Stricken language would be deleted from and underlined language would be added to present law. *JMB636* 04/03/2025 8:44:54 AM JMB636 State of Arkansas 1 95th General Assembly A Bill 2 Regular Session, 2025 HOUSE BILL 1982 3 4 By: Representative Wooldridge 5 By: Senator B. Davis 6 7 For An Act To Be Entitled 8 AN ACT TO AMEND THE USED TIRE RECYCLING AND 9 ACCOUNTABILITY ACT; TO CREATE THE TIRE MANAGEMENT AND 10 RECYCLING ACT; TO REPEAL THE USED TIRE RECYCLING 11 FUND; TO CREATE THE WASTE TIRE ABATEMENT FUND; AND 12 FOR OTHER PURPOSES. 13 14 15 Subtitle 16 TO AMEND THE USED TIRE RECYCLING AND 17 ACCOUNTABILITY ACT; TO CREATE THE TIRE 18 MANAGEMENT AND RECYCLING ACT; TO REPEAL 19 THE USED TIRE RECYCLING FUND; AND TO 20 CREATE THE WASTE TIRE ABATEMENT FUND. 21 22 23 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 24 25 SECTION 1. Arkansas Code Title 8, Chapter 9, Subchapter 4 is amended 26 to read as follows: 27 Subchapter 4 — Used Tire Recycling and Accountability Act Tire Management and 28 Recycling Act 29 30 8-9-401. Title — Legislative intent — Findings. 31 (a) This subchapter shall be known and may be cited as the “Used Tire 32 Recycling and Accountability Act” "Tire Management and Recycling Act" . 33 (b) The purpose of this subchapter is to: 34 (1) Protect the public health and the state's environmental 35 quality by setting and implementing standards to be followed in the hauling, 36 HB1982 2 04/03/2025 8:44:54 AM JMB636 collection, storage, and recycling or disposal of recyclable tires, waste 1 tires, and used tires culled for resale; and 2 (2) Provide accountability and sustainability for used tire 3 programs by requiring use of the electronic uniform used tire manifest system 4 developed by the Division of Environmental Quality and business plans for 5 used tire programs; 6 (3) Equalize the application of fees for all tires removed from 7 rims; and 8 (4) Ensure that reimbursements for used tire programs are 9 related to the overall used tire program goals . 10 (c) The General Assembly finds that: 11 (1) If not properly managed, used tires pose a potential threat 12 to human health and safety and the environment because used tires: 13 (A) Are a known breeding habitat for mosquitoes and other 14 disease-transmitting vectors; and 15 (B) Pose substantial fire hazards; 16 (2) The state must have a used tire program for recyclable 17 tires, waste tires, and used tires culled for resale that is accountable, 18 effective, and efficient; and 19 (3) The primary goal of the used tire program this subchapter is 20 to recycle or put to beneficial use as many used tires as possible. 21 22 8-9-402. Definitions. 23 As used in this subchapter: 24 (1)(A) “Abatement” means proper removal of tires from a waste 25 tire site or from a tire retailer who can show the waste tire district failed 26 to pick up or remove tires from the location of the tire retailer in a 27 reasonable time frame to a permitted tire processor, to a site authorized by 28 the Division of Environmental Quality, or for use in a beneficial use 29 project. 30 (B) Abated tires are not abandoned or discarded; 31 (2) “Beneficial use” means using a tire or part of a tire: 32 (A) To make another product; 33 (B) To make a component material of another product; 34 (C) As a substitute for a commercial product or material; 35 or 36 HB1982 3 04/03/2025 8:44:54 AM JMB636 (D) As a component to produce an alternative fuel for 1 commercial purposes; 2 (E) For civil engineering purposes; or 3 (F) For lightweight aggregate fill; 4 (2)(A) “Commercial generator” means a person who sells new tires 5 or provides delivery of new tires as part of fleet services to any one (1) or 6 more of the following: 7 (i) A municipality; 8 (ii) A county; 9 (iii) A state agency; 10 (iv) A federal agency; 11 (v) A school district; 12 (vi) A political subdivision of the state; or 13 (vii) A person who in the ordinary course of 14 business buys tires in bulk for use on commercial vehicles. 15 (B) “Commercial generator” does not include a tire 16 retailer; 17 (3) “Electronic uniform used tire manifest system” means an 18 administrative method developed by the Division of Environmental Quality 19 under § 8-9-407 that: 20 (A) Primarily uses an electronic application for the 21 submission and management of information related to the generation, 22 collection, transportation, distribution, and recycling, disposal, or resale 23 of each recyclable tire, waste tire, and used tire culled for resale 24 regulated under this subchapter; 25 (B) Secondarily may allow submission of used tire data 26 that is manifested using an equivalent paper documentation; and 27 (C) Records the origin, date of collection, date of 28 transfer, quantity, type, transporter, and destination for each recyclable 29 tire, waste tire, and used tire culled for resale regulated under this 30 subchapter; 31 (4)(A) “Extra-large tire” means a tire that, due to its size or 32 construction, is more difficult to process for recycling or disposal than a 33 large tire and costs substantially more to process than a large tire. 34 (B) “Extra-large tire” includes without limitation a tire 35 used, capable of being used, or designed to be used on any of the following 36 HB1982 4 04/03/2025 8:44:54 AM JMB636 vehicles or equipment: 1 (i) A skid steer loader; 2 (ii) Excavation equipment; 3 (iii) A farm implement, including without limitation 4 a tractor; 5 (iv) A backhoe; 6 (v) A road grader; 7 (vi) Industrial equipment; 8 (vii) A skidder; or 9 (viii) A heavy duty truck used off -road for mining. 10 (C) “Extra-large tire” includes without limitation a wide -11 base tire or extra-wide single tire; 12 (5) “Inter-district used tire program” means a program formed by 13 agreement of two (2) or more regional solid waste management boards to pool 14 resources of all regional solid waste management boards that are parties to 15 the agreement for the administration of one (1) consolidated used tire 16 program; 17 (6) “Large tire” means a tire with a load rating of “F” or 18 higher; 19 (7) “Load rating” means the system of trade designations that 20 identifies the weight -carrying capacity range of a tire; 21 (8)(A)(3)(A) “Operator” means a person who performs a function 22 that: 23 (i) Requires individual judgment; and 24 (ii) May directly affect the proper operation at one 25 (1) or more of the following: 26 (a) A tire collection center; 27 (b) A tire processing facility; 28 (c) A tire generator facility; or 29 (d) A waste tire monofill. 30 (B) “Operator” includes a person who performs a function 31 at a waste tire site. 32 (C) “Operator” does not include a person who exclusively 33 exercises general administrative supervision; 34 (9)(4) “Owner” means a person who holds legal title to property 35 where a tire collection center, tire processing facility, tire generator 36 HB1982 5 04/03/2025 8:44:54 AM JMB636 facility, waste tire monofill, waste tire site, or other waste tire facility 1 exists; 2 (10)(5) “Person” means an individual, government entity, or any 3 other entity that is recognized by law with rights and duties; 4 (11) “Qualified entity” means an entity that demonstrates to the 5 division that the entity has the capability, experience, and resources to 6 operate and administer a used tire program in compliance with this 7 subchapter; 8 (12) “Recyclable tire” means a worn, damaged, or defective tire 9 that is recycled because it is no longer repairable, reusable, or suitable 10 for its original intended purpose; 11 (6) “Proceeds from tire retailer fees” means all moneys 12 collected and received by the Department of Finance and Administration under 13 this subchapter for tire retailer fees imposed under this subchapter and 14 interest and penalties on delinquent tire retailer fees; 15 (13)(7) “Recycle” means the systematic process of collecting, 16 sorting, decontaminating, and returning waste materials to commerce as 17 commodities for use, other beneficial use, or exchange; 18 (14)(A) “Small tire” means a tire that has a load rating lower 19 than “F”. 20 (B) “Small tire” includes a tire from any of the following 21 vehicles: 22 (i) An automobile; 23 (ii) A motorcycle; or 24 (iii) An all-terrain vehicle; 25 (15)(A)(8)(A) “Tire” means any one (1) or more of the following: 26 (i) A continuous, ring -shaped, removable cover made 27 of solid rubber, pneumatic rubber, or semipneumatic rubber that is installed 28 around a wheel rim; or 29 (ii) Any other round piece of equipment that is 30 attached or could be attached to a vehicle , tractor, or aircraft and has a 31 primary function of enabling surface mobility. 32 (B) “Tire” does not include a solid wheel rim with an 33 integral rubber covering or a tire used on a nonmotorized bicycle, golf cart, 34 or lawn mower; 35 (16)(9) “Tire collection center” means a site where tires are 36 HB1982 6 04/03/2025 8:44:54 AM JMB636 collected from tire generators, tire transporters, or the public before being 1 recycled or disposed of by a used tire program ; 2 (17)(A)(10)(A) “Tire generator” means a person who: 3 (i) Removes tires from rims for disposal or resale; 4 or 5 (ii) Stores used tires on or in property owned, 6 leased, or otherwise controlled by that person ; 7 (iii) Sells new tires; or 8 (iv) Provides delivery of new tires as part of fleet 9 services. 10 (B) “Tire generator” includes without limitation: 11 (i) A tire retailer; 12 (ii) A tire wholesaler; 13 (iii) A tire transporter; 14 (iv) A tire manufacturer; 15 (v) A manufacturer of retreaded tires; 16 (vi) A new car dealer; 17 (vii) A used car dealer; 18 (viii) An auto repair shop; or 19 (ix) A salvage yard . 20 (C) “Tire generator” does not include a commercial 21 generator; 22 (18)(11) “Tire manufacturer” means a manufacturing operation 23 engaged in the final assembly of the basic components of a tire; 24 (19)(12) “Tire processing facility” means a site where equipment 25 is used to cut, chip, grind, or otherwise alter used tires; 26 (20)(A)(13)(A) “Tire retailer” means any one (1) or more of the 27 following: 28 (i) A person who is in the business of selling new 29 tires, used tires, or both new tires and used tires to the end consumer; or 30 (ii) A person who is in the business of or receives 31 compensation for removing tires from rims. 32 (B) “Tire retailer” does not include a person who sells 33 tires to another person exclusively for the purpose of resale if the 34 subsequent retail sale is subject to the fee fees imposed under § 8-9-404 or 35 a commercial generator ; 36 HB1982 7 04/03/2025 8:44:54 AM JMB636 (21)(14) “Tire transporter” means a person who is in the 1 business of or receives compensation for transferring used tires from one (1) 2 location to another location for collection, storage, processing, recycling, 3 disposal, reuse, or resale; 4 (15) “Uniform used tire manifest system” means an administrative 5 method developed by the division under § 8 -9-407 that: 6 (A) For the management of information related to the 7 generation, collection, transportation, distribution, and recycling, 8 disposal, or resale of each recyclable tire, waste tire, and used tire culled 9 for resale regulated under this subchapter; and 10 (B) Records the origin, date of collection, date of 11 transfer, quantity, type, transporter, and destination for each recyclable 12 tire, waste tire, and used tire culled for resale regulated under this 13 subchapter; 14 (22)(A)(16)(A) “Used tire” means a tire that meets one (1) or 15 more of the following criteria: 16 (i) Is repairable or retreadable for its original 17 intended purpose; 18 (ii) Is reusable; 19 (iii) Is recyclable; or 20 (iv) Has been collected by a tire retailer or at a 21 tire collection center operated under this subchapter. 22 (B) “Used tire” includes without limitation a recyclable 23 tire, waste tire, and used tire culled for resale. 24 (C) “Used tire” does not include a tire being held for 25 ninety (90) days or less for the purpose of retreading or repairing the tire; 26 (23)(17) “Used tire culled for resale” means a tire that is 27 removed from the rim but is diverted from a tire collection center, tire 28 processing facility, or tire transporter with the intention of selling for 29 reuse; 30 (24) “Used tire program” means a program that receives funding 31 under this subchapter and is operated by: 32 (A) A regional solid waste management board; or 33 (B) An inter-district used tire program; 34 (25)(18) “Vehicle” means any piece of equipment that uses wheels 35 for surface mobility; 36 HB1982 8 04/03/2025 8:44:54 AM JMB636 (26)(19) “Waste tire” means a worn, damaged, or defective tire , 1 or a tire remnant destined for disposal that is land disposed because it is 2 no longer repairable, reusable, or suitable for its original intended 3 purpose; 4 (27)(A)(20)(A) “Waste tire site” means a location where 5 unpermitted used tires are accumulated, whether loosely stored, compacted and 6 baled, or a combination of both loosely stored and compacted and baled. 7 (B) “Waste tire site” does not include: 8 (i) A location where only new tires are stored; or 9 (ii) A location that is authorized to store tires by 10 the division or rules promulgated by the Arkansas Pollution Control and 11 Ecology Commission; and 12 (28)(21) “Waste tires originating from a tire manufacturer” 13 means those new tires that originate from a tire assembly process and are 14 determined by the tire manufacturer to be either defective or unfit for use 15 on a vehicle; and 16 (29) “Wide-base tire” or “extra -wide single tire” means a tire 17 approximately four hundred fifty -five millimeters (455 mm) wide that is used 18 on a vehicle in which the front axle load exceeds the load capacity of a 19 truck tire. 20 21 8-9-403. Operation of waste tire sites — Requirements and prohibited 22 activities. 23 (a)(1) The owner or operator of any waste tire site shall provide the 24 Division of Environmental Quality and the applicable regional solid waste 25 management district with: 26 (A) Information concerning the waste tire site's location 27 and size and the approximate number of tires that are accumulated at the 28 waste tire site; and 29 (B) A written plan specifying a method and time schedule, 30 subject to approval by the division, for the removal, disposal, or recycling 31 of the tires. 32 (2) The owner or operator shall implement a written plan 33 approved by the division according to the written plan's schedule. 34 (b) A person shall not cause or permit the open burning of tires in 35 the state. 36 HB1982 9 04/03/2025 8:44:54 AM JMB636 (c)(1) A person shall not maintain a waste tire site. 1 (2) It is illegal for any person to dispose of tires or portions 2 of tires in the state unless the tires or portions of tires are disposed of 3 for processing or collected for processing at a permitted tire processing 4 facility, a tire collection center, or a permitted solid waste disposal 5 facility. 6 (3)(A) Unless otherwise provided by law or rule, whole tires 7 shall not be deposited into a landfill or a waste tire monofill as a method 8 of final disposal unless shredded or split into sufficiently small parts to 9 assure their proper disposal. 10 (B) Unless otherwise provided by law or rule, only small 11 tires that have been processed by cutting, shredding, or splitting into 12 sufficiently small parts to assure proper disposal or small tires processed 13 by baling may be disposed of at a disposal site that has a permit issued for 14 a landfill designed and operated as a waste tire monofill. 15 (C) Suitable processed-tire materials may be used in the 16 construction of daily and intermediate cover systems for all landfills if the 17 use is: 18 (i) Authorized by the division; 19 (ii) Shown to not present a threat to human health 20 and the environment; and 21 (iii) Shown to control disease, vectors, fires, 22 odors, blowing litter, or scavenging. 23 (4) A person who leases, owns, or otherwise controls real 24 property may use tires in compliance with procedures approved by and rules 25 promulgated by the Arkansas Pollution Control and Ecology Commission and 26 procedures approved by each district: 27 (A) For soil erosion abatement and drainage purposes; or 28 (B) To secure covers over silage, hay, straw, or 29 agricultural products. 30 (d) A tire processing facility permit or tire collection center 31 permit, or both, is required for: 32 (1) A tire retreading business where tires are kept on any real 33 property owned, leased, or otherwise controlled by the tire retreading 34 business; 35 (2) A person that in the ordinary course of business removes 36 HB1982 10 04/03/2025 8:44:54 AM JMB636 tires from rims and the tires removed from rims are stored for more than 1 ninety (90) calendar days on any real property owned, leased, or otherwise 2 controlled by the person; or 3 (3) A tire retailer that is serving as a tire collection center 4 if recyclable tires, waste tires, or used tires culled for resale are kept on 5 any real property owned, leased, or otherwise controlled by the tire 6 retailer. 7 (e)(1) If disposed or recycled in the state, waste tires originating 8 from a tire manufacturer shall be disposed of at transported to a permitted 9 tire collection center or disposed of at a permitted tire processing facility 10 for a fee to be established by the permitted tire collection center or 11 permitted tire processing facility. 12 (2) Records of the disposition of the waste tires originating 13 from a tire manufacturer shall be maintained by that tire manufacturer for a 14 period of at least three (3) years and shall be available for review by the 15 division. 16 17 8-9-404. Rim removal fees — Import fees — Commercial generator Tire 18 retailer fees — Definitions. 19 (a)(1) There is imposed a rim removal fee upon the transaction of 20 removing a tire from a rim that is related to the sale of a replacement tire 21 by a tire retailer. 22 (2) The rim removal fee shall be charged by the tire retailer to 23 a person who: 24 (A) Purchases a replacement tire for a rim that 25 necessitates the removal of a different tire from the same rim; or 26 (B) Purchases the service of removal of a tire from a rim 27 and replacement with a tire that was not purchased from the tire retailer if 28 the person requesting the rim removal cannot show proof of payment of the rim 29 removal fee under this section for the replacement tire. 30 (3)(A) The rim removal fee shall be imposed at the rate of three 31 dollars ($3.00) for each new tire that replaces a tire removed from a rim and 32 one dollar ($1.00) for each used tire that replaces the tire removed from the 33 rim. 34 (B) Except for the rim removal fees imposed under this 35 section, a tire retailer shall not charge any other fee to a person who 36 HB1982 11 04/03/2025 8:44:54 AM JMB636 purchases the service of removal of a tire from a rim. 1 (C) For any tires collected by a tire retailer, the tire 2 retailer shall ensure that the tires are transported by a licensed tire 3 transporter to a permitted tire collection center, a solid waste management 4 facility, a tire processing facility, or another tire retailer. 5 (D) The tire retailer shall account for each tire removed 6 from a rim in the manner prescribed by the Department of Finance and 7 Administration. 8 (E) Each tire retailer shall register with the department 9 and comply with all requirements related to collecting and reporting rim 10 removal fees. 11 (4) The rim removal fees imposed under this section shall be 12 added to the total cost charged by the tire retailer to the purchaser after 13 all applicable gross receipts or compensating use taxes on the tires have 14 been computed and shall be separately stated on the invoice or bill of sale. 15 (5)(A) The rim removal fees imposed under this section shall be 16 paid monthly to the Secretary of the Department of Finance and 17 Administration. 18 (B) However, the tire retailer may retain five percent 19 (5%) of the rim removal fee imposed under subdivision (a)(3)(A) of this 20 section for administrative costs. 21 (6)(A) The rim removal fees remitted under subdivision (a)(5)(A) 22 of this section shall be collected by the secretary and shall be subject to 23 the Arkansas Tax Procedure Act, § 26 -18-101 et seq. and the business closure 24 procedures under § 26 -18-1001 et seq. 25 (B)(i) Each tire retailer shall file a return with the 26 secretary on or before the twentieth of each month. 27 (ii) The return shall show the total rim removal 28 fees collected for each tire removed from the rim during the preceding 29 calendar month. 30 (iii) The tire retailer shall remit the rim removal 31 fees with the return. 32 (iv) The secretary shall prescribe the form and 33 contents of the return. 34 (b)(1) The department shall deposit the proceeds from rim removal fees 35 collected under subsection (a) of this section into the State Treasury as 36 HB1982 12 04/03/2025 8:44:54 AM JMB636 special revenues to the credit of the following funds in the following 1 percentages: 2 (A) Ninety-three percent (93%) to be deposited into the 3 Used Tire Recycling Fund; and 4 (B) Seven percent (7%) to be deposited into the Division 5 of Environmental Quality Fee Trust Fund. 6 (2) As used in this section, “proceeds from rim removal fees” 7 means all moneys collected and received by the department under this section 8 for rim removal fees imposed under subsection (a) of this section and 9 interest and penalties on delinquent rim removal fees. 10 (c)(1)(A) There is imposed an import fee of one dollar ($1.00) on each 11 used tire that is imported into Arkansas. 12 (B) A person who imports a used tire shall be registered 13 with the department and comply with all requirements related to collecting 14 and reporting import fees. 15 (2) The import fee imposed under this subsection shall be paid 16 by the person who imports the used tire to the department in accordance with 17 the Arkansas Tax Procedure Act, § 26 -18-101 et seq., the business closure 18 procedures under § 26 -18-1001 et seq., and any rules promulgated by the 19 department. 20 (3)(A) The department shall deposit the proceeds from import 21 fees imposed under this subsection into the State Treasury as special 22 revenues to the credit of the following funds in the following percentages: 23 (i) Ninety-three percent (93%) to be deposited into 24 the Used Tire Recycling Fund; and 25 (ii) Seven percent (7%) to be deposited into the 26 Division of Environmental Quality Fee Trust Fund. 27 (B) As used in this section, “proceeds from import fees” 28 means all moneys collected and received by the department under this 29 subsection and interest and penalties on delinquent import fees. 30 (a)(1) A person who imports a used tire into this state shall be 31 responsible for legally hauling and disposing of or recycling the waste tires 32 and residuals. 33 (2) A tire retailer may collect and charge a fee for the cost of 34 legally hauling and disposing of or recycling the waste tires and residuals. 35 (d)(1)(b)(1) There is imposed a commercial generator tire retailer fee 36 HB1982 13 04/03/2025 8:44:54 AM JMB636 upon the transaction of a commercial generator tire retailer selling or 1 delivering a new tire as part of fleet services . 2 (2) The commercial generator tire retailer fee shall be charged 3 by the commercial generator tire retailer to a person who in the ordinary 4 course of business is an end user that removes used tires from the rim and 5 replaces them with of a new tire. 6 (3)(A) The commercial generator tire retailer fee shall be 7 imposed at the rate of three dollars ($3.00) one dollar and fifty cents 8 ($1.50) for each new tire that is sold or delivered to an end user that 9 removes used tires from the rim and replaces them with a new tire . 10 (B) Except for the commercial generator fees imposed under 11 this section, the commercial generator shall not charge any other fee to the 12 end user. 13 (C)(i)(B)(i) For any used tires collected by a commercial 14 generator tire retailer, the first transportation of the used tire from the 15 end user to the commercial generator's tire retailer's facility does not 16 require a licensed tire transporter. 17 (ii) Any subsequent transportation of the used tire 18 by the commercial generator tire retailer for recycling or disposal requires 19 a licensed tire transporter and shall be accounted for using the electronic 20 uniform used tire manifest system . 21 (D)(C) Each commercial generator tire retailer shall 22 register with the department Department of Finance and Administration and 23 comply with all requirements related to collecting and reporting commercial 24 generator tire retailer fees. 25 (4) The commercial generator tire retailer fees imposed under 26 this section shall be added to the total cost charged by the commercial 27 generator tire retailer to the end user after all applicable gross receipts 28 or compensating use taxes on the tires have been computed and shall be 29 separately stated on the invoice or bill of sale. 30 (5)(A) The commercial generator tire retailer fees imposed under 31 this section shall be paid monthly to the secretary department. 32 (B) However, the commercial generator tire retailer may 33 retain five percent (5%) two percent (2%) of the commercial generator tire 34 retailer fee imposed under subdivision (d)(3)(A) (b)(3)(A) of this section 35 for administrative costs. 36 HB1982 14 04/03/2025 8:44:54 AM JMB636 (6)(A) The commercial generator tire retailer fees remitted in 1 subdivision (d)(5)(A) (b)(5)(A) of this section shall be collected by the 2 secretary department and shall be subject to the Arkansas Tax Procedure Act, 3 § 26-18-101 et seq., and the business closure procedures under § 26 -18-1001 4 et seq. 5 (B)(i)(a) Each commercial generator tire retailer shall 6 file a return with the secretary department on or before the twentieth of 7 each month. 8 (b) The return shall show the total commercial 9 generator tire retailer fees collected for each tire sold or delivered to the 10 end user during the preceding calendar month. 11 (c) The commercial generator tire retailer 12 shall remit the commercial generator tire retailer fees with the return. 13 (ii) The secretary department shall prescribe the 14 form and contents of the return. 15 (7)(A) The department shall deposit the proceeds from commercial 16 generator tire retailer fees collected under this subsection into the State 17 Treasury as special revenues to the credit of the following funds in the 18 following percentages: 19 (A) Ninety-three percent (93%) to be deposited into the 20 Used Tire Recycling Fund; and 21 (B) Seven percent (7%) to be deposited into the Division 22 of Environmental Quality Fee Trust Fund Waste Tire Abatement Fund . 23 (B) No more than five hundred thousand ($500,000) 24 annually, with an annual escalator not to exceed two percent (2%), shall be 25 transferred to the Division of Environmental Quality Fee Trust Fund to be 26 used for administration expenses. 27 (8) As used in this section, “proceeds from commercial generator 28 fees” means all moneys collected and received by the department under this 29 section for commercial generator fees imposed under this subsection and 30 interest and penalties on delinquent commercial generator fees. 31 (e)(1) It is the purpose and intent of this section that only one (1) 32 of the following fees imposed under this section be charged for the 33 transaction of removing a tire from a rim that is related to the sale of a 34 replacement tire: 35 (A) The rim removal fee; or 36 HB1982 15 04/03/2025 8:44:54 AM JMB636 (B) The commercial generator fee. 1 (2) If a person establishes that he or she has paid one (1) of 2 the fees for a tire, the tire retailer or tire generator shall not charge an 3 additional fee for that tire. 4 (c)(1) If the balance of the Waste Tire Abatement Fund exceeds five 5 million dollars ($5,000,000), the Arkansas Pollution Control and Ecology 6 Commission may reduce the tire retailer fee up to fifty percent (50%). 7 (2) A decision to reduce the tire retailer fee under subdivision 8 (c)(1) of this section is effective for the fiscal year following the 9 commission’s decision. 10 (d)(1) If the Division of Environmental Quality is unable to locate 11 the person that is responsible for the waste tire site or compel the person 12 responsible for the waste tire site to remove the waste tires, the division 13 may use Waste Tire Abatement Fund moneys for the abatement of the waste tires 14 or offer a waste tire abatement grant to: 15 (A) A regional solid waste management district; 16 (B) A city; 17 (C) A county; 18 (D) A tire retailer that can prove that the waste tire 19 district failed to pick up or remove tires from the location of the tire 20 retailer in a reasonable time frame; or 21 (E) A planning and development district. 22 (2) If a waste tire abatement grant is awarded to a person 23 described in subdivision (d)(1) of this section, the person shall provide 24 manifests demonstrating ultimate disposal or recycling in conformity with § 25 8-9-403(c)(1). 26 (3) The division may deny an application for reimbursement of 27 waste tire site removal and delivery costs if the division determines that 28 the cost would result in insufficient moneys in the Waste Tire Abatement 29 Fund. 30 31 8-9-405. Used tire program reimbursements. 32 (a) The Division of Environmental Quality shall establish the Used 33 Tire Recycling and Accountability Program to: 34 (1) Reimburse used tire programs for used tire recycling and 35 disposal costs; 36 HB1982 16 04/03/2025 8:44:54 AM JMB636 (2) Incentivize recycling used tires collected under this 1 subchapter; 2 (3) Provide accountability for the disbursement of moneys to 3 used tire programs; and 4 (4) Otherwise improve the sustainability of used tire programs. 5 (b) To be eligible for reimbursements under this subchapter, a used 6 tire program shall: 7 (1) Be included in the solid waste management system under § 8 -8 9-101 et seq. for each regional solid waste management district that the used 9 tire program serves; 10 (2) Have a used tire management plan for each regional solid 11 waste management district that the used tire program serves to include 12 without limitation a schedule for identification and cleanup of waste tire 13 sites that is updated until abatement of each identified waste tire site is 14 completed; 15 (3) Be included in each regional solid waste management 16 district's recycling program under § 8 -9-203 that the used tire program 17 serves; 18 (4) If operated by a political subdivision of the state or other 19 public entity: 20 (A) Use the financial management system under § 14 -21-101 21 et seq.; 22 (B) Comply with the county purchasing procedures under § 23 14-22-101 et seq.; 24 (C) Comply with the Arkansas County Accounting Law of 25 1973, § 14-25-101 et seq.; and 26 (D) Comply with the Local Fiscal Management Responsibility 27 Act, § 14-77-101 et seq.; 28 (5) Be operated in compliance with this subchapter and all other 29 laws and rules related to the administration of solid waste management 30 systems and recycling programs in Arkansas; 31 (6) Encourage the voluntary establishment of tire collection 32 centers at tire retailers, tire processing facilities, and solid waste 33 disposal facilities for the deposit of tires generated in the state; 34 (7) Provide the division with business plan information required 35 under § 8-9-408; 36 HB1982 17 04/03/2025 8:44:54 AM JMB636 (8) Provide the division with all quarterly financial 1 information and progress reports related to § 8 -9-409; 2 (9)(A) Establish tire collection centers within each county 3 served by the used tire program that accepts tires from tire retailers at no 4 charge if the tire retailer establishes that it: 5 (i) Collects the rim removal fee imposed under § 8 -6 9-404(a); and 7 (ii) Complies with the electronic uniform used tire 8 manifest system under § 8 -9-407. 9 (B) The tire collection centers under this subdivision 10 (b)(9) may be at any one (1) or more of the following: 11 (i) A solid waste disposal facility; 12 (ii) A tire processing facility; or 13 (iii) A tire retailer; and 14 (10) Establish at least one (1) tire collection center within 15 each county served by the used tire program. 16 (c) A used tire program that receives reimbursements under this 17 section may: 18 (1) Contract with a tire processing facility that is approved by 19 the Director of the Division of Environmental Quality; 20 (2) Remove or contract for the removal of tires from waste tire 21 sites within the regional solid waste management district; 22 (3) Provide incentives for establishing privately operated tire 23 collection centers for the public; and 24 (4) Form an inter-district used tire program. 25 (d) Moneys disbursed from the Used Tire Recycling Fund by the division 26 for reimbursements under this section shall be: 27 (1) Distributed as provided under this section only to the used 28 tire programs that comply with all applicable requirements in this subchapter 29 related to the operation of used tire programs; 30 (2) Based on moneys available in the fund, the approved business 31 plan rate, quarterly financial reports, and other documentation submitted by 32 the used tire programs; and 33 (3) Made on a quarterly basis to the used tire programs. 34 (e)(1) Quarterly disbursements from the fund shall be paid each 35 quarter from all moneys available for disbursement in that quarter. 36 HB1982 18 04/03/2025 8:44:54 AM JMB636 (2) If there are insufficient moneys available in a quarter to 1 make reimbursements for all submitted requests under subsection (f) of this 2 section, the division shall calculate the total remaining funding available 3 and allocate the moneys available for reimbursement to each used tire program 4 based on a pro rata share of each used tire program's reimbursement request 5 compared to the total moneys available. 6 (3)(A) The Arkansas Pollution Control and Ecology Commission may 7 increase reimbursement rates if the director recommends an increase because 8 of one (1) or more of the following: 9 (i) The relevant consumer price index for the 10 preceding calendar year exceeded the consumer price index for calendar year 11 2018; or 12 (ii) The used tire programs have established an 13 increase in operation costs. 14 (B) An increase to any reimbursement rate under subsection 15 (f) of this section shall not exceed ten percent (10%) each calendar year. 16 (f) Based on data received from the electronic uniform used tire 17 manifest system and quarterly reports, the funding for reimbursement for 18 processing, recycling, or disposing of used tires at the approved business 19 plan rate may be available from the fund for used tire programs that are in 20 compliance with all applicable requirements of this subchapter. 21 (g) At the request of a used tire program that needs operational 22 assistance or guidance on compliance with this subchapter, the division shall 23 provide to the used tire program operational assistance or guidance on 24 compliance with this subchapter. 25 (h) The division shall: 26 (1) Develop market opportunities for beneficial use of used tire 27 material; and 28 (2) Educate the public on the Used Tire Recycling and 29 Accountability Program. 30 31 8-9-406. [Repealed.] 32 33 8-9-407. Electronic uniform Uniform used tire manifest system. 34 (a) The following entities shall use the electronic uniform used tire 35 manifest system to accurately report record all information related to the 36 HB1982 19 04/03/2025 8:44:54 AM JMB636 collection, transportation, distribution, and recycling or disposal of 1 recyclable tires, waste tires, and used tires culled for resale: 2 (1) Used tire programs Tire processors; 3 (2) Tire generators; and 4 (3) Tire collection centers ; 5 (4) Any person who: 6 (A) Removes a tire from the used tire program after it is 7 collected; or 8 (B) Imports a tire under § 8 -9-404(c); and 9 (5) Commercial generators . 10 (b) If any of the persons or entities listed in subsection (a) of this 11 section cannot use the electronic uniform used tire manifest system, the 12 person or entity may submit to the used tire program an equivalent paper 13 version which shall be entered into the electronic uniform used tire manifest 14 system. 15 16 8-9-408. Accountability requirements for used tire programs — Business 17 plans. 18 (a) On or before December 31, 2017, a used tire program that receives 19 funding under this subchapter shall provide the Arkansas Department of 20 Environmental Quality, now the Division of Environmental Quality, with a 21 business plan that establishes its current operating plan and a proposed 22 operating plan for calendar year 2018 and approved by its board. 23 (b) The minimum required information for the business plan is: 24 (1) Current operation information to include: 25 (A) An explanation of debt and debt repayment obligations, 26 including scheduled payments; 27 (B) A description of equipment used, including type, year 28 manufactured, debt obligations related to the equipment, and whether it is 29 leased or owned; 30 (C) An explanation of contract obligations including the 31 amount, length, and scope of the contract; 32 (D) A description of how tires are managed, to include 33 without limitation collection, transportation, and disposal or recycling; 34 (E) An explanation of costs, including the cost of tire 35 collection centers, other collection facilities, trailers, transfer stations, 36 HB1982 20 04/03/2025 8:44:54 AM JMB636 processing, mileage, fuel, and personnel; and 1 (F) The number of tires currently on any property owned, 2 leased, or otherwise controlled by each regional solid waste management 3 district included in the used tire program; and 4 (2) Proposed operation costs for calendar year 2018, to include: 5 (A) A description of how tires will be managed, to include 6 without limitation collection, storage, transportation, and disposal or 7 recycling; 8 (B) Estimated cost of utilities, personnel, equipment, 9 fees, leases, facilities, and any other costs related to the primary 10 operation of the used tire program; 11 (C) The capital improvement and maintenance plan with 12 estimated expenditures and costs; 13 (D) The estimated transportation cost including mileage, 14 fuel, equipment, personnel, utilities, insurance, bonds, and fees; 15 (E) The locations of all tire collection centers; and 16 (F) The types of tires managed, to include recyclable 17 tires, waste tires, and used tires culled for resale. 18 (c) A used tire program shall submit a revised business plan if there 19 is a substantial change in the used tire program operations or if the 20 division requests a revised business plan. 21 (d) A business plan or revised business plan submitted under this 22 subchapter is effective after approval by the division or its designee. 23 (e)(1) The approved business plan or approved revised business plan 24 shall include the approved business plan rates for each used tire program. 25 (2)(A) The division shall cooperate with the used tire programs 26 and other entities to develop each used tire program's approved business plan 27 rates for recyclable tires and waste tires. 28 (B) The approved business plan rates shall also use the 29 size of a tire, including without limitation small tires, large tires, and 30 extra-large tires, as a factor for determining the approved business plan 31 rates. 32 (f) A business plan or revised business plan that results in a 33 business plan rate increase is subject to review by the Legislative Council. 34 35 8-9-409. Performance and efficiency evaluations. 36 HB1982 21 04/03/2025 8:44:54 AM JMB636 (a) The Division of Environmental Quality shall develop a system to 1 evaluate and report the performance and efficiency of used tire programs and 2 the Used Tire Recycling and Accountability Program. 3 (b) The evaluation and reporting system shall use the following 4 performance indicators for each used tire program: 5 (1) The number of: 6 (A) Recyclable tires; 7 (B) Waste tires disposed in a landfill; and 8 (C) Waste tires disposed in a monofill; 9 (2) The number of reported waste tire sites located in the 10 regional solid waste management districts that are included in the used tire 11 program; 12 (3) Electronic uniform used tire manifest system compliance; 13 (4) Administrative expenses; 14 (5) Transportation expenses; 15 (6) Building, warehouse, and other facilities expenses; 16 (7) Revenue sources and the amount of revenue received from each 17 source; 18 (8) The number, location, and type of tire collection centers; 19 (9) Any identified operational issues; 20 (10) The number of enforcement actions against the used tire 21 program; and 22 (11) Any other performance indicators that are determined to be 23 useful to evaluate performance and efficiency. 24 (c) The evaluations under this section shall be completed on a 25 biennial basis for each used tire program. 26 27 8-9-410. Used tire programs. 28 (a)(1) In order to address efficiency in tire processing, including 29 without limitation transportation, there are created four (4) used tire 30 programs in the state. 31 (2) The four (4) used tire programs created under subdivision 32 (a)(1) of this section are composed as follows: 33 (A) Used Tire Program 1 consists of the following 34 counties: Benton, Carroll, Boone, Marion, Baxter, Washington, Madison, 35 Newton, Searcy, Crawford, Franklin, Johnson, Pope, Van Buren, Sebastian, 36 HB1982 22 04/03/2025 8:44:54 AM JMB636 Logan, Conway, Scott, Yell, and Perry; 1 (B) Used Tire Program 2 consists of the following 2 counties: Fulton, Sharp, Randolph, Clay, Izard, Lawrence, Greene, Stone, 3 Independence, Jackson, Craighead, Mississippi, Cleburne, Faulkner, White, 4 Poinsett, Woodruff, Cross, Pulaski, and Crittenden; 5 (C) Used Tire Program 3 consists of the following 6 counties: Polk, Montgomery, Sevier, Howard, Pike, Clark, Little River, 7 Hempstead, Nevada, Miller, Lafayette, Saline, Dallas, Ouachita, Union, 8 Garland, Hot Spring, and Columbia; and 9 (D) Used Tire Program 4 consists of the following 10 counties: Grant, Jefferson, Arkansas, Phillips, Cleveland, Lincoln, Desha, 11 Calhoun, Bradley, Drew, Ashley, Lonoke, Prairie, Monroe, St. Francis, Lee, 12 and Chicot. 13 (b)(1) Each new used tire program is governed by a tire accountability 14 board that is composed of eleven (11) members: 15 (A) Five (5) county judges, elected by the county judges 16 of the used tire program; 17 (B) Two (2) county judges, appointed from the two (2) most 18 populous counties in the used tire program according to the most recent 19 federal census; and 20 (C) Four (4) mayors, elected by the mayors of all of the 21 cities in the used tire program. 22 (2) Each member of the tire accountability board shall serve for 23 a term of three (3) years. 24 (3) The members of the tire accountability board shall draw lots 25 for staggered terms at the first organizational meeting. 26 (4) A vacancy on the tire accountability board shall be filled 27 through the process described in the bylaws of the tire accountability board. 28 (c)(1) A tire accountability board shall: 29 (A) Elect a chair and a vice -chair at an organizational 30 meeting; 31 (B) Develop bylaws to govern the tire accountability 32 board, including without limitation rules related to the replacement of 33 members of the tire accountability board in the event of a vacancy; and 34 (C) Submit a business plan to the Division of 35 Environmental Quality for approval on or before September 1, 2023. 36 HB1982 23 04/03/2025 8:44:54 AM JMB636 (2) The division shall approve or seek additional information 1 regarding the business plan submitted under subdivision (c)(1)(C) of this 2 section within sixty (60) days. 3 (d) The tire accountability board in each of the used tire programs 4 may enter into an interlocal agreement to determine the highest level of 5 efficiency regarding tire processing in the respective used tire program. 6 (e) Arkansas Legislative Audit shall audit the four (4) used tire 7 programs on the following schedule: 8 (1) Used Tire Program 1 and Used Tire Program 3 every odd -9 numbered year; and 10 (2) Used Tire Program 2 and Used Tire Program 4 every even -11 numbered year. 12 13 8-9-411. Tire transporters — Licenses. 14 (a) A tire transporter shall meet the following requirements to 15 perform or be compensated be licensed for any duties under this subchapter 16 related to the administration and operation of a used tire program : 17 (1) Obtain for each vehicle a license; 18 (2) Obtain for each vehicle a tire transporter number provided 19 by the Division of Environmental Quality used for the electronic uniform used 20 tire manifest system; 21 (3) Provide proof that each vehicle has passed an annual safety 22 inspection; 23 (4) Provide proof of financial responsibility for each vehicle 24 and authorized driver; 25 (5) Provide a bond in the amount of ten thousand dollars 26 ($10,000); 27 (6) Establish that each authorized driver has completed training 28 for the electronic uniform used tire manifest system; and 29 (7)(6) Pay a fee of fifty dollars ($50.00) for each vehicle that 30 is licensed. 31 (b) For each tire transporter licensed under this section, the 32 division shall assign a tire transporter number and include the tire 33 transporter information in the electronic uniform used tire manifest system. 34 (c)(1) If a tire transporter is found to have not complied with this 35 subchapter, the tire transporter's license shall be suspended for three (3) 36 HB1982 24 04/03/2025 8:44:54 AM JMB636 months. 1 (2) If the license of a tire transporter is suspended more than 2 one (1) time in three (3) years, the tire transporter's license shall be 3 revoked and the tire transporter is ineligible for a tire transporter license 4 for three (3) years. 5 6 8-9-412. Additional fees. 7 (a) A used tire program may charge an additional fee for the 8 collection and recycling of extra -large tires from sources other than 9 registered tire retailers and for any tires in excess of the maximum under § 10 8-9-414(b)(7). 11 (b) If a used tire program charges an additional fee under this 12 section, the fee shall be collected and retained by the used tire program for 13 costs related to the processing of extra -large tires. 14 15 8-9-413. Applicability. 16 The fees imposed by this subchapter shall not apply to : 17 (1) Large retreaded retreaded tires; 18 (2) Tires included as part of the equipment of a new vehicle; or 19 (3) Tires included as part of the equipment of a used vehicle if 20 included on the used vehicle at the time of sale and in the sales price of 21 the used vehicle. 22 23 8-9-414. Powers and duties of the Arkansas Pollution Control and 24 Ecology Commission. 25 (a) The Arkansas Pollution Control and Ecology Commission shall 26 promulgate rules to carry out the intent and purposes of this subchapter. 27 (b) The rules shall: 28 (1)(A) Except as provided under subdivision (b)(1)(B) of this 29 section, provide for the administration of permits for tire processing 30 facilities, tire collection centers, commercial tire generators, and any 31 other person or entity that collects, receives, processes, recycles, or 32 disposes of used waste tires regulated under this subchapter with the maximum 33 permit fee not to exceed two hundred fifty dollars ($250) annually fees 34 calculated to generate revenues not to exceed the reasonable administrative 35 costs of licensing, evaluating, and taking action on permit applications and 36 HB1982 25 04/03/2025 8:44:54 AM JMB636 costs of implementing and enforcing the terms and conditions of permits and 1 licenses. 2 (B) The maximum permit fee under this subdivision (b)(1) 3 shall not apply to tire transporters but shall provide for the administration 4 of licensing for tire transports ; 5 (2) Establish standards for tire processing facilities, tire 6 collection centers, tire transporters, and beneficial use projects; 7 (3) Establish procedures for administering reimbursements to 8 used tire programs under § 8 -9-405; 9 (4)(3) Unless otherwise provided by law, authorize the final 10 disposition of waste tires at a permitted solid waste disposal facility if 11 the waste tires have been cut into sufficiently small parts for proper 12 disposal and in compliance with this subchapter and all other applicable 13 provisions in this title; and 14 (5)(4) Establish procedures for administering the electronic 15 uniform used tire manifest system ;. 16 (6) Establish accountability procedures for the sustainability 17 of used tire programs operated under this subchapter; and 18 (7)(A) Establish the number of tires that each individual who is 19 a resident of a regional solid waste management district may discard monthly 20 without a fee. 21 (B) The maximum number of tires under this subdivision 22 (b)(7) shall not be more than four (4) tires per month. 23 (c) The commission may: 24 (1) Develop an alternative tire transporter licensing program to 25 be administered by used tire programs, regional solid waste management 26 boards, or both; 27 (2) Promulgate rules that are necessary to administer the fees 28 and reimbursement rates for services provided under this subchapter by the 29 used tire programs; and 30 (3) Clarify and add definitions for sizes of tires using 31 technical information and specifications. 32 (d)(1)(c)(1) The commission shall encourage the establishment of 33 voluntary tire collection centers where used tires generated in Arkansas can 34 be deposited. 35 (2) The voluntary tire collection centers shall include without 36 HB1982 26 04/03/2025 8:44:54 AM JMB636 limitation tire retailers, tire processing facilities, and solid waste 1 disposal facilities. 2 (3) The voluntary tire collection centers shall not include the 3 collection of tires generated by a tire manufacturer. 4 (e)(d) The commission shall not prohibit the disposal of whole waste 5 tires in landfills or monofills for three (3) years from August 1, 2017 and 6 new or expanded tire monofill permits . 7 (f) The commission shall waive the imposition of any permit fee 8 imposed under this subchapter on any used tire program created by § 8 -9-410. 9 10 8-9-415. Permitting, licensing, inspections, procedures, enforcement, 11 and penalties. 12 (a) A person who receives funding under this subchapter, tire Tire 13 collection centers, tire retailers, tire processing facilities, tire 14 transporters, tire generators, commercial generators, used tires regulated 15 under this subchapter, and waste tire sites are subject to: 16 (1) All provisions in § 8 -1-101 et seq., § 8-1-201 et seq., § 8-17 1-301 et seq., § 8-4-101 et seq., and § 8 -4-201 et seq., concerning permits, 18 licensing, inspections, and procedures; 19 (2) Sections 8-6-204, 8-6-205, 8-6-207(a)(6), and 8-9-105 20 concerning penalties and enforcement; and 21 (3) All applicable rules promulgated by the Arkansas Pollution 22 Control and Ecology Commission .; 23 (4)(A) Tire retailers and tire wholesalers who sell used tires 24 as a commodity shall do so only from stock that has been sorted, marked, 25 classified, and arranged in an organized manner for sale to a consumer. 26 (B)(i) Tires stored outside shall be monitored for 27 vectors. 28 (ii) Appropriate vector control measures shall be 29 utilized at least once every two (2) weeks; and 30 (5) Tire processors shall maintain received or generated uniform 31 used tire manifests for a period of three (3) years to be available upon 32 request by the division. 33 (b) A used tire program is subject to penalties and enforcement under 34 this subchapter for noncompliance with this subchapter to include without 35 limitation: 36 HB1982 27 04/03/2025 8:44:54 AM JMB636 (1) Failure to use the electronic uniform used tire manifest 1 system; 2 (2) Failure to submit accurate information to the electronic 3 uniform used tire manifest system; 4 (3) Failure to submit an approved business plan on or before 5 July 1, 2018; 6 (4) Failure to submit a revised business plan as required under 7 § 8-9-408(c); 8 (5) Failure to submit an approved revised business plan within 9 three (3) months after submission; or 10 (6) Failure to provide documentation or reports required to be 11 filed with the Division of Environmental Quality under this subchapter. 12 (c)(1) If a used tire program fails to submit a business plan that is 13 approved by the Arkansas Department of Environmental Quality or the division 14 on or before July 1, 2018, the used tire program and all regional solid waste 15 management boards included in the used tire program on July 1, 2018, are: 16 (A) Ineligible to receive funding under this subchapter 17 and from the Used Tire Recycling Fund; 18 (B) Prohibited from administering and operating a used 19 tire program; and 20 (C) Prohibited from imposing any fees to support the 21 administration and operation of a used tire program. 22 (2)(A) The division may designate a qualified entity to perform 23 the duties related to the operation and administration of a used tire program 24 deemed ineligible under subdivision (c)(1) of this section. 25 (B) A qualified entity that is designated to perform the 26 duties related to the operation and administration of a used tire program 27 under this subsection shall operate the used tire program in compliance with 28 this subchapter. 29 (C) If the qualified entity performs the duties related to 30 the operation and administration of the used tire program in compliance with 31 this subchapter, the qualified entity is eligible to receive funding under 32 this subchapter and from the fund. 33 (d)(b) In addition to any other penalty provided by law, a tire 34 processing facility permit or a tire collection center permit shall may be 35 suspended or revoked by the Division of Environmental Quality for 36 HB1982 28 04/03/2025 8:44:54 AM JMB636 noncompliance with this subchapter. 1 2 SECTION 2. Arkansas Code Title 8, Chapter 9, Subchapter 4, is amended 3 to add an additional section to read as follows: 4 8-9-416. Cost recovery — Liability for costs — Immunity from 5 liability. 6 (a) Any of the following shall be liable to the state for all costs of 7 waste tire abatement under this subchapter: 8 (1) The owner or operator of a waste tire site; 9 (2) Any person that, at the time of disposal of any waste tires, 10 owns or operates a waste tire site; 11 (3) Any generator of tires that creates a waste tire site; 12 (4) Any tire transporter that creates or adds to a waste tire 13 site; or 14 (5) Any tire processor or landfill that creates or adds to a 15 waste tire site. 16 (b)(1) A person shall not be liable under this subchapter for damages 17 as a result of actions taken or omitted in the course of rendering care, 18 assistance, or advice at the direction of the Department of Energy and 19 Environment, the Secretary of the Department of Energy and Environment, or 20 the Division of Environmental Quality with respect to an incident creating a 21 danger to public health, safety, or welfare or the environment as a result of 22 a waste tire site. 23 (2)(A) This subsection shall not preclude liability for damages 24 as a result of gross negligence or intentional misconduct on the part of the 25 person, nor shall this subsection preclude liability for damages and costs of 26 waste tire abatement of any person liable for such damages and costs under 27 subsection (a) of this section. 28 (B) For the purposes of subdivision (b)(2)(A) of this 29 section, reckless, willful, or wanton misconduct shall constitute gross 30 negligence. 31 (c)(1) A person performing waste tire abatement under this subchapter 32 as a contractor for the division shall not be liable under this subchapter or 33 under any other state law to any person for injuries, costs, damages, 34 expenses, or other liability, including without limitation claims for 35 indemnification or contribution and claims by third parties for death, 36 HB1982 29 04/03/2025 8:44:54 AM JMB636 personal injury, illness, loss of or damage to property, or economic loss 1 resulting from the abatement. 2 (2) However, this subsection shall not apply in an action that 3 is caused by the conduct of the person performing abatement that is negligent 4 or grossly negligent or which constitutes intentional misconduct. 5 (d)(1) A state employee or an employee of a political subdivision who 6 provides services relating to abatement while acting within the scope of his 7 or her authority as a governmental employee shall not be liable, subject to 8 the other provisions of this section, to any person for injuries, costs, 9 damages, expenses, or other liability, including without limitation claims 10 for indemnification or contribution and claims by third parties for death, 11 personal injury, illness, loss of or damage to property, or economic loss 12 resulting from the abatement. 13 (2) However, this subsection shall not apply in an action that 14 is caused by the conduct of the person performing abatement that is negligent 15 or grossly negligent or which constitutes intentional misconduct. 16 (e)(1) Subsection (c) or subsection (d) of this section does not 17 affect the liability of any person under warranty law. 18 (2) The section does not affect the liability of an employer 19 performing abatement to any employee of any such employer under any provision 20 of law, including any provision of any law relating to workers' compensation. 21 22 SECTION 3. Arkansas Code § 8 -6-1002(b)(3), concerning the Landfill 23 Post-Closure Trust Fund, is amended to read as follows: 24 (3) The fund shall be administered by the division and may be 25 used by the division to complete all activities necessary for the closure of 26 a permitted waste tire processing or disposal site that is owned or operated 27 by a regional solid waste management district or formerly owned and operated 28 by a used tire program if the division determines that the district lacks 29 sufficient funds to complete closure of the permitted waste tire processing 30 or disposal site. 31 32 SECTION 4. Effective July 1, 2026, Arkansas Code § 19 -5-1148 is 33 repealed. 34 19-5-1148. Used Tire Recycling Fund. 35 (a) There is created on the books of the Treasurer of State, the 36 HB1982 30 04/03/2025 8:44:54 AM JMB636 Auditor of State, and the Chief Fiscal Officer of the State a trust fund to 1 be known as the “Used Tire Recycling Fund”. 2 (b)(1) The Department of Finance and Administration shall deposit into 3 the State Treasury ninety -three percent (93%) of the moneys collected under § 4 8-9-404 to the credit of the Used Tire Recycling Fund. 5 (2) The Used Tire Recycling Fund shall consist of: 6 (A) Penalties assessed and collected under the Used Tire 7 Recycling and Accountability Act, § 8 -9-401 et seq.; 8 (B) Interest, earnings, and any other revenues as may be 9 authorized by law; 10 (C) Any United States Government moneys designated for 11 deposit into the Used Tire Recycling Fund; 12 (D) Any gift or donation to the Used Tire Recycling Fund; 13 and 14 (E) Those special revenues specified in § 8 -9-404 and § 15 19-6-301(165). 16 (3) The Used Tire Recycling Fund shall not include: 17 (A) Five percent (5%) of the rim removal fee retained for 18 administrative costs by tire retailers under § 8 -9-404(a)(5)(B) and 19 commercial generators under § 8 -9-404(d)(5)(B); 20 (B) The percentage of net special revenue deducted and 21 deposited to the credit of the Special Revenue Fund Account of the State 22 Apportionment Fund under § 19 -5-203; or 23 (C) Seven percent (7%) deducted from the proceeds of fees 24 imposed under § 8-9-404 and deposited into the Division of Environmental 25 Quality Fee Trust Fund under § 8 -9-404(b)(1)(B), § 8-9-404(c)(3)(A)(ii), and 26 § 8-9-404(d)(7)(B). 27 (c)(1) At least ninety percent (90%) of the moneys available in the 28 Used Tire Recycling Fund each fiscal year shall be used by the Division of 29 Environmental Quality to provide reimbursements to used tire programs, to 30 administer the Used Tire Recycling and Accountability Program, and to perform 31 other duties under the Used Tire Recycling and Accountability Act, § 8 -9-401 32 et seq. 33 (2) The Director of the Division of Environmental Quality may 34 use not more than ten percent (10%) of the moneys available in the Used Tire 35 Recycling Fund each fiscal year: 36 HB1982 31 04/03/2025 8:44:54 AM JMB636 (A) For waste tire site abatement aid; 1 (B) For the development, implementation, and maintenance 2 of the electronic uniform used tire manifest system; and 3 (C) To provide market and economic stimulus incentives. 4 5 SECTION 5. Effective January 1, 2026, Arkansas Code Title 19, Chapter 6 5, Subchapter 11, is amended to add an additional section to read as follows: 7 19-5-1161. Waste Tire Abatement Fund. 8 (a) There is created on the books of the Treasurer of State, the 9 Auditor of State, and the Chief Fiscal Officer of the State a trust fund to 10 be known as the "Waste Tire Abatement Fund". 11 (b)(1) The Department of Finance and Administration shall deposit into 12 the State Treasury the moneys collected under § 8 -9-404 to the credit of the 13 Waste Tire Abatement Fund. 14 (2) No more than five hundred thousand dollars ($500,000) 15 annually, with an annual escalator not to exceed two percent (2%), shall be 16 transferred from the Waste Tire Abatement Fund to the Division of 17 Environmental Quality Fee Trust Fund to be used for administration expenses. 18 (3) The Waste Tire Abatement Fund shall consist of: 19 (A) Penalties assessed and collected under the Tire 20 Management and Recycling Act, § 8 -9-401 et seq.; 21 (B) Interest, earnings, and any other revenues as may be 22 authorized by law; 23 (C) Any United States Government moneys designated for 24 deposit into the Waste Tire Abatement Fund; 25 (D) Any gift or donation to the Waste Tire Abatement Fund; 26 and 27 (E) Those special revenues specified in §§ 8 -9-404 and 19-28 6-301(165). 29 (4) The Waste Tire Abatement Fund shall not include: 30 (A) Two percent (2%) of the fees retained for 31 administrative costs by tire retailers under § 8 -9-404(b)(5)(B); or 32 (B) The percentage of net special revenue deducted and 33 deposited to the credit of the Special Revenue Fund Account of the State 34 Apportionment Fund under § 19 -5-203. 35 (c) The Waste Tire Abatement Fund moneys shall be used: 36 HB1982 32 04/03/2025 8:44:54 AM JMB636 (A) For the administration of the Tire Management 1 Recycling Program by the Division of Environmental Quality; 2 (B) For waste tire site abatement grants to entities 3 eligible under § 8-9-404(d)(1); 4 (C) To provide equipment grants and to promote economic 5 stimulus incentives; 6 (D) For funding of beneficial use projects and other waste 7 tire-related projects; and 8 (E) To ensure that waste tires handled under the Tire 9 Management Recycling Program that are collected by or sent through a tire 10 collection center or a tire processing facility for beneficial use are not 11 abandoned or discarded. 12 13 SECTION 6. DO NOT CODIFY. TEMPORARY LANGUAGE. Distribution of funds 14 from Used Tire Recycling Fund. 15 (a)(1) The chief fiscal officer of the Department of Energy and 16 Environment shall determine the total moneys available on February 28, 2026, 17 at 11:59 p.m. that were collected under § 8 -9-404(a)(1) rim removal fees. 18 (2) Until January 1, 2026, the rim removal fee under § 8 -9-404 19 shall remain at three dollars ($3.00) for each new tire that replaces a tire 20 removed from a rim and one dollar ($1.00) for each used tire that replaces 21 the tire removed from the rim. 22 (3) On January 1, 2026, the rim removal fee under § 8 -9-404 23 shall expire and the tire retailer fee shall be imposed at the rate of one 24 dollar and fifty cents ($1.50) for each new tire. 25 (b) The moneys available under subdivision (a)(1) of this section 26 shall be used to reimburse used tire programs for used tire recycling and 27 disposal costs at the approved business rate through the second quarter of 28 fiscal year 2026. 29 (c) Any moneys remaining after all used tire programs have been 30 reimbursed, including any interest earnings or investment earnings on the 31 moneys available under subdivision (a)(1) of this section shall be 32 transferred to the Waste Tire Abatement Fund. 33 (d) This section expires after all used tire programs have received 34 reimbursement for the fourth quarter of fiscal year 2025 under subdivision 35 (a)(2) of this section. 36 HB1982 33 04/03/2025 8:44:54 AM JMB636 1 SECTION 7. EFFECTIVE DATE. 2 (a) Section 4 concerning the repeal of the Used Tire Recycling Fund 3 shall be effective on July 1, 2026. 4 (b) Section 5 concerning the creation of the Waste Tire Abatement Fund 5 shall be effective on January 1, 2026. 6 (c) The fee that may be collected and charged by a tire retailer for 7 the cost of legally hauling and disposing of or recycling the waste tires and 8 residuals shall be effective on the effective date of this act. 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36