By Chisum H.B. No. 3282 77R4744 JJT-F A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the creation of the scrap tire enforcement fund and the 1-3 regulation of scrap tire disposal. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Chapter 361, Health and Safety Code, is amended 1-6 by adding Subchapter P to read as follows: 1-7 SUBCHAPTER P. SCRAP TIRE ENFORCEMENT FUND 1-8 Sec. 361.471. DEFINITION. In this subchapter, "scrap tire" 1-9 has the meaning assigned by Section 361.112. 1-10 Sec. 361.472. SCRAP TIRE RECYCLING FEE. (a) A person who 1-11 sells or offers to sell new tires not for resale shall collect at 1-12 the time and place of sale a scrap tire enforcement fee of 25 cents 1-13 for each new tire sold that has a rim diameter of 12 inches or 1-14 greater. The fee required by this subsection does not apply to the 1-15 sale of new tires mounted on a new motor vehicle as original 1-16 equipment. 1-17 (b) A person required to collect a fee under this section 1-18 shall remit the fees collected to the comptroller at a time and in 1-19 the manner prescribed by the comptroller. 1-20 (c) The comptroller shall adopt rules as necessary to 1-21 administer and collect the fee under this section. 1-22 (d) The comptroller shall make copies of the reports 1-23 required under this section readily available to the commission on 1-24 request. 2-1 (e) This subchapter does not limit or prohibit a person from 2-2 charging, as a cost of conducting business, a scrap tire disposal 2-3 fee to a customer who purchases a new tire from the person at 2-4 retail. A person may not represent to a customer in connection 2-5 with a sale or offer to sell a new tire at retail that a scrap tire 2-6 disposal fee charged as a cost of conducting business is mandated 2-7 by the state. 2-8 (f) The comptroller may provide for payment and reporting 2-9 of scrap tire fees under this section to be made electronically. 2-10 (g) Chapters 101 and 111-113, Tax Code, and Sections 153.006 2-11 and 153.007, Tax Code, apply to the administration, payment, 2-12 collection, and enforcement of fees under this section in the same 2-13 manner that those chapters and sections apply to the 2-14 administration, payment, collection, and enforcement of taxes under 2-15 Title 2, Tax Code. 2-16 Sec. 361.473. SCRAP TIRE ENFORCEMENT FUND. (a) The scrap 2-17 tire enforcement fund is a special account in the general revenue 2-18 fund. 2-19 (b) The fund consists of: 2-20 (1) scrap tire enforcement fees; 2-21 (2) the fines and penalties described by Section 2-22 361.476(d); 2-23 (3) interest earned on the money in the fund; and 2-24 (4) gifts, grants, or money received by the commission 2-25 or the comptroller for the purposes of the fund. 2-26 (c) The fund may be used only to pay: 2-27 (1) for auditing required for scrap tire enforcement 3-1 under Section 361.476; 3-2 (2) for remediating any site where scrap tires have 3-3 been discarded illegally; 3-4 (3) the commission's reasonable and necessary 3-5 administrative costs of performing the commission's duties under 3-6 this subchapter; and 3-7 (4) the comptroller's reasonable and necessary 3-8 administrative costs of performing the comptroller's duties under 3-9 this subchapter. 3-10 Sec. 361.474. SCRAP TIRE COLLECTION REPORT. (a) A person 3-11 who sells or offers to sell new tires not for resale shall send to 3-12 the commission a scrap tire collection report at a time and in the 3-13 manner prescribed by commission rules. 3-14 (b) The commission by rule shall provide a form for 3-15 reporting the collection of scrap tires required by Subsection (a). 3-16 The form must include: 3-17 (1) the number of scrap tires that the person 3-18 collected in the normal course of business; 3-19 (2) the disposition of the number of scrap tires that 3-20 are no longer in the person's possession or control; 3-21 (3) the tax identification number assigned by the 3-22 comptroller to the scrap tire transporter or other person who 3-23 removed scrap tires permanently from the seller's premises; and 3-24 (4) any other information the commission by rule 3-25 determines to be necessary to adequately track the disposition of 3-26 scrap tires until the tires reach their final destination as a 3-27 waste product or raw material for recycling. 4-1 (c) The commission may provide for reports under this 4-2 section to be made electronically. 4-3 Sec. 361.475. SCRAP TIRE DISPOSITION REPORT. (a) Each 4-4 person receiving scrap tires as a waste product or raw material for 4-5 recycling shall: 4-6 (1) send to the commission a scrap tire disposition 4-7 report at a time and in the manner prescribed by commission rules; 4-8 and 4-9 (2) annually register with the commission as a 4-10 permanent disposition facility for scrap tires. 4-11 (b) The commission by rule shall provide a form for 4-12 reporting the disposition of scrap tires under Subsection (a). The 4-13 form must include: 4-14 (1) the number of scrap tires that the person 4-15 received; 4-16 (2) the disposition of the number of scrap tires that: 4-17 (A) are no longer in the person's possession or 4-18 control; or 4-19 (B) remain on the person's premises in any form; 4-20 (3) the tax identification number assigned by the 4-21 comptroller to the scrap tire transporter or other person who 4-22 transported scrap tires to the person's premises; and 4-23 (4) any other information the commission by rule 4-24 determines to be necessary to adequately track the disposition of 4-25 scrap tires until the tires reach their final destination as a 4-26 waste product or raw material for recycling. 4-27 (c) The commission may require an annual fee of not more 5-1 than $20 for registration under Subsection (a). 5-2 (d) To the extent possible, the reports required under this 5-3 section shall use the tax identification number assigned to a 5-4 person by the comptroller. 5-5 (e) A permitted landfill that receives shredded, split, or 5-6 quartered tires for disposal may require the person bringing the 5-7 tires to provide a report of the number of tires brought for 5-8 disposal. The permitted landfill need only forward copies of 5-9 reports received from the scrap tire transporter to satisfy the 5-10 requirements of this subsection. 5-11 (f) A permitted energy recovery facility that receives tires 5-12 for energy recovery purposes may require the person bringing the 5-13 tires to the facility to provide a report of the number of tires 5-14 delivered to the facility. The permitted energy recovery facility 5-15 need only forward copies of the report received from the scrap tire 5-16 transporter to satisfy the requirements of this section. 5-17 (g) The commission may provide for a report under this 5-18 section to be made electronically. 5-19 Sec. 361.476. COMMISSION AUDIT OF SCRAP TIRE REPORTING. (a) 5-20 To the extent practicable and necessary, the commission shall 5-21 compare scrap tire collection reports required under Section 5-22 361.474 and scrap tire disposition reports required under Section 5-23 361.475 to determine if scrap tires are being properly transported, 5-24 disposed of, or recycled. 5-25 (b) If the commission discovers a discrepancy in the 5-26 reporting documents required by Sections 361.474 and 361.475, the 5-27 commission shall conduct an investigation to determine if a 6-1 reasonable probability exists that scrap tires were discarded 6-2 illegally. 6-3 (c) If in an investigation under Subsection (b) the 6-4 commission determines that a reasonable probability exists that 6-5 scrap tires have been discarded illegally, the commission shall 6-6 institute any civil or criminal enforcement action the executive 6-7 director considers necessary and appropriate, including: 6-8 (1) asking the attorney general for enforcement if the 6-9 commission cannot determine the location of the illegally discarded 6-10 tires; or 6-11 (2) asking the county or district attorney for 6-12 enforcement in the county in which scrap tires have been discarded 6-13 illegally. 6-14 (d) The state's share of any fine or penalty collected for a 6-15 violation of this chapter, Chapter 365, or other law that involves 6-16 a site where scrap tires have been discarded illegally shall to the 6-17 extent practicable be used to remediate that site. If a penalty or 6-18 fine cannot practicably be used to remediate the site where the 6-19 tires were illegally discarded, the fines or penalties shall be 6-20 deposited into the scrap tire enforcement fund under Section 6-21 361.473. 6-22 SECTION 2. This Act takes effect September 1, 2001.