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.