85R24523 SLB-D
 
  By: Rodríguez, et al. S.B. No. 570
 
  (Walle)
 
  Substitute the following for S.B. No. 570:  No.
 
 
 
A BILL TO BE ENTITLED
 
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 $1,000 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 or a person who
  contracts with a political subdivision 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
               (2)  an easement maintained by the political
  subdivision 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.