Waste Tire Management Enterprise

The act creates the waste tire management enterprise (enterprise) in the department of public health and environment (department). Under current law, when a consumer buys new tires, the retailer charges the consumer a waste tire fee that is then collected by the department and distributed into 2 separate cash funds: The waste tire administration, enforcement, market development, and cleanup fund; and The end users fund. The act amends the fee collection and distribution system used under current law by establishing 2 different fees that will be collected and deposited into 3 separate funds. The waste tire enterprise fee (enterprise fee) is collected by the enterprise, and the revenues from that fee are deposited into the waste tire management enterprise fund and the end users fund. The waste tire management enterprise fund is used to cover the costs of operating the enterprise. The end users fund is used to fund the end-user rebate program. The enterprise fee amount is set by the enterprise and capped at $2.50 per tire, adjusted for inflation. The department is responsible for collecting the waste tire administration fee (administration fee), and the revenue from that fee is deposited into the waste tire administration fund. The administration fee amount is set by the department and is at minimum $0.50 cents per tire, but must not exceed half of the amount of the enterprise fee. The waste tire administration fund is used by the department for conducting regulatory and administrative functions of the department, such as: Inspecting new motor vehicle tire and new trailer tire retailers; Coordinating with law enforcement, fire departments, and citizens to ensure the enforcement of rules related to the waste tire management; Reimbursing certain departments that may assist the department; Inspecting waste tire collection facilities, waste tire processors, and waste tire monofills; Training and providing grants to various entities involved in waste tire management; and Registering and regulating waste tire haulers, waste tire generators, used tire managers, waste tire collection facilities, waste tire processors, mobile processors, waste tire monofills, and end users. Both the enterprise fee and the administration fee are charged by retailers of new motor vehicles and new trailer tires at the point of sale. The enterprise's primary powers and duties are: Collecting the enterprise fee; Managing the waste tire management enterprise fund and the end users fund; Issuing rebates to end users; Issuing revenue bonds; Developing waste tire recycling, beneficial reuse, and management strategies and contracting with public or private entities for services related to the waste tire recycling, beneficial reuse, and management strategies; Administering the waste tire management grant program; and Preparing and submitting an annual financial report to the general assembly. The enterprise is operated by a board of directors appointed by the executive director of the department. The act extends the end user rebate program that exists under current law until December 31, 2041. The act extends the operation of a waste tire monofill for 10 years, until July 1, 2034. The enterprise administers the waste tire management grant program that is funded by the enterprise fee to provide economic and technical assistance to eligible entities related to the recycling, beneficial reuse, and management of waste tires. Eligible entities may be awarded grants for the purchase of equipment or infrastructure, staffing at waste tire facilities, marketing and communications, policy and research development, and community engagement projects. For the 2024-25 state fiscal year, the act appropriates $60,208 to the department from the waste tire administration, enforcement, market development, and cleanup fund. The act appropriates $51,208 to the department of law from the money appropriated to the department. APPROVED by Governor June 6, 2024 PORTIONS EFFECTIVE June 6, 2024 PORTIONS EFFECTIVE July 1, 2025(Note: This summary applies to this bill as enacted.)