BILL NUMBER: AB 1239	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 5, 2015
	AMENDED IN ASSEMBLY  APRIL 21, 2015

INTRODUCED BY   Assembly Members Gordon and Atkins

                        FEBRUARY 27, 2015

   An act to amend Section 42885 of, and to repeal and add Section
42872.1 of, the Public Resources Code, relating to tire recycling.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1239, as amended, Gordon. Tire recycling: California tire
regulatory fee and waste tire program.
   (1) 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, 
that is a retail seller of new tires to end user purchasers  to
pay a California  tire  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   fee. The  bill
would authorize the department to establish 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  retail sellers as generators of 
waste  tire generators   tires  , 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 establish 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,   The
bill would authorize the department to differentiate in setting the
fees between the waste tire generators who are retail sellers 
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. 
   (2) Existing law establishes, as a part of the waste tire program,
the tire recycling program, which promotes and develops alternatives
to the landfill disposal of used whole tires. The program provides
for grants to certain entities involved in activities that result in
reduced landfill disposal of whole used tires, and development and
implementation of a waste tire incentive payment program to promote
increased demand  of   for  waste tires
recycled in this state. Under the act, until June 30, 2019, the
Rubberized Pavement Market Development Act provides for the award of
grants to certain public agency projects that use rubberized asphalt
concrete.
   This bill would repeal the Rubberized Pavement Market Development
Act and instead enact the Tire Recycling Incentive Program Act. The
bill would require the department, in accordance with the tire
recycling program, to establish this incentive program to award
payments to eligible recipients, as specified. The bill would require
the department to award these payments in the amount of $2 for every
12 pounds of crumb rubber used by the eligible recipient, but would
authorize the department to adjust this rate if it finds that the
adjusted amount would further the purposes of the tire recycling act.
The bill would require the department, while the existing tire fee
remains greater than or equal to $1.75 per tire, to annually
allocate, of the amount appropriated to the department for purposes
of the waste tire program, $30,000,000 for the tire recycling
incentive program.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 42872.1 of the Public Resources Code is
repealed.
  SEC. 2.  Section 42872.1 is added to the Public Resources Code, to
read:
   42872.1.  (a) This section shall be known, and may be cited, as
the Tire Recycling Incentive Program Act.
   (b) In accordance with the tire recycling program authorized by
Section 42872, the department shall establish a tire recycling
incentive program that awards payments to eligible recipients, as
determined by the department, in the following manner:
   (1) To cities, counties, other local governmental agencies, and
school districts for the funding of construction projects that use
recycled tires.
   (2) To state and local governmental agencies, including regional
park districts, for the funding of disability access projects at
parks and Class I bikeways, as defined in subdivision (a) of Section
890.4 of the Streets and Highways Code, relative to projects that use
recycled tires.
   (3) To a private manufacturer who produces a consumer product
using recycled tires in California.
   (c) For purposes of subdivision (b), eligible recipients shall
meet specified criteria, as established by the department, that are
consistent with the provisions of this article.
   (d) (1) Except as provided in paragraph (2), the department shall
award the payments pursuant to subdivision (b) in the amount of two
dollars ($2) for every 12 pounds of crumb rubber used by the eligible
recipient.
   (2) The department may adjust the amount of payments awarded
pursuant to paragraph (1) to an amount that is greater than, or less
than, two dollars ($2) for every 12 pounds of crumb rubber if the
department finds this adjustment would further the purposes of this
article.
   (e) (1) Of the amount appropriated to the department in the annual
Budget Act pursuant to subdivision (b) of Section 42889, the
department shall annually allocate thirty million dollars
($30,000,000) for the tire recycling incentive program established
pursuant to subdivision (b).
   (2) This subdivision shall become inoperative if the tire fee
specified in subdivision (b) of Section 42885 becomes less than one
dollar and seventy-five cents ($1.75) per tire.
  SEC. 3.  Section 42885 of the Public Resources Code, as amended by
Section 31 of Chapter 401 of the Statutes of 2013, is amended to
read:
   42885.  (a) (1) For purposes of this section, "California tire fee"
means the fee imposed pursuant to subdivision (b) of this section.
   (2) For purposes of this section, a "California tire regulatory
fee" means a fee imposed pursuant to subdivision (c) of this section.

   (b) (1) A person who purchases a new tire, as defined in
subdivision (h), shall pay a California tire fee of one dollar and
seventy-five cents ($1.75) per tire.
   (2) The retail seller shall charge the retail purchaser the amount
of the California tire fee as a charge that is separate from, and
not included in, any other fee, charge, or other amount paid by the
retail purchaser.
   (3) The retail seller shall collect the California tire fee from
the retail purchaser at the time of sale and may retain 11/2 percent
of the fee as reimbursement for any costs associated with the
collection of the fee. The retail seller shall remit the remainder to
the state on a quarterly schedule for deposit in the California Tire
Recycling Management Fund, which is hereby created in the State
Treasury.
   (c) (1) A waste tire generator, as defined by Section 18450 of
Title 14 of the California Code of Regulations,  shall pay a
California tire regulatory fee according to a schedule of amounts to
be determined by the department pursuant to the following: 
    (A)     For a waste
tire generator  that is a retail seller of new tires to end
user  purchasers, the   purchasers shall pay a
California tire regulatory fee. The  amount of the California
tire regulatory fee shall be established by the department 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 retail sellers as generators of  waste  tire
generators   tires  , but not to exceed one dollar
and twenty-five cents ($1.25) per new tire sold. The department may
differentiate in setting fees between  waste tire generators who
are  retail sellers of new tires  who are waste tire
generators  depending upon the nature of the retail seller's
activity generating waste tires, the number of waste tires
generated, and other appropriate bases. 
   (B) For a waste tire generator that is not a retail seller, the
amount of the California tire regulatory fee shall be established by
the department 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. The department may
differentiate between categories of waste tire generators that are
not retail sellers in setting fees depending upon the nature of the
activity generating waste tires, the number of waste tires generated,
and other appropriate bases.  
   (C) The aggregate amount of California waste tire fees imposed
pursuant to subparagraphs (B) and (C) shall not 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. 
   (2) A waste tire generator  that is a retail seller of new
tires  shall remit the  fees   fee 
assessed pursuant to this subdivision to the state on a quarterly
schedule for deposit in a separate account in the California Tire
Recycling Management Fund.
   (d) The department, or its agent authorized pursuant to Section
42882, shall be reimbursed for its costs of collection, auditing, and
making refunds associated with the California Tire Recycling
Management Fund, but not to exceed 3 percent of the total annual
revenue deposited in the fund.
   (e) The California tire fee imposed pursuant to subdivision (b)
shall be separately stated by the retail seller on the invoice given
to the customer at the time of sale. Any other disposal or
transaction fee charged by the retail seller related to the tire
purchase shall be identified separately from the California tire fee.

   (f) A person or business who knowingly, or with reckless
disregard, makes a false statement or representation in a document
used to comply with this section is liable for a civil penalty for
each violation or, for continuing violations, for each day that the
violation continues. Liability under this section may be imposed in a
civil action and shall not exceed twenty-five thousand dollars
($25,000) for each violation.
   (g) In addition to the civil penalty that may be imposed pursuant
to subdivision (f), the department may impose an administrative
penalty in an amount not to exceed five thousand dollars ($5,000) for
each violation of a separate provision or, for continuing
violations, for each day that the violation continues, on a person
who intentionally or negligently violates a permit, rule, regulation,
standard, or requirement issued or adopted pursuant to this chapter.
The department shall adopt regulations that specify the amount of
the administrative penalty and the procedure for imposing an
administrative penalty pursuant to this subdivision.
   (h) For purposes of this section, "new tire" means a pneumatic or
solid tire intended for use with onroad or off-road motor vehicles,
motorized equipment, construction equipment, or farm equipment that
is sold separately from the motorized equipment, or a new tire sold
with a new or used motor vehicle, as defined in Section 42803.5,
including the spare tire, construction equipment, or farm equipment.
"New tire" does not include retreaded, reused, or recycled tires.
   (i) The California tire fee shall not be imposed on a tire sold
with, or sold separately for use on, any of the following:
   (1) A self-propelled wheelchair.
   (2) A motorized tricycle or motorized quadricycle, as defined in
Section 407 of the Vehicle Code.
   (3) A vehicle that is similar to a motorized tricycle or motorized
quadricycle and is designed to be operated by a person who, by
reason of the person's physical disability, is otherwise unable to
move about as a pedestrian.
   (j) This section shall remain in effect only until January 1,
2024, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2024, deletes or extends
that date.
  SEC. 4.  Section 42885 of the Public Resources Code, as amended by
Section 32 of Chapter 401 of the Statutes of 2013, is amended to
read:
   42885.  (a) (1) For purposes of this section, "California tire fee"
means the fee imposed pursuant to subdivision (b) of this section.
   (2) For purposes of this section, a "California tire regulatory
fee" means a fee imposed pursuant to subdivision (c) of this section.

   (b) (1) Every person who purchases a new tire, as defined in
subdivision (h), shall pay a California tire fee of seventy-five
cents ($0.75) per tire.
   (2) The retail seller shall charge the retail purchaser the amount
of the California tire fee as a charge that is separate from, and
not included in, any other fee, charge, or other amount paid by the
retail purchaser.
   (3) The retail seller shall collect the California tire fee from
the retail purchaser at the time of sale and may retain 3 percent of
the fee as reimbursement for any costs associated with the collection
of the fee. The retail seller shall remit the remainder to the state
on a quarterly schedule for deposit in the California Tire Recycling
Management Fund, which is hereby created in the State Treasury.
   (c) (1) A waste tire generator, as defined by Section 18450 of
Title 14 of the California Code of Regulations,  shall pay a
California tire regulatory fee according to a schedule of amounts to
be determined by the department pursuant to the following: 
    (A)     For a waste
tire generator  that is a retail seller of new tires to end
user  purchasers, the   purchasers shall pay a
California tire regulatory fee. The  amount of the California
tire regulatory fee shall be established by the department 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  retail sellers as generators of  waste  tire
generators   tires  , but not to exceed one dollar
and twenty-five cents ($1.25) per new tire sold. The department may
differentiate in setting fees between  waste tire generators who
are  retail sellers of new tires  who are waste tire
generators  depending upon the nature of the retail seller's
activity generating waste tires, the number of waste tires
generated, and other appropriate bases. 
   (B) For a waste tire generator that is not a retail seller, the
amount of the California tire regulatory fee shall be established by
the department 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. The department may
differentiate between categories of waste tire generators that are
not retail sellers in setting fees depending upon the nature of the
activity generating waste tires, the number of waste tires generated,
and other appropriate bases.  
   (C) The aggregate amount of California waste tire fees imposed
pursuant to subparagraphs (B) and (C) shall not 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. 
   (2) A waste tire generator  that is a retail seller 
shall remit the  fees   fee  assessed
pursuant to this subdivision to the state on a quarterly schedule for
deposit in a separate account in the California Tire Recycling
Management Fund.
   (d) The department, or its agent authorized pursuant to Section
42882, shall be reimbursed for its costs of collection, auditing, and
making refunds associated with the California Tire Recycling
Management Fund, but not to exceed 3 percent of the total annual
revenue deposited in the fund.
   (e) The California tire fee imposed pursuant to subdivision (b)
shall be separately stated by the retail seller on the invoice given
to the customer at the time of sale. Any other disposal or
transaction fee charged by the retail seller related to the tire
purchase shall be identified separately from the California tire fee.

   (f) Any person or business who knowingly, or with reckless
disregard, makes any false statement or representation in any
document used to comply with this section is liable for a civil
penalty for each violation or, for continuing violations, for each
day that the violation continues. Liability under this section may be
imposed in a civil action and shall not exceed twenty-five thousand
dollars ($25,000) for each violation.
   (g) In addition to the civil penalty that may be imposed pursuant
to subdivision (f), the department may impose an administrative
penalty in an amount not to exceed five thousand dollars ($5,000) for
each violation of a separate provision or, for continuing
violations, for each day that the violation continues, on any person
who intentionally or negligently violates any permit, rule,
regulation, standard, or requirement issued or adopted pursuant to
this chapter. The department shall adopt regulations that specify the
amount of the administrative penalty and the procedure for imposing
an administrative penalty pursuant to this subdivision.
   (h) For purposes of this section, "new tire" means a pneumatic or
solid tire intended for use with onroad or off-road motor vehicles,
motorized equipment, construction equipment, or farm equipment that
is sold separately from the motorized equipment, or a new tire sold
with a new or used motor vehicle, as defined in Section 42803.5,
including the spare tire, construction equipment, or farm equipment.
"New tire" does not include retreaded, reused, or recycled tires.
   (i) The California tire fee may not be imposed on any tire sold
with, or sold separately for use on, any of the following:
   (1) Any self-propelled wheelchair.
   (2) Any motorized tricycle or motorized quadricycle, as defined in
Section 407 of the Vehicle Code.
   (3) Any vehicle that is similar to a motorized tricycle or
motorized quadricycle and is designed to be operated by a person who,
by reason of the person's physical disability, is otherwise unable
to move about as a pedestrian.
   (j) This section shall become operative on January 1, 2024.