Amended in Senate June 23, 2016

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, 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 begin delete require end delete begin insert require, until January 1, 2024, end insert 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 the California Tire Recycling Management Fund. begin insert The bill would authorize a retail seller to retain 1 end insert begin insert 1⁄2 end insert begin insert % of the California tire regulatory fee as reimbursement for any costs associated with the administration and remittance of the fee. end 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. begin insert The bill would require the department to identify the specific programs that the California tire regulatory fee would 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 activities, adjudications, manifesting, registration, and other regulatory activities regarding waste tires, but that does not exceed $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, 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 require the department to adopt regulations to implement the initial California tire regulatory 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.

(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 begin delete tires end delete begin insert tire material end insert 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 begin delete California generated end delete begin insert California-generated end insert waste begin delete tires end delete begin insert tire material end insert processed in California and sold begin delete a waste end delete begin insert an incentive-eligible end insert tire product incorporating begin delete those waste tires end delete begin insert that material end insert 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 begin delete 25 percent end delete begin insert 25% end insert 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 begin delete 75 percent end delete begin insert 75% end insert of solid waste tires generated be source reduced or recycled in the state by the year 2020. begin insert The bill would require the department, if that policy goal is met for 3 consecutive years, to review existing tire recycling programs and make recommendations, as specified. end insert

(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
begin delete waste end delete begin insert incentive-eligible end insert tire products manufactured from begin delete California
generated end delete begin insert California-generated end insert waste begin delete tires end delete begin insert tire material end insert that
begin delete promote end delete begin insert promotes the recycling of, end insert the reduction of the disposal
of, begin delete the recycling of, end delete or the prevention of illegal dumping of,
begin delete California generated end delete begin insert California-generated end insert waste begin delete tires. end delete begin insert tire material. end insert

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

(e) For purposes of this section, “eligible entity” includes, but
is not limited to, a manufacturer that produces a product begin delete using
California generated end delete begin insert incorporating California-generated end insert waste
begin delete tires end delete begin insert tire material end insert 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, begin delete “waste end delete begin insert “incentive-eligible end insert
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 begin delete or end delete begin insert as a substitute for end insert 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)  begin delete “Waste end delete begin insert “Incentive-eligible end insert tire product” does not include
any of the following:

(A) Tire-derived fuel.

(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.

(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 begin delete California generated end delete begin insert California-generated end insert 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 begin delete waste end delete begin insert incentive-eligible end insert
tire products begin delete of recipients end delete to effectively compete with nonrecycled
alternatives.

(iii) The existing and potential markets for the applicable begin delete waste end delete
begin insert incentive-eligible end insert tire product.

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

begin insert

(v) The market segments for waste tires.

end insert begin insert

(vi) The pricing structures necessary to increase the use of
incentive-eligible tire products by market segment, including
pricing structures necessary to achieve the goal established
pursuant to 42872.2.

end insert begin insert

(D) The department shall conduct a waste tire market evaluation
to inform the development of the tiers and shall discuss the findings
at the public workshop required pursuant to paragraph (1).

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 begin delete plan. end delete begin insert plan following the operative date of this paragraph. end insert
Existing nongrant market development activities shall continue
for activities described in the five-year plan.

(i)  begin delete The end delete begin insert As part of the biennial update of the five-year plan
required pursuant to Section 42885.5, the end insert department shall evaluate
the tire recycling incentive program established pursuant to
subdivision (b) in a public forum and propose changes accordingly.

begin insert The evaluation shall include, but is not limited to, the following
elements: end insert

begin insert

(1) The recycling rate of California-generated waste tire
material, including waste tire material recycled through funding
pursuant to the Tire Recycling Incentive Program, and, to the
extent the information is available, an estimate of the recycling
rate of waste tire material recycled by other state and local
agencies and the private sector.

end insert begin insert

(2) The amount of California-generated waste tire material
entering each market segment.

end insert begin insert

(3) The amount of waste tire material recycled through
expenditures authorized by this chapter.

end insert

(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

(l) Nothing in this section is intended to limit the use of waste
tire products that are not incentive-eligible tire products.

end insert

SEC. 3.  

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

42872.2.  

begin insert (a) end insert begin insert   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.

begin insert

(b) If the state meets the policy goal in subdivision (a) for three
consecutive years, the department shall, as part of the five-year
plan required pursuant to Section 42885.5, review existing tire
recycling programs and make recommendations as to which
policies are necessary to maintain and increase the level of waste
tire recycling.

end insert

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 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) 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 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), and Chapter 19
(commencing with Section 42950), provided that the fee shall not
exceed one dollar ($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 begin delete account end delete begin insert California Tire
Recycling Management Fund end insert for the department to administer,
enforce, and promote the regulatory aspects of the program
established pursuant to these chapters, plus a prudent reserve.

begin insert

(B) Whether additional revenue is necessary to preserve the
department’s ability to conduct regulatory activities in the
following fiscal year.

end insert begin delete

(B)

end delete

begin insert (C) end insert  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 to reduce the California tire regulatory fee.

(4) (A) The department shall adopt regulations to establish the
California tire regulatory fee.

(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.

begin insert

(C) The retail seller may retain 11⁄2 percent of the California
tire regulatory fee as reimbursement for any costs associated with
the administration and remittance of the fee.

end insert begin insert

(5) The department shall identify the specific programs to be
funded by the California tire regulatory fee.

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 begin delete not to end delete begin insert the amount of that reimbursement
shall not end insert 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.

begin delete

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 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) 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 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), and Chapter 19
(commencing with Section 42950), provided that the fee shall not
exceed one dollar ($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 to reduce the California tire regulatory fee.

(4) (A) The department shall adopt regulations to establish the
California tire regulatory fee.

(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.

end delete

begin delete SEC. 6. end delete

begin insert SEC. 5. 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 begin delete (c) end delete begin insert (d) end insert 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. 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.

end delete

begin delete SEC. 8. end delete

begin insert SEC. 6. 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.

(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.

(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) 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.

(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.

(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.

(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.

(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.

(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.