BILL NUMBER: AB 1239	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 15, 2016
	AMENDED IN SENATE  JUNE 2, 2016
	AMENDED IN ASSEMBLY  MAY 5, 2015
	AMENDED IN ASSEMBLY  APRIL 21, 2015

INTRODUCED BY   Assembly Members Gordon and Atkins

                        FEBRUARY 27, 2015

   An act to amend Sections 42885, 42889, and 42961.5 of,  to add
Section 42872.2 to,  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  in a separate account  in the
California Tire Recycling Management Fund.  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.  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 
one dollar ($1.00)  $1  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,  on or before
August 1, 2017, and no more frequently than biennially thereafter,
  prior to establishing the California tire regulatory
fee or making any adjustment to the fee,  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   require  the department to
adopt  emergency  regulations to implement the 
initial  California tire regulatory  fee.  
fee, and would authorize the department to adopt regulations to
adjust the California tire regulatory fee, as specified.  
   (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.  
   This bill would prohibit the California tire regulatory fee from
being imposed on those same vehicles.  
   (2) 
    (3)  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. 
   (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.  
   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. 

   (3) 
    (5)  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)  Tire derived   Tire-derived  fuel.
   (B) Alternative daily cover, intermediate cover, erosion, or other
landfill uses, except  tire derived  
tire-derived  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. 
   (iv) The policy goal established pursuant to Section 42872.2.

   (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.
   SEC. 3.    Section 42872.2 is added to the  
Public Resources Code   , to read:  
   42872.2.  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. 
   SEC. 3.   SEC. 4.   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  in a separate
account  in the California Tire Recycling Management Fund.
 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). 
   (3)  On or before August 1, 2017, and no more frequently
than biennially thereafter,   Prior to establishing the
California   tire regulatory fee or making any adjustment to
the fee,  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   California Tire Recycling Management Fund
 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)   Section 42800),  and Chapter 19
(commencing with Section 42950), provided that the fee  does
  shall  not exceed one dollar  ($1.00)
  ($1)  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  in the following fiscal year
 to reduce the California tire regulatory fee.
   (4) (A) The department  may   shall 
adopt regulations to  implement   establish
 the California tire regulatory  fee, including
adjustments pursuant to paragraph (3), as emergency regulations.
  fee.  
   (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.  
   (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. 
   (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  and the California tire
regulatory 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.   SEC. 5.   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  in a separate
account  in the California Tire Recycling Management Fund.
 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). 
   (3)  On or before August 1, 2024, and no more frequently
than biennially thereafter,   Prior to establishing the
California tire regulatory fee or making any adjustment to the fee,
 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
  California Tire Recycling Management Fund  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, Chapter 16 (commencing with  section 42800)
  Section 42800),  and Chapter 19 (commencing with
Section 42950), provided that the fee shall not exceed one dollar
 ($1.00)   ($1)  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  in the following fiscal year
 to reduce the California tire regulatory fee.
   (4) (A) The department  may   shall 
adopt regulations to  implement   establish
 the California tire regulatory  fee, including
adjustments pursuant to paragraph (3), as emergency regulations.
  fee.  
   (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.  
   (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. 
   (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  and the California tire
regulatory 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 become operative on January 1, 2024.
   SEC. 5.   SEC. 6.   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.
   SEC. 6.   SEC. 7.   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.
   SEC. 7.   SEC. 8.   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. 
   (3) "Passenger Tire Equivalent" or "PTE" means either of the
following:  
   (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.
 
   (B) A unit of measurement, such that 10 PTEs equals one cubic yard
of waste or used tires.  
   (4) 
    (3) "Waste and used tire hauler" or "hauler" means any
person required to be registered with the department pursuant to
subdivision (a) of Section 42951. 
   (b) For purposes of this section, "Passenger Tire Equivalent" or
"PTE" means either of the following:  
   (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. 

   (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.
 
   (b) 
    (c)  (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  Department of the  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)  The   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
 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. 
   (c)  A 
    (d)     The authorized representative for
the  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. 
   (d) 
    (e)  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. 
   (e) 
    (f)  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. 
   (f) 
    (g)  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. 
   (g) 
    (h)  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.