85R4833 SLB-D

By: Rodríguez S.B. No. 570

A BILL TO BE ENTITLED

AN ACT

relating to the regulation of the retention, storage, transportation, and disposal 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.

SECTION 2. Section 361.112, Health and Safety Code, is amended by adding Subsection (n) 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 secure manner that locks the tires during nonbusiness hours.

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. DISPOSITION OF TIRE REMOVED FROM VEHICLE DURING PURCHASE OF TIRE. (a) In this section:

(1) "Scrap tire" has the meaning assigned by Section 361.112.

(2) "Seller" 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) "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) has been inspected visually and meets the visual and tread depth requirements for used tires established by the Department of Public Safety.

(b) A customer may not retain a scrap tire removed from the customer's vehicle during the purchase of a tire from a seller.

(c) A seller 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 customer may retain a used tire removed from the customer's vehicle during the purchase of a tire only if the customer certifies on a form prescribed by the commission that the customer assumes liability for the disposal of the tire.

(e) A seller shall maintain in a manner accessible to local law enforcement agencies and the commission a record of a customer's retention of a used tire until at least the third anniversary of the date the tire was removed.

(f) The commission shall develop the form described by Subsection (d) and make that form available on the commission's Internet website.

(g) A seller may contract for the transportation of used or scrap tires only with a transporter or tire processor 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).

(h) A seller who contracts for the transportation of used or scrap tires with a transporter the seller 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.

(i) 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.

(j) 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.

Sec. 361.1122. USED OR SCRAP TIRE TRANSPORTERS AND CERTAIN TIRE PROCESSORS. (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 person transporting five or fewer used or scrap tires; and

(7) 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 letter of credit obtained by a transporter to meet the requirements of Subsections (d) and (e) must be used for the cleanup of abandoned tire storage sites.

(g) The commission shall require a 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. 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.

(h) A transporter who fails to submit an annual report under Subsection (g) 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 on the first anniversary of the date of issuance. The commission may adopt rules for issuing duplicate and multiple insignia.

(j) A county by order may require a transporter to register with the county. Registration requirements adopted under this subsection must be compatible with and not less stringent than rules adopted by the commission under this section.

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

Sec. 7.1855. VIOLATIONS RELATING TO USED OR SCRAP TIRES. (a) A person commits an offense if the person recklessly violates Section 361.1121, Health and Safety Code. An offense under this subsection is punishable for an individual under Section 7.187(a)(1)(B) or 7.187(a)(2)(D) or both. An offense under this subsection is punishable for a person other than an individual under Section 7.187(a)(1)(C).

(b) A person commits an offense if the person intentionally or knowingly violates Section 361.1121, Health and Safety Code. An offense under this subsection is punishable for an individual under Section 7.187(a)(1)(C) or Section 7.187(a)(2)(E) or both. An offense under this subsection 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.