1     
TIRE FEE AMENDMENTS

2     
2015 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Rebecca Chavez-Houck

5     
Senate Sponsor: ____________

6     

7     LONG TITLE
8     General Description:
9          This bill modifies the Waste Tire Act and creates a restricted account to fund clean air
10     programs.
11     Highlighted Provisions:
12          This bill:
13          ▸     creates the "Funding Clean Air Programs Restricted Account";
14          ▸     increases the tire recycling fee;
15          ▸     directs the Utah State Tax Commission to deposit a portion of the tire recycling fee
16     in the Funding Clean Air Programs Restricted Account; and
17          ▸     makes technical changes.
18     Money Appropriated in this Bill:
19          None
20     Other Special Clauses:
21          This bill provides a special effective date.
22          This bill provides a coordination clause.
23     Utah Code Sections Affected:
24     AMENDS:
25          19-6-805, as last amended by Laws of Utah 2001, Chapter 165
26          19-6-807, as last amended by Laws of Utah 2013, Chapter 400
27          19-6-808, as last amended by Laws of Utah 2011, Chapter 309

28     ENACTS:
29          19-2-301, Utah Code Annotated 1953
30          19-2-302, Utah Code Annotated 1953
31          19-2-303, Utah Code Annotated 1953
32     Utah Code Sections Affected by Coordination Clause:
33          19-2-302, Utah Code Annotated 1953
34          19-2-303, Utah Code Annotated 1953
35     

36     Be it enacted by the Legislature of the state of Utah:
37          Section 1. Section 19-2-301 is enacted to read:
38     
Part 3. Funding Clean Air Programs

39          19-2-301. Title.
40          This part is known as "Funding Clean Air Programs."
41          Section 2. Section 19-2-302 is enacted to read:
42          19-2-302. Restricted Account created.
43          (1) There is created a restricted account in the General Fund known as the "Funding
44     Clean Air Programs Restricted Account."
45          (2) The restricted account shall consist of:
46          (a) the proceeds described in Subsection 19-6-808(3)(b); and
47          (b) interest earned on the account.
48          (3) The division may expend money in the restricted account on programs described in
49     Title 19, Chapter 2, Part 2, Clean Air Retrofit, Replacement, and Off-Road Technology
50     Program.
51          Section 3. Section 19-2-303 is enacted to read:
52          19-2-303. Reporting requirement.
53          The division shall report to the Natural Resources, Agriculture, and Environment
54     Interim Committee on the status of expenditures authorized by Section 19-2-302 by November
55     30, 2016.
56          Section 4. Section 19-6-805 is amended to read:
57          19-6-805. Recycling fee.
58          (1) (a) A recycling fee is imposed upon each purchase from a tire retailer of a new tire

59     by a consumer. The fee shall be paid by the consumer to the tire retailer at the time the new
60     tire is purchased.
61          (b) The recycling fee does not apply to recapped or resold used tires.
62          (2) The fee for each tire with a rim diameter up to and including 24.5 inches, single or
63     dual bead capacity is [$1] $3.50.
64          Section 5. Section 19-6-807 is amended to read:
65          19-6-807. Special revenue fund -- Creation -- Deposits.
66          (1) There is created an expendable special revenue fund entitled the "Waste Tire
67     Recycling Fund."
68          (2) The fund shall consist of:
69          (a) [the proceeds] 29% of the proceeds of the fee imposed under Section 19-6-805; and
70          (b) penalties collected under this part.
71          (3) Money in the fund shall be used for:
72          (a) partial reimbursement of the costs of transporting, processing, recycling, or
73     disposing of waste tires as provided in this part; and
74          (b) payment of administrative costs of local health departments as provided in Section
75     19-6-817.
76          (4) The Legislature may appropriate money from the fund to pay for costs of the
77     Department of Environmental Quality in administering and enforcing this part.
78          Section 6. Section 19-6-808 is amended to read:
79          19-6-808. Payment of recycling fee -- Administrative charge.
80          (1) A tire retailer shall pay the recycling fee to the commission:
81          (a) monthly on or before the last day of the month immediately following the last day
82     of the previous month if:
83          (i) the tire retailer is required to file a sales and use tax return with the commission
84     monthly under Section 59-12-108; or
85          (ii) the tire retailer is not required to file a sales and use tax return under Title 59,
86     Chapter 12, Sales and Use Tax Act; or
87          (b) quarterly on or before the last day of the month immediately following the last day
88     of the previous quarter if the tire retailer is required to file a sales and use tax return with the
89     commission quarterly under Section 59-12-108.

90          (2) The payment shall be accompanied by a form prescribed by the commission.
91          (3) (a) [The] Twenty-nine percent of the proceeds of the fee shall be transferred by the
92     commission to the fund for payment of partial reimbursement.
93          (b) Seventy-one percent of the proceeds of the fee shall be transferred by the
94     commission to the restricted account created in Section 19-2-302.
95          [(b)] (c) The commission shall retain and deposit an administrative charge in
96     accordance with Section 59-1-306 from the revenues the commission collects from a fee under
97     Section 19-6-805.
98          (4) (a) The commission shall administer, collect, and enforce the fee authorized under
99     this part in accordance with the same procedures used in the administration, collection, and
100     enforcement of the state sales and use tax under Title 59, Chapter 12, Sales and Use Tax Act,
101     and Title 59, Chapter 1, General Taxation Policies.
102          (b) A tire retailer may retain 2-1/2% of the recycling fee collected under this part for
103     the cost of collecting the fee.
104          (c) The exemptions provided in Section 59-12-104 do not apply to this part.
105          (5) The fee imposed by this part is in addition to all other state, county, or municipal
106     fees and taxes imposed on the sale of new tires.
107          Section 7. Effective date.
108          This bill takes effect on July 1, 2015.
109          Section 8. Coordinating H.B. 265 with H.B. 49 -- Technical and substantive
110     amendments.
111          If this H.B. 265 and H.B. 49, Clean Fuel School Buses and Infrastructure, both pass and
112     become law, it is the intent of the Legislature that the Office of Legislative Research and
113     General Counsel shall prepare the Utah Code database for publication by:
114          (1) amending Subsection 19-2-302(3) of this bill to read:
115          "(3) (a) The division may expend up to 1/3 of the money, per fiscal quarter, in the
116     restricted account on programs described in Title 19, Chapter 2, Part 2, Clean Air Retrofit,
117     Replacement, and Off-Road Technology Program.
118          (b) The State Board of Education may expend up to 2/3 of the money, per fiscal
119     quarter, in the restricted account to fund the grant program described in Section
120     53A-17a-127.5."; and

121          (2) amending Section 19-2-303 of this bill to read:
122          "(1) The division shall report to the Natural Resources, Agriculture, and Environment
123     Interim Committee on the status of expenditures authorized by Section 19-2-302 by November
124     30, 2016.
125          (2) The State Board of Education shall report the Education Interim Committee on the
126     status of the expenditures authorized by Section 19-2-302 by November 30, 2016."






Legislative Review Note
     as of 2-5-15 10:28 AM


Office of Legislative Research and General Counsel