By: Rodriguez, et al. S.B. No. 459

(In the Senate - Filed February 8, 2013; February 13, 2013, read first time and referred to Committee on Transportation; April 8, 2013, reported adversely, with favorable Committee Substitute by the following vote: Yeas 9, Nays 0; April 8, 2013, sent to printer.)

COMMITTEE SUBSTITUTE FOR S.B. No. 459 By: Paxton

A BILL TO BE ENTITLED

AN ACT

relating to the sale, storage, transportation, and disposal of scrap, unsafe, or used tires; providing a civil penalty; creating an offense.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Title 6, Business & Commerce Code, is amended by adding Chapter 205 to read as follows:

CHAPTER 205. SALE AND TRANSPORTATION OF SCRAP, UNSAFE, OR USED

TIRES

Sec. 205.001. DEFINITIONS. In this chapter:

(1) "Scrap tire" and "used tire" have the meanings assigned to those terms by Section 361.1121, Health and Safety Code.

(2) "Unsafe tire" has the meaning assigned by Section 547.201(c), Transportation Code.

Sec. 205.002. RETENTION AND DISPOSAL OF SCRAP OR UNSAFE TIRES. (a) Except as provided by Subsection (c), a retail seller shall prohibit a customer from retaining a scrap tire or an unsafe tire removed from the customer's vehicle during the purchase of a tire.

(b) A retail seller who takes possession of a scrap tire or unsafe tire from a customer during a transaction described by Subsection (a) shall dispose of the scrap tire or unsafe tire according to local and state laws, including Section 361.112(c), Health and Safety Code.

(c) A retail seller is not required to prohibit a customer from retaining a scrap tire or unsafe tire removed from the customer's vehicle during the purchase of a tire if the customer certifies on a form prescribed by the Texas Commission on Environmental Quality that:

(1) the tire will be used in the customer's agricultural business; and

(2) the customer assumes liability for the tire.

(d) The Texas Commission on Environmental Quality shall develop the form described by Subsection (c) and shall make that form available on the commission's Internet website.

Sec. 205.003. TRANSPORTATION OF SCRAP, UNSAFE, OR USED TIRES. A retail seller of tires may contract for the transportation of scrap tires, unsafe tires, or used tires only with a scrap tire transporter or used tire transporter who:

(1) is registered as described by Section 361.1121(b), Health and Safety Code; and

(2) has filed evidence of financial assurance according to Section 361.1121(d), Health and Safety Code.

Sec. 205.004. CIVIL PENALTY. (a) A person who violates this chapter is subject to a civil penalty in an amount not less than $500 for each violation. A separate penalty may be imposed for each day a violation occurs.

(b) The attorney general or the appropriate district or county attorney may bring an action against a person under this section in the name of the state in a district court in the county in which:

(1) the person resides; or

(2) the person's principal place of business is located.

SECTION 2. The heading to Section 361.112, Health and Safety Code, is amended to read as follows:

Sec. 361.112. STORAGE[, TRANSPORTATION,] AND DISPOSAL OF USED OR SCRAP TIRES.

SECTION 3. Section 361.112, Health and Safety Code, is amended by adding Subsection (n) to read as follows:

(n) A scrap tire generator or used tire generator, including a tire dealer, junkyard, or fleet operator, who stores scrap tires or used tires outdoors on its business premises shall store the scrap tires or used tires in a manner that may be made secure by locking.

SECTION 4. Subchapter C, Chapter 361, Health and Safety Code, is amended by adding Section 361.1121 to read as follows:

Sec. 361.1121. SCRAP AND USED TIRE TRANSPORTERS. (a) In this section:

(1) "Scrap tire" means a tire that can no longer be used for its original intended purpose.

(2) "Scrap tire transporter" means a person who collects scrap tires from another person for the purpose of removal to a scrap tire processor, end user, or disposal facility.

(3) "Used tire" means a tire that:

(A) has been used as a tire on a vehicle;

(B) has tire tread at least one-sixteenth inch deep; and

(C) can still be used for its original intended purpose.

(4) "Used tire transporter" means a person who collects used tires from another person for the purpose of removal to a scrap tire processor, end user, or disposal facility.

(b) A scrap tire transporter or used tire transporter shall register with the commission unless the scrap tire transporter or used tire transporter is:

(1) a retreader who transports retreadable casings; or

(2) a person who transports scrap tires or used tires that are intended for use in that person's agricultural business and who does not transport at one time a number of scrap tires or used tires that exceeds a number determined by commission rule.

(c) A scrap tire transporter or used tire transporter who is required to register with the commission shall:

(1) obtain a surety bond from a surety company authorized to transact business in this state;

(2) establish a trust account; or

(3) obtain an irrevocable letter of credit.

(d) The bond, trust account, or irrevocable letter of credit described by Subsection (c) must be:

(1) filed with the commission;

(2) in an amount of $100,000 or more; and

(3) in favor of this state.

(e) Money that the commission receives from a bond, trust account, or letter of credit obtained to meet the requirements of Subsection (c) may be used for the cleanup of abandoned tire storage sites.

(f) The commission shall require a scrap tire transporter or used tire transporter to maintain records and use a manifest or other appropriate system to assure that tires are transported to a storage site that is registered or to a site or facility authorized by the commission.

SECTION 5. Section 547.201, Transportation Code, is amended by adding Subsections (c), (d), (e), and (f) to read as follows:

(c) A person may not sell at retail an unsafe tire. In this subsection, "unsafe tire" means a passenger or light truck tire that:

(1) has tire tread less than one-sixteenth inch deep;

(2) has chunking, bumps, knots, or bulges evidencing cord, ply, or tread separation from the casing or other adjacent material;

(3) has exposed tire cords or belting material as a result of damage to the tire;

(4) has a repair to the tire in the tread shoulder, sidewall, bead area, or belt edge area;

(5) has a puncture that has not been sealed or patched on the inside with a cured rubber stem or plug that extends through to the outside surface;

(6) does not clearly show the United States Department of Transportation tire identification number located on the sidewall of the tire;

(7) is subject to a manufacturer's safety recall;

(8) has a puncture larger than one-quarter inch; or

(9) does not otherwise meet department safety standards under Section 547.101.

(d) Subsection (c) does not apply to a mounted tire sold with a used vehicle.

(e) A person commits an offense under Subsection (c) for the sale of an unsafe tire described by Subsection (c)(7) only if the seller of the tire knew or had reason to know that the tire was subject to a manufacturer's safety recall at the time of the sale.

(f) A person who violates Subsection (c) commits an offense. An offense under this subsection is a Class A misdemeanor.

SECTION 6. Subsection (a), Section 7.303, Water Code, is amended to read as follows:

(a) This section applies to a license, certificate, or registration issued:

(1) by the commission under:

(A) Section 26.0301;

(B) Chapter 37;

(C) Section 361.0861, 361.092, [or] 361.112, or 361.1121, Health and Safety Code;

(D) Chapter 366, 371, or 401, Health and Safety Code; or

(E) Chapter 1903, Occupations Code;

(2) by a county under Subchapter E, Chapter 361, Health and Safety Code; or

(3) under a rule adopted under any of those provisions.

SECTION 7. Subsection (g), Section 361.112, Health and Safety Code, is repealed.

SECTION 8. This Act takes effect September 1, 2013.

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