By: Rodríguez, et al.  S.B. No. 570          (In the Senate - Filed January 20, 2017; February 8, 2017,   read first time and referred to Committee on Natural Resources &   Economic Development; March 23, 2017, reported adversely, with   favorable Committee Substitute by the following vote:  Yeas 7,   Nays 3; March 23, 2017, sent to printer.)Click here to see the committee vote     COMMITTEE SUBSTITUTE FOR S.B. No. 570 By:  Rodríguez     A BILL TO BE ENTITLED   AN ACT     relating to the regulation of the retention, storage,   transportation, disposal, processing, and reuse of used or scrap   tires; providing a civil penalty; creating a criminal offense.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  The heading to Section 361.112, Health and   Safety Code, is amended to read as follows:          Sec. 361.112.  STORAGE[, TRANSPORTATION,] AND DISPOSAL OF   USED OR SCRAP TIRES; CERTAIN REUSE OF SCRAP TIRES.          SECTION 2.  Section 361.112, Health and Safety Code, is   amended by adding Subsections (n) and (o) to read as follows:          (n)  A used or scrap tire generator, including a tire dealer,   junkyard, or fleet operator, who stores used or scrap tires   outdoors on its business premises shall store the used or scrap   tires in a locked, secured, or contained manner that protects the   tires from theft.          (o)  The commission shall adopt rules to require a person who   uses more than 1,000 used or scrap tires in a construction project   to obtain approval from the commission before the use of the tires   in the project. In evaluating a project for approval under rules   adopted under this section, the commission shall consider potential   effects on human health and the environment.          SECTION 3.  Subchapter C, Chapter 361, Health and Safety   Code, is amended by adding Sections 361.1121 and 361.1122 to read as   follows:          Sec. 361.1121.  USED OR SCRAP TIRE GENERATORS. (a)  In this   section:                (1)  "Generator" means a fleet operator, an automotive   dismantler, a tire recapper or retreader, or a retailer,   wholesaler, or manufacturer of whole new or used tires. The term   does not include a scrap tire energy recovery facility or a scrap   tire recycling facility.                (2)  "Retailer" means a person who is engaged in the   business of selling or otherwise placing tires in the stream of   commerce for use on a vehicle, trailer, or piece of equipment.                (3)  "Scrap tire" has the meaning assigned by Section   361.112. The term does not include a tire:                      (A)  in or on a vehicle, including a vehicle that   has been crushed; or                      (B)  that is mounted on a metal wheel that is   intended to be recycled.                (4)  "Used tire" means a tire that:                      (A)  has been used as a tire on a vehicle, trailer,   or piece of equipment;                      (B)  has tire tread at least one-sixteenth inch   deep;                      (C)  can still be used for its original intended   purpose; and                      (D)  meets the visual and tread depth requirements   for used tires established by the Department of Public Safety.          (b)  A customer may not retain a scrap tire removed from the   customer's vehicle during the purchase of a tire from a retailer.          (c)  A retailer who takes possession of a scrap tire from a   customer during a transaction described by Subsection (b) shall   store or dispose of the scrap tire according to local and state   laws, including Section 361.112.          (d)  A customer may retain a used tire removed from the   customer's vehicle during the purchase of a tire.          (e)  A retailer shall post a sign in a location readily   visible to the customer that specifies the requirements for the   disposal of scrap and used tires.          (f)  The commission shall develop the language and   specifications for the sign described by Subsection (e) and make   the language and specifications available on the commission's   Internet website.          (g)  A generator may contract for the transportation of used   or scrap tires only with a transporter who:                (1)  is registered as described by Section 361.1122(b);   and                (2)  has filed evidence of financial assurance   according to Sections 361.1122(d) and (e).          (h)  A generator who contracts for the transportation of used   or scrap tires with a transporter the generator knows to be   unregistered is:                (1)  jointly and severally liable for any civil penalty   imposed on the transporter under Subchapter D, Chapter 7, Water   Code, for the illegal disposal of the tires; and                (2)  criminally responsible, under Chapter 7, Penal   Code, for an offense involving the tires under Section 365.012 of   this code committed by the transporter.          (i)  Notwithstanding Sections 7.102 and 7.103, Water Code,   the amount of a civil penalty for a violation of this section may   not be less than $1,000 a day for each violation.  A separate   penalty may be imposed for each day a violation occurs.          Sec. 361.1122.  USED OR SCRAP TIRE TRANSPORTERS AND CERTAIN   TIRE PROCESSORS. (a)  In this section:                (1)  "Scrap tire" and "used tire" have the meanings   assigned by Section 361.1121.                (2)  "Transporter" means a person who collects used or   scrap tires from another person for the purpose of removal to a used   tire dealer, scrap tire processor, end user, or disposal facility.          (b)  Except as provided by Subsection (c), a person shall   register annually with the commission if the person is:                (1)  a transporter; or                (2)  a tire processor that is not required to register   as a storage site under Section 361.112.          (c)  The following persons are not required to register under   this section:                (1)  a person who ships used or defective tires back to   the manufacturer or the manufacturer's representative for   adjustment, provided that the person retains, until the third   anniversary of the shipment date, written records of the shipments   indicating the date of shipment, the destination, and the number of   tires in each shipment and makes those records available to the   commission on request;                (2)  an on-site sewage facility installer who is   registered with the commission and who transports used or scrap   tires or tire pieces for construction of an on-site sewage disposal   system, provided that the installer complies with the commission's   manifest and recordkeeping requirements;                (3)  a retreader who hauls tires from customers for the   purpose of retreading the tires or who returns tires to customers   after retreading or recapping, provided that the retreader does not   haul tires to an authorized facility for used or scrap tire   collection;                (4)  a person who owns or operates a truck for municipal   solid waste collection or commercial route collection and handles   incidental loads of used or scrap tires or tire pieces as part of   normal household or commercial collection activities;                (5)  a municipality, county, or other governmental   entity that owns or operates a transport vehicle used to transport   used or scrap tires to an authorized facility or to a facility used   by a governmental entity to collect used or scrap tires, provided   that each load of used or scrap tires is manifested as required by   the commission;                (6)  a generator, as that term is defined in Section   361.1121, transporting the generator's used or scrap tires:                      (A)  between business locations owned or   controlled by the generator; or                      (B)  to a facility authorized by the commission to   receive used or scrap tires;                (7)  a person transporting five or fewer used or scrap   tires; and                (8)  a person exempt from registration requirements   under commission rules.          (d)  A transporter or tire processor who is required to   register with the commission shall provide financial assurance by   filing with the commission:                (1)  a surety bond obtained from a surety company   authorized to transact business in this state;                (2)  evidence of an established trust account; or                (3)  an irrevocable letter of credit.          (e)  The bond, trust account, or irrevocable letter of credit   described by Subsection (d) must be in favor of the state and:                (1)  for a transporter, in an amount of $25,000 or more;   and                (2)  for a tire processor, in an amount adequate to   ensure proper cleanup and closure of the site.          (f)  Money that the commission receives from a bond, trust   account, or irrevocable letter of credit obtained by a transporter   to meet the requirements of Subsections (d) and (e) must be used for   the cleanup of unauthorized tire sites where the transporter has   delivered tires.          (g)  The commission shall require a transporter and a   generator who transports used or scrap tires to maintain records   and use a manifest or other appropriate system to assure that tires   are transported to a storage site that is registered or to a site or   facility authorized by the commission.          (h)  The commission shall require a transporter to submit to   the commission in an electronic format an annual report on the   records maintained by the transporter under this subsection. A   transporter who fails to submit an annual report under this   subsection is not eligible to renew the transporter's registration.          (i)  The commission shall annually issue a registration   insignia to each transporter. The transporter shall display the   insignia on each vehicle used to transport tires under the   registration. The insignia expires annually on a date specified by   the commission. The commission may adopt rules for issuing   duplicate and multiple insignia.          SECTION 4.  Subchapter E, Chapter 7, Water Code, is amended   by adding Sections 7.1855 and 7.1856 to read as follows:          Sec. 7.1855.  RECKLESS VIOLATIONS RELATING TO USED OR SCRAP   TIRES. (a)  A person commits an offense if the person recklessly   violates:                (1)  Section 361.112, 361.1121, or 361.1122, Health and   Safety Code; or                (2)  a rule adopted under or the terms of an order,   permit, or exception granted or issued under Chapter 361, Health   and Safety Code, relating to used or scrap tires.          (b)  An offense under this section is punishable for an   individual under Section 7.187(a)(1)(B) or 7.187(a)(2)(D) or both.          (c)  An offense under this section is punishable for a person   other than an individual under Section 7.187(a)(1)(C).          Sec. 7.1856.  INTENTIONAL OR KNOWING VIOLATIONS RELATING TO   USED OR SCRAP TIRES.  (a)  A person commits an offense if the person   intentionally or knowingly violates:                (1)  Section 361.112, 361.1121, or 361.1122, Health and   Safety Code; or                (2)  a rule adopted under or the terms of an order,   permit, or exception granted or issued under Chapter 361, Health   and Safety Code, relating to used or scrap tires.          (b)  An offense under this section is punishable for an   individual under Section 7.187(a)(1)(C) or Section 7.187(a)(2)(E)   or both.          (c)  An offense under this section is punishable for a person   other than an individual under Section 7.187(a)(1)(D).          SECTION 5.  Section 7.303(a), Water Code, is amended to read   as follows:          (a)  This section applies to a license, certificate, or   registration issued:                (1)  by the commission under:                      (A)  Section 26.0301;                      (B)  Chapter 37;                      (C)  Section 361.0861, 361.092, [or] 361.112, or   361.1122, Health and Safety Code;                      (D)  Chapter 366, 371, or 401, Health and Safety   Code; or                      (E)  Chapter 1903, Occupations Code;                (2)  by a county under Subchapter E, Chapter 361,   Health and Safety Code; or                (3)  under a rule adopted under any of those   provisions.          SECTION 6.  Sections 361.112(g) and (k), Health and Safety   Code, are repealed.          SECTION 7.  Not later than March 1, 2018, the Texas   Commission on Environmental Quality shall adopt rules necessary to   implement the changes in law made by this Act.          SECTION 8.  Notwithstanding Section 361.1122, Health and   Safety Code, as added by this Act, a person is not required to   register under that section until September 1, 2018.          SECTION 9.  This Act takes effect September 1, 2017.     * * * * *