AB 1239, as introduced, Gordon. Tire recycling: California tire regulatory fee.
The California Tire Recycling Act requires, until January 1, 2024, a person who purchases a new tire to pay a California tire fee of $1.75 per tire, for deposit in the California Tire Recycling Management Fund, for expenditure by the Department of Resources Recycling and Recovery upon appropriation by the Legislature, to fund the waste tire program and for other purposes, including to pay for the costs associated with a waste tire and used tire hauler program and manifest system, as provided. After January 1, 2024, existing law reduces the tire fee to $0.75 per tire.
Existing law requires any person generating waste tires or used tires that are transported or submitted for transportation, for offsite handling, altering, storage, disposal, or for any combination thereof, to complete a California Uniform Waste and Used Tire Manifest, as required by the department. Existing law requires a generator to provide the manifest to the waste and used tire hauler at the time of transfer of the tires, and to submit to the department, on a quarterly schedule, a legible copy of each manifest.
This bill would require a waste tire generator, as defined, to pay a California regulatory tire fee according to a schedule of amounts to be determined by the department. For a waste tire generator that is a retail seller of new tires to end user purchasers, the bill would authorize the department to determine the California tire regulatory fee in an amount that is sufficient to generate revenues equivalent to the reasonable regulatory costs incurred by the department incident to audits, inspections, administrative costs, adjudications, manifesting, registration, and other regulatory activities regarding these waste tire generators, but not to exceed $1.25 per new tire sold, as provided. For waste tire generators that are not retail sellers, the bill would authorize the department to determine the amount of the California tire regulatory fee in a amount that is sufficient to generate revenues equivalent to the reasonable regulatory costs incurred by the department incident to audits, inspections, administrative costs, adjudications, manifesting, registration, and other regulatory activities regarding those waste tire generators, depending upon the nature of the activity generating waste tires, the number of waste tires generated, and other appropriate bases. The bill would prohibit the aggregate amount of California tire regulatory fees imposed to exceed the aggregate reasonable regulatory costs incurred by the department incident to audits, inspections, administrative costs, adjudications, manifesting, registration, and other regulatory costs for regulating waste tire generators.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 42885 of the Public Resources Code, as
2amended by Section 31 of Chapter 401 of the Statutes of 2013, is
3amended to read:
(a) begin insert(1)end insertbegin insert end insert For purposes of this section, “California tire
5fee” means the fee imposed pursuant tobegin insert subdivision (b) ofend insert this
6section.
7(2) For purposes of this section, “California tire regulatory
8fee” means the fee imposed pursuant to subdivision (c) of this
9section.
10(b) (1) A person who purchases a new tire, as defined in
11subdivisionbegin delete (g),end deletebegin insert (h),end insert shall pay a California tire fee of one dollar
12and seventy-five cents ($1.75) per tire.
13(2) The retail seller shall charge the retail purchaser the amount
14of the California tire fee as a charge that is separate from, and not
P3 1included in, any other fee, charge, or other amount paid by the
2retail purchaser.
3(3) The retail seller shall collect the California tire fee from the
4retail purchaser at the time of sale and may retain 11⁄2 percent of
5the fee as reimbursement for any costs
associated with the
6collection of the fee. The retail seller shall remit the remainder to
7the state on a quarterly schedule for deposit in the California Tire
8Recycling Management Fund, which is hereby created in the State
9Treasury.
10(c) (1) A waste tire generator, as defined by Section 18450 of
11Title 14 of the California Code of Regulations, shall pay a
12California tire regulatory fee according to a schedule of amounts
13to be determined by the department pursuant to the following:
14(A) For a waste tire generator that is a retail seller of new tires
15to end user
purchasers, the amount of the California tire regulatory
16fee shall be established by the department in an amount that is
17sufficient to generate revenues equivalent to the reasonable
18regulatory costs incurred by the department incident to audits,
19inspections, administrative costs, adjudications, manifesting,
20registration, and other regulatory activities regarding these waste
21tire generators, but not to exceed one dollar and twenty-five cents
22($1.25) per new tire sold. The department may differentiate in
23setting fees between retail sellers of new tires who are waste tire
24generators depending upon the nature of the retail seller’s activity
25generating waste tires, the number of waste tires generated, and
26other appropriate bases.
27(B) For a waste tire generator that is not a retail seller, the
28amount of the California tire regulatory fee shall
be established
29by the department in an amount that is sufficient to generate
30revenues equivalent to the reasonable regulatory costs incurred
31by the department incident to audits, inspections, administrative
32costs, adjudications, manifesting, registration, and other regulatory
33activities regarding these waste tire generators. The department
34may differentiate between categories of waste tire generators that
35are not retail sellers in setting fees depending upon the nature of
36the activity generating waste tires, the number of waste tires
37generated, and other appropriate bases.
38(C) The aggregate amount of California waste tire fees imposed
39pursuant to subparagraphs (B) and (C) shall not exceed the
40aggregate reasonable regulatory costs incurred by the department
P4 1incident to audits, inspections, administrative costs, adjudications,
2manifesting,
registration, and other regulatory costs for regulating
3waste tire generators.
4(2) A waste tire generator shall remit the fees assessed pursuant
5to this subdivision to the state on a quarterly schedule for deposit
6in a separate account in the California Tire Recycling Management
7Fund.
8(c)
end delete
9begin insert(d)end insert The department, or its agent authorized pursuant to Section
1042882, shall be reimbursed for its costs of collection, auditing, and
11making refunds associated with the California Tire Recycling
12
Management Fund, but not to exceed 3 percent of the total annual
13revenue deposited in the fund.
14(d)
end delete
15begin insert(e)end insert The California tire fee imposed pursuant to subdivision (b)
16shall be separately stated by the retail seller on the invoice given
17to the customer at the time of sale. Any other disposal or
18transaction fee charged by the retail seller related to the tire
19purchase shall be identified separately from the California tire fee.
20(e)
end delete
21begin insert(f)end insert A person or business who knowingly, or with reckless
22disregard, makes a false statement or representation in a document
23used to comply with this section is liable for a civil penalty for
24each violation or, for continuing violations, for each day that the
25violation continues. Liability under this section may be imposed
26in a civil action and shall not exceed twenty-five thousand dollars
27($25,000) for each violation.
28(f)
end delete
29begin insert(g)end insert In addition to the civil penalty that may be imposed pursuant
30to subdivisionbegin delete (e),end deletebegin insert
(f)end insert the department may impose an administrative
31penalty in an amount not to exceed five thousand dollars ($5,000)
32for each violation of a separate provision or, for continuing
33violations, for each day that the violation continues, on a person
34who intentionally or negligently violates a permit, rule, regulation,
35standard, or requirement issued or adopted pursuant to this chapter.
36The department shall adopt regulations that specify the amount of
37the administrative penalty and the procedure for imposing an
38administrative penalty pursuant to this subdivision.
39(g)
end delete
P5 1begin insert(h)end insert For purposes of this section, “new tire” means a pneumatic
2or solid tire
intended for use with onroad or off-road motor
3vehicles, motorized equipment, construction equipment, or farm
4equipment that is sold separately from the motorized equipment,
5or a new tire sold with a new or used motor vehicle, as defined in
6Section 42803.5, including the spare tire, construction equipment,
7or farm equipment. “New tire” does not include retreaded, reused,
8or recycled tires.
9(h)
end delete
10begin insert(i)end insert The California tire fee shall not be imposed on a tire sold
11with, or sold separately for use on, any of the following:
12(1) A self-propelled wheelchair.
13(2) A motorized tricycle or motorized quadricycle, as defined
14in Section 407 of the Vehicle Code.
15(3) A vehicle that is similar to a motorized tricycle or motorized
16quadricycle and is designed to be operated by a person who, by
17reason of the person’s physical disability, is otherwise unable to
18move about as a pedestrian.
19(i)
end delete
20begin insert(j)end insert This section shall remain in effect only until January 1, 2024,
21and as of that date is repealed, unless a later enacted statute, that
22is enacted before January 1, 2024, deletes or extends that date.
Section 42885 of the Public Resources Code, as
24amended by Section 32 of Chapter 401 of the Statutes of 2013, is
25amended to read:
(a) begin insert(1)end insertbegin insert end insertFor purposes of this section, “California tire
27fee” means the fee imposed pursuant tobegin insert subdivision (b) ofend insert this
28section.
29(2) For purposes of this section, “California tire regulatory
30fee” means the fee imposed pursuant to subdivision (c) of this
31section.
32(b) (1) Every person who purchases a new tire, as defined in
33subdivisionbegin delete (g),end deletebegin insert
(h),end insert shall pay a California tire fee of seventy-five
34cents ($0.75) per tire.
35(2) The retail seller shall charge the retail purchaser the amount
36of the California tire fee as a charge that is separate from, and not
37included in, any other fee, charge, or other amount paid by the
38retail purchaser.
39(3) The retail seller shall collect the California tire fee from the
40retail purchaser at the time of sale and may retain 3 percent of the
P6 1fee as reimbursement for any costs associated with the collection
2of the fee. The retail seller shall remit the remainder to the state
3on a quarterly schedule for deposit in the California Tire Recycling
4Management Fund, which is hereby created in the State Treasury.
5(c) (1) A waste tire generator, as defined by Section 18450 of
6Title 14 of the California Code of Regulations, shall pay a
7California tire regulatory fee according to a schedule of amounts
8to be determined by the department pursuant to the following:
9(A) For a waste tire generator that is a retail seller of new tires
10to end user purchasers, the amount of the California tire regulatory
11fee shall be established by the department in an amount that is
12sufficient to generate revenues equivalent to the reasonable
13regulatory costs incurred by the department incident to audits,
14inspections, administrative costs, adjudications, manifesting,
15registration, and other regulatory activities regarding these waste
16tire generators, but not to exceed one dollar and twenty-five cents
17($1.25) per new tire sold. The department may differentiate in
18setting fees between retail sellers of new tires who are waste tire
19generators
depending upon the nature of the retail seller’s activity
20generating waste tires, the number of waste tires generated, and
21other appropriate bases.
22(B) For a waste tire generator that is not a retail seller, the
23amount of the California tire regulatory fee shall be established
24by the department in an amount that is sufficient to generate
25revenues equivalent to the reasonable regulatory costs incurred
26by the department incident to audits, inspections, administrative
27costs, adjudications, manifesting, registration, and other regulatory
28activities regarding these waste tire generators. The department
29may differentiate between categories of waste tire generators that
30are not retail sellers in setting fees depending upon the nature of
31the activity generating waste tires, the number of waste tires
32generated, and other appropriate bases.
33(C) The aggregate amount of California waste tire
fees imposed
34pursuant to subparagraphs (B) and (C) shall not exceed the
35aggregate reasonable regulatory costs incurred by the department
36incident to audits, inspections, administrative costs, adjudications,
37manifesting, registration, and other regulatory costs for regulating
38waste tire generators.
39(2) A waste tire generator shall remit the fees assessed pursuant
40to this subdivision to the state on a quarterly schedule for deposit
P7 1in a separate account in the California Tire Recycling Management
2Fund.
3(c)
end delete
4begin insert(d)end insert The department, or its agent authorized pursuant to Section
542882, shall be
reimbursed for its costs of collection, auditing, and
6making refunds associated with the California Tire Recycling
7Management Fund, but not to exceed 3 percent of the total annual
8revenue deposited in the fund.
9(d)
end delete
10begin insert(e)end insert The California tire fee imposed pursuant to subdivision (b)
11shall be separately stated by the retail seller on the invoice given
12to the customer at the time of sale. Any other disposal or
13transaction fee charged by the retail seller related to the tire
14purchase shall be identified separately from the California tire fee.
15(e)
end delete
16begin insert(f)end insert Any person or business who knowingly, or with reckless
17disregard, makes any false statement or representation in any
18document used to comply with this section is liable for a civil
19penalty for each violation or, for continuing violations, for each
20day that the violation continues. Liability under this section may
21be imposed in a civil action and shall not exceed twenty-five
22thousand dollars ($25,000) for each violation.
23(f)
end delete
24begin insert(g)end insert In addition to the civil penalty that may be imposed pursuant
25to subdivisionbegin delete (e),end deletebegin insert
(f),end insert the department may impose an administrative
26penalty in an amount not to exceed five thousand dollars ($5,000)
27for each violation of a separate provision or, for continuing
28violations, for each day that the violation continues, on any person
29who intentionally or negligently violates any permit, rule,
30regulation, standard, or requirement issued or adopted pursuant to
31this chapter. The department shall adopt regulations that specify
32the amount of the administrative penalty and the procedure for
33imposing an administrative penalty pursuant to this subdivision.
34(g)
end delete
35begin insert(h)end insert For purposes of this section, “new tire” means a pneumatic
36or solid
tire intended for use with onroad or off-road motor
37vehicles, motorized equipment, construction equipment, or farm
38equipment that is sold separately from the motorized equipment,
39or a new tire sold with a new or used motor vehicle, as defined in
40Section 42803.5, including the spare tire, construction equipment,
P8 1or farm equipment. “New tire” does not include retreaded, reused,
2or recycled tires.
3(h)
end delete
4begin insert(i)end insert The California tire fee may not be imposed on any tire sold
5with, or sold separately for use on, any of the following:
6(1) Any self-propelled wheelchair.
7(2) Any motorized tricycle or motorized quadricycle, as defined
8in Section 407 of the Vehicle Code.
9(3) Any vehicle that is similar to a motorized tricycle or
10motorized quadricycle and is designed to be operated by a person
11who, by reason of the person’s physical disability, is otherwise
12unable to move about as a pedestrian.
13(i)
end delete14begin insert(j)end insert This section shall become operative on January 1, 2024.
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