Amended in Senate June 2, 2016

Amended in Assembly May 5, 2015

Amended in Assembly April 21, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 1239

Introduced by Assembly Members Gordon and Atkins

February 27, 2015

An act to amend begin delete Section 42885 end delete begin insert Sections 42885, 42889, and 42961.5 end insert 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 begin delete generator, as defined, end delete begin insert generator end insert that is a retail seller of new tires to end user purchasers to pay a California tire regulatory begin delete fee. end delete begin insert fee and to remit that fee end insert begin insert to the state on a quarterly schedule for deposit in a separate account in the California Tire Recycling Management Fund. end insert 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 begin delete costs, end delete begin insert activities, end insert adjudications, manifesting, registration, and other regulatory activities regarding begin delete these retail sellers as generators of end delete waste tires, but begin delete not to end delete begin insert that does not end insert exceed begin delete $1.25 end delete begin insert one dollar ($1.00) end insert per new tire sold, as provided. 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.

begin insert

The bill would require the department, on or before August 1, 2017, and no more frequently than biennially thereafter, to review at a public hearing the California tire regulatory fee and adjust the fee to an amount that does not exceed $1 per new tire sold, based on certain factors, as specified. The bill would provide that these adjustments become effective on January 1 of the following year. The bill would authorize the department to adopt emergency regulations to implement the California tire regulatory fee.

end insert

(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 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 begin delete the tire recycling program, end delete begin insert specified law, end insert to establish this incentive program to begin delete award end delete begin insert make end insert payments to begin delete eligible recipients, end delete begin insert entities that purchase waste tires for incorporation in a product for sale to end users, end insert as specified. begin delete 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. end delete The bill begin insert would require the department, on or before July 1, 2018, to hold a public workshop to develop a plan for the tire recycling incentive payment program, as specified, and would require the department to evaluate the program in a public forum and propose changes accordingly. The bill would make an entity eligible to receive an incentive payment upon demonstrating to the department that the entity purchased California generated waste tires processed in California and sold a waste tire product incorporating those waste tires to an end user. The bill, commencing July 1, 2018, and until January 1, 2024, end insert would require the begin delete department, while the existing tire fee remains greater than or equal to $1.75 per tire, end delete begin insert department end insert to annually allocate, of the amount appropriated to the department begin insert from California tire fee revenues end insert for purposes of the waste tire program, begin delete $30,000,000 end delete begin insert no less than $20,000,000 end insert for the tire recycling incentive begin delete program. end delete begin insert program and, commencing January 1, 2024, would authorize the department to continue to allocate funding for the tire recycling incentive program based on available funding. end insert

begin insert

(3) Existing law requires a person generating waste or used tires that are transported or submitted for transportation to submit a California Uniform Waste and Used Tire Manifest, as defined, to the waste and used tire hauler and to submit copies of the manifest to the department. A waste and used tire hauler is required to possess that manifest while transporting waste or used tires, and the operator of a waste or used tire facility is required to submit a copy of the manifest to the department and the generator. Existing law requires the department to develop and implement a system for auditing manifests, including continuously conducting random sampling and matching of manifests.

end insert begin insert

This bill would revise those provisions to, among other things, require a waste and used tire hauler, on and after January 1, 2018, to submit an electronic manifest, instead of a paper manifest, to the department within 7 days of the date of the pickup or delivery for each load of waste or used tires transported.

end insert

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 begin delete the tire recycling program authorized by end delete
Section 42872, the department shall establish a tire recycling
incentive program that begin delete awards end delete begin insert makes end insert payments to eligible

begin delete recipients, as determined by the department, in the following
manner: end delete begin insert entities. end insert

begin insert

(c) Incentive payments shall be made to eligible entities for
waste tire products manufactured from California generated waste
tires that promote the reduction of the disposal of, the recycling
of, or the prevention of illegal dumping of, California generated
waste tires.

end insert begin insert

(d) An eligible entity is eligible to receive an incentive payment
only upon demonstrating to the department that the entity
purchased California generated waste tires processed in California
and sold a waste tire product incorporating those waste tires to
an end user.

end insert begin insert

(e) For purposes of this section, “eligible entity” includes, but
is not limited to, a manufacturer that produces a product using
California generated waste tires for purchase by an end user.

end insert begin insert

(f) For purposes of this section, “end user” includes, but is not
limited to, the following:

end insert

(1)  begin delete To cities, end delete begin insert Cities, end insert counties, begin insert and end insert other local governmental
agencies, begin delete and end delete begin insert including end insert school begin delete districts for the funding of
construction projects that use recycled tires. end delete begin insert districts. end insert

(2)  begin delete To state end delete begin insert State end insert and local governmental agencies, including
regional park begin delete districts, for the funding of end delete begin insert districts. end insert

begin insert

(3) Private companies and persons.

end insert begin insert

(g) (1) For purposes of this section, “waste tire product“ may
include, but is not limited to, the following:

end insert begin insert

(A) Pavement-related products, such as rubberized asphalt,
asphalt rubber, modified binders, and chip seals.

end insert begin insert

(B) Rubberized asphalt base stock to be used in applications
other than pavement.

end insert

begin insert (C) end insert begin insert   end insert begin insert Products used in end insert 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.

begin delete

(3) To a private manufacturer who produces a consumer product
using recycled tires in California.

end delete begin insert

(D) Poured in place and tile playground mats.

end insert begin insert

(E) Landscape nuggets and mulch.

end insert begin insert

(F) Walkways and pathways.

end insert begin insert

(G) Running tracks.

end insert begin insert

(H) Tire-derived aggregate applications, including lightweight
fill and vibration mitigation.

end insert begin insert

(I) Molded, extruded, injected, and calendered products.

end insert begin insert

(J) Products that use recycled rubber or other materials, such
as plastic.

end insert begin insert

(K) Paint and coatings.

end insert begin insert

(L) Other products, environmentally safe applications, or
treatments determined to be appropriate by the department.

end insert begin insert

(2) “Waste tire product” does not include any of the following:

end insert begin insert

(A) Tire derived fuel.

end insert begin insert

(B) Alternative daily cover, intermediate cover, erosion, or other
landfill uses, except tire derived aggregates used in landfill
engineered projects for landfill gas and leachate control systems
and other engineering project designated by the department.

end insert begin insert

(C) Exports.

end insert begin insert

(D) Synthetic turf infill.

end insert begin insert

(E) Loose rubber nugget or mulch playgrounds.

end insert begin insert

(F) Purchases made to meet procurement requirements
established pursuant to Section 42703.

end insert begin insert

(h) (1) On or before July 1, 2018, the department shall hold a
public workshop to develop a plan for the tire recycling incentive
payment program established pursuant to subdivision (b). The
plan shall be included in the next revision of the five-year plan
required pursuant to Section 42885.5.

end insert begin insert

(2) (A) In the public workshop required pursuant to paragraph
(1), the department shall develop a tiered incentive payment
structure. The tiers shall be designed to ensure the maximum
amount of California generated waste tires is recycled.

end insert begin insert

(B) The department shall include no more than three tiers in
the incentive payment structure.

end insert begin insert

(C) In developing the tiers, the department shall consider
factors, including, but not limited to, the following:

end insert begin insert

(i) The quantity of waste tires that will be diverted from landfills.

end insert begin insert

(ii) The incentive amount necessary for waste tire products of
recipients to effectively compete with nonrecycled alternatives.

end insert begin insert

(iii) The existing and potential markets for the applicable waste
tire product.

end insert begin insert

(3) The department shall reduce current waste tire market
development grants, in light of expenditures of funds appropriated
in paragraph (1) of subdivision (k), in the next revision of the
five-year plan. Existing nongrant market development activities
shall continue for activities described in the five-year plan.

end insert begin insert

(i) The department shall evaluate the tire recycling incentive
program established pursuant to subdivision (b) in a public forum
and propose changes accordingly.

end insert begin delete

(c)

end delete

begin insert (j) end insert  For purposes of begin delete subdivision (b), eligible end delete begin insert this section, end insert
recipients begin insert of incentive payments end insert shall meet specified criteria, as
established by the department, that are consistent with the
provisions of this article.

begin delete

(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)

end delete

begin insert (k) end insert  (1)  begin delete Of end delete begin insert Commencing July 1, 2018, and until January 1, 2024,
of end insert the amount appropriated to the department in the annual Budget
Act pursuant to subdivision (b) of Section 42889, the department
shall annually allocate begin delete thirty million dollars ($30,000,000) end delete begin insert no less
than twenty million dollars ($20,000,000) end insert for the tire recycling
incentive program established pursuant to subdivision (b).

begin delete

(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.

end delete begin insert

(2) Commencing January 1, 2024, the department may continue
to allocate funding for the tire recycling incentive program
established pursuant to subdivision (b) based on available funding.

end insert

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 begin delete generator, as defined by Section 18450 of
Title 14 of the California Code of Regulations, end delete begin insert generator end insert that is
a retail seller of new tires to end user 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 begin delete costs, end delete begin insert activities, end insert adjudications,
manifesting, registration, and other regulatory activities regarding
begin delete these retail sellers as generators of end delete waste tires, but begin delete not to end delete begin insert that
amount shall not end insert exceed one dollar begin delete and twenty-five cents ($1.25) end delete
begin insert ($1) end insert per new tire sold. The department may differentiate in setting
fees between waste tire generators who are retail sellers of new
tires depending upon the nature of the retail seller’s activity
generating waste tires, the number of waste tires generated, and
other appropriate bases.

(2) A waste tire generator that is a retail seller of new tires shall
remit the 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.

begin insert

(3) On or before August 1, 2017, and no more frequently than
biennially thereafter, the department shall review at a public
hearing the California tire regulatory fee and shall make any
adjustments to the fee to ensure that there are sufficient revenues
in the account to fund the reasonable regulatory costs incurred
by the department incident to audits, inspections, administrative
activities, adjudications, manifesting, registration, and other
regulatory activities associated with waste tires pursuant to this
chapter, and Chapter 16 (commencing with section 42800) and
Chapter 19 (commencing with Section 42950), provided that the
fee does not exceed one dollar ($1.00) per new tire sold. These
adjustments shall become effective on January 1 of the following
year. The department shall base an adjustment of the California
tire regulatory fee on the following factors:

end insert begin insert

(A) The sufficiency of revenues in the account for the department
to administer, enforce, and promote the regulatory aspects of the
program established pursuant to these chapters, plus a prudent
reserve.

end insert begin insert

(B) If, at the end of a fiscal year, after making payments
pursuant to Sections 42872.1 and 42889, sufficient surplus remains
in the California Tire Recycling Management Fund, the department
shall use these surplus funds in the following fiscal year to reduce
the California tire regulatory fee.

end insert begin insert

(4) (A) The department may adopt regulations to implement the
California tire regulatory fee, including adjustments pursuant to
paragraph (3), as emergency regulations.

end insert begin insert

(B) The emergency regulations adopted pursuant to this
paragraph shall be adopted in accordance with Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title
2 of the Government Code, and for the purposes of that chapter,
including Section 11349.6 of the Government Code, the adoption
of these regulations is an emergency and shall be considered by
the Office of Administrative Law as necessary for the immediate
preservation of the public peace, health, safety, and general
welfare. Notwithstanding Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code,
any emergency regulations adopted by the department pursuant
to this paragraph shall be filed with, but not be repealed by, the
Office of Administrative Law and shall remain in effect for a period
of two years or until revised by the department, whichever occurs
sooner.

end insert

(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)  begin delete Every end delete begin insert A end insert 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, that is a retail seller
of new tires to end user 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 begin delete costs, end delete begin insert activities, end insert adjudications,
manifesting, registration, and other regulatory activities regarding
begin delete these retail sellers as generators of end delete waste tires, but begin delete not to end delete begin insert that
amount shall not end insert exceed one dollar begin delete and twenty-five cents ($1.25) end delete
begin insert ($1) end insert per new tire sold. The department may differentiate in setting
fees between waste tire generators who are retail sellers of new
tires depending upon the nature of the retail seller’s activity
generating waste tires, the number of waste tires generated, and
other appropriate bases.

(2) A waste tire generator that is a retail seller begin insert of new tires end insert shall
remit the 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.

begin insert

(3) On or before August 1, 2024, and no more frequently than
biennially thereafter, the department shall review at a public
hearing the California tire regulatory fee and shall make any
adjustments to the fee to ensure that there are sufficient revenues
in the account to fund reasonable regulatory costs incurred by the
department incident to audits, inspections, administrative activities,
adjudications, manifesting, registration, and other regulatory
activities associated with waste tires pursuant to this chapter,
Chapter 16 (commencing with section 42800) and Chapter 19
(commencing with Section 42950), provided that the fee shall not
exceed one dollar ($1.00) per new tire sold. These adjustments
shall become effective on January 1 of the following year. The
department shall base an adjustment of the California tire
regulatory fee on the following factors:

end insert begin insert

(A) The sufficiency of revenues in the account for the department
to administer, enforce, and promote the regulatory aspects of the
program established pursuant to these chapters, plus a prudent
reserve.

end insert begin insert

(B) If, at the end of a fiscal year, after making payments
pursuant to Sections 42872.1 and 42889, sufficient surplus remains
in the California Tire Recycling Management Fund, the department
shall use these surplus funds in the following fiscal year to reduce
the California tire regulatory fee.

end insert begin insert

(4) (A) The department may adopt regulations to implement
the California tire regulatory fee, including adjustments pursuant
to paragraph (3), as emergency regulations.

end insert begin insert

(B) The emergency regulations adopted pursuant to this
paragraph shall be adopted in accordance with Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title
2 of the Government Code, and for the purposes of that chapter,
including Section 11349.6 of the Government Code, the adoption
of these regulations is an emergency and shall be considered by
the Office of Administrative Law as necessary for the immediate
preservation of the public peace, health, safety, and general
welfare. Notwithstanding Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code,
any emergency regulations adopted by the department pursuant
to this paragraph shall be filed with, but not be repealed by, the
Office of Administrative Law and shall remain in effect for a period
of two years or until revised by the department, whichever occurs
sooner.

end insert

(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)  begin delete Any end delete begin insert A end insert person or business who knowingly, or with reckless
disregard, makes begin delete any end delete begin insert a end insert false statement or representation in begin delete any end delete begin insert a end insert
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 begin delete any end delete begin insert a end insert
person who intentionally or negligently violates begin delete any end delete begin insert a end insert 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 begin delete may end delete begin insert shall end insert not be imposed on begin delete any end delete begin insert a end insert
tire sold with, or sold separately for use on, any of the following:

(1)  begin delete Any end delete begin insert A end insert self-propelled wheelchair.

(2)  begin delete Any end delete begin insert A end insert motorized tricycle or motorized quadricycle, as
defined in Section 407 of the Vehicle Code.

(3)  begin delete Any end delete begin insert A end insert 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.

begin insert

begin insert SEC. 5. end insert   

end insert

begin insert Section 42889 of the end insert begin insert Public Resources Code end insert begin insert , as
amended by Section 152 of Chapter 35 of the Statutes of 2014, is
amended to read: end insert

42889.  

(a) Of the moneys collected pursuant to begin insert subdivision
(b) of end insert Section 42885, an amount equal to seventy-five cents ($0.75)
per tire on which the fee is imposed shall be transferred by the
State Board of Equalization to the Air Pollution Control Fund. The
state board shall expend those moneys, or allocate those moneys
to the districts for expenditure, to fund programs and projects that
mitigate or remediate air pollution caused by tires in the state, to
the extent that the state board or the applicable district determines
that the program or project remediates air pollution harms created
by tires upon which the fee described in begin insert subdivision (b) of end insert Section
42885 is imposed.

(b) The remaining moneys collected pursuant to begin insert subdivision (b)
of end insert Section 42885 shall be used to fund the waste tire program begin insert and
the Tire Recycling Incentive Program, pursuant to Section 42872.1 end insert ,
and shall be appropriated to the department in the annual Budget
Act in a manner consistent with the five-year plan adopted and
updated by the department. These moneys shall be expended for
the payment of refunds under this chapter and for the following
begin delete purposes end delete begin insert purposes, to the extent they are not lawfully payable from
funds allocated pursuant to subdivision (c) of Section 42885 end insert :

(1) To pay the administrative overhead cost of this chapter, not
to exceed 6 percent of the total revenue deposited in the fund
annually, or an amount otherwise specified in the annual Budget
Act.

(2) To pay the costs of administration associated with collection,
making refunds, and auditing revenues in the fund, not to exceed
3 percent of the total revenue deposited in the fund, as provided
in subdivision (c) of Section 42885.

(3) To pay the costs associated with operating the tire recycling
program specified in Article 3 (commencing with Section 42870).

(4) To pay the costs associated with the development and
enforcement of regulations relating to the storage of waste tires
and used tires. The department shall consider designating a city,
county, or city and county as the enforcement authority of
regulations relating to the storage of waste tires and used tires, as
provided in subdivision (c) of Section 42850, and regulations
relating to the hauling of waste and used tires, as provided in
subdivision (b) of Section 42963. If the department designates a
local entity for that purpose, the department shall provide sufficient,
stable, and noncompetitive funding to that entity for that purpose,
based on available resources, as provided in the five-year plan
adopted and updated as provided in subdivision (a) of Section
42885.5. The department may consider and create, as appropriate,
financial incentives for citizens who report the illegal hauling or
disposal of waste tires as a means of enhancing local and statewide
waste tire and used tire enforcement programs.

(5) To pay the costs of cleanup, abatement, removal, or other
remedial action related to waste tire stockpiles throughout the state,
including all approved costs incurred by other public agencies
involved in these activities by contract with the department. Not
less than six million five hundred thousand dollars ($6,500,000)
shall be expended by the department during each of the following
fiscal years for this purpose: 2001-02 to 2006-07, inclusive.

(6) To make studies and conduct research directed at promoting
and developing alternatives to the landfill disposal of waste tires.

(7) To assist in developing markets and new technologies for
used tires and waste tires. The department’s expenditure of funds
for purposes of this subdivision shall reflect the priorities for waste
management practices specified in subdivision (a) of Section
40051.

(8) To pay the costs associated with implementing and operating
a waste tire and used tire hauler program and manifest system
pursuant to Chapter 19 (commencing with Section 42950).

(9) To pay the costs to create and maintain an emergency
reserve, which shall not exceed one million dollars ($1,000,000).

(10) To pay the costs of cleanup, abatement, or other remedial
action related to the disposal of waste tires in implementing and
operating the Farm and Ranch Solid Waste Cleanup and Abatement
Grant Program established pursuant to Chapter 2.5 (commencing
with Section 48100) of Part 7.

(11) To fund border region activities specified in paragraph (8)
of subdivision (b) of Section 42885.5.

(12) For expenditure pursuant to paragraph (3) of subdivision
(a) of, and paragraph (3) of subdivision (b) of, Section 17001.

(c) 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.

begin insert

begin insert SEC. 6. end insert   

end insert

begin insert Section 42889 of the end insert begin insert Public Resources Code end insert begin insert , as
amended by Section 153 of Chapter 35 of the Statutes of 2014, is
amended to read: end insert

42889.  

Funding for the waste tire program shall be appropriated
to the department in the annual Budget Act. The moneys in the
fund shall be expended for the payment of refunds under this
chapter and for the following begin delete purposes end delete begin insert purposes, but only those
funds deposited pursuant to paragraph (2) of subdivision (c) of
Section 42885 shall be expended for purposes for which those
funds may be lawfully expended until those funds are exhausted end insert :

(a) To pay the administrative overhead cost of this chapter, not
to exceed 5 percent of the total revenue deposited in the fund
annually, or an amount otherwise specified in the annual Budget
Act.

(b) To pay the costs of administration associated with collection,
making refunds, and auditing revenues in the fund, not to exceed
3 percent of the total revenue deposited in the fund, as provided
in subdivision (b) of Section 42885.

(c) To pay the costs associated with operating the tire recycling
program specified in Article 3 (commencing with Section 42870).

(d) To pay the costs associated with the development and
enforcement of regulations relating to the storage of waste tires
and used tires. The department shall consider designating a city,
county, or city and county as the enforcement authority of
regulations relating to the storage of waste tires and used tires, as
provided in subdivision (c) of Section 42850, and regulations
relating to the hauling of waste and used tires, as provided in
subdivision (b) of Section 42963. If the department designates a
local entity for that purpose, the department shall provide sufficient,
stable, and noncompetitive funding to that entity for that purpose,
based on available resources, as provided in the five-year plan
adopted and updated as provided in subdivision (a) of Section
42885.5. The department may consider and create, as appropriate,
financial incentives for citizens who report the illegal hauling or
disposal of waste tires as a means of enhancing local and statewide
waste tire and used tire enforcement programs.

(e) To pay the costs of cleanup, abatement, removal, or other
remedial action related to waste tire stockpiles throughout the state,
including all approved costs incurred by other public agencies
involved in these activities by contract with the department. Not
less than six million five hundred thousand dollars ($6,500,000)
shall be expended by the department during each of the following
fiscal years for this purpose: 2001-02 to 2006-07, inclusive.

(f) To fund border region activities specified in paragraph (8)
of subdivision (b) of Section 42885.5.

(g) For expenditure pursuant to paragraph (3) of subdivision (a)
of, and paragraph (3) of subdivision (b) of, Section 17001.

(h) This section shall become operative on January 1, 2024.

begin insert

begin insert SEC. 7. end insert   

end insert

begin insert Section 42961.5 of the end insert begin insert Public Resources Code end insert begin insert is
amended to read: end insert

42961.5.  

(a) For purposes of this chapter, the following
definitions shall apply:

(1) “California Uniform Waste and Used Tire Manifest” begin insert or end insert
begin insert “manifest end insert begin insert ” end insert means a shipping document signed by a begin insert waste or used
tire hauler and a end insert generator of waste or used tires, begin delete a waste and used
tire hauler, end delete or the operator of a waste or used tire facility or other
destination that contains all of the information required by the
begin delete board, end delete begin insert department, end insert including, but not limited to, an accurate
measurement of the number of tires being shipped, begin delete the type or
types of the tires, end delete the date the shipment begin delete originated, end delete begin insert originated or
terminated, end insert and the origin and begin delete intended end delete final destination of the
shipment.

begin insert

(2) “Electronic Manifest” means a manifest that is submitted
to the department electronically in a manner specified by the
department.

end insert begin insert

(3) “Passenger Tire Equivalent” or “PTE” means either of the
following:

end insert begin insert

(A) A unit of measurement, such that one PTE equals 20 pounds
of waste or used tires, and one PTE equals one waste or used tire.

end insert begin insert

(B) A unit of measurement, such that 10 PTEs equals one cubic
yard of waste or used tires.

end insert begin delete

(2)

end delete

begin insert (4) end insert  “Waste and used tire hauler” begin insert or “hauler end insert begin insert ” end insert means any person
required to be registered with the begin delete board end delete begin insert department end insert pursuant to
subdivision (a) of Section 42951.

(b)  begin delete Any person generating end delete begin insert (1) end insert begin insert   end insert begin insert A hauler transporting end insert waste or
used tires begin delete that are transported or submitted for transportation, end delete for
offsite handling, altering, storage, begin insert or end insert disposal, or for any
combination thereof, shall complete a begin delete California Uniform Waste
and Used Tire Manifest, as required by the board. The generator
shall provide the manifest to the waste and used tire hauler at the
time of transfer of the tires. Each generator shall submit to the
board, on a quarterly schedule, a legible copy of each manifest.
The copy submitted to the board shall contain the signatures of
the generator and the waste and used tire hauler. end delete begin insert manifest. end insert

begin delete

(c) (1) Any waste and used tire

end delete

begin insert (2) end insert begin insert   end insert begin insert A end insert hauler shall have the begin delete California Uniform Waste and Used
Tire Manifest end delete begin insert manifest end insert in his or her possession while transporting
waste or used tires. The manifest shall be shown upon demand to
any representative of the begin delete board, end delete begin insert department, end insert any officer of the
California Highway Patrol, begin insert or end insert any peace officer, as defined in
Section 830.1 or 830.2 of the Penal begin delete Code, or any local public
officer designated by the board. end delete begin insert Code. end insert

begin delete

(d) Each waste or used tire facility operator that receives waste
or used tires for handling, altering, storage, disposal, or any
combination thereof, that was transported with a manifest pursuant
to this section, shall submit copies of each manifest provided by
the waste and used tire hauler to the board and the generator on a
quarterly schedule. The copy submitted to the board shall contain
the signatures of each generator, each transporter, and the facility
operator. If approved by the board, in lieu of submitting a copy of
each manifest used, a facility operator may submit an electronic
report to the board meeting the requirements of Section 42814.

end delete begin delete

(2) Any waste and used tire hauler hauling waste or used tires
for offsite handling, altering, storage, disposal, or any combination
thereof, shall complete the California Uniform Waste and Used
Tire Manifest as required by the board. The waste and used tire
hauler shall provide the manifest to the waste or used tire facility
operator who receives the waste or used tires for handling, altering,
storage, disposal, or any combination thereof. Each waste and used
tire hauler shall submit to the board, on a quarterly schedule, a
legible copy of each manifest. The copy submitted to the board
shall contain the signatures of the generator and the facility
operator.

end delete begin insert

(3) A hauler shall provide the manifest, or otherwise provide
all required manifest information, to the generator of waste or
used tires or to the operator of a waste or used tire facility or other
destination at the time of transfer of the tires.

end insert begin insert

(4) The hauler shall submit a manifest to the department for
each load of waste or used tires transported within seven days of
the date of the pickup or delivery. The department may grant an
extension before the seventh day upon a showing of good cause
by the hauler.

end insert begin insert

(5) On and after January 1, 2018, the hauler shall submit only
an electronic manifest, and not a paper manifest, to the department
within seven days of the date of the pickup or delivery for each
load of waste or used tires transported.

end insert begin insert

(6) If approved by the department, a hauler may submit an
electronic manifest prior to January 1, 2018. The electronic
manifest shall include all information required to be on the
manifest and any other information required by the department.

end insert begin insert

(c) A person generating or accepting waste or used tires shall
verify that the information on the manifest is correct, including
the number of tires and other information specified by the
department, and shall sign the manifest. The person generating
or accepting waste or used tires shall maintain a copy of the
manifest and any other information required that the department
deems necessary to track the flow of waste and used tires through
the state.

end insert begin insert

(d) The department may require an electronic manifest submitted
by a hauler to the department to include verification from a hauler,
and a generator of waste or used tires, or the operator of a waste
or used tire facility or other destination, that the information on
the manifest is correct, including the number of tires and other
information specified by the department.

end insert

(e) The begin delete board end delete begin insert department end insert shall develop and implement a system
for auditing manifests submitted to the begin delete board end delete begin insert department end insert pursuant
to this section, for the purpose of enforcing this section. begin delete The board
or its agent shall continuously conduct random sampling and
matching of manifests submitted by any person generating waste
or used tires, hauling waste or used tires, or operating waste or
used tire facilities, to assure compliance with this section. end delete

begin delete

(f) (1) If approved by the board, any waste and used tire
generator, waste and used tire hauler, or operator of a waste tire
facility that is subject to the manifest requirements of this section,
may submit an electronic report to the board, in lieu of submitting
the copy of the manifest required. The electronic report shall
include all information required to be on the California Uniform
Waste and Used Tire Manifest, and any other information required
by the board.

end delete begin delete

(2) A waste and used tire generator, waste and used tire hauler,
or operator of a waste tire facility that is subject to paragraph (1)
may submit the electronic reports to the board on a quarterly
schedule.

end delete begin insert

(f) If the amount of waste or used tires recorded on a manifest
is by weight or volume, the department shall determine the number
of waste or used tires being transported by converting the weight
or volume into PTEs.

end insert begin insert

(g) The department may require a hauler to attend trainings
and demonstrate understanding and proficiency with the provisions
of this chapter, Chapter 16 (commencing with Section 42800),
Chapter 17 (commencing with Section 42860), and any rules,
regulations, or requirements issued or adopted pursuant to this
chapter, Chapter 16, or Chapter 17 prior to receiving a waste and
used tire hauler registration or a waste and used tire hauler
registration renewal.

end insert