Amended in Senate June 15, 2016

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 Sections 42885, 42889, and 42961.5 of, begin insert to add Section 42872.2 to, end insert 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 that is a retail seller of new tires to end user purchasers to pay a California tire regulatory fee and to remit that fee to the state on a quarterly schedule for deposit begin delete in a separate account end delete in the California Tire Recycling Management Fund. begin insert The bill would require the department to track revenue from the California tire regulatory fee separately and would prohibit those funds from being used for activities other than those specified. 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 activities, adjudications, manifesting, registration, and other regulatory activities regarding waste tires, but that does not exceed begin delete one dollar ($1.00) end delete begin insert $1 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.

The bill would require the department, begin delete on or before August 1, 2017, and no more frequently than biennially thereafter, end delete begin insert prior to establishing the California tire regulatory fee or making any adjustment to the fee, end insert 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 begin delete authorize end delete begin insert require end insert the department to adopt begin delete emergency end delete regulations to implement the begin insert initial end insert California tire regulatory begin delete fee. end delete begin insert fee, and would authorize the department to adopt regulations to adjust the California tire regulatory fee, as specified. end insert

begin insert

(2) Existing law prohibits the California tire fee from being imposed on a tire sold with, or sold separately for use on, a self-propelled wheelchair, a motorized tricycle or motorized quadricycle, or a vehicle that is similar to a motorized tricycle or motorized quadricycle, as specified.

end insert begin insert

This bill would prohibit the California tire regulatory fee from being imposed on those same vehicles.

end insert begin delete

(2)

end delete

begin insert (3) end insert  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 specified law, to establish this incentive program to make payments to entities that purchase waste tires for incorporation in a product for sale to end users, as specified. The bill 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, would require the department to annually allocate, of the amount appropriated to the department from California tire fee revenues for purposes of the waste tire program, no less than $20,000,000 for the tire recycling incentive 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.

begin insert

(4) Existing law declares the intent of the Legislature to reduce the landfill disposal and stockpiling of used whole tires by 25 percent within four years of full implementation of a statewide tire recycling program and to recycle and reclaim used tires and used tire components to the greatest extent possible in order to recover valuable natural resources.

end insert begin insert

This bill would declare that it is the policy goal of the state that not less than 75 percent of solid waste tires generated be source reduced or recycled in the state by the year 2020.

end insert begin delete

(3)

end delete

begin insert (5) end insert  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.

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.

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 Section 42872, the department shall
establish a tire recycling incentive program that makes payments
to eligible entities.

(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.

(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.

(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.

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

(1) Cities, counties, and other local governmental agencies,
including school districts.

(2) State and local governmental agencies, including regional
park districts.

(3) Private companies and persons.

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

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

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

(C) Products used in 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.

(D) Poured in place and tile playground mats.

(E) Landscape nuggets and mulch.

(F) Walkways and pathways.

(G) Running tracks.

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

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

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

(K) Paint and coatings.

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

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

(A)  begin delete Tire derived end delete begin insert Tire-derived end insert fuel.

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

(C) Exports.

(D) Synthetic turf infill.

(E) Loose rubber nugget or mulch playgrounds.

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

(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.

(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.

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

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

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

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

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

begin insert

(iv) The policy goal established pursuant to Section 42872.2.

end 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.

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

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

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

(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.

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 42872.2 is added to the end insert begin insert Public Resources Code end insert begin insert ,
to read: end insert

begin insert

begin insert 42872.2. end insert   

The Legislature hereby declares that it is the policy
goal of the state that not less than 75 percent of solid waste tires
generated be source reduced, or recycled in the state, by the year
2020.

end insert

begin delete SEC. 3. end delete

begin insert SEC. 4. end insert   

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 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
activities, adjudications, manifesting, registration, and other
regulatory activities regarding waste tires, but that amount shall
not exceed one dollar ($1) 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 begin delete in a separate account end delete in the
California Tire Recycling Management Fund. begin insert The revenue from
the California tire regulatory fee shall be tracked separately by
the department and shall not be used for activities other than those
described in paragraph (1). end insert

(3)  begin delete On or before August 1, 2017, and no more frequently than
biennially thereafter, end delete begin insert Prior to establishing the California tire
regulatory fee or making any adjustment to the fee, end insert 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 begin delete account end delete begin insert California Tire Recycling
Management Fund end insert 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, begin delete and end delete Chapter 16 (commencing with begin delete section 42800) end delete begin insert Section
42800), end insert and Chapter 19 (commencing with Section 42950),
provided that the fee begin delete does end delete begin insert shall end insert not exceed one dollar begin delete ($1.00) end delete begin insert ($1) end insert
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:

(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.

(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 begin delete in the following fiscal year end delete to reduce the
California tire regulatory fee.

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

begin insert fee. end insert

begin delete

(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 delete begin insert

(B) The department may adopt regulations to adjust the
California tire regulatory fee. These regulations shall be deemed
to meet the description in subdivision (g) of Section 11340.9 of the
Government Code and may be filed by the department pursuant
to Section 11343.8 of the Government Code.

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 begin insert and the California tire regulatory fee end insert
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.

begin delete SEC. 4. end delete

begin insert SEC. 5. end insert   

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) A 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 activities, adjudications, manifesting,
registration, and other regulatory activities regarding waste tires,
but that amount shall not exceed one dollar ($1) 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 begin delete in a separate account end delete in the
California Tire Recycling Management Fund. begin insert The revenue from
the California tire regulatory fee shall be tracked separately by
the department and shall not be used for activities other than those
described in paragraph (1). end insert

(3)  begin delete On or before August 1, 2024, and no more frequently than
biennially thereafter, end delete begin insert Prior to establishing the California tire
regulatory fee or making any adjustment to the fee, end insert 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 begin delete account end delete begin insert California Tire Recycling
Management Fund end insert to fund begin insert the end insert 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 begin delete section 42800) end delete begin insert Section
42800), end insert and Chapter 19 (commencing with Section 42950),
provided that the fee shall not exceed one dollar begin delete ($1.00) end delete begin insert ($1) end insert 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:

(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.

(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 begin delete in the following fiscal year end delete to reduce the
California tire regulatory fee.

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

begin insert fee. end insert

begin delete

(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 delete begin insert

(B) The department may adopt regulations to adjust the
California tire regulatory fee. These regulations shall be deemed
to meet the description in subdivision (g) of Section 11340.9 of the
Government Code and may be filed by the department pursuant
to Section 11343.8 of the Government Code.

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 begin insert and the California tire regulatory fee end insert
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 become operative on January 1, 2024.

begin delete SEC. 5. end delete

begin insert SEC. 6. end insert   

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

42889.  

(a) Of the moneys collected pursuant to subdivision
(b) of 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 subdivision (b) of Section
42885 is imposed.

(b) The remaining moneys collected pursuant to subdivision (b)
of Section 42885 shall be used to fund the waste tire program and
the Tire Recycling Incentive Program, pursuant to Section 42872.1,
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
purposes, to the extent they are not lawfully payable from funds
allocated pursuant to subdivision (c) of Section 42885:

(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 delete SEC. 6. end delete

begin insert SEC. 7. end insert   

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

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 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:

(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 delete SEC. 7. end delete

begin insert SEC. 8. end insert   

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

42961.5.  

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

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

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

begin delete

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

end delete begin delete

(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 delete begin delete

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

end delete begin delete

(4)

end delete

begin insert (3) end insert  “Waste and used tire hauler” or “hauler” means any person
required to be registered with the department pursuant to
subdivision (a) of Section 42951.

begin insert

(b) For purposes of this section, “Passenger Tire Equivalent”
or “PTE” means either of the following:

end insert begin insert

(1) 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

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

end insert begin delete

(b)

end delete

begin insert (c) end insert  (1) A hauler transporting waste or used tires for offsite
handling, altering, storage, or disposal, or for any combination
thereof, shall complete a manifest.

(2) A hauler shall have the manifest in his or her possession
while transporting waste or used tires. The manifest shall be shown
upon demand to any representative of the department, any officer
of the begin insert Department of the end insert California Highway Patrol, or any peace
officer, as defined in Section 830.1 or 830.2 of the Penal Code.

(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.

(4)  begin delete The end delete begin insert Notwithstanding the Uniform Electronic Transactions
Act (Title 2.5 (commencing with Section 1633.1) of Part 2 of
Division 3 of the Civil Code), the end insert 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.

(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.

(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.

begin delete

(c)  A

end delete

begin insert (d) end insert begin insert   end insert begin insert The authorized representative for the end insert 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.

begin delete

(d)

end delete

begin insert (e) end insert  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.

begin delete

(e)

end delete

begin insert (f) end insert  The department shall develop and implement a system for
auditing manifests submitted to the department pursuant to this
section, for the purpose of enforcing this section.

begin delete

(f)

end delete

begin insert (g) end insert  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.

begin delete

(g)

end delete

begin insert (h) end insert  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.