S.B. No. 570

AN ACT

relating to the regulation of the retention, storage, transportation, disposal, processing, and reuse of used or scrap tires; providing a civil penalty; creating a criminal offense.

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

SECTION 1. 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; CERTAIN REUSE OF SCRAP TIRES.

SECTION 2. Section 361.112, Health and Safety Code, is amended by adding Subsections (n) and (o) to read as follows:

(n) A used or scrap tire generator, including a tire dealer, junkyard, or fleet operator, who stores used or scrap tires outdoors on its business premises shall store the used or scrap tires in a locked, secured, or contained manner that protects the tires from theft.

(o) The commission shall adopt rules to require a person who uses more than 1,000 used or scrap tires in a construction project to obtain approval from the commission before the use of the tires in the project. In evaluating a project for approval under rules adopted under this section, the commission shall consider potential effects on human health and the environment.

SECTION 3. Subchapter C, Chapter 361, Health and Safety Code, is amended by adding Sections 361.1121 and 361.1122 to read as follows:

Sec. 361.1121. USED OR SCRAP TIRE GENERATORS. (a) In this section:

(1) "Generator" means a fleet operator, an automotive dismantler, a tire recapper or retreader, or a retailer, wholesaler, or manufacturer of whole new or used tires. The term does not include a scrap tire energy recovery facility or a scrap tire recycling facility.

(2) "Retailer" means a person who is engaged in the business of selling or otherwise placing tires in the stream of commerce for use on a vehicle, trailer, or piece of equipment.

(3) "Scrap tire" has the meaning assigned by Section 361.112. The term does not include a tire:

(A) in or on a vehicle that:

(i) has been crushed; or

(ii) is being transported to a registered metal recycling entity or a licensed used automotive parts recycler; or

(B) that is mounted on a metal wheel that is intended to be recycled.

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

(A) has been used as a tire on a vehicle, trailer, or piece of equipment;

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

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

(D) meets the visual and tread depth requirements for used tires established by the Department of Public Safety.

(b) A customer may retain a scrap or used tire removed from the customer's vehicle during the purchase of a tire. A retailer whose customer retains a scrap tire shall keep a record of the customer's retention of the tire in accordance with commission rules at least until the third anniversary of the date the customer retained the tire.

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

(d) A retailer shall post a sign in a location readily visible to the customer that specifies the requirements for the disposal of scrap and used tires.

(e) The commission shall develop the language and specifications for the sign described by Subsection (d) and make the language and specifications available on the commission's Internet website.

(f) A generator may contract for the transportation of used or scrap tires only with a transporter who:

(1) is registered as described by Section 361.1122(b); and

(2) has filed evidence of financial assurance according to Sections 361.1122(d) and (e).

(g) A generator who contracts for the transportation of used or scrap tires with a transporter the generator knows to be unregistered is:

(1) jointly and severally liable for any civil penalty imposed on the transporter under Subchapter D, Chapter 7, Water Code, for the illegal disposal of the tires; and

(2) criminally responsible, under Chapter 7, Penal Code, for an offense involving the tires under Section 365.012 of this code committed by the transporter.

(h) Notwithstanding Sections 7.102 and 7.103, Water Code, the amount of a civil penalty for a violation of this section may not be less than $500 a day for each violation. A separate penalty may be imposed for each day a violation occurs.

Sec. 361.1122. USED OR SCRAP TIRE TRANSPORTERS AND CERTAIN TIRE PROCESSORS; MANIFEST REQUIREMENT. (a) In this section:

(1) "Scrap tire" and "used tire" have the meanings assigned by Section 361.1121.

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

(b) Except as provided by Subsection (c), a person shall register annually with the commission if the person is:

(1) a transporter; or

(2) a tire processor that is not required to register as a storage site under Section 361.112.

(c) The following persons are not required to register under this section:

(1) a person who ships used or defective tires back to the manufacturer or the manufacturer's representative for adjustment, provided that the person retains, until the third anniversary of the shipment date, written records of the shipments indicating the date of shipment, the destination, and the number of tires in each shipment and makes those records available to the commission on request;

(2) an on-site sewage facility installer who is registered with the commission and who transports used or scrap tires or tire pieces for construction of an on-site sewage disposal system, provided that the installer complies with the commission's manifest and recordkeeping requirements;

(3) a retreader who hauls tires from customers for the purpose of retreading the tires or who returns tires to customers after retreading or recapping, provided that the retreader does not haul tires to an authorized facility for used or scrap tire collection;

(4) a person who owns or operates a truck for municipal solid waste collection or commercial route collection and handles incidental loads of used or scrap tires or tire pieces as part of normal household or commercial collection activities;

(5) a municipality, county, or other governmental entity that owns or operates a transport vehicle used to transport used or scrap tires to an authorized facility or to a facility used by a governmental entity to collect used or scrap tires, provided that each load of used or scrap tires is manifested as required by the commission;

(6) a generator, as that term is defined in Section 361.1121, transporting the generator's used or scrap tires:

(A) between business locations owned or controlled by the generator; or

(B) to a facility authorized by the commission to receive used or scrap tires;

(7) a person transporting five or fewer used or scrap tires; and

(8) a person exempt from registration requirements under commission rules.

(d) A transporter or tire processor who is required to register with the commission shall provide financial assurance by filing with the commission:

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

(2) evidence of an established trust account; or

(3) an irrevocable letter of credit.

(e) The bond, trust account, or irrevocable letter of credit described by Subsection (d) must be in favor of the state and:

(1) for a transporter, in an amount of $25,000 or more; and

(2) for a tire processor, in an amount adequate to ensure proper cleanup and closure of the site.

(f) Money that the commission receives from a bond, trust account, or irrevocable letter of credit obtained by a transporter to meet the requirements of Subsections (d) and (e) must be used for the cleanup of unauthorized tire sites where the transporter has delivered tires.

(g) The commission shall require a person who transports used or scrap tires 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. A political subdivision, state agency, or a person who contracts with a political subdivision or state agency is not required to comply with this subsection regarding the transportation of used or scrap tires directly from:

(1) a roadway maintained by the political subdivision or state agency; or

(2) an easement maintained by the political subdivision or state agency that is adjacent to a roadway.

(h) The commission shall require a transporter to submit to the commission in an electronic format an annual report on the records maintained by the transporter under this subsection. A transporter who fails to submit an annual report under this subsection is not eligible to renew the transporter's registration.

(i) The commission shall annually issue a registration insignia to each transporter. The transporter shall display the insignia on each vehicle used to transport tires under the registration. The insignia expires annually on a date specified by the commission. The commission may adopt rules for issuing duplicate and multiple insignia.

SECTION 4. Subchapter E, Chapter 7, Water Code, is amended by adding Sections 7.1855 and 7.1856 to read as follows:

Sec. 7.1855. RECKLESS VIOLATIONS RELATING TO USED OR SCRAP TIRES. (a) A person commits an offense if the person recklessly violates:

(1) Section 361.112, 361.1121, or 361.1122, Health and Safety Code; or

(2) a rule adopted under or the terms of an order, permit, or exception granted or issued under Chapter 361, Health and Safety Code, relating to used or scrap tires.

(b) An offense under this section is punishable for an individual under Section 7.187(a)(1)(B) or 7.187(a)(2)(D) or both.

(c) An offense under this section is punishable for a person other than an individual under Section 7.187(a)(1)(C).

Sec. 7.1856. INTENTIONAL OR KNOWING VIOLATIONS RELATING TO USED OR SCRAP TIRES. (a) A person commits an offense if the person intentionally or knowingly violates:

(1) Section 361.112, 361.1121, or 361.1122, Health and Safety Code; or

(2) a rule adopted under or the terms of an order, permit, or exception granted or issued under Chapter 361, Health and Safety Code, relating to used or scrap tires.

(b) An offense under this section is punishable for an individual under Section 7.187(a)(1)(C) or Section 7.187(a)(2)(E) or both.

(c) An offense under this section is punishable for a person other than an individual under Section 7.187(a)(1)(D).

SECTION 5. Section 7.303(a), 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 361.1122, 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 6. Sections 361.112(g) and (k), Health and Safety Code, are repealed.

SECTION 7. Not later than March 1, 2018, the Texas Commission on Environmental Quality shall adopt rules necessary to implement the changes in law made by this Act.

SECTION 8. Notwithstanding Section 361.1122, Health and Safety Code, as added by this Act, a person is not required to register under that section until September 1, 2018.

SECTION 9. This Act takes effect September 1, 2017.

______________________________ ______________________________

President of the Senate Speaker of the House

I hereby certify that S.B. No. 570 passed the Senate on April 4, 2017, by the following vote: Yeas 20, Nays 11; and that the Senate concurred in House amendments on May 25, 2017, by the following vote: Yeas 20, Nays 11.

______________________________ Secretary of the Senate

I hereby certify that S.B. No. 570 passed the House, with amendments, on May 23, 2017, by the following vote: Yeas 114, Nays 30, one present not voting.

______________________________ Chief Clerk of the House

Approved:

______________________________

Date

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Governor