First Substitute S.B. 207

Senator Fred J. Fife proposes the following substitute bill:

1 WASTE TIRE RECYCLING ACT REVISIONS
2 2007 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Fred J. Fife
5 House Sponsor: ____________
6
7 LONG TITLE
8 General Description:
9 This bill modifies provisions of the Waste Tire Recycling Act related to the relocation
10 of a tire recycling plant.
11 Highlighted Provisions:
12 This bill:
13 . increases the waste tire recycling fee from $1 to $1.25 through December 31, 2008;
14 . expands the purposes for which the Waste Tire Recycling Fund may be used to
15 include reimbursement of 50% of the costs incurred for the relocation of a waste tire
16 recycling plant until January 30, 2009;
17 . limits to 25 cents the amount of the waste tire recycling fee that can be used to
18 reimburse for costs incurred in relocating a tire recycling plant;
19 . provides qualifications for applicants for reimbursement of relocation costs;
20 . provides for the Division of Finance to pay approved relocation costs; and
21 . makes certain technical changes.
22 Monies Appropriated in this Bill:
23 None
24 Other Special Clauses:
25 This bill takes effect on July 1, 2007.

26 Utah Code Sections Affected:
27 AMENDS:
28 19-6-805, as last amended by Chapter 165, Laws of Utah 2001
29 19-6-807, as last amended by Chapter 148, Laws of Utah 2005
30 19-6-808, as last amended by Chapter 256, Laws of Utah 2002
31 19-6-815, as last amended by Chapter 256, Laws of Utah 2002
32 19-6-819, as last amended by Chapter 165, Laws of Utah 2001
33 19-6-820, as last amended by Chapter 165, Laws of Utah 2001
34 ENACTS:
35 19-6-807.5, Utah Code Annotated 1953
36 63-55b-119, Utah Code Annotated 1953
37
38 Be it enacted by the Legislature of the state of Utah:
39 Section 1. Section 19-6-805 is amended to read:
40 19-6-805. Recycling fee.
41 (1) (a) A recycling fee is imposed upon each purchase from a tire retailer of a new tire
42 by a consumer.
43 (b) The consumer shall pay the fee [shall be paid by the consumer] to the tire retailer at
44 the time the new tire is purchased.
45 [(b)] (c) The recycling fee does not apply to recapped or resold used tires.
46 (2) (a) The fee for each tire with a rim diameter up to and including 24.5 inches, single
47 or dual bead capacity is [$1] $1.25.
48 (b) Beginning January 1, 2009, the fee for each tire is $1.
49 Section 2. Section 19-6-807 is amended to read:
50 19-6-807. Special revenue fund -- Creation -- Deposits.
51 (1) There is created a restricted special revenue fund entitled the "Waste Tire Recycling
52 Fund."
53 (2) The fund shall consist of:
54 (a) the proceeds of the fee imposed under Section 19-6-805 ;
55 (b) penalties collected under this part; and
56 (c) assets transferred to and loan repayments deposited in the fund [pursuant to] under

57 Section 19-6-824 .
58 (3) (a) Money in the fund shall be used for:
59 [(a)] (i) partial reimbursement of the costs of transporting, processing, recycling, or
60 disposing of waste tires as provided in this part;
61 (ii) reimbursement of 50% of the costs incurred by a county or municipality in aiding
62 the relocation of a tire recycling plant;
63 [(b)] (iii) payment of administrative costs of local health departments as provided in
64 Section 19-6-817 ;
65 [(c)] (iv) payment of costs incurred by the Division of Finance in accounting for and
66 tracking outstanding loans made under the Waste Tire Recycling Industrial Assistance Loan
67 Program; and
68 [(d)] (v) payment of costs incurred by the Governor's Office of Economic Development
69 in collecting outstanding loans made under the Waste Tire Recycling Industrial Assistance
70 Loan Program.
71 (b) (i) No more than 25 cents of each $1.25 fee collected under Section 19-6-805 may
72 be used for reimbursements authorized under Subsection (3)(a)(ii).
73 (ii) Subsections (3)(a)(ii) and (b) are repealed effective January 30, 2009.
74 (4) The Legislature may appropriate money from the fund to pay for costs of the
75 Department of Environmental Quality in administering and enforcing this part.
76 Section 3. Section 19-6-807.5 is enacted to read:
77 19-6-807.5. Relocation of a recycling plant -- Payment for costs related to
78 relocation.
79 A county or municipality may apply to the executive secretary for reimbursement from
80 the fund for 50% of the costs incurred by the county or municipality in relocating a recycling
81 plant within the county or municipality subject to the following:
82 (1) submission of an application on a form prescribed by the executive secretary;
83 (2) documentation that the plant has been relocated from an area zoned for or adjacent
84 to residential property to an area zoned for business or industrial uses;
85 (3) sufficient money in that part of the Waste Tire Recycling Fund identified in
86 Subsection 19-6-807 (3)(b)(i) to pay 50% of the costs identified in the application, except that if
87 multiple applications are filed, the executive secretary, as approved by the board, shall direct

88 the Division of Finance to prorate the amount of all claims for reimbursement of costs; and
89 (4) documentation of the county's or municipality's costs in relocating the tire recycling
90 plant.
91 Section 4. Section 19-6-808 is amended to read:
92 19-6-808. Payment of recycling fee.
93 (1) The tire retailer shall pay the recycling fee [shall be paid by the tire retailer] to the
94 commission:
95 (a) on or before the last day of the month following the calendar quarter in which the
96 sale occurs for quarterly filers; and
97 (b) the last day of January following the end of the calendar year for annual filers.
98 (2) The payment shall be accompanied by the form prescribed by the commission.
99 (3) (a) The commission shall transfer the proceeds of the fee [shall be transferred by
100 the commission] to the fund for:
101 (i) payment of partial reimbursement[.]; and
102 (ii) payment of the reimbursement of 50% of the costs incurred by a county or
103 municipality in relocating a tire recycling plant.
104 (b) The commission may retain an amount not to exceed 2-1/2% of the recycling fee
105 collected under this part for the cost to it of rendering its services.
106 (4) (a) The commission shall administer, collect, and enforce the fee authorized under
107 this part pursuant to the same procedures used in the administration, collection, and
108 enforcement of the general state sales and use tax under Title 59, Chapter 12, Sales and Use
109 Tax Act, and the provisions of Title 59, Chapter 1, General Taxation Policies.
110 (b) The tire retailer may retain 2-1/2% of the recycling fee collected under this part for
111 the cost of collecting the fee.
112 [(b)] (c) The exemptions from the general state sales and use tax provided for in
113 Section 59-12-104 do not apply to this part.
114 (5) The fee imposed by this part is in addition to all other state, county, or municipal
115 fees and taxes imposed on the sale of new tires.
116 Section 5. Section 19-6-815 is amended to read:
117 19-6-815. Payment by Division of Finance.
118 (1) The Division of Finance is authorized to pay from the fund:

119 (A) the recycler partial reimbursements described in Section 19-6-809 [from the fund.];
120 and
121 (B) the county or municipality a reimbursement of 50% of the costs incurred by
122 relocating a tire recycling plant described in Section 19-6-807.5 .
123 (2) [The] (a) As related to Section 19-6-809 , the Division of Finance shall pay the
124 dollar amount of partial reimbursement approved by the local health department to the recycler
125 within the next payment period established by rule of the Division of Finance, after receipt of
126 the local health department's report and recommendation.
127 (b) The Division of Finance shall pay 50% of the relocation costs described in Section
128 19-6-807.5 approved by the executive secretary to the applicant within a payment period
129 established by division rule made in accordance with Title 63, Chapter 46a, Utah
130 Administrative Rulemaking Act.
131 Section 6. Section 19-6-819 is amended to read:
132 19-6-819. Powers and duties of the board.
133 (1) The board shall make rules under Title 63, Chapter 46a, Utah Administrative
134 Rulemaking Act, as necessary to administer this part. For these purposes the board shall
135 establish by rule:
136 (a) conditions and procedures for acting to issue or revoke a registration as a waste tire
137 recycler or transporter under Section 19-6-806 ;
138 (b) the amount of liability insurance or other financial responsibility the applicant is
139 required to have to qualify for registration under Section 19-6-806 , which amount may not be
140 more than $300,000 for any liability the waste tire transporter or recycler may incur in
141 recycling or transporting waste tires;
142 (c) the form and amount of financial assurance required for a site or facility used to
143 store waste tires, which amount shall be sufficient to ensure the cleanup or removal of waste
144 tires from that site or facility;
145 (d) standards and required documentation for tracking and record keeping of waste
146 tires subject to regulation under this part, including:
147 (i) manifests for handling and transferring waste tires;
148 (ii) records documenting date, quantities, and size or type of waste tires transported,
149 processed, transferred, or sold;

150 (iii) records documenting persons between whom transactions under this Subsection
151 (1)(d) occurred and the amounts of waste tires involved in those transactions; and
152 (iv) requiring that documentation under this Subsection (1)(d) be submitted on a
153 quarterly basis, and that this documentation be made available for public inspection;
154 (e) [authorize] authority for inspections and audits of waste tire recycling,
155 transportation, or storage facilities and operations subject to this part;
156 (f) standards for payments authorized under Sections 19-6-807.5 , 19-6-809 , 19-6-810 ,
157 19-6-811 , and 19-6-812 ;
158 (g) regarding applications to the executive secretary for reimbursements under
159 [Section] Sections 19-6-807.5 and 19-6-811 , the content of the reimbursement application form
160 and the procedure to apply for reimbursement;
161 (h) requirements for the storage of waste tires, including permits for storage;
162 (i) the types of energy recovery or other appropriate environmentally compatible uses
163 eligible for reimbursement, which:
164 (i) shall include pyrolization, but not retreading; and
165 (ii) shall apply to all waste tire recycling and beneficial use reimbursements within the
166 state;
167 (j) the applications of waste tires that are not eligible for reimbursement;
168 (k) the applications of waste tires that are considered to be the storage or disposal of
169 waste tires; and
170 (l) provisions governing the storage or disposal of waste tires, including the process for
171 issuing permits for waste tire storage sites.
172 (2) The board may:
173 (a) require retention and submission of the records required under this part;
174 (b) require audits of the records and record keeping procedures required under this part
175 and rules made under this part, except that audits of records regarding the fee imposed and
176 collected by the commission under Sections 19-6-805 and 19-6-808 are the responsibility of the
177 commission; and
178 (c) as necessary, make rules requiring additional information as the board determines
179 necessary to effectively administer Section 19-6-812 , which rules may not place an undue
180 burden on the operation of landfills.

181 Section 7. Section 19-6-820 is amended to read:
182 19-6-820. Powers and duties of the executive secretary.
183 (1) The executive secretary shall:
184 (a) administer and enforce the rules and orders of the board;
185 (b) issue and revoke registrations for waste tire recyclers and transporters; and
186 (c) require forms, analyses, documents, maps, and other records as the executive
187 secretary finds necessary to:
188 (i) issue recycler and transporter registrations;
189 (ii) authorize reimbursements under [Section ] Sections 19-6-807.5 and 19-6-811 ;
190 (iii) inspect a site, facility, or activity regulated under this part; and
191 (iv) issue permits for and inspect waste tire storage sites.
192 (2) The executive secretary may:
193 (a) authorize any division employee to enter any site or facility regulated under this
194 part at reasonable times and upon presentation of credentials, for the purpose of inspection,
195 audit, or sampling:
196 (i) at the site or facility; or
197 (ii) of the records, operations, or products;
198 (b) as authorized by the board, enforce board rules by issuing orders which are
199 subsequently subject to the board's amendment or revocation; and
200 (c) coordinate with federal, state, and local governments, and other agencies, including
201 entering into memoranda of understanding, to:
202 (i) ensure effective regulation of waste tires under this part;
203 (ii) minimize duplication of regulation; and
204 (iii) encourage responsible recycling of waste tires.
205 Section 8. Section 63-55b-119 is enacted to read:
206 63-55b-119. Repeal dates - Title 19.
207 Subsections 19-6-807 (3)(a)(ii) and (b) are repealed January 30, 2009.
208 Section 9. Effective date.
209 This bill takes effect on July 1, 2007.