to a 180-day supply to be
 15-7    determined by the Commission unless the applicant can demonstrate
 15-8    that they have a contracted approved end use that will require a
 15-9    larger volume of shredded scrap tires to be stored.
15-10          (j)  Scrap tire storage facilities having registered before
15-11    January 1, 1998 and are still an active site shall be exempt from
15-12    the provisions in       (h)  of this Subsection but shall be
15-13    prohibited from expanding their approved storage.
15-14          (k)  Scrap tire facilities found to be in violation of this
15-15    act may have their registration revoked, face fines of no less than
15-16    $200.00 and not more than $10,000.00 per violation and also be
15-17    subjected to the penalties specified in Section 19 of this act.
15-18          SECTION 8.  PRIORITY ENFORCEMENT STORAGE SITE.
15-19          (a)  It shall be the duty of each county within the state to
15-20    make an inventory of scrap tire piles that have been deposited
15-21    within that county in a non-permitted area.
15-22          (b)  The state official shall make an estimate of the amount
15-23    of tires that are in the pile, the location, the proximity of major
15-24    highways, municipalities, and the legal description of the
15-25    property.
 16-1          (c)  The state official shall make an assessment on the
 16-2    degree of hazard the pile represents to the public.
 16-3          (d)  It shall be unlawful to bury whole, split, or quartered
 16-4    tires at these sites and these tires must be removed to a
 16-5    registered scrap tire facility.
 16-6          (e)  The Commission shall rate enforcement tire storage sites
 16-7    as to the environmental impact they present to the public and shall
 16-8    have the authority to contract with a registered scrap tire
 16-9    facility for clean up of those stockpiled scrap tires provided that
16-10    funds are available to the Commission to do as outlined in Section
16-11    11(c) of this act.
16-12          (f)  The Commission is authorized to adopt rules necessary
16-13    for the administration, collection, reporting, and payment of fees
16-14    payable or to be collected under this act.
16-15          (g)  The Commission is authorized to assess fees or penalties
16-16    associated with an enforcement scrap tire site towards a
16-17    responsible party if the department deems the action necessary.
16-18          SECTION 9.  PROGRAM FUNDING.
16-19          (a)  A person in the business of selling new or used tires,
16-20    of any type or description, who sells or offers to sell new or used
16-21    tires not for resale shall collect at the time and place of sale a
16-22    scrap tire management fee for each tire sold in the amount of $.75
16-23    (seventy-five cents) per tire.
16-24          (b)  This fee shall be known as the Scrap Tire Management Fee
16-25    and this levy shall be applied to all tires, new or used, for all
 17-1    over-the-road-highway vehicles including, but not limited to,
 17-2    passenger vehicles, pickup trucks, truck tractors, trailers of all
 17-3    kinds, recreational vehicles, motor homes and motorcycles.
 17-4          (c)  Every tire subject to the fee levied in subsection (a)
 17-5    above shall have added to the purchase cost of the tire the
 17-6    designated fee and said fee shall be stated upon the invoice as a
 17-7    Scrap Tire Management Fee.
 17-8          (d)  The provision that the fee herein levied shall be
 17-9    collected from the purchaser of the new or used tire and shall in
17-10    no way relieve any person, firm, or corporation of the fee herein
17-11    levied, nor shall the inability, impracticability, refusal, or
17-12    failure to collect from such purchaser the amounts provided herein
17-13    relieve such persons, firms, or corporations of the fees herein
17-14    levied.
17-15          (e)  The fee herein levied shall be due and payable to the
17-16    Comptroller, together with forms prescribed and furnished by the
17-17    Comptroller, on or before the twentieth  (20th) day of the month
17-18    next succeeding the month in which the fee accrued.
17-19          (f)  The Comptroller is hereby authorized to promulgate such
17-20    rules and regulations for making returns and for ascertainment,
17-21    assessment and collection of the fee imposed by this act as the
17-22    department may deem necessary to administer and enforce its
17-23    provisions.
17-24          SECTION 10.  SCRAP TIRE MANAGEMENT FUND.
17-25          (a)  There is hereby created within the Treasury the "Scrap
 18-1    Tire Management Fund". The Fund shall be administered by the
 18-2    Comptroller pursuant to provisions of Section 11 of this act.
 18-3          (b)  The Scrap Tire Management Fund shall consist of:
 18-4                (1)  All monies received by the Comptroller as proceeds
 18-5    from the fees imposed pursuant to Section 9.
 18-6                (2)  Interest attributable to investment of money in
 18-7    the Fund.
 18-8                (3)  Money received by the Comptroller in the form of
 18-9    gifts, grants, reimbursements, fines, or from any other source
18-10    intended to be used for the purposes specified or collected
18-11    pursuant to this act.
18-12          (c)  The monies deposited in the Fund shall at no time become
18-13    part of the general budget of the Commission, Comptroller, any
18-14    other state agency, or General Revenue except as provided for in
18-15    Section 11 of this act.
18-16          (d)  All monies in the Fund are continuously appropriated to
18-17    the Commission respectively, to be utilized or disbursed as
18-18    specified in this act.
18-19          SECTION 11.  ALLOCATION OF FUNDS.
18-20          (a)  All monies in the Fund are hereby continuously
18-21    appropriated to the Commission and Comptroller to be utilized or
18-22    dispersed as specified in this act.
18-23          (b)  Of the monies accruing annually to the Fund, the funds
18-24    may be only used to pay;
18-25                (1)  the Commission's reasonable and necessary
 19-1    administrative costs of performing its duties under this act in an
 19-2    amount not to exceed (30%) thirty percent of the money annually
 19-3    accruing to the Fund; and
 19-4                (2)  the Comptroller's reasonable and necessary
 19-5    administrative cost of performing its duties under this act in an
 19-6    amount not to exceed (15%) fifteen percent of the money annually
 19-7    accruing to the Fund,
 19-8          (c)  The remaining monies in the Fund shall be allocated
 19-9    pursuant to the provisions of this act:
19-10                (1)  to fund clean up of enforcement scrap tire sites
19-11    and other related projects under the supervision of the Commission;
19-12                (2)  special priority projects such as community
19-13    clean-ups, county clean-ups; and
19-14                (3)  contingencies as authorized by the Commission.
19-15          SECTION 12.  ENFORCEMENT SCRAP TIRE SITE CLEAN-UP PAYMENT
19-16    PROCEDURE.
19-17          (a)  Provided that appropriations have been made to fund
19-18    enforcement scrap tire site clean-ups, application for payment to
19-19    registered scrap tire processing facilities shall be on forms
19-20    provided by the Commission and shall provide documentation of
19-21    collection on enforcement scrap tires.
19-22          (b)  No person shall process scrap tires in the state or
19-23    receive payment under this act for collecting and processing
19-24    enforcement scrap tires until the scrap tire facility makes
19-25    application for and receives a scrap tire facility registration
 20-1    from the Commission.
 20-2          (c)  Scrap tire facilities shall submit ending month payment
 20-3    application reports by the 10th day of the following month and
 20-4    provide the following information:
 20-5                (1)  company name, facility address, permit number,
 20-6    reporting period and name of the person submitting the report;
 20-7                (2)  provide a report of the manifest ticket for each
 20-8    load from the enforcement scrap tire site;
 20-9                (3)  a report of the starting date of collection and
20-10    delivery of enforcement scrap tires with the total weight and
20-11    monthly totals.
20-12          (d)  The Commission shall contract with the scrap tire
20-13    facility who is assigned the enforcement scrap tire site for
20-14    clean-up and
20-15                (1)  the compensation rate shall be determined through
20-16    either a Request for Proposal bid process or other suitable means
20-17    approved by the executive director for payment of the scrap tires
20-18    removal at that specific site;
20-19                (2)  scrap tire facilities must demonstrate end use
20-20    capabilities, as outlined in Section 15 of this act, equal to the
20-21    volume by weight of scrap tires or shredded tire pieces that is
20-22    removed from an enforcement scrap tire site.
20-23          (e)  The Commission shall review and submit payment to the
20-24    qualifying scrap tire facility within (20) days of receipt of the
20-25    payment application.
 21-1          (f)  Scrap tire facilities found to be in violation of this
 21-2    Section of this act may have their registration revoked, face fines
 21-3    not less than $200.00 and no more than $10,000.00 per violation and
 21-4    also be subjected to the penalties specified in Section 19 of this
 21-5    act.
 21-6          SECTION 13.  ACCESS TO PRIORITY ENFORCEMENT LIST SITE.
 21-7          (a)  The Commission or its employees or agents of the
 21-8    Commission are entitled to enter any public or private property at
 21-9    any reasonable time for the purpose of inspection, investigating,
21-10    or remediating any condition related to illegal dumping of scrap
21-11    tires.
21-12          (b)  The executive director shall give notice of intent to
21-13    enter private property for those purposes by certified mail to the
21-14    last known address indicated in the current county property records
21-15    at least (10) ten days before a Commission member or Commission
21-16    employee or agent enters the property.
21-17          (c)  A Commission member, Commission employee, agent or
21-18    subcontractor who, acting under this subsection, enters private
21-19    property shall;
21-20                (1)  observe the establishment's rules concerning
21-21    safety, internal security, and fire protection; and
21-22                (2)  if the property has management in residence, make
21-23    a reasonable attempt to notify the management or person in charge
21-24    of the entry and exhibit credentials.
21-25          SECTION 14.  RESPONSIBILITIES OF THE COMMISSION.
 22-1          (a)  The Commission shall be responsible to ensure that all
 22-2    generators or dealers of scrap tires have accepted scrap tires from
 22-3    consumers for purposes of recycling or disposal and have made
 22-4    available those scrap tires only to registered scrap tire
 22-5    facilities or other approved recycling or disposal sites by the
 22-6    Commission.
 22-7          (b)  The Comptroller shall provide to the Commission a list
 22-8    of businesses that have been designated as tire dealers and the
 22-9    Commission shall, by July 15th, 1999, send to the generators or
22-10    dealers a letter notification that;
22-11                (1)  the generators or dealers shall be responsible to
22-12    ensure that all scrap tires generated, collected or accumulated
22-13    from that business shall be sent to a registered scrap tire
22-14    facility or other approved disposal site by the Commission;
22-15                (2)  the effective date for full compliance to this act
22-16    shall be September 1st, 1999, and;
22-17                (3)  any generator or dealer who are found no to be in
22-18    full compliance of this act by September 1st, 1999, shall be
22-19    subject to the penalties set forth by this act and any rules
22-20    adopted by the Commission.
22-21          (c)  The Commission shall require a monthly report from
22-22    registered scrap tire facilities or other approved disposal sites
22-23    and transporters providing the following information;
22-24                (1)  name, address and county of the generator or
22-25    dealer of scrap tires and the date the scrap tires were collected;
 23-1                (2)  a generator or dealer business tax I.D. number;
 23-2                (3)  the weight or count of scrap tires collected for
 23-3    transportation;
 23-4                (4)  name of individual who is collecting, transporting
 23-5    and depositing scrap tires and the Commission's transporter number.
 23-6          (d)  The Commission shall determine a generator's or dealer's
 23-7    compliance to this act by;
 23-8                (1)  generating a list of registered generators in the
 23-9    state and comparing this list to the monthly reports supplied by
23-10    the scrap tire facilities or other approved disposal sites;
23-11                (2)  generators or dealers who do not match up with the
23-12    Commission's list and the Monthly reports shall be listed by county
23-13    location and that list shall be submitted to the Commission's
23-14    regional offices that fall into the respected counties' areas;
23-15                (3)  the regional offices shall conduct inspections of
23-16    the generators or dealers who are listed by the central office to
23-17    determine if the generator is in fact in non-compliance;
23-18                (4)  if the generator or dealer is found to be in
23-19    non-compliance then that person shall be subject to penalties as
23-20    outlined in Section 19 of this act.
23-21          (e)  The Commission shall release to the regions' offices the
23-22    generator's or dealer's inspection list within 30 days after
23-23    receiving the required reports from the registered scrap tire
23-24    facilities or other approved disposal sites.
23-25          (f)  The regional offices shall report back to the central
 24-1    office the finding of the inspection as to compliance or
 24-2    non-compliance of the generator or dealer.
 24-3          (g)  The Commission shall promote, encourage, and provide all
 24-4    the assistance possible to direct all scrap tires to a recyclable
 24-5    end use.
 24-6          SECTION 15.  END USE OF SCRAP TIRES.
 24-7          (a)  The Commission shall not prevent or deter the use of
 24-8    scrap tires in commercial use in the state provided the end uses
 24-9    include;
24-10                (1)  energy recovery;
24-11                (2)  civil engineering including but not limited to;
24-12                      (A)  landfill leachate projects;
24-13                      (B)  septic systems;
24-14                      (C)  highway projects approved by the Texas
24-15    Department of Transportation;
24-16                      (D)  land reclamation projects using shredded
24-17    tires or;
24-18                      (E)  any other use the executive director deems
24-19    appropriate and in compliance with the intent of this act.
24-20          (b)  products manufactured from rubber derived from shredded
24-21    tire pieces.
24-22          (c)  The executive director shall have 60 days to approve or
24-23    disapprove any end use request submitted to the Commission.
24-24          (d)  Any disapproved requests must be answered in writing
24-25    with an explanation of why the end use was disapproved.
 25-1          (e)  The Commission shall encourage and promote end use of
 25-2    scrap tires generated within the state.
 25-3          SECTION 16.  WHOLE TIRE LANDFILL BAN.
 25-4          (a)  Whole scrap tires shall be banned from disposal in
 25-5    landfills within the state.
 25-6          (b)  Scrap tires may be land filled only if;
 25-7                (1)  the executive director determines that there is a
 25-8    deficiency of scrap tire collections due to an area or region of
 25-9    the state that does not have sufficient end uses to consume the
25-10    generated scrap tires of that area or region of the state;
25-11                (2)  the landfill accepting the tires have obtained a
25-12    registration and permit modification from the Commission;
25-13                (3)  the tires have been processed to one sixth in size
25-14    to eliminate any air pockets that my exist;
25-15                (4)  the tires are placed separate and apart from other
25-16    municipal solid waste;
25-17                (5)  and the landfill had collected any state mandated
25-18    fees pertaining to municipal solid waste.
25-19          (c)  Whole scrap tires shall not be allowed to be placed in
25-20    any monofill or land reclamation project and if whole scrap tires
25-21    are found to have been placed in any monofill or land reclamation
25-22    project and if exposed to the open air, regardless of when the
25-23    scrap tires were placed in the monofill or land reclamation
25-24    project, shall be declared an enforcement scrap tire site.
25-25          (d)  Exemptions from the provisions stated on subsection (a)
 26-1    of this section are as follows;
 26-2                (1)  tires considered to be OTR (off-the-road) tires
 26-3    shall have to be managed by a plan approved by the Commission;
 26-4                (2)  solid tires and;
 26-5                (3)  manufactured reject tires which will have to
 26-6    submit a disposal plan that is approved by the Commission.
 26-7          (e)  The executive director may declare a prohibition on the
 26-8    landfilling of shredded tire pieces in any area or region of the
 26-9    state if it is demonstrated that all scrap tires in that area or
26-10    region of the state has an end use.
26-11          SECTION 17.  FINANCIAL RESPONSIBILITY.
26-12          (a)  A registered scrap tire facility required to register
26-13    under this act shall submit to the Commission and shall maintain
26-14    evidence of financial responsibility in an amount adequate to
26-15    assure proper clean up and closure of the facility.
26-16          (b)  A scrap tire facility owner or operator or an end user
26-17    who anticipates accepting for storage an amount of whole scrap
26-18    tires or shredded tire pieces that exceeds the facility's (30)
26-19    thirty day supply shall submit to the Commission and shall maintain
26-20    evidence of financial responsibility in an amount adequate to
26-21    assure proper clean-up and  closure of the facility.
26-22          (c)  A facility subject to Subsection (a) or (b) shall submit
26-23    to the Commission an estimate of the total amount of whole scrap
26-24    tires and/or shredded tire pieces measured by weight the facility
26-25    will store and the estimated cost, using that total amount, of
 27-1    cleaning up and closing the facility.
 27-2          (d)  Scrap tire facilities registered before January 1st,
 27-3    1998 and has received an approval letter from the Commission
 27-4    renewing their registration shall be in compliance of this Section
 27-5    until the date of their next renewal period.
 27-6          (e)  Evidence of financial responsibility may be in the form
 27-7    of;
 27-8                (1)  a performance bond, surety bond, or letter of
 27-9    credit acceptable to the Commission that is from a financial
27-10    institution, a trust fund, or insurance for a privately owned
27-11    facility; or
27-12                (2)  a cash payment in the full amount determined under
27-13    Subsection (c).
27-14          SECTION 18.  ENFORCEMENT BY CERTAIN COUNTY OR MUNICIPAL
27-15    EMPLOYEES.
27-16          (a)  Employees of counties or municipalities whose duty it is
27-17    to ensure code compliance or to enforce codes and ordinances may be
27-18    designated by the governing body of the county or the municipality
27-19    to enforce the provisions of this act.
27-20          (b)  This section does not limit the authority of any state
27-21    or local agency to enforce other laws, rules, or ordinances
27-22    relating to scrap tire dumping or solid waste management.
27-23          SECTION 19.  PENALTIES FOR VIOLATION.
27-24          (a)  Generators or dealers of scrap tires and transporters of
27-25    scrap tires are to be registered with the Commission before their
 28-1    scrap tires can be accepted by a scrap tire facility or other
 28-2    approved disposal site and the Commission may suspend or revoke a
 28-3    generators' or dealers' or transporters' registration for;
 28-4                (1)  failure to maintain a complete and accurate record
 28-5    of shipment of scrap tires;
 28-6                (2)  falsification of scrap tire shipping documents or
 28-7    shipment records;
 28-8                (3)  delivery of scrap tires to a facility not
 28-9    registered to handle the scrap tires;
28-10                (4)  failure to comply with any rule or order issued by
28-11    the requirements of this act;
28-12                (5)  illegal dumping of scrap tires;
28-13                (6)  collection or transportation of scrap tires
28-14    without a registration as required in this act.
28-15          (b)  Scrap tire facilities who process scrap tires are to be
28-16    registered with the Commission before collecting and receiving
28-17    scrap tires and the Commission may suspend or revoke a registration
28-18    or deny an initial registration for;
28-19                (1)  failure to maintain complete and accurate records;
28-20                (2)  falsification of any record maintained or received
28-21    by the registrant;
28-22                (3)  illegal disposal of shredded tire pieces;
28-23                (4)  failure to comply with any rule or order issued by
28-24    the pursuant to the requirements of
28-25                (5)  this act; or
 29-1                (6)  failure to account to the Commission for
 29-2    recycling, reuse or energy recovery activities within the
 29-3    designated period established by rule or this act.
 29-4          (c)  Any person violating any provision of this act or any
 29-5    rule, regulation or order made pursuant to this act shall, upon
 29-6    conviction thereof, be fined a penalty of not less that $200.00 and
 29-7    not more that $10,000.00 per violation.
 29-8          (d)  Any person may be assessed an administrative penalty by
 29-9    the Commission, as provided by this act. Including costs associated
29-10    therewith, if the person violated this act or rules and regulations
29-11    adopted by the Commission, and no local government has instituted a
29-12    civil action and is diligently prosecuting the same person for the
29-13    same violation.
29-14          (e)  In determining the amount of the administrative penalty
29-15    to be imposed, the Commission shall consider the following factors;
29-16                (1)  the economic benefit gained from such violation;
29-17                (2)  the economic viability of the violator;
29-18                (3)  the severity of the violation, including any real
29-19    or potential injury to persons or property, or public health;
29-20                (4)  the compliance history of the violator and record
29-21    of previous violations;
29-22                (5)  efforts taken by the violator to correct the
29-23    violation;
29-24                (6)  amount of penalty needed to deter future
29-25    violations;
 30-1                (7)  other matters that justice may require;
 30-2          (f)  At no time shall an administrative penalty fall below
 30-3    the amount of economic benefit gained by violation of the law.
 30-4          (g)  Any person who dumps up to 50 scrap tires is in
 30-5    violation of this section and can demonstrate that the dumping did
 30-6    not occur for commercial purposed is guilty of a Class B
 30-7    misdemeanor, Punishable as provided in Subsection      (c)  of this
 30-8    section and;
 30-9                (1)  the court shall require the violator to pick up
30-10    the scrap tires he dumped and, at his cost, dispose of those scrap
30-11    tires at a registered scrap tire facility and;
30-12                (2)  perform other community service commensurated with
30-13    the offense committed and;
30-14                (3)  if the violation involves the use of a motor
30-15    vehicle, upon a finding of guilt, whether or not adjudication is
30-16    withheld or whether imposition of sentence is withheld, deferred,
30-17    or suspended, the court shall forward a record of the finding to
30-18    the Department of Highway Safety and Motor Vehicles, which shall
30-19    record a penalty of three points on the violator's driver's
30-20    license.
30-21          (h)  Any person who dumps excess of 50 scrap tires for
30-22    commercial purposed is guilty of a Class A misdemeanor, punishable
30-23    as provided in Subsection              (c)  of this section and the
30-24    court may order the violator to;
30-25                (1)  remove or render harmless the scrap tires that the
 31-1    has dumped in violation of this section;
 31-2                (2)  repair or restore property damaged by, or pay
 31-3    damages for any damage arising out of his dumping in violation of
 31-4    this section;
 31-5                (3)  perform public service relating to the removal of
 31-6    dumped scrap tires, at his own expense, in violation of this
 31-7    section or to the restoration of an area polluted by dumped scrap
 31-8    tires in violation of this section and;
 31-9                (4)  any motor vehicle, container, or machine used to
31-10    dump scrap tires is declared contraband and is subject to
31-11    forfeiture.
31-12          (i)  Any penalties imposed and collected pursuant to this
31-13    act, less any costs for attorney, or other reasonable associated
31-14    costs, shall be deposited to the credit of the Commission to be
31-15    utilized for purposes related to the Scrap Tire Management Act.
31-16          (j)  The Commission may issue orders to any permittee,
31-17    registrant, or any person in violation of this act or any rule
31-18    adopted and promulgated under this act and such orders shall be
31-19    enforceable as against such permittee, registrant, or violator.
31-20          (k)  If the Commission finds that the operation of a scrap
31-21    tire generator or dealer, transporter, or scrap tire facility
31-22    subject to the provisions of this act is in violation of any
31-23    provision of this act, or any rule or regulation made pursuant to
31-24    this act, or any order of the Commission or any term or condition
31-25    of any registration issued pursuant to this act, or might
 32-1    reasonably by expected to cause pollution of the land, air or
 32-2    waters of Texas or is creating a public nuisance or otherwise
 32-3    threatens human or animal health or the environment, the Commission
 32-4    may bring action for mandatory or prohibitive injunctive relief in
 32-5    the circuit court of Texas having jurisdiction over the property on
 32-6    which the violation occurred or is expected to occur.
 32-7          SECTION 20.  REPORT.
 32-8          (a)  Not later than (3) three years after passage of this
 32-9    act, and every (3) three years thereafter, the Commission shall
32-10    report to the Governor and the Legislature, on the administration
32-11    and the effectiveness of the program in cleaning up existing
32-12    enforcement scrap tire sites and in the prevention of new sites.
32-13          SECTION 21.  EFFECTIVE DATE.
32-14          (a)  This act takes effect on September 1st, 1999.
32-15          SECTION 22.  REPEALER.
32-16          (a)  All laws or parts of laws which conflict with this act
32-17    are repealed.
32-18          SECTION 23.  The importance of this legislation and the
32-19    crowded condition of the calendars in both houses create an
32-20    emergency and an imperative public necessity that the
32-21    constitutional rule requiring bills to be read on three several
32-22    days in each house be suspended, and this rule is hereby suspended.