By:  Madla                                            S.B. No. 1645
         99S0849/1                           
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to the regulation of the storage, processing, use, and
 1-2     disposal of scrap tires; providing administrative, civil, and
 1-3     criminal penalties.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  SHORT TITLE.  This Act shall be known as the
 1-6     Scrap Tire Recycling Management Act.
 1-7           SECTION 2.  DEFINITIONS.  In this Act:
 1-8                 (1)  "Business" means any trade, occupation, activity,
 1-9     or enterprise engaged in the sale of tires in Texas.
1-10                 (2)  "Commission" means the Texas Natural Resource
1-11     Conservation Commission.
1-12                 (3)  "Generator or dealer" means any person, firm, or
1-13     corporation engaged in this state in the business of selling or
1-14     offering for sale to the ultimate consumer motor vehicle tires.
1-15     The term includes a motor vehicle dealer licensed to sell new motor
1-16     vehicles.
1-17                 (4)  "Generator or dealer of scrap tires" means a
1-18     person that accepts scrap tires for storage, is a fleet operator,
1-19     or is a new or used tire retailer, wholesaler, manufacturer, or
1-20     retreader.
1-21                 (5)  "End user" means a person that uses whole scrap
1-22     tires or shredded tire pieces for civil engineering applications or
1-23     practices, energy recovery, thermal decomposition, the manufacture
1-24     of a product with economic value, approved land reclamation
 2-1     projects using shredded tires, or any other process or product that
 2-2     the commission by rule determines meets the objectives of this Act.
 2-3     The term does not include a person engaged in the production of
 2-4     crumb rubber or in the baling of tires.
 2-5                 (6)  "Enforcement scrap tire" means any scrap tire that
 2-6     has been discarded and that is not part of the daily waste stream
 2-7     from a generator or dealer of scrap tires or that has not been
 2-8     deposited at a designated scrap tire collection site.
 2-9                 (7)  "Enforcement scrap tire site" means a nonpermitted
2-10     tire storage area, as identified by state authorities, or any site
2-11     containing scrap tires which have been illegally disposed or
2-12     discarded, that is not a wholesale or retail generator or dealer or
2-13     a registered scrap tire collection site.
2-14                 (8)  "Executive director" means the executive director
2-15     of the commission.
2-16                 (9)  "Land reclamation project using shredded tires"
2-17     means a project approved by the commission that fills,
2-18     rehabilitates, improves, or restores excavated, deteriorated, or
2-19     disturbed land, using no more than 50 percent by volume of tire
2-20     pieces along with inert fill material, for the purpose of restoring
2-21     the land to its approximate natural grade and to prepare or reclaim
2-22     the land for reuse.
2-23                 (10)  "Manufacture reject tire" means a tire rendered
2-24     defective in the manufacturing process, regardless of whether the
2-25     tire is determined to be defective before or after consumer
2-26     purchase.
 3-1                 (11)  "Motor vehicle" means an automobile, truck, van,
 3-2     bus, trailer, semi-trailer combination, recreational vehicle, or
 3-3     any other vehicle operated on the roads of the state and used to
 3-4     transport persons or property.
 3-5                 (12)  "New tire" means an originally manufactured tire
 3-6     and shall not include any remanufactured, recapped, or otherwise
 3-7     restored tire.
 3-8                 (13)  "Person" means any individual, firm, trust,
 3-9     partnership, company, corporation, association, state agency or
3-10     local governing agency, or any public or private legal entity.
3-11                 (14)  "Place of business" means all contiguous land,
3-12     buildings, structures, or other appurtenance, whether temporary or
3-13     permanent, used in the business of selling, repairing, refitting,
3-14     retreading, or otherwise handling new or used tires.
3-15                 (15)  "Process" means the act of shredding whole scrap
3-16     tires, which alters the form of the tires, for the future
3-17     extraction of useful materials for recycling or energy recovery or
3-18     the use of whole tires for energy recovery which renders the tires
3-19     unfit for use on a motor vehicle or for harborage of disease
3-20     vectors.
3-21                 (16)  "Processed tire" means a tire which has been
3-22     shredded to a particle size that can be utilized for future reuse,
3-23     recycling, or energy recovery.
3-24                 (17)  "Purchaser" means any individual, firm, trust,
3-25     partnership, company, corporation association, state agency, or
3-26     local governing agency, or any public or private legal entity that
 4-1     buys new or used tires.
 4-2                 (18)  "Recycling" means any process by which scrap
 4-3     tires are collected, separated, stored, recovered, or processed and
 4-4     reused or returned to use in the form of raw materials or products.
 4-5                 (19)  "Scrap tire" means a tire that is no longer
 4-6     suitable for its original intended purpose or determined to be
 4-7     defective or unfit for use on a motor vehicle.
 4-8                 (20)  "Scrap tire collection site" means a site,
 4-9     designated by the commission, where used or scrap tires are
4-10     collected from the public that operates as a temporary storage site
4-11     and that stores less than 2,500 tires at any given time.
4-12                 (21)  "Scrap tire facility" means a permitted site
4-13     where discarded scrap tires are collected or deposited for
4-14     processing by shredding, whole tire consumption, or another
4-15     approved method, which alters the form of the tires for the future
4-16     extraction of useful materials for recycling or energy recovery.
4-17                 (22)  "Scrap tire storage facility" means a facility
4-18     required to be registered by the commission at which whole scrap
4-19     tires or shredded tire pieces are collected and stored to
4-20     facilitate the future extraction of useful material for recycling,
4-21     reuse, or energy recovery.
4-22                 (23)  "Scrap tire transporter" means any person who
4-23     collects or transports scrap tires.  The term does not include the
4-24     transportation of processed shredded tire material to end users.
4-25                 (24)  "Tire" means a continuous solid or pneumatic
4-26     rubber covering which is used for encircling the wheel of a motor
 5-1     vehicle.
 5-2           SECTION 3.  GENERAL RULE MAKING AUTHORITY.  (a)  In order to
 5-3     adequately control disease vectors and other public health
 5-4     nuisances associated with the transportation, storage, processing,
 5-5     and disposal of scrap tires within Texas and to abate such
 5-6     nuisances menacing the public health and the environment, the
 5-7     commission is authorized to adopt rules for scrap tire management
 5-8     to include scrap tire storage, transportation, processing,
 5-9     recycling, and disposal practices; standards for scrap tire
5-10     facility construction and management; registration requirements for
5-11     scrap tire storage, transportation, and processing; and
5-12     documentation requirements for generators or dealers of scrap
5-13     tires, scrap tire processors, or scrap tire 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 no more than 500 scrap tires
5-25     accumulated at the place of business at any one time; or
5-26                 (4)  any other business as deemed appropriate by the
 6-1     commission, provided that adequate measures for disease vector
 6-2     control are employed in accordance with rules adopted by the
 6-3     commission; it shall be the responsibility of the owner or operator
 6-4     of the business to prevent the generation of disease vectors from
 6-5     the place of business.
 6-6           (c)  A scrap tire collection site shall not operate in the
 6-7     state except under a registration obtained from the commission
 6-8     pursuant to the rules adopted under this Act.
 6-9           (d)  Any site upon which more than 100 tires are deposited,
6-10     placed, or stored subject to the elements, whether registered or
6-11     not, whether publicly or privately owned, and which does not
6-12     receive effective control of disease vectors, shall be considered a
6-13     public nuisance and shall be subject to abatement procedures.
6-14           (e)  No person shall collect or process scrap tires in the
6-15     state until the person receives a scrap tire facility registration
6-16     from the commission.
6-17           (f)  It shall be a violation of this Act for any person to
6-18     dispose of whole tires at a landfill in the state or at a site not
6-19     permitted or registered by the commission to receive scrap tires.
6-20           (g)  All persons who dispose of scrap tires regulated by this
6-21     Act shall do so only at a scrap tire facility registered with the
6-22     commission.
6-23           (h)  If the executive director determines that a rule adopted
6-24     under this Act is burdensome to industry or is unreasonably
6-25     interfering with commerce, then the executive director may alter
6-26     any adopted rule to ensure that the goals of this Act are achieved.
 7-1           SECTION 4.  GENERATORS OR DEALERS OF SCRAP TIRES.
 7-2     (a)  Generators or dealers of scrap tires shall be responsible for
 7-3     accepting scrap tires from the consumer equal to the number of
 7-4     tires sold, for assessing a reasonable disposal fee, and for making
 7-5     those tires available to a registered scrap tire facility.  All
 7-6     scrap tires shall be transported, manifested, and delivered only to
 7-7     a facility approved by the commission for receiving scrap tires.
 7-8           (b)  Generators or dealers of scrap tires:
 7-9                 (1)  shall be responsible for ensuring that scrap tires
7-10     they collect are transported by a registered transporter of scrap
7-11     tires and shall share in the responsibility for ensuring that scrap
7-12     tires are delivered to a registered scrap tire facility.
7-13                 (2)  may collect a fee upon the sale of a whole tire to
7-14     be utilized to pay for the collection, transportation, and
7-15     processing of the generated scrap tires from the purchaser of the
7-16     whole tire.
7-17                 (3)  shall maintain records and an affidavit stating
7-18     the name of, the tax identification number or social security
7-19     number of, the address of, and the tire count from the purchaser if
7-20     the purchaser:
7-21                       (A)  does not have the tires mounted at the
7-22     location of purchase;
7-23                       (B)  requests to take the scrap tires off the
7-24     premises, in which case the purchaser shall state on the affidavit
7-25     the reason for not leaving the scrap tires with the generator or
7-26     dealer; or
 8-1                       (C)  refuses to pay a reasonable recycling fee
 8-2     for the scrap tires the purchaser generates, in which case
 8-3     purchaser is required to sign an affidavit stating so, and the
 8-4     generator or dealer of scrap tires shall submit the purchaser's
 8-5     name and a copy of the affidavit to the regional office of the
 8-6     commission; and
 8-7           (c)  A generator or dealer of scrap tires shall:
 8-8                 (1)  contact the commission, identify the business as a
 8-9     scrap tire generator, and provide the business name, mailing
8-10     address, street address, or physical location and the city in which
8-11     the business is located;
8-12                 (2)  submit its business tax identification number as a
8-13     registration number to the commission;
8-14                 (3)  pay a registration fee of $25 per location
8-15     biannually to the commission; and
8-16                 (4)  notify the commission within 15 days, in writing,
8-17     of any changes to generator or dealer information as contained in
8-18     the commission records.
8-19           (d)  A generator or dealer of scrap tires shall establish and
8-20     maintain a record of each individual collection in the form of a
8-21     manifest that shall include:
8-22                 (1)  the name and address of the person who generated
8-23     the scrap tires and the date of collection;
8-24                 (2)  the generator or dealer's tax identification
8-25     number;
8-26                 (3)  the weight or count of scrap tires collected for
 9-1     transportation;
 9-2                 (4)  the name of the individual who is collecting,
 9-3     transporting, and depositing the scrap tires and the commission
 9-4     transporter number;
 9-5                 (5)  the date and place where the scrap tires were
 9-6     deposited;
 9-7                 (6)  the permit number of registration number,
 9-8     location, and name of the operator of the facility where scrap
 9-9     tires were deposited; and
9-10                 (7)  the name and signature of the facility
9-11     representative acknowledging receipt of the scrap tires and the
9-12     weight received.
9-13           (e)  Manifest copies shall be retained by the generators or
9-14     dealers of scrap tires, transporters, and facility operators for
9-15     three years and made available to the commission or the comptroller
9-16     upon request.
9-17           (f)  Generators or dealers of scrap tires may store the tires
9-18     at the location where they are generated for a period not greater
9-19     than 90 days if those scrap tires do not exceed 500 tires on the
9-20     ground or 1,500 scrap tires in an enclosed lockable container.
9-21           (g)  Generators or dealers of scrap tires shall be subject to
9-22     random audits by the commission as to compliance of the
9-23     requirements set forth in this Act.
9-24           (h)  Generators or dealers of scrap tires found to be in
9-25     violation of this Act may have their registration revoked, shall
9-26     face fines of not less than $200 and not more than $10,000 per
 10-1    violation, and shall be subject to the penalties specified in
 10-2    Section 19 of this Act.
 10-3          (j)  A purchaser who is found to be in violation of this Act
 10-4    shall be subject to the penalties of Section 19 of this Act and any
 10-5    other rule adopted by the commission.
 10-6          SECTION 5.  TRANSPORTERS OF SCRAP TIRES.  (a)  In this
 10-7    section, a transporter of whole scrap tires includes a person
 10-8    transporting scrap tires on a roadway, railway, or waterway.
 10-9          (b)  A transporter of whole scrap tires shall register with
10-10    the commission prior to commencing operations and, as a part of the
10-11    registration shall:
10-12                (1)  identify the transporter as being in the business
10-13    of transporting whole scrap tires;
10-14                (2)  provide the transporter's business name, mailing
10-15    address, street address or other location, and the city in which
10-16    the transporter is located; and
10-17                (3)  pay a $100 maximum registration fee biannually to
10-18    the commission.
10-19          (c)  Delivery requirements for transporters of whole scrap
10-20    tires shall include:
10-21                (1)  depositing scrap tires at a registered scrap tire
10-22    facility where the operator of the facility agrees to receive scrap
10-23    tires; and
10-24                (2)  possessing an agreement with an individual
10-25    facility or class of facilities to receive scrap tires.
10-26          (d)  A transporter of whole scrap tires shall initiate a
 11-1    manifest that shall include:
 11-2                (1)  the name and address of the person who generated
 11-3    the scrap tires and the date of collection;
 11-4                (2)  the generator or dealer's tax identification
 11-5    number;
 11-6                (3)  the weight or count of scrap tires collected;
 11-7                (4)  the name of the individual who is collecting,
 11-8    transporting, and depositing the scrap tires and the commission
 11-9    transporter number;
11-10                (5)  the date and place where the scrap tires were
11-11    deposited;
11-12                (6)  the permit number or registration number,
11-13    location, and name of the operator of the facility where scrap
11-14    tires were deposited; and
11-15                (7)  the name and signature of the facility
11-16    representative acknowledging receipt of the scrap tires and the
11-17    weight received.
11-18          (e)  Manifest copies shall be retained by the generator or
11-19    dealer, transporter, and facility operator for three years and made
11-20    available to the commission upon request.
11-21          (f)  Transporters of whole scrap tires found to be in
11-22    violation of this Act may have their registration revoked, shall
11-23    face fines of not less than $200 and not more than $10,000 per
11-24    violation, and shall be subject to the penalties specified in
11-25    Section 19 of this Act.
11-26          (g)  Transporters of whole scrap tires may not collect tires
 12-1    from generators or dealers who do not have a registration from the
 12-2    commission.
 12-3          (h)  Commercial haulers who transport scrap tires from a
 12-4    scrap tire facility to an end user are not required to register.
 12-5          SECTION 6.  SCRAP TIRE FACILITIES.  (a)  A registration shall
 12-6    be required from the commission for a scrap tire facility.
 12-7          (b)  A scrap tire facility shall pay a registration fee of
 12-8    $500, and the registration shall be valid for 60 months, at which
 12-9    time the scrap tire facility shall apply for a renewed
12-10    registration.
12-11          (c)  A scrap tire facility shall process all scrap tires
12-12    within 90 days after the date of receipt.
12-13          (d)  Operators of scrap tire facilities shall ensure that the
12-14    scrap tire transporters who deposit scrap tires at their facilities
12-15    are properly registered with the commission, and the commission
12-16    shall provide a scrap tire facility an approved transporter's
12-17    quarterly.
12-18          (e)  Scrap tire facilities shall maintain copies of manifests
12-19    received from transporters of scrap tires and shall ensure that the
12-20    information is completed on the manifests prescribed by Sections
12-21    4(e) and 5(d) of this Act and shall report any observed violation
12-22    of this Act to the commission and the commission shall have 30 days
12-23    to respond to any violation reported.
12-24          (f)  The reporting activities of a scrap tire facility shall
12-25    be documented in terms of weight.
12-26          (g)  All documentation is to be kept by the scrap tire
 13-1    facility for a period of three years and made available for the
 13-2    commission's inspection.
 13-3          (h)  Scrap tire facilities shall not accept tires from
 13-4    generators or dealers of scrap tires or transporters who do not
 13-5    have a registration from the commission and shall report to the
 13-6    commission those persons who do not have a registration as required
 13-7    by this Act.
 13-8          (i)  Scrap tire facilities found to be in violation of this
 13-9    Act may have their registration revoked, shall face fines of not
13-10    less than $200 and not more than $10,000 per violation, and shall
13-11    be subject to the penalties specified in Section 19 of this Act.
13-12          SECTION 7.  SCRAP TIRE STORAGE FACILITY.  (a)  A registration
13-13    shall be required from the commission for a scrap tire storage
13-14    facility.
13-15          (b)  A scrap tire storage facility shall pay a registration
13-16    fee of $500, and the registration shall be valid for 60 months, at
13-17    which time the scrap tire facility shall apply for a renewed
13-18    registration.
13-19          (c)  Scrap tire storage facilities shall maintain copies of
13-20    manifests received from transporters of scrap tires and shall
13-21    ensure that the information is completed on the manifests
13-22    prescribed by Sections 4(e) and 5(d) of this Act.
13-23          (d)  The reporting activities of the scrap tire storage
13-24    facility shall be documented in terms of weight.
13-25          (e)  All documentation is to be kept by the scrap tire
13-26    storage facility for a period of three years and made available for
 14-1    the commission's inspection.
 14-2          (f)  A scrap tire storage facility shall not exceed the
 14-3    registered storage capacity approved by the commission.
 14-4          (g)  A scrap tire storage facility that exceeds its
 14-5    registered storage capacity shall immediately cease accepting
 14-6    additional whole scrap tires or shredded tire pieces until the
 14-7    scrap tire storage facility can demonstrate to the commission that
 14-8    volumes of whole scrap tires or shredded tire pieces have been
 14-9    removed from the scrap tire storage facility to an approved end
14-10    user or other approved means of volume reduction that have reduced
14-11    the stored volume to less than the total approved capacity.
14-12          (h)  Scrap tire storage facilities requesting a new
14-13    registration from the commission after January 1, 1998, shall be
14-14    required to limit their storage area to a 180-day supply, to be
14-15    determined by the commission, unless the applicant can demonstrate
14-16    that it has a contracted approved end use that will require a
14-17    larger volume of shredded scrap tires to be stored.
14-18          (i)  Scrap tire storage facilities registered with the
14-19    commission before January 1, 1998, that are still active sites
14-20    shall be exempt from the provisions in Subsection (h) of this
14-21    section but shall be prohibited from expanding their approved
14-22    storage.
14-23          (j)  Scrap tire facilities found to be in violation of this
14-24    Act may have their registration revoked, shall face fines of not
14-25    less than $200 and not more than $10,000 per violation, and shall
14-26    be subject to the penalties specified in Section 19 of this Act.
 15-1          SECTION 8.  PRIORITY ENFORCEMENT STORAGE SITE.  (a)  It shall
 15-2    be the duty of each county within the state to make an inventory of
 15-3    scrap tire piles that have been deposited within that county in a
 15-4    nonpermitted area.
 15-5          (b)  The commission shall make an estimate of the amount of
 15-6    tires that are in the scrap tire pile, the location of the pile,
 15-7    the proximity of major highways and municipalities, and the legal
 15-8    description of the property.
 15-9          (c)  The commission shall assess the degree and type of
15-10    hazards the scrap tire pile presents to the public.
15-11          (d)  It shall be unlawful to bury whole, split, or quartered
15-12    tires at the scrap tire pile sites, and these tires must be removed
15-13    to a registered scrap tire facility.
15-14          (e)  The commission shall rate enforcement scrap tire storage
15-15    sites as to the environmental impact they present to the public and
15-16    shall have the authority to contract with a registered scrap tire
15-17    facility for cleanup of those stockpiled scrap tires according to
15-18    the rating, provided that funds are available to the commission for
15-19    the purposes described in Section 11(c) of this Act.
15-20          (f)  The commission is authorized to adopt rules necessary
15-21    for the administration, collection, reporting, and payment of fees
15-22    payable or to be collected under this Act.
15-23          (g)  The commission is authorized to assess fees or penalties
15-24    associated with an enforcement scrap tire site against a
15-25    responsible party if the commission deems the action necessary.
15-26          SECTION 9.  PROGRAM FUNDING.  (a)  A person in the business
 16-1    of selling new or used tires, of any type or description, who sells
 16-2    or offers to sell new or used tires not for resale shall collect at
 16-3    the time and place of sale a scrap tire management fee for each
 16-4    tire sold in the amount of 75 cents per tire.
 16-5          (b)  This fee shall be known as the scrap tire management fee
 16-6    and shall be levied against all tires, new or used, for all
 16-7    over-the-road-highway vehicles including passenger vehicles, pickup
 16-8    trucks, truck tractors, trailers of all kinds, recreational
 16-9    vehicles, motor homes, and motorcycles.
16-10          (c)  Every tire subject to the fee levied in this section
16-11    shall have added to the purchase cost of the tire the designated
16-12    fee, and the fee shall be stated on the invoice as a scrap tire
16-13    management fee.
16-14          (d)  The fee levied in this section shall be collected from
16-15    the purchaser of the new or used tire and shall in no way relieve
16-16    any person of the duty to collect the fee, nor shall the inability,
16-17    refusal, or failure to collect, or the impracticability of
16-18    collecting, from such purchaser the amount provided herein relieve
16-19    such person of responsibility for the fees.
16-20          (e)  Fees collected under this section shall be remitted to
16-21    the comptroller, together with forms prescribed and furnished by
16-22    the comptroller, on or before the 20th day of the month following
16-23    the month in which the fee was levied.
16-24          (f)  The comptroller is authorized to promulgate such rules
16-25    for the ascertaining, assessing, collecting, and remitting of the
16-26    fee imposed by this section as the comptroller may deem necessary
 17-1    to administer and enforce its provisions as authorized under this
 17-2    Act.
 17-3          SECTION 10.  SCRAP TIRE MANAGEMENT FUND.  (a)  The scrap tire
 17-4    management fund is created as an account in the general revenue
 17-5    fund.  The fund shall be administered by the comptroller pursuant
 17-6    to the provisions of Section 11 of this Act.
 17-7          (b)  The scrap tire management fund shall consist of:
 17-8                (1)  all funds received by the comptroller as proceeds
 17-9    from the fees imposed pursuant to Section 9 of this Act;
17-10                (2)  interest attributable to the investment of money
17-11    in the fund; and
17-12                (3)  funds received by the comptroller in the form of
17-13    gifts, grants, reimbursements, and fines or from any other source
17-14    intended to be used for the purposes specified or collected
17-15    pursuant to this Act.
17-16          (c)  The money deposited in the fund shall at no time become
17-17    part of the general budget of the commission, comptroller, any
17-18    other state agency, or general revenue except as provided in
17-19    Section 11 of this Act.
17-20          (d)  All money in the fund shall be appropriated to the
17-21    commission to be utilized or disbursed as specified in this Act.
17-22          SECTION 11.  ALLOCATION OF FUNDS.  (a)  All money in the fund
17-23    is hereby continuously appropriated to the commission and
17-24    comptroller to be utilized or disbursed as specified in this Act.
17-25          (b)  The money to the fund shall be used to pay:
17-26                (1)  the commission's reasonable and necessary
 18-1    administrative costs of performing its duties under this Act, in an
 18-2    amount not to exceed 30 percent of the money annually accruing to
 18-3    the fund; and
 18-4                (2)  the comptroller's reasonable and necessary
 18-5    administrative costs of performing its duties under this Act, in an
 18-6    amount not to exceed 15 percent of the money annually accruing to
 18-7    the fund.
 18-8          (c)  The remaining money in the fund shall be allocated
 18-9    pursuant to the provisions of this Act to pay for:
18-10                (1)  the cleanup of enforcement scrap tire sites and
18-11    other related projects under the supervision of the commission;
18-12                (2)  special priority projects such as community
18-13    cleanups and county cleanups; and
18-14                (3)  contingencies as authorized by the commission.
18-15          SECTION 12.  ENFORCEMENT SCRAP TIRE SITE CLEANUP PAYMENT
18-16    PROCEDURE.  (a)  An application for payment to a registered scrap
18-17    tire facility shall be on forms as provided by the commission and
18-18    shall provide documentation of the collection and removal of
18-19    enforcement scrap tires.
18-20          (b)  No person shall process scrap tires in the state or
18-21    receive payment under this Act for collecting and processing
18-22    enforcement scrap tires until the person receives a scrap tire
18-23    facility registration from the commission.
18-24          (c)  A scrap tire facility  shall submit a payment
18-25    application report by the 10th day following the month for which
18-26    payment is sought.  The report shall include:
 19-1                (1)  the company name, facility address, permit number,
 19-2    reporting period, and name of the person submitting the report;
 19-3                (2)  a report of the manifest ticket for each load
 19-4    removed from the enforcement scrap tire site; and
 19-5                (3)  the starting date of collection and delivery of
 19-6    enforcement scrap tires, with the total weight and monthly totals.
 19-7          (d)  The commission shall contract with the scrap tire
 19-8    facility that is assigned the cleanup of an enforcement scrap tire
 19-9    site and:
19-10                (1)  the compensation rate shall be determined through
19-11    either a request for proposal bid process or other suitable means
19-12    approved by the executive director for payment of the scrap tires
19-13    removal at that specific site; and
19-14                (2)  scrap tire facilities must demonstrate end-use
19-15    capabilities, as outlined in Section 15 of this Act, equal to the
19-16    volume by weight of scrap tires or shredded tire pieces that is
19-17    removed from an enforcement scrap tire site.
19-18          (e)  The commission shall review and submit payment to the
19-19    qualifying scrap tire facility within 20 days of receipt of the
19-20    payment application.
19-21          (f)  Scrap tire facilities found to be in violation of this
19-22    section may have their registration revoked, shall face fines of
19-23    not less than $200 and not more than $10,000 per violation, and
19-24    shall be subject to the penalties specified in Section 19 of this
19-25    Act.
19-26          SECTION 13.  ACCESS TO PRIORITY ENFORCEMENT LIST SITE.
 20-1    (a)  Commission members or employees or agents of the commission
 20-2    may enter any public or private property at any reasonable time for
 20-3    the purpose of inspecting, investigating, or remediating any
 20-4    condition related to the illegal dumping of scrap tires.
 20-5          (b)  The executive director shall give notice of intent to
 20-6    enter private property for the purposes described by Subsection (a)
 20-7    of this section by certified mail to the last known address
 20-8    indicated in the current county property records at least 10 days
 20-9    before a commission member or commission employee or agent enters
20-10    the property.
20-11          (c)  A commission member, commission employee, agent, or
20-12    subcontractor who, acting under this subsection, enters private
20-13    property shall:
20-14                (1)  observe the occupant's rules concerning safety,
20-15    internal security, and fire protection; and
20-16                (2)  if the property has management in residence, make
20-17    a reasonable attempt to notify the management or person in charge
20-18    of the entry and exhibit credentials.
20-19          SECTION 14.  RESPONSIBILITIES OF THE COMMISSION.  (a)  The
20-20    commission shall be responsible for ensuring that all generators or
20-21    dealers of scrap tires accept scrap tires from consumers for the
20-22    purposes of recycling or disposal and make available those scrap
20-23    tires only to registered scrap tire facilities or other recycling
20-24    or disposal sites approved by the commission.
20-25          (b)  The comptroller shall provide to the commission a list
20-26    of businesses that have been designated as tire dealers, and the
 21-1    commission shall, by July 15, 1999, send to the generators or
 21-2    dealers of scrap tires written notification that:
 21-3                (1)  generators or dealers of scrap tires shall be
 21-4    responsible for ensuring that all scrap tires generated, collected,
 21-5    or accumulated from that business are sent to a registered scrap
 21-6    tire facility or other disposal site approved by the commission;
 21-7                (2)  the effective date for full compliance with this
 21-8    Act is September 1, 1999; and
 21-9                (3)  any generator or dealer of scrap tires the
21-10    commission finds not to be in full compliance with this Act on
21-11    September 1, 1999, shall be subject to the penalties set forth by
21-12    this Act and by any rules adopted by the commission.
21-13          (c)  The commission shall require a monthly report from
21-14    registered scrap tire facilities or other approved disposal sites
21-15    and scrap tire transporters providing the following information:
21-16                (1)  the name, address, and county of the generator or
21-17    dealer of scrap tires and the date the scrap tires were collected;
21-18                (2)  the generator or dealer tax identification number;
21-19                (3)  the weight or count of scrap tires collected for
21-20    transportation; and
21-21                (4)  the name of the person who is collecting,
21-22    transporting, and depositing scrap tires and the commission
21-23    transporter number.
21-24          (d)  The commission shall determine a generator or dealer's
21-25    compliance with this Act by compiling a list of registered
21-26    generators or dealers in the state and comparing this list to the
 22-1    monthly reports supplied by the scrap tire facilities or other
 22-2    approved disposal sites.
 22-3          (e)  Generators or dealers of scrap tires for whom the
 22-4    information on the commission's list and the monthly reports does
 22-5    not match shall be listed by county location, and that list shall
 22-6    be submitted to the appropriate regional offices of the commission
 22-7    that fall into the respective counties' areas.  The appropriate
 22-8    regional office shall conduct an inspection of a generator or
 22-9    dealer of scrap tires who is listed by the commission under this
22-10    subsection to determine if the generator or dealer is in
22-11    noncompliance.  If the generator or dealer of scrap tires is found
22-12    to be in noncompliance, then that person shall be subject to
22-13    penalties as outlined in Section 19 of this Act.
22-14          (f)  The commission shall provide to the regional offices the
22-15    generators or dealers of scrap tires inspection list under
22-16    Subsection (e) of this section within 30 days after receiving the
22-17    required reports from the registered scrap tire facilities or other
22-18    approved disposal sites.
22-19          (g)  The regional offices shall report to the commission
22-20    their findings from the inspections as to compliance by the
22-21    generators or dealers of scrap tires.
22-22          (h)  The commission shall promote, encourage, and provide all
22-23    the assistance possible in the directing of all scrap tires to a
22-24    recyclable end use.
22-25          SECTION 15.  END USE OF SCRAP TIRES.  (a)  The commission
22-26    shall allow the use of scrap tires for a commercial purpose in the
 23-1    state, provided the end use is for:
 23-2                (1)  energy recovery;
 23-3                (2)  civil engineering, including:
 23-4                      (A)  landfill leachate projects;
 23-5                      (B)  septic systems;
 23-6                      (C)  highway projects approved by the Texas
 23-7    Department of Transportation;
 23-8                      (D)  land reclamation projects using shredded
 23-9    tires; or
23-10                      (E)  any other use the executive director deems
23-11    appropriate and in compliance with the intent of this Act; or
23-12                (3)  the manufacture of products from rubber derived
23-13    from shredded tire pieces.
23-14          (b)  The executive director shall have 60 days to approve or
23-15    disapprove any end-use request submitted to the commission.
23-16          (c)  If the commission disapproves an end-use request, the
23-17    commission shall provide a written explanation of the reason for
23-18    the disapproval.
23-19          (d)  The commission shall encourage and promote end use of
23-20    scrap tires generated within the state.
23-21          SECTION 16.  WHOLE TIRE LANDFILL BAN.  (a)  Whole scrap tires
23-22    shall be banned from disposal in landfills within the state.
23-23          (b)  Scrap tires may be landfilled only if:
23-24                (1)  the executive director determines that there is a
23-25    deficiency of scrap tire collections due to an area of the state
23-26    that does not have sufficient end uses to consume the generated
 24-1    scrap tires in that area;
 24-2                (2)  the landfill accepting the tires has obtained a
 24-3    registration and permit modification from the commission;
 24-4                (3)  the tires as processed have been reduced in size
 24-5    by one-sixth to eliminate any air pockets;
 24-6                (4)  the tires are placed apart from other municipal
 24-7    solid waste; and
 24-8                (5)  the landfill has collected any state-mandated fees
 24-9    pertaining to municipal solid waste.
24-10          (c)  Whole scrap tires shall not be deposited in any monofill
24-11    or land reclamation project.  If whole scrap tires are found to
24-12    have been deposited in a monofill or land reclamation project and
24-13    exposed to the open air, regardless of when the scrap tires were
24-14    deposited, the monofill or land reclamation project shall be
24-15    declared an enforcement scrap tire site.
24-16          (d)  Exemptions from Subsection (a) of this section are as
24-17    follows:
24-18                (1)  tires considered to be  off-the-road tires which
24-19    are managed by a plan approved by the commission;
24-20                (2)  solid tires; and
24-21                (3)  manufacturers' reject tires, for which a disposal
24-22    plan has been submitted to and approved by the commission.
24-23          (e)  The executive director may declare a prohibition on the
24-24    landfilling of shredded tire pieces in any area of the state in
24-25    which it is demonstrated that all scrap tires in the area have an
24-26    end use.
 25-1          SECTION 17.  FINANCIAL RESPONSIBILITY.  (a)  A registered
 25-2    scrap tire facility required to register under this Act shall
 25-3    submit to the commission, and shall maintain, evidence of financial
 25-4    responsibility in an amount adequate to assure proper cleanup and
 25-5    closure of the facility.
 25-6          (b)  A scrap tire facility owner or operator or an end user
 25-7    who anticipates accepting for storage an amount of whole scrap
 25-8    tires or shredded tire pieces that exceeds the facility's 30-day
 25-9    supply shall submit to the commission, and shall maintain, evidence
25-10    of financial responsibility in an amount adequate to assure proper
25-11    cleanup and closure of the facility.
25-12          (c)  A facility subject to Subsection (a) or (b) of this
25-13    section shall submit to the commission an estimate of the total
25-14    amount of whole scrap tires and shredded tire pieces measured by
25-15    weight to be stored by the facility and the estimated cost, using
25-16    that total amount, of cleaning up and closing the facility.
25-17          (d)  Scrap tire facilities registered before January 1, 1998,
25-18    that have received an approval letter from the commission renewing
25-19    their registration shall be in compliance with this section until
25-20    the date of their next renewal period.
25-21          (e)  Evidence of financial responsibility may be in the form
25-22    of:
25-23                (1)  a performance bond, surety bond, or letter of
25-24    credit acceptable to the commission that is from a financial
25-25    institution, a trust fund, or insurance if the facility is a
25-26    privately owned facility; or
 26-1                (2)  a cash payment in the full amount determined under
 26-2    Subsection (c) of this section.
 26-3          SECTION 18.  ENFORCEMENT BY CERTAIN COUNTY OR MUNICIPAL
 26-4    EMPLOYEES.  (a)  Employees of counties or municipalities whose duty
 26-5    it is to ensure compliance with or to enforce codes and ordinances
 26-6    may be designated by the governing body of the county or the
 26-7    municipality to enforce the provisions of this Act.
 26-8          (b)  This section does not limit the authority of any state
 26-9    or local agency to enforce other laws, rules, or ordinances
26-10    relating to scrap tire dumping or solid waste management.
26-11          SECTION 19.  PENALTIES FOR VIOLATION.  (a)  Generators or
26-12    dealers of scrap tires and transporters of scrap tires are to be
26-13    registered with the commission before their scrap tires can be
26-14    accepted by a scrap tire facility or other approved disposal site
26-15    and the commission may suspend or revoke a generator's or dealer's
26-16    or transporter's registration for:
26-17                (1)  failure to maintain a complete and accurate record
26-18    of shipment of scrap tires;
26-19                (2)  falsification of scrap tire shipping documents or
26-20    shipment records;
26-21                (3)  delivery of scrap tires to a facility not
26-22    registered to handle the scrap tires;
26-23                (4)  failure to comply with any rule or order issued by
26-24    the requirements of this Act;
26-25                (5)  illegal dumping of scrap tires; or
26-26                (6)  collection or transportation of scrap tires
 27-1    without a registration as required by this Act.
 27-2          (b)  Scrap tire facilities that process scrap tires are to be
 27-3    registered with the commission before collecting and receiving
 27-4    scrap tires, and the commission may suspend or revoke a
 27-5    registration or deny an initial registration for:
 27-6                (1)  failure to maintain complete and accurate records;
 27-7                (2)  falsification of any record maintained or received
 27-8    by the registrant;
 27-9                (3)  illegal disposal of shredded tire pieces;
27-10                (4)  failure to comply with any rule or order issued by
27-11    the commission pursuant to the requirements of this Act; or
27-12                (5)  failure to account to the commission for
27-13    recycling, reuse, or energy recovery activities within the
27-14    designated period established by rule or this Act.
27-15          (c)  Any person violating any provision of this Act or any
27-16    rule, regulation, or order made pursuant to this Act shall, upon
27-17    conviction thereof, be fined a penalty of not less than $200 and
27-18    not more than $10,000 per violation.
27-19          (d)  Any person may be assessed an administrative penalty by
27-20    the commission, as provided by this Act, including associated
27-21    costs, if the person violates this Act or the rules and regulations
27-22    adopted by the commission and if no local government has instituted
27-23    a civil action and is diligently prosecuting the person for the
27-24    violation.
27-25          (e)  In determining the amount of the administrative penalty
27-26    to be imposed, the commission shall consider the following factors:
 28-1                (1)  the economic benefit gained from the violation;
 28-2                (2)  the economic viability of the violator;
 28-3                (3)  the severity of the violation, including any real
 28-4    or potential injury to persons or property or the public health;
 28-5                (4)  the compliance history of the violator and the
 28-6    record of previous violations;
 28-7                (5)  efforts taken by the violator to correct the
 28-8    violation;
 28-9                (6)  the amount of penalty needed to deter future
28-10    violations; and
28-11                (7)  other matters that justice may require.
28-12          (f)  An administrative penalty shall not be less than the
28-13    amount of economic benefit gained by the violation of the law.
28-14          (g)  Any person who dumps not more than 50 scrap tires and
28-15    who can demonstrate that the dumping did not occur for a commercial
28-16    purpose is guilty of a Class B misdemeanor, punishable as provided
28-17    by Subsection (c) of this section.  The court shall require the
28-18    violator to:
28-19                (1)  pick up the scrap tires and, at the violator's
28-20    expense, dispose of the tires at a registered scrap tire facility;
28-21    and
28-22                (2)  perform other community service commensurate with
28-23    the offense committed.
28-24          (h)  If the violation under Subsection (g) of this section
28-25    involves the use of a motor vehicle, upon a finding of guilt,
28-26    whether or not adjudication or imposition of the sentence is
 29-1    withheld, deferred, or suspended, the court shall forward a record
 29-2    of the finding to the Texas Department of Transportation, which
 29-3    shall record a penalty of three points on the violator's driver's
 29-4    license.
 29-5          (i)  Any person who dumps more than 50 scrap tires for a
 29-6    commercial purpose is guilty of a Class A misdemeanor, punishable
 29-7    as provided by Subsection (c) of this section.  The court may order
 29-8    the violator to:
 29-9                (1)  remove or render harmless the scrap tires the
29-10    person has dumped in violation of this section;
29-11                (2)  repair or restore property damaged by, or pay for,
29-12    any damage arising from the dumping of scrap tires in violation of
29-13    this section; and
29-14                (3)  perform at the person's own expense public service
29-15    relating to the removal of scrap tires dumped in violation of this
29-16    section or to the restoration of an area polluted by scrap tires
29-17    dumped in violation of this section.
29-18          (j)  Any motor vehicle, container, or machine used to dump
29-19    scrap tires is declared contraband and is subject to forfeiture.
29-20          (k)  Any penalties imposed and collected pursuant to this
29-21    Act, less any attorney's fees or other reasonable associated costs,
29-22    shall be deposited with the comptroller to the credit of the
29-23    commission to be utilized for purposes related to this Act.
29-24          (l)  the commission may issue orders to any permittee,
29-25    registrant, or person in violation of this Act or of any rule
29-26    adopted and promulgated under this Act, and such orders shall be
 30-1    enforceable as against such permittee, registrant, or violator.
 30-2          (m)  If the commission finds that the operation of a
 30-3    generator or dealer of scrap tires, scrap tire transporter, or
 30-4    scrap tire facility subject to the provisions of this Act is in
 30-5    violation of any provision of this Act, or of any rule or
 30-6    regulation made pursuant to this Act, or of any order of the
 30-7    commission or any term or condition of any registration issued
 30-8    pursuant to this Act, or might reasonably be expected to cause
 30-9    pollution of the land, air, or waters of the state or is creating a
30-10    public nuisance or otherwise threatens human or animal health or
30-11    the environment, the commission may bring an action for injunctive
30-12    relief in the district court having jurisdiction over the property
30-13    on which the violation occurred or is expected to occur.
30-14          SECTION 20.  REPORT.  Not later than three years after
30-15    passage of this Act, and every three years thereafter, the
30-16    commission shall report to the governor and the legislature on the
30-17    administration and effectiveness of the program in cleaning up
30-18    existing enforcement scrap tire sites and in the prevention of new
30-19    sites.
30-20          SECTION 21.  EFFECTIVE DATE.  (a)  This Act takes effect
30-21    September 1, 1999, except as provided by Subsection (b) of this
30-22    section.
30-23          (b)  Section 14 of this Act takes effect immediately.
30-24          SECTION 22.  CONFLICT WITH OTHER LAW.  This Act prevails to
30-25    the extent of a conflict between this Act and any other law.
30-26          SECTION 23.  EMERGENCY.  The importance of this legislation
 31-1    and the crowded condition of the calendars in both houses create an
 31-2    emergency and an imperative public necessity that the
 31-3    constitutional rule requiring bills to be read on three several
 31-4    days in each house be suspended, and this rule is hereby suspended,
 31-5    and that this Act take effect and be in force according to its
 31-6    terms, and it is so enacted.