85R4833 SLB-D     By: Walle H.B. No. 3744       A BILL TO BE ENTITLED   AN ACT   relating to the regulation of the retention, storage,   transportation, and disposal 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.          SECTION 2.  Section 361.112, Health and Safety Code, is   amended by adding Subsection (n) 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 secure manner that locks the tires during nonbusiness   hours.          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.  DISPOSITION OF TIRE REMOVED FROM VEHICLE   DURING PURCHASE OF TIRE. (a) In this section:                (1)  "Scrap tire" has the meaning assigned by Section   361.112.                (2)  "Seller" 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)  "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)  has been inspected visually and 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 seller.          (c)  A seller 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 only if the   customer certifies on a form prescribed by the commission that the   customer assumes liability for the disposal of the tire.          (e)  A seller shall maintain in a manner accessible to local   law enforcement agencies and the commission a record of a   customer's retention of a used tire until at least the third   anniversary of the date the tire was removed.          (f)  The commission shall develop the form described by   Subsection (d) and make that form available on the commission's   Internet website.          (g)  A seller may contract for the transportation of used or   scrap tires only with a transporter or tire processor 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 seller who contracts for the transportation of used or   scrap tires with a transporter the seller 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.          (j)  The attorney general or the appropriate district or   county attorney may bring an action against a person under this   section in the name of the state in a district court in the county in   which:                (1)  the person resides; or                (2)  the person's principal place of business is   located.          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 person transporting five or fewer used or scrap   tires; and                (7)  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 letter of credit obtained by a transporter to meet the   requirements of Subsections (d) and (e) must be used for the cleanup   of abandoned tire storage sites.          (g)  The commission shall require a transporter 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.  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.          (h)  A transporter who fails to submit an annual report under   Subsection (g) 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 on the first anniversary of the   date of issuance.  The commission may adopt rules for issuing   duplicate and multiple insignia.          (j)  A county by order may require a transporter to register   with the county. Registration requirements adopted under this   subsection must be compatible with and not less stringent than   rules adopted by the commission under this section.          SECTION 4.  Subchapter E, Chapter 7, Water Code, is amended   by adding Section 7.1855 to read as follows:          Sec. 7.1855.  VIOLATIONS RELATING TO USED OR SCRAP TIRES.   (a) A person commits an offense if the person recklessly violates   Section 361.1121, Health and Safety Code. An offense under this   subsection is punishable for an individual under Section   7.187(a)(1)(B) or 7.187(a)(2)(D) or both. An offense under this   subsection is punishable for a person other than an individual   under Section 7.187(a)(1)(C).          (b)  A person commits an offense if the person intentionally   or knowingly violates Section 361.1121, Health and Safety Code. An   offense under this subsection is punishable for an individual under   Section 7.187(a)(1)(C) or Section 7.187(a)(2)(E) or both.  An   offense under this subsection 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.