CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 509Introduced by Assembly Member FrazierFebruary 13, 2017 An act to amend Sections 42885, 42889, and 42961.5 of, and to repeal and add Section 42872.1 of, the Public Resources Code, relating to tire recycling.LEGISLATIVE COUNSEL'S DIGESTAB 509, as introduced, Frazier. Tire recycling: California tire regulatory fee and waste tire program.(1) The California Tire Recycling Act requires, until January 1, 2024, a person who purchases a new tire to pay a California tire fee of $1.75 per tire, for deposit in the California Tire Recycling Management Fund, for expenditure by the Department of Resources Recycling and Recovery upon appropriation by the Legislature, to fund the waste tire program and for other purposes, including to pay for the costs associated with a waste tire and used tire hauler program and manifest system, as provided. After January 1, 2024, existing law reduces the tire fee to $0.75 per tire.Existing law requires any person generating waste tires or used tires that are transported or submitted for transportation, for offsite handling, altering, storage, disposal, or for any combination thereof, to complete a California Uniform Waste and Used Tire Manifest, as required by the department. Existing law requires a generator to provide the manifest to the waste and used tire hauler at the time of transfer of the tires, and to submit to the department, on a quarterly schedule, a legible copy of each manifest.This bill would require, until January 1, 2024, upon a specified finding by the department, a waste tire generator that is a retail seller of new tires to end user purchasers to pay a California tire regulatory fee and to remit that fee to the state on a quarterly schedule for deposit in the California Tire Recycling Management Fund. The bill would require the department to track revenue from the California tire regulatory fee separately and would prohibit those funds from being used for activities other than those specified. The bill would require the department to identify the specific programs that the California tire regulatory fee would fund. The bill would require the department to establish the California tire regulatory fee in an amount that does not exceed $1 per new tire sold, and would require the department to base the amount of the fee on specified criteria, as provided. The bill would authorize the department to differentiate in setting the fees between the waste tire generators who are retail sellers depending upon the nature of the activity generating waste tires, the number of waste tires generated, and other appropriate bases.The bill would require the department, prior to establishing the California tire regulatory fee or making any adjustment to the fee, to hold a public hearing, as specified. The bill would provide that an adjustment to the fee becomes effective on January 1 of the year following its adoption. The bill would require the department to adopt regulations to implement the initial California tire regulatory fee, and would authorize the department to adopt regulations to adjust the California tire regulatory fee, as specified.(2) Existing law prohibits the California tire fee from being imposed on a tire sold with, or sold separately for use on, a self-propelled wheelchair, a motorized tricycle or motorized quadricycle, or a vehicle that is similar to a motorized tricycle or motorized quadricycle, as specified.This bill would prohibit the California tire regulatory fee from being imposed on those same vehicles.(3) Existing law establishes, as a part of the waste tire program, the tire recycling program, which promotes and develops alternatives to the landfill disposal of used whole tires. The program provides for grants to certain entities involved in activities that result in reduced landfill disposal of whole used tires, and development and implementation of a waste tire incentive payment program to promote increased demand for waste tires recycled in this state. Under the act, until June 30, 2019, the Rubberized Pavement Market Development Act provides for the award of grants to certain public agency projects that use rubberized asphalt concrete.This bill would repeal the Rubberized Pavement Market Development Act and instead enact the Tire Recycling Incentive Program Act. The bill would require the department, in accordance with specified law, to establish this incentive program to make payments to entities that purchase waste tire material for incorporation in a product for sale to end users, as specified. The bill would require the department to collect data from recipients of incentive payments and release that data annually in the California Waste Tire Market Report, as specified. The bill would require the department to evaluate the program in a public forum and propose changes accordingly. The bill would make an entity eligible to receive an incentive payment upon demonstrating to the department that the entity purchased California-generated waste tire material processed in California and sold an incentive-eligible tire product incorporating that material to an end user.(4) Existing law requires a person generating waste or used tires that are transported or submitted for transportation to submit a California Uniform Waste and Used Tire Manifest, as defined, to the waste and used tire hauler and to submit copies of the manifest to the department. A waste and used tire hauler is required to possess that manifest while transporting waste or used tires, and the operator of a waste or used tire facility is required to submit a copy of the manifest to the department and the generator. Existing law requires the department to develop and implement a system for auditing manifests, including continuously conducting random sampling and matching of manifests. This bill would revise those provisions to, among other things, require a waste and used tire hauler, on and after January 1, 2019, to submit an electronic manifest, instead of a paper manifest, to the department within 7 days of the date of the pickup or delivery for each load of waste or used tires transported.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 42872.1 of the Public Resources Code is repealed.42872.1.(a)This section shall be known, and may be cited, as the Rubberized Pavement Market Development Act.(b)In accordance with the tire recycling program authorized by Section 42872, the department shall award grants in the following manner:(1)To cities, counties, and other local governmental agencies for the funding of public works projects that utilize rubberized pavement.(2)To state and local governmental agencies, including regional park districts, for the funding of disability access projects at parks and Class I bikeways as defined in subdivision (a) of Section 890.4, relative to projects that utilize rubberized pavement.(c)(1)Except as provided in paragraph (2), the department shall award the grants pursuant to subdivision (b) in the amount of two dollars ($2) for every 12 pounds of crumb rubber used in a public works or disability access project by a state or local governmental agency, including a regional park district.(2)The department may adjust the amount of grants awarded pursuant to paragraph (1) to an amount that is greater than, or less than, two dollars ($2) for every 12 pounds of crumb rubber if the department finds this adjustment would further the purposes of this article.(d)This section shall become inoperative on June 30, 2019, and, as of January 1, 2020, is repealed, unless a later enacted statute, that becomes operative on or before January 1, 2020, deletes or extends the dates on which it becomes inoperative and is repealed.SEC. 2. Section 42872.1 is added to the Public Resources Code, to read:42872.1. (a) This section shall be known, and may be cited, as the Tire Recycling Incentive Program Act.(b) In accordance with Section 42872, the department shall establish a tire recycling incentive program that makes payments to eligible entities.(c) Incentive payments shall be made to eligible entities for incentive-eligible tire products manufactured from California-generated waste tire material that promote the recycling of, the reduction of the disposal of, or the prevention of illegal dumping of California-generated waste tire material.(d) An eligible entity is eligible to receive an incentive payment only upon demonstrating to the department that the entity purchased California-generated waste tire material that was processed in California and sold an incentive-eligible tire product incorporating that material to an end user.(e) For purposes of this section, eligible entity includes, but is not limited to, a manufacturer that produces a product incorporating California-generated waste tire material for purchase by an end user. Eligible entity does not include the entity or person that receives the finished product.(f) For purposes of this section, end user includes, but is not limited to, the following:(1) Cities, counties, and other local governmental agencies, including school districts.(2) State and local governmental agencies, including regional park districts.(3) Private companies and persons.(g) (1) For purposes of this section, incentive-eligible tire product may include, but is not limited to, the following:(A) Pavement-related products, such as rubberized asphalt, asphalt rubber, modified binders, and chip seals.(B) Rubberized asphalt base stock to be used in applications other than pavement.(C) Products used in disability access projects at parks and Class I bikeways, as defined in subdivision (a) of Section 890.4 of the Streets and Highways Code, relative to projects that use recycled tires.(D) Poured in place and tile playground mats.(E) Landscape nuggets and mulch.(F) Walkways and pathways.(G) Running tracks.(H) Tire-derived aggregate applications, including lightweight fill and vibration mitigation.(I) Molded, extruded, injected, and calendered products.(J) Products that use recycled rubber as a substitute for other materials, such as plastic.(K) Paint and coatings.(L) Other products, environmentally safe applications, or treatments determined to be appropriate by the department.(2) Incentive-eligible tire product does not include any of the following:(A) Tire-derived fuel.(B) Alternative daily cover, intermediate cover, erosion, or other landfill uses, except tire-derived aggregates used in landfill engineered projects for landfill gas and leachate control systems and other engineering projects designated by the department.(C) Exports.(D) Synthetic turf infill.(E) Loose rubber nugget or mulch playgrounds.(F) Purchases made to meet procurement requirements established pursuant to Section 42703.(h) The department shall collect data from recipients of incentive payments to be released annually in the California Waste Tire Market Report.(1) Data shall be aggregated to determine the total amount of money paid for each category of incentive-eligible tire products listed in paragraphs (A) to (L), inclusive, of paragraph (1) of subdivision (g) and how many tires, or passenger tire equivalents as defined in subdivision (b) of Section 42961.5, were recycled. The data specified in this paragraph shall be used by the department for purposes of the evaluation required pursuant to subdivision (i).(2) The department shall include in the California Waste Tire Market Report the number of tires, or passenger tire equivalents, as defined in subdivision (b) of Section 42961.5, that were recycled in that year and the annual recycling rate.(3) The report shall also include the number of tires recycled by the Department of Transportation as part of the overall recycling rate.(i) As part of the biennial update of the five-year plan required pursuant to Section 42885.5, the department shall evaluate the tire recycling incentive program established pursuant to subdivision (b) in a public forum and propose changes accordingly.(1) The evaluation required pursuant to this subdivision shall include, but is not limited to, the following elements:(A) The recycling rate of California-generated waste tire material, including waste tire material recycled through funding pursuant to the tire recycling incentive program, and, to the extent the information is available, an estimate of the recycling rate of waste tire material recycled by other state and local agencies and the private sector.(B) The amount of California-generated waste tire material entering each market segment.(C) The amount of waste tire material recycled through expenditures authorized by this chapter.(2) Based on the findings from the evaluation required pursuant to this subdivision, the department shall reevaluate and prioritize funding for the categories of incentive-eligible tire products that recycle the most waste tires.(j) For purposes of this section, recipients of incentive payments shall meet specified criteria, as established by the department, that are consistent with the provisions of this article.(k) No less than 50 percent of the total value of incentive payments made pursuant to this section shall be made for pavement-related products, as described in subparagraph (A) of paragraph (1) of subdivision (g).(l) Nothing in this section is intended to limit the use of waste tire products that are not incentive-eligible tire products.SEC. 3. Section 42885 of the Public Resources Code, as amended by Section 31 of Chapter 401 of the Statutes of 2013, is amended to read:42885. (a) (1) For purposes of this section, California tire fee means the fee imposed pursuant to subdivision (b) of this section.(2) For purposes of this section, a California tire regulatory fee means a fee imposed pursuant to subdivision (c) of this section. (b) (1) A person who purchases a new tire, as defined in subdivision (g), (h), shall pay a California tire fee of one dollar and seventy-five cents ($1.75) per tire.(2) The retail seller shall charge the retail purchaser the amount of the California tire fee as a charge that is separate from, and not included in, any other fee, charge, or other amount paid by the retail purchaser.(3) The retail seller shall collect the California tire fee from the retail purchaser at the time of sale and may retain 11/2 percent of the fee as reimbursement for any costs associated with the collection of the fee. The retail seller shall remit the remainder to the state on a quarterly schedule for deposit in the California Tire Recycling Management Fund, which is hereby created in the State Treasury.(c) (1) Upon a finding by the department that the California Tire Recycling Management Fund will not have sufficient revenue to fund the reasonable regulatory costs incurred by the department incident to audits, inspections, administrative activities, adjudications, manifesting, registration, and other regulatory activities regarding waste tires, including the regulatory aspects of the programs established pursuant to this chapter, Chapter 16 (commencing with Section 42800), and Chapter 19 (commencing with Section 42950), for the next fiscal year, the department shall establish, and a waste tire generator that is a retail seller of new tires to end user purchasers shall pay, a California tire regulatory fee. The amount of the California tire regulatory fee shall be established and adjusted by the department based on the factors specified in paragraph (3), but that amount shall not exceed one dollar ($1) per new tire sold. The department shall set this fee to collect no more than is necessary for the following fiscal year, including a prudent reserve, as specified in subparagraph (B) of paragraph (3). The department may differentiate in setting fees between waste tire generators who are retail sellers of new tires depending upon the nature of the retail sellers activity generating waste tires, the number of waste tires generated, and other appropriate bases. (2) A waste tire generator that is a retail seller of new tires shall remit the fee assessed pursuant to this subdivision to the state on a quarterly schedule for deposit in the California Tire Recycling Management Fund. The revenue from the California tire regulatory fee shall be tracked separately by the department and shall not be used for activities other than those described in paragraph (1). (3) Prior to establishing or adjusting the California tire regulatory fee, the department shall review at a public hearing the following factors: (A) The amount necessary to fund the reasonable regulatory costs incurred by the department incident to audits, inspections, administrative activities, adjudications, manifesting, registration, and other regulatory activities associated with waste tires pursuant to this chapter, Chapter 16 (commencing with Section 42800), and Chapter 19 (commencing with Section 42950). (B) The sufficiency of revenues in the California Tire Recycling Management Fund for the department to administer, enforce, and promote its regulatory activities regarding waste tires, including the regulatory aspects of the programs established pursuant to this chapter, Chapter 16 (commencing with Section 42800), and Chapter 19 (commencing with Section 42950), plus a prudent reserve. (C) Whether additional revenue is necessary to preserve the departments ability to conduct regulatory activities in the following fiscal year. (D) Whether, at the end of a fiscal year, after making payments pursuant to Sections 42872.1 and 42889, sufficient surplus remains in the California Tire Recycling Management Fund to reduce the California tire regulatory fee. (4) An adjustment to the California tire regulatory fee shall become effective on January 1 of the year following its adoption. (5) (A) The department shall adopt regulations to establish the California tire regulatory fee. (B) The department may adopt regulations to adjust the California tire regulatory fee. These regulations shall be deemed to meet the description in subdivision (g) of Section 11340.9 of the Government Code and may be filed by the department pursuant to Section 11343.8 of the Government Code.(6) The department shall identify the specific programs to be funded by the California tire regulatory fee. (c)(d) The department, or its agent authorized pursuant to Section 42882, shall be reimbursed for its costs of collection, auditing, and making refunds associated with the California Tire Recycling Management Fund, but not to the amount of that reimbursement shall not exceed 3 percent of the total annual revenue deposited in the fund.(d)(e) The California tire fee imposed pursuant to subdivision (b) shall be separately stated by the retail seller on the invoice given to the customer at the time of sale. Any other disposal or transaction fee charged by the retail seller related to the tire purchase shall be identified separately from the California tire fee.(e)(f) A person or business who knowingly, or with reckless disregard, makes a false statement or representation in a document used to comply with this section is liable for a civil penalty for each violation or, for continuing violations, for each day that the violation continues. Liability under this section may be imposed in a civil action and shall not exceed twenty-five thousand dollars ($25,000) for each violation.(f)(g) In addition to the civil penalty that may be imposed pursuant to subdivision (e), (f), the department may impose an administrative penalty in an amount not to exceed five thousand dollars ($5,000) for each violation of a separate provision or, for continuing violations, for each day that the violation continues, on a person who intentionally or negligently violates a permit, rule, regulation, standard, or requirement issued or adopted pursuant to this chapter. The department shall adopt regulations that specify the amount of the administrative penalty and the procedure for imposing an administrative penalty pursuant to this subdivision.(g)(h) For purposes of this section, new tire means a pneumatic or solid tire intended for use with onroad or off-road motor vehicles, motorized equipment, construction equipment, or farm equipment that is sold separately from the motorized equipment, or a new tire sold with a new or used motor vehicle, as defined in Section 42803.5, including the spare tire, construction equipment, or farm equipment. New tire does not include retreaded, reused, or recycled tires.(h)(i) The California tire fee and the California tire regulatory fee shall not be imposed on a tire sold with, or sold separately for use on, any of the following:(1) A self-propelled wheelchair.(2) A motorized tricycle or motorized quadricycle, as defined in Section 407 of the Vehicle Code.(3) A vehicle that is similar to a motorized tricycle or motorized quadricycle and is designed to be operated by a person who, by reason of the persons physical disability, is otherwise unable to move about as a pedestrian.(i)(j) This section shall remain in effect only until January 1, 2024, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2024, deletes or extends that date.SEC. 4. Section 42889 of the Public Resources Code, as amended by Section 152 of Chapter 35 of the Statutes of 2014, is amended to read:42889. (a) Of the moneys collected pursuant to subdivision (b) of Section 42885, an amount equal to seventy-five cents ($0.75) per tire on which the fee is imposed shall be transferred by the State Board of Equalization to the Air Pollution Control Fund. The state board shall expend those moneys, or allocate those moneys to the districts for expenditure, to fund programs and projects that mitigate or remediate air pollution caused by tires in the state, to the extent that the state board or the applicable district determines that the program or project remediates air pollution harms created by tires upon which the fee described in subdivision (b) of Section 42885 is imposed.(b) The remaining moneys collected pursuant to subdivision (b) of Section 42885 shall be used to fund the waste tire program, and program and the tire recycling incentive program, pursuant to Section 42872.1, and shall be appropriated to the department in the annual Budget Act in a manner consistent with the five-year plan adopted and updated by the department. These moneys shall be expended for the payment of refunds under this chapter and for the following purposes: purposes, to the extent they are not lawfully payable from funds allocated pursuant to subdivision (c) of Section 42885:(1) To pay the administrative overhead cost of this chapter, not to exceed 6 percent of the total revenue deposited in the fund annually, or an amount otherwise specified in the annual Budget Act.(2) To pay the costs of administration associated with collection, making refunds, and auditing revenues in the fund, not to exceed 3 percent of the total revenue deposited in the fund, as provided in subdivision (c) (d) of Section 42885.(3) To pay the costs associated with operating the tire recycling program specified in Article 3 (commencing with Section 42870).(4) To pay the costs associated with the development and enforcement of regulations relating to the storage of waste tires and used tires. The department shall consider designating a city, county, or city and county as the enforcement authority of regulations relating to the storage of waste tires and used tires, as provided in subdivision (c) of Section 42850, and regulations relating to the hauling of waste and used tires, as provided in subdivision (b) of Section 42963. If the department designates a local entity for that purpose, the department shall provide sufficient, stable, and noncompetitive funding to that entity for that purpose, based on available resources, as provided in the five-year plan adopted and updated as provided in subdivision (a) of Section 42885.5. The department may consider and create, as appropriate, financial incentives for citizens who report the illegal hauling or disposal of waste tires as a means of enhancing local and statewide waste tire and used tire enforcement programs.(5) To pay the costs of cleanup, abatement, removal, or other remedial action related to waste tire stockpiles throughout the state, including all approved costs incurred by other public agencies involved in these activities by contract with the department. Not less than six million five hundred thousand dollars ($6,500,000) shall be expended by the department during each of the following fiscal years for this purpose: 200102 to 200607, inclusive.(6) To make studies and conduct research directed at promoting and developing alternatives to the landfill disposal of waste tires.(7) To assist in developing markets and new technologies for used tires and waste tires. The departments expenditure of funds for purposes of this subdivision shall reflect the priorities for waste management practices specified in subdivision (a) of Section 40051.(8) To pay the costs associated with implementing and operating a waste tire and used tire hauler program and manifest system pursuant to Chapter 19 (commencing with Section 42950).(9) To pay the costs to create and maintain an emergency reserve, which shall not exceed one million dollars ($1,000,000).(10) To pay the costs of cleanup, abatement, or other remedial action related to the disposal of waste tires in implementing and operating the Farm and Ranch Solid Waste Cleanup and Abatement Grant Program established pursuant to Chapter 2.5 (commencing with Section 48100) of Part 7.(11) To fund border region activities specified in paragraph (8) of subdivision (b) of Section 42885.5.(12) For expenditure pursuant to paragraph (3) of subdivision (a) of, and paragraph (3) of subdivision (b) of, Section 17001.(c) This section shall remain in effect only until January 1, 2024, and as of that date is repealed, unless a later enacted statute that is enacted before January 1, 2024, deletes or extends that date.SEC. 5. Section 42961.5 of the Public Resources Code is amended to read:42961.5. (a) For purposes of this chapter, the following definitions shall apply:(1) California Uniform Waste and Used Tire Manifest or manifest means a shipping document signed by a waste or used tire hauler and a generator of waste or used tires, a waste and used tire hauler, or the operator of a waste or used tire facility or other destination that contains all of the information required by the board, department, including, but not limited to, an accurate measurement of the number of tires being shipped, the type or types of the tires, the date the shipment originated, originated or terminated, and the origin and intended final destination of the shipment.(2) Electronic Manifest means a manifest that is submitted to the department electronically in a manner specified by the department. (2)(3) Waste and used tire hauler or hauler means any person required to be registered with the board department pursuant to subdivision (a) of Section 42951.(b) For purposes of this section, Passenger Tire Equivalent or PTE means either of the following: (1) A unit of measurement, such that one PTE equals 20 pounds of waste or used tires, and one PTE equals one waste or used tire. (2) A unit of measurement, such that 10 PTEs equals one cubic yard of waste or used tires, and one PTE equals one waste or used tire. (b)Any person generating(c) (1) A hauler transporting waste or used tires that are transported or submitted for transportation, for offsite handling, altering, storage, or disposal, or for any combination thereof, shall complete a California Uniform Waste and Used Tire Manifest, as required by the board. The generator shall provide the manifest to the waste and used tire hauler at the time of transfer of the tires. Each generator shall submit to the board, on a quarterly schedule, a legible copy of each manifest. The copy submitted to the board shall contain the signatures of the generator and the waste and used tire hauler. manifest.(c)(1)Any waste and used tire(2) A hauler shall have the California Uniform Waste and Used Tire Manifest manifest in his or her possession while transporting waste or used tires. The manifest shall be shown upon demand to any representative of the board, department, any officer of the Department of the California Highway Patrol, or any peace officer, as defined in Section 830.1 or 830.2 of the Penal Code, or any local public officer designated by the board. Code.(2)Any waste and used tire hauler hauling waste or used tires for offsite handling, altering, storage, disposal, or any combination thereof, shall complete the California Uniform Waste and Used Tire Manifest as required by the board. The waste and used tire hauler shall provide the manifest to the(3) A hauler shall provide the manifest, or otherwise provide all required manifest information, to the generator of waste or used tires or to the operator of a waste or used tire facility operator who receives the waste or used tires for handling, altering, storage, disposal, or any combination thereof. Each waste and used tire hauler shall submit to the board, on a quarterly schedule, a legible copy of each manifest. The copy submitted to the board shall contain the signatures of the generator and the facility operator. or other destination at the time of transfer of the tires.(4) Notwithstanding the Uniform Electronic Transactions Act (Title 2.5 (commencing with Section 1633.1) of Part 2 of Division 3 of the Civil Code), the hauler shall submit a manifest to the department for each load of waste or used tires transported within seven days of the date of the pickup or delivery. The department may grant an extension before the seventh day upon a showing of good cause by the hauler. (5) On and after January 1, 2019, the hauler shall submit only an electronic manifest, and not a paper manifest, to the department within seven days of the date of the pickup or delivery for each load of waste or used tires transported. (6) If approved by the department, a hauler may submit an electronic manifest prior to January 1, 2019. The electronic manifest shall include all information required to be on the manifest and any other information required by the department. (d) Each waste or used tire facility operator that receives The authorized representative for the person generating or accepting waste or used tires for handling, altering, storage, disposal, or any combination thereof, that was transported with a manifest pursuant to this section, shall submit copies of each manifest provided by the waste and used tire hauler to the board and the generator on a quarterly schedule. The copy submitted to the board shall contain the signatures of each generator, each transporter, and the facility operator. If approved by the board, in lieu of submitting shall verify that the information on the manifest is correct, including the number of tires and other information specified by the department, and shall sign the manifest. The person generating or accepting waste or used tires shall maintain a copy of each manifest used, a facility operator may submit an electronic report to the board meeting the requirements of Section 42814. the manifest and any other information required that the department deems necessary to track the flow of waste and used tires through the state.(e) The department may require an electronic manifest submitted by a hauler to the department to include verification from a hauler, and a generator of waste or used tires, or the operator of a waste or used tire facility or other destination, that the information on the manifest is correct, including the number of tires and other information specified by the department. (e)(f) The board department shall develop and implement a system for auditing manifests submitted to the board department pursuant to this section, for the purpose of enforcing this section. The board or its agent shall continuously conduct random sampling and matching of manifests submitted by any person generating waste or used tires, hauling waste or used tires, or operating waste or used tire facilities, to assure compliance with this section.(f)(1)If approved by the board, any waste and used tire generator, waste and used tire hauler, or operator of a waste tire facility that is subject to the manifest requirements of this section, may submit an electronic report to the board, in lieu of submitting the copy of the manifest required. The electronic report shall include all information required to be on the California Uniform Waste and Used Tire Manifest, and any other information required by the board.(2)A waste and used tire generator, waste and used tire hauler, or operator of a waste tire facility that is subject to paragraph (1) may submit the electronic reports to the board on a quarterly schedule.(g) If the amount of waste or used tires recorded on a manifest is by weight or volume, the department shall determine the number of waste or used tires being transported by converting the weight or volume into PTEs. (h) The department may require a hauler to attend trainings and demonstrate understanding and proficiency with the provisions of this chapter, Chapter 16 (commencing with Section 42800), Chapter 17 (commencing with Section 42860), and any rules, regulations, or requirements issued or adopted pursuant to this chapter, Chapter 16, or Chapter 17 prior to receiving a waste and used tire hauler registration or a waste and used tire hauler registration renewal. CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 509Introduced by Assembly Member FrazierFebruary 13, 2017 An act to amend Sections 42885, 42889, and 42961.5 of, and to repeal and add Section 42872.1 of, the Public Resources Code, relating to tire recycling.LEGISLATIVE COUNSEL'S DIGESTAB 509, as introduced, Frazier. Tire recycling: California tire regulatory fee and waste tire program.(1) The California Tire Recycling Act requires, until January 1, 2024, a person who purchases a new tire to pay a California tire fee of $1.75 per tire, for deposit in the California Tire Recycling Management Fund, for expenditure by the Department of Resources Recycling and Recovery upon appropriation by the Legislature, to fund the waste tire program and for other purposes, including to pay for the costs associated with a waste tire and used tire hauler program and manifest system, as provided. After January 1, 2024, existing law reduces the tire fee to $0.75 per tire.Existing law requires any person generating waste tires or used tires that are transported or submitted for transportation, for offsite handling, altering, storage, disposal, or for any combination thereof, to complete a California Uniform Waste and Used Tire Manifest, as required by the department. Existing law requires a generator to provide the manifest to the waste and used tire hauler at the time of transfer of the tires, and to submit to the department, on a quarterly schedule, a legible copy of each manifest.This bill would require, until January 1, 2024, upon a specified finding by the department, a waste tire generator that is a retail seller of new tires to end user purchasers to pay a California tire regulatory fee and to remit that fee to the state on a quarterly schedule for deposit in the California Tire Recycling Management Fund. The bill would require the department to track revenue from the California tire regulatory fee separately and would prohibit those funds from being used for activities other than those specified. The bill would require the department to identify the specific programs that the California tire regulatory fee would fund. The bill would require the department to establish the California tire regulatory fee in an amount that does not exceed $1 per new tire sold, and would require the department to base the amount of the fee on specified criteria, as provided. The bill would authorize the department to differentiate in setting the fees between the waste tire generators who are retail sellers depending upon the nature of the activity generating waste tires, the number of waste tires generated, and other appropriate bases.The bill would require the department, prior to establishing the California tire regulatory fee or making any adjustment to the fee, to hold a public hearing, as specified. The bill would provide that an adjustment to the fee becomes effective on January 1 of the year following its adoption. The bill would require the department to adopt regulations to implement the initial California tire regulatory fee, and would authorize the department to adopt regulations to adjust the California tire regulatory fee, as specified.(2) Existing law prohibits the California tire fee from being imposed on a tire sold with, or sold separately for use on, a self-propelled wheelchair, a motorized tricycle or motorized quadricycle, or a vehicle that is similar to a motorized tricycle or motorized quadricycle, as specified.This bill would prohibit the California tire regulatory fee from being imposed on those same vehicles.(3) Existing law establishes, as a part of the waste tire program, the tire recycling program, which promotes and develops alternatives to the landfill disposal of used whole tires. The program provides for grants to certain entities involved in activities that result in reduced landfill disposal of whole used tires, and development and implementation of a waste tire incentive payment program to promote increased demand for waste tires recycled in this state. Under the act, until June 30, 2019, the Rubberized Pavement Market Development Act provides for the award of grants to certain public agency projects that use rubberized asphalt concrete.This bill would repeal the Rubberized Pavement Market Development Act and instead enact the Tire Recycling Incentive Program Act. The bill would require the department, in accordance with specified law, to establish this incentive program to make payments to entities that purchase waste tire material for incorporation in a product for sale to end users, as specified. The bill would require the department to collect data from recipients of incentive payments and release that data annually in the California Waste Tire Market Report, as specified. The bill would require the department to evaluate the program in a public forum and propose changes accordingly. The bill would make an entity eligible to receive an incentive payment upon demonstrating to the department that the entity purchased California-generated waste tire material processed in California and sold an incentive-eligible tire product incorporating that material to an end user.(4) Existing law requires a person generating waste or used tires that are transported or submitted for transportation to submit a California Uniform Waste and Used Tire Manifest, as defined, to the waste and used tire hauler and to submit copies of the manifest to the department. A waste and used tire hauler is required to possess that manifest while transporting waste or used tires, and the operator of a waste or used tire facility is required to submit a copy of the manifest to the department and the generator. Existing law requires the department to develop and implement a system for auditing manifests, including continuously conducting random sampling and matching of manifests. This bill would revise those provisions to, among other things, require a waste and used tire hauler, on and after January 1, 2019, to submit an electronic manifest, instead of a paper manifest, to the department within 7 days of the date of the pickup or delivery for each load of waste or used tires transported.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Assembly Bill No. 509 Introduced by Assembly Member FrazierFebruary 13, 2017 Introduced by Assembly Member Frazier February 13, 2017 An act to amend Sections 42885, 42889, and 42961.5 of, and to repeal and add Section 42872.1 of, the Public Resources Code, relating to tire recycling. LEGISLATIVE COUNSEL'S DIGEST ## LEGISLATIVE COUNSEL'S DIGEST AB 509, as introduced, Frazier. Tire recycling: California tire regulatory fee and waste tire program. (1) The California Tire Recycling Act requires, until January 1, 2024, a person who purchases a new tire to pay a California tire fee of $1.75 per tire, for deposit in the California Tire Recycling Management Fund, for expenditure by the Department of Resources Recycling and Recovery upon appropriation by the Legislature, to fund the waste tire program and for other purposes, including to pay for the costs associated with a waste tire and used tire hauler program and manifest system, as provided. After January 1, 2024, existing law reduces the tire fee to $0.75 per tire.Existing law requires any person generating waste tires or used tires that are transported or submitted for transportation, for offsite handling, altering, storage, disposal, or for any combination thereof, to complete a California Uniform Waste and Used Tire Manifest, as required by the department. Existing law requires a generator to provide the manifest to the waste and used tire hauler at the time of transfer of the tires, and to submit to the department, on a quarterly schedule, a legible copy of each manifest.This bill would require, until January 1, 2024, upon a specified finding by the department, a waste tire generator that is a retail seller of new tires to end user purchasers to pay a California tire regulatory fee and to remit that fee to the state on a quarterly schedule for deposit in the California Tire Recycling Management Fund. The bill would require the department to track revenue from the California tire regulatory fee separately and would prohibit those funds from being used for activities other than those specified. The bill would require the department to identify the specific programs that the California tire regulatory fee would fund. The bill would require the department to establish the California tire regulatory fee in an amount that does not exceed $1 per new tire sold, and would require the department to base the amount of the fee on specified criteria, as provided. The bill would authorize the department to differentiate in setting the fees between the waste tire generators who are retail sellers depending upon the nature of the activity generating waste tires, the number of waste tires generated, and other appropriate bases.The bill would require the department, prior to establishing the California tire regulatory fee or making any adjustment to the fee, to hold a public hearing, as specified. The bill would provide that an adjustment to the fee becomes effective on January 1 of the year following its adoption. The bill would require the department to adopt regulations to implement the initial California tire regulatory fee, and would authorize the department to adopt regulations to adjust the California tire regulatory fee, as specified.(2) Existing law prohibits the California tire fee from being imposed on a tire sold with, or sold separately for use on, a self-propelled wheelchair, a motorized tricycle or motorized quadricycle, or a vehicle that is similar to a motorized tricycle or motorized quadricycle, as specified.This bill would prohibit the California tire regulatory fee from being imposed on those same vehicles.(3) Existing law establishes, as a part of the waste tire program, the tire recycling program, which promotes and develops alternatives to the landfill disposal of used whole tires. The program provides for grants to certain entities involved in activities that result in reduced landfill disposal of whole used tires, and development and implementation of a waste tire incentive payment program to promote increased demand for waste tires recycled in this state. Under the act, until June 30, 2019, the Rubberized Pavement Market Development Act provides for the award of grants to certain public agency projects that use rubberized asphalt concrete.This bill would repeal the Rubberized Pavement Market Development Act and instead enact the Tire Recycling Incentive Program Act. The bill would require the department, in accordance with specified law, to establish this incentive program to make payments to entities that purchase waste tire material for incorporation in a product for sale to end users, as specified. The bill would require the department to collect data from recipients of incentive payments and release that data annually in the California Waste Tire Market Report, as specified. The bill would require the department to evaluate the program in a public forum and propose changes accordingly. The bill would make an entity eligible to receive an incentive payment upon demonstrating to the department that the entity purchased California-generated waste tire material processed in California and sold an incentive-eligible tire product incorporating that material to an end user.(4) Existing law requires a person generating waste or used tires that are transported or submitted for transportation to submit a California Uniform Waste and Used Tire Manifest, as defined, to the waste and used tire hauler and to submit copies of the manifest to the department. A waste and used tire hauler is required to possess that manifest while transporting waste or used tires, and the operator of a waste or used tire facility is required to submit a copy of the manifest to the department and the generator. Existing law requires the department to develop and implement a system for auditing manifests, including continuously conducting random sampling and matching of manifests. This bill would revise those provisions to, among other things, require a waste and used tire hauler, on and after January 1, 2019, to submit an electronic manifest, instead of a paper manifest, to the department within 7 days of the date of the pickup or delivery for each load of waste or used tires transported. (1) The California Tire Recycling Act requires, until January 1, 2024, a person who purchases a new tire to pay a California tire fee of $1.75 per tire, for deposit in the California Tire Recycling Management Fund, for expenditure by the Department of Resources Recycling and Recovery upon appropriation by the Legislature, to fund the waste tire program and for other purposes, including to pay for the costs associated with a waste tire and used tire hauler program and manifest system, as provided. After January 1, 2024, existing law reduces the tire fee to $0.75 per tire. Existing law requires any person generating waste tires or used tires that are transported or submitted for transportation, for offsite handling, altering, storage, disposal, or for any combination thereof, to complete a California Uniform Waste and Used Tire Manifest, as required by the department. Existing law requires a generator to provide the manifest to the waste and used tire hauler at the time of transfer of the tires, and to submit to the department, on a quarterly schedule, a legible copy of each manifest. This bill would require, until January 1, 2024, upon a specified finding by the department, a waste tire generator that is a retail seller of new tires to end user purchasers to pay a California tire regulatory fee and to remit that fee to the state on a quarterly schedule for deposit in the California Tire Recycling Management Fund. The bill would require the department to track revenue from the California tire regulatory fee separately and would prohibit those funds from being used for activities other than those specified. The bill would require the department to identify the specific programs that the California tire regulatory fee would fund. The bill would require the department to establish the California tire regulatory fee in an amount that does not exceed $1 per new tire sold, and would require the department to base the amount of the fee on specified criteria, as provided. The bill would authorize the department to differentiate in setting the fees between the waste tire generators who are retail sellers depending upon the nature of the activity generating waste tires, the number of waste tires generated, and other appropriate bases. The bill would require the department, prior to establishing the California tire regulatory fee or making any adjustment to the fee, to hold a public hearing, as specified. The bill would provide that an adjustment to the fee becomes effective on January 1 of the year following its adoption. The bill would require the department to adopt regulations to implement the initial California tire regulatory fee, and would authorize the department to adopt regulations to adjust the California tire regulatory fee, as specified. (2) Existing law prohibits the California tire fee from being imposed on a tire sold with, or sold separately for use on, a self-propelled wheelchair, a motorized tricycle or motorized quadricycle, or a vehicle that is similar to a motorized tricycle or motorized quadricycle, as specified. This bill would prohibit the California tire regulatory fee from being imposed on those same vehicles. (3) Existing law establishes, as a part of the waste tire program, the tire recycling program, which promotes and develops alternatives to the landfill disposal of used whole tires. The program provides for grants to certain entities involved in activities that result in reduced landfill disposal of whole used tires, and development and implementation of a waste tire incentive payment program to promote increased demand for waste tires recycled in this state. Under the act, until June 30, 2019, the Rubberized Pavement Market Development Act provides for the award of grants to certain public agency projects that use rubberized asphalt concrete. This bill would repeal the Rubberized Pavement Market Development Act and instead enact the Tire Recycling Incentive Program Act. The bill would require the department, in accordance with specified law, to establish this incentive program to make payments to entities that purchase waste tire material for incorporation in a product for sale to end users, as specified. The bill would require the department to collect data from recipients of incentive payments and release that data annually in the California Waste Tire Market Report, as specified. The bill would require the department to evaluate the program in a public forum and propose changes accordingly. The bill would make an entity eligible to receive an incentive payment upon demonstrating to the department that the entity purchased California-generated waste tire material processed in California and sold an incentive-eligible tire product incorporating that material to an end user. (4) Existing law requires a person generating waste or used tires that are transported or submitted for transportation to submit a California Uniform Waste and Used Tire Manifest, as defined, to the waste and used tire hauler and to submit copies of the manifest to the department. A waste and used tire hauler is required to possess that manifest while transporting waste or used tires, and the operator of a waste or used tire facility is required to submit a copy of the manifest to the department and the generator. Existing law requires the department to develop and implement a system for auditing manifests, including continuously conducting random sampling and matching of manifests. This bill would revise those provisions to, among other things, require a waste and used tire hauler, on and after January 1, 2019, to submit an electronic manifest, instead of a paper manifest, to the department within 7 days of the date of the pickup or delivery for each load of waste or used tires transported. ## Digest Key ## Bill Text The people of the State of California do enact as follows:SECTION 1. Section 42872.1 of the Public Resources Code is repealed.42872.1.(a)This section shall be known, and may be cited, as the Rubberized Pavement Market Development Act.(b)In accordance with the tire recycling program authorized by Section 42872, the department shall award grants in the following manner:(1)To cities, counties, and other local governmental agencies for the funding of public works projects that utilize rubberized pavement.(2)To state and local governmental agencies, including regional park districts, for the funding of disability access projects at parks and Class I bikeways as defined in subdivision (a) of Section 890.4, relative to projects that utilize rubberized pavement.(c)(1)Except as provided in paragraph (2), the department shall award the grants pursuant to subdivision (b) in the amount of two dollars ($2) for every 12 pounds of crumb rubber used in a public works or disability access project by a state or local governmental agency, including a regional park district.(2)The department may adjust the amount of grants awarded pursuant to paragraph (1) to an amount that is greater than, or less than, two dollars ($2) for every 12 pounds of crumb rubber if the department finds this adjustment would further the purposes of this article.(d)This section shall become inoperative on June 30, 2019, and, as of January 1, 2020, is repealed, unless a later enacted statute, that becomes operative on or before January 1, 2020, deletes or extends the dates on which it becomes inoperative and is repealed.SEC. 2. Section 42872.1 is added to the Public Resources Code, to read:42872.1. (a) This section shall be known, and may be cited, as the Tire Recycling Incentive Program Act.(b) In accordance with Section 42872, the department shall establish a tire recycling incentive program that makes payments to eligible entities.(c) Incentive payments shall be made to eligible entities for incentive-eligible tire products manufactured from California-generated waste tire material that promote the recycling of, the reduction of the disposal of, or the prevention of illegal dumping of California-generated waste tire material.(d) An eligible entity is eligible to receive an incentive payment only upon demonstrating to the department that the entity purchased California-generated waste tire material that was processed in California and sold an incentive-eligible tire product incorporating that material to an end user.(e) For purposes of this section, eligible entity includes, but is not limited to, a manufacturer that produces a product incorporating California-generated waste tire material for purchase by an end user. Eligible entity does not include the entity or person that receives the finished product.(f) For purposes of this section, end user includes, but is not limited to, the following:(1) Cities, counties, and other local governmental agencies, including school districts.(2) State and local governmental agencies, including regional park districts.(3) Private companies and persons.(g) (1) For purposes of this section, incentive-eligible tire product may include, but is not limited to, the following:(A) Pavement-related products, such as rubberized asphalt, asphalt rubber, modified binders, and chip seals.(B) Rubberized asphalt base stock to be used in applications other than pavement.(C) Products used in disability access projects at parks and Class I bikeways, as defined in subdivision (a) of Section 890.4 of the Streets and Highways Code, relative to projects that use recycled tires.(D) Poured in place and tile playground mats.(E) Landscape nuggets and mulch.(F) Walkways and pathways.(G) Running tracks.(H) Tire-derived aggregate applications, including lightweight fill and vibration mitigation.(I) Molded, extruded, injected, and calendered products.(J) Products that use recycled rubber as a substitute for other materials, such as plastic.(K) Paint and coatings.(L) Other products, environmentally safe applications, or treatments determined to be appropriate by the department.(2) Incentive-eligible tire product does not include any of the following:(A) Tire-derived fuel.(B) Alternative daily cover, intermediate cover, erosion, or other landfill uses, except tire-derived aggregates used in landfill engineered projects for landfill gas and leachate control systems and other engineering projects designated by the department.(C) Exports.(D) Synthetic turf infill.(E) Loose rubber nugget or mulch playgrounds.(F) Purchases made to meet procurement requirements established pursuant to Section 42703.(h) The department shall collect data from recipients of incentive payments to be released annually in the California Waste Tire Market Report.(1) Data shall be aggregated to determine the total amount of money paid for each category of incentive-eligible tire products listed in paragraphs (A) to (L), inclusive, of paragraph (1) of subdivision (g) and how many tires, or passenger tire equivalents as defined in subdivision (b) of Section 42961.5, were recycled. The data specified in this paragraph shall be used by the department for purposes of the evaluation required pursuant to subdivision (i).(2) The department shall include in the California Waste Tire Market Report the number of tires, or passenger tire equivalents, as defined in subdivision (b) of Section 42961.5, that were recycled in that year and the annual recycling rate.(3) The report shall also include the number of tires recycled by the Department of Transportation as part of the overall recycling rate.(i) As part of the biennial update of the five-year plan required pursuant to Section 42885.5, the department shall evaluate the tire recycling incentive program established pursuant to subdivision (b) in a public forum and propose changes accordingly.(1) The evaluation required pursuant to this subdivision shall include, but is not limited to, the following elements:(A) The recycling rate of California-generated waste tire material, including waste tire material recycled through funding pursuant to the tire recycling incentive program, and, to the extent the information is available, an estimate of the recycling rate of waste tire material recycled by other state and local agencies and the private sector.(B) The amount of California-generated waste tire material entering each market segment.(C) The amount of waste tire material recycled through expenditures authorized by this chapter.(2) Based on the findings from the evaluation required pursuant to this subdivision, the department shall reevaluate and prioritize funding for the categories of incentive-eligible tire products that recycle the most waste tires.(j) For purposes of this section, recipients of incentive payments shall meet specified criteria, as established by the department, that are consistent with the provisions of this article.(k) No less than 50 percent of the total value of incentive payments made pursuant to this section shall be made for pavement-related products, as described in subparagraph (A) of paragraph (1) of subdivision (g).(l) Nothing in this section is intended to limit the use of waste tire products that are not incentive-eligible tire products.SEC. 3. Section 42885 of the Public Resources Code, as amended by Section 31 of Chapter 401 of the Statutes of 2013, is amended to read:42885. (a) (1) For purposes of this section, California tire fee means the fee imposed pursuant to subdivision (b) of this section.(2) For purposes of this section, a California tire regulatory fee means a fee imposed pursuant to subdivision (c) of this section. (b) (1) A person who purchases a new tire, as defined in subdivision (g), (h), shall pay a California tire fee of one dollar and seventy-five cents ($1.75) per tire.(2) The retail seller shall charge the retail purchaser the amount of the California tire fee as a charge that is separate from, and not included in, any other fee, charge, or other amount paid by the retail purchaser.(3) The retail seller shall collect the California tire fee from the retail purchaser at the time of sale and may retain 11/2 percent of the fee as reimbursement for any costs associated with the collection of the fee. The retail seller shall remit the remainder to the state on a quarterly schedule for deposit in the California Tire Recycling Management Fund, which is hereby created in the State Treasury.(c) (1) Upon a finding by the department that the California Tire Recycling Management Fund will not have sufficient revenue to fund the reasonable regulatory costs incurred by the department incident to audits, inspections, administrative activities, adjudications, manifesting, registration, and other regulatory activities regarding waste tires, including the regulatory aspects of the programs established pursuant to this chapter, Chapter 16 (commencing with Section 42800), and Chapter 19 (commencing with Section 42950), for the next fiscal year, the department shall establish, and a waste tire generator that is a retail seller of new tires to end user purchasers shall pay, a California tire regulatory fee. The amount of the California tire regulatory fee shall be established and adjusted by the department based on the factors specified in paragraph (3), but that amount shall not exceed one dollar ($1) per new tire sold. The department shall set this fee to collect no more than is necessary for the following fiscal year, including a prudent reserve, as specified in subparagraph (B) of paragraph (3). The department may differentiate in setting fees between waste tire generators who are retail sellers of new tires depending upon the nature of the retail sellers activity generating waste tires, the number of waste tires generated, and other appropriate bases. (2) A waste tire generator that is a retail seller of new tires shall remit the fee assessed pursuant to this subdivision to the state on a quarterly schedule for deposit in the California Tire Recycling Management Fund. The revenue from the California tire regulatory fee shall be tracked separately by the department and shall not be used for activities other than those described in paragraph (1). (3) Prior to establishing or adjusting the California tire regulatory fee, the department shall review at a public hearing the following factors: (A) The amount necessary to fund the reasonable regulatory costs incurred by the department incident to audits, inspections, administrative activities, adjudications, manifesting, registration, and other regulatory activities associated with waste tires pursuant to this chapter, Chapter 16 (commencing with Section 42800), and Chapter 19 (commencing with Section 42950). (B) The sufficiency of revenues in the California Tire Recycling Management Fund for the department to administer, enforce, and promote its regulatory activities regarding waste tires, including the regulatory aspects of the programs established pursuant to this chapter, Chapter 16 (commencing with Section 42800), and Chapter 19 (commencing with Section 42950), plus a prudent reserve. (C) Whether additional revenue is necessary to preserve the departments ability to conduct regulatory activities in the following fiscal year. (D) Whether, at the end of a fiscal year, after making payments pursuant to Sections 42872.1 and 42889, sufficient surplus remains in the California Tire Recycling Management Fund to reduce the California tire regulatory fee. (4) An adjustment to the California tire regulatory fee shall become effective on January 1 of the year following its adoption. (5) (A) The department shall adopt regulations to establish the California tire regulatory fee. (B) The department may adopt regulations to adjust the California tire regulatory fee. These regulations shall be deemed to meet the description in subdivision (g) of Section 11340.9 of the Government Code and may be filed by the department pursuant to Section 11343.8 of the Government Code.(6) The department shall identify the specific programs to be funded by the California tire regulatory fee. (c)(d) The department, or its agent authorized pursuant to Section 42882, shall be reimbursed for its costs of collection, auditing, and making refunds associated with the California Tire Recycling Management Fund, but not to the amount of that reimbursement shall not exceed 3 percent of the total annual revenue deposited in the fund.(d)(e) The California tire fee imposed pursuant to subdivision (b) shall be separately stated by the retail seller on the invoice given to the customer at the time of sale. Any other disposal or transaction fee charged by the retail seller related to the tire purchase shall be identified separately from the California tire fee.(e)(f) A person or business who knowingly, or with reckless disregard, makes a false statement or representation in a document used to comply with this section is liable for a civil penalty for each violation or, for continuing violations, for each day that the violation continues. Liability under this section may be imposed in a civil action and shall not exceed twenty-five thousand dollars ($25,000) for each violation.(f)(g) In addition to the civil penalty that may be imposed pursuant to subdivision (e), (f), the department may impose an administrative penalty in an amount not to exceed five thousand dollars ($5,000) for each violation of a separate provision or, for continuing violations, for each day that the violation continues, on a person who intentionally or negligently violates a permit, rule, regulation, standard, or requirement issued or adopted pursuant to this chapter. The department shall adopt regulations that specify the amount of the administrative penalty and the procedure for imposing an administrative penalty pursuant to this subdivision.(g)(h) For purposes of this section, new tire means a pneumatic or solid tire intended for use with onroad or off-road motor vehicles, motorized equipment, construction equipment, or farm equipment that is sold separately from the motorized equipment, or a new tire sold with a new or used motor vehicle, as defined in Section 42803.5, including the spare tire, construction equipment, or farm equipment. New tire does not include retreaded, reused, or recycled tires.(h)(i) The California tire fee and the California tire regulatory fee shall not be imposed on a tire sold with, or sold separately for use on, any of the following:(1) A self-propelled wheelchair.(2) A motorized tricycle or motorized quadricycle, as defined in Section 407 of the Vehicle Code.(3) A vehicle that is similar to a motorized tricycle or motorized quadricycle and is designed to be operated by a person who, by reason of the persons physical disability, is otherwise unable to move about as a pedestrian.(i)(j) This section shall remain in effect only until January 1, 2024, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2024, deletes or extends that date.SEC. 4. Section 42889 of the Public Resources Code, as amended by Section 152 of Chapter 35 of the Statutes of 2014, is amended to read:42889. (a) Of the moneys collected pursuant to subdivision (b) of Section 42885, an amount equal to seventy-five cents ($0.75) per tire on which the fee is imposed shall be transferred by the State Board of Equalization to the Air Pollution Control Fund. The state board shall expend those moneys, or allocate those moneys to the districts for expenditure, to fund programs and projects that mitigate or remediate air pollution caused by tires in the state, to the extent that the state board or the applicable district determines that the program or project remediates air pollution harms created by tires upon which the fee described in subdivision (b) of Section 42885 is imposed.(b) The remaining moneys collected pursuant to subdivision (b) of Section 42885 shall be used to fund the waste tire program, and program and the tire recycling incentive program, pursuant to Section 42872.1, and shall be appropriated to the department in the annual Budget Act in a manner consistent with the five-year plan adopted and updated by the department. These moneys shall be expended for the payment of refunds under this chapter and for the following purposes: purposes, to the extent they are not lawfully payable from funds allocated pursuant to subdivision (c) of Section 42885:(1) To pay the administrative overhead cost of this chapter, not to exceed 6 percent of the total revenue deposited in the fund annually, or an amount otherwise specified in the annual Budget Act.(2) To pay the costs of administration associated with collection, making refunds, and auditing revenues in the fund, not to exceed 3 percent of the total revenue deposited in the fund, as provided in subdivision (c) (d) of Section 42885.(3) To pay the costs associated with operating the tire recycling program specified in Article 3 (commencing with Section 42870).(4) To pay the costs associated with the development and enforcement of regulations relating to the storage of waste tires and used tires. The department shall consider designating a city, county, or city and county as the enforcement authority of regulations relating to the storage of waste tires and used tires, as provided in subdivision (c) of Section 42850, and regulations relating to the hauling of waste and used tires, as provided in subdivision (b) of Section 42963. If the department designates a local entity for that purpose, the department shall provide sufficient, stable, and noncompetitive funding to that entity for that purpose, based on available resources, as provided in the five-year plan adopted and updated as provided in subdivision (a) of Section 42885.5. The department may consider and create, as appropriate, financial incentives for citizens who report the illegal hauling or disposal of waste tires as a means of enhancing local and statewide waste tire and used tire enforcement programs.(5) To pay the costs of cleanup, abatement, removal, or other remedial action related to waste tire stockpiles throughout the state, including all approved costs incurred by other public agencies involved in these activities by contract with the department. Not less than six million five hundred thousand dollars ($6,500,000) shall be expended by the department during each of the following fiscal years for this purpose: 200102 to 200607, inclusive.(6) To make studies and conduct research directed at promoting and developing alternatives to the landfill disposal of waste tires.(7) To assist in developing markets and new technologies for used tires and waste tires. The departments expenditure of funds for purposes of this subdivision shall reflect the priorities for waste management practices specified in subdivision (a) of Section 40051.(8) To pay the costs associated with implementing and operating a waste tire and used tire hauler program and manifest system pursuant to Chapter 19 (commencing with Section 42950).(9) To pay the costs to create and maintain an emergency reserve, which shall not exceed one million dollars ($1,000,000).(10) To pay the costs of cleanup, abatement, or other remedial action related to the disposal of waste tires in implementing and operating the Farm and Ranch Solid Waste Cleanup and Abatement Grant Program established pursuant to Chapter 2.5 (commencing with Section 48100) of Part 7.(11) To fund border region activities specified in paragraph (8) of subdivision (b) of Section 42885.5.(12) For expenditure pursuant to paragraph (3) of subdivision (a) of, and paragraph (3) of subdivision (b) of, Section 17001.(c) This section shall remain in effect only until January 1, 2024, and as of that date is repealed, unless a later enacted statute that is enacted before January 1, 2024, deletes or extends that date.SEC. 5. Section 42961.5 of the Public Resources Code is amended to read:42961.5. (a) For purposes of this chapter, the following definitions shall apply:(1) California Uniform Waste and Used Tire Manifest or manifest means a shipping document signed by a waste or used tire hauler and a generator of waste or used tires, a waste and used tire hauler, or the operator of a waste or used tire facility or other destination that contains all of the information required by the board, department, including, but not limited to, an accurate measurement of the number of tires being shipped, the type or types of the tires, the date the shipment originated, originated or terminated, and the origin and intended final destination of the shipment.(2) Electronic Manifest means a manifest that is submitted to the department electronically in a manner specified by the department. (2)(3) Waste and used tire hauler or hauler means any person required to be registered with the board department pursuant to subdivision (a) of Section 42951.(b) For purposes of this section, Passenger Tire Equivalent or PTE means either of the following: (1) A unit of measurement, such that one PTE equals 20 pounds of waste or used tires, and one PTE equals one waste or used tire. (2) A unit of measurement, such that 10 PTEs equals one cubic yard of waste or used tires, and one PTE equals one waste or used tire. (b)Any person generating(c) (1) A hauler transporting waste or used tires that are transported or submitted for transportation, for offsite handling, altering, storage, or disposal, or for any combination thereof, shall complete a California Uniform Waste and Used Tire Manifest, as required by the board. The generator shall provide the manifest to the waste and used tire hauler at the time of transfer of the tires. Each generator shall submit to the board, on a quarterly schedule, a legible copy of each manifest. The copy submitted to the board shall contain the signatures of the generator and the waste and used tire hauler. manifest.(c)(1)Any waste and used tire(2) A hauler shall have the California Uniform Waste and Used Tire Manifest manifest in his or her possession while transporting waste or used tires. The manifest shall be shown upon demand to any representative of the board, department, any officer of the Department of the California Highway Patrol, or any peace officer, as defined in Section 830.1 or 830.2 of the Penal Code, or any local public officer designated by the board. Code.(2)Any waste and used tire hauler hauling waste or used tires for offsite handling, altering, storage, disposal, or any combination thereof, shall complete the California Uniform Waste and Used Tire Manifest as required by the board. The waste and used tire hauler shall provide the manifest to the(3) A hauler shall provide the manifest, or otherwise provide all required manifest information, to the generator of waste or used tires or to the operator of a waste or used tire facility operator who receives the waste or used tires for handling, altering, storage, disposal, or any combination thereof. Each waste and used tire hauler shall submit to the board, on a quarterly schedule, a legible copy of each manifest. The copy submitted to the board shall contain the signatures of the generator and the facility operator. or other destination at the time of transfer of the tires.(4) Notwithstanding the Uniform Electronic Transactions Act (Title 2.5 (commencing with Section 1633.1) of Part 2 of Division 3 of the Civil Code), the hauler shall submit a manifest to the department for each load of waste or used tires transported within seven days of the date of the pickup or delivery. The department may grant an extension before the seventh day upon a showing of good cause by the hauler. (5) On and after January 1, 2019, the hauler shall submit only an electronic manifest, and not a paper manifest, to the department within seven days of the date of the pickup or delivery for each load of waste or used tires transported. (6) If approved by the department, a hauler may submit an electronic manifest prior to January 1, 2019. The electronic manifest shall include all information required to be on the manifest and any other information required by the department. (d) Each waste or used tire facility operator that receives The authorized representative for the person generating or accepting waste or used tires for handling, altering, storage, disposal, or any combination thereof, that was transported with a manifest pursuant to this section, shall submit copies of each manifest provided by the waste and used tire hauler to the board and the generator on a quarterly schedule. The copy submitted to the board shall contain the signatures of each generator, each transporter, and the facility operator. If approved by the board, in lieu of submitting shall verify that the information on the manifest is correct, including the number of tires and other information specified by the department, and shall sign the manifest. The person generating or accepting waste or used tires shall maintain a copy of each manifest used, a facility operator may submit an electronic report to the board meeting the requirements of Section 42814. the manifest and any other information required that the department deems necessary to track the flow of waste and used tires through the state.(e) The department may require an electronic manifest submitted by a hauler to the department to include verification from a hauler, and a generator of waste or used tires, or the operator of a waste or used tire facility or other destination, that the information on the manifest is correct, including the number of tires and other information specified by the department. (e)(f) The board department shall develop and implement a system for auditing manifests submitted to the board department pursuant to this section, for the purpose of enforcing this section. The board or its agent shall continuously conduct random sampling and matching of manifests submitted by any person generating waste or used tires, hauling waste or used tires, or operating waste or used tire facilities, to assure compliance with this section.(f)(1)If approved by the board, any waste and used tire generator, waste and used tire hauler, or operator of a waste tire facility that is subject to the manifest requirements of this section, may submit an electronic report to the board, in lieu of submitting the copy of the manifest required. The electronic report shall include all information required to be on the California Uniform Waste and Used Tire Manifest, and any other information required by the board.(2)A waste and used tire generator, waste and used tire hauler, or operator of a waste tire facility that is subject to paragraph (1) may submit the electronic reports to the board on a quarterly schedule.(g) If the amount of waste or used tires recorded on a manifest is by weight or volume, the department shall determine the number of waste or used tires being transported by converting the weight or volume into PTEs. (h) The department may require a hauler to attend trainings and demonstrate understanding and proficiency with the provisions of this chapter, Chapter 16 (commencing with Section 42800), Chapter 17 (commencing with Section 42860), and any rules, regulations, or requirements issued or adopted pursuant to this chapter, Chapter 16, or Chapter 17 prior to receiving a waste and used tire hauler registration or a waste and used tire hauler registration renewal. The people of the State of California do enact as follows: ## The people of the State of California do enact as follows: SECTION 1. Section 42872.1 of the Public Resources Code is repealed.42872.1.(a)This section shall be known, and may be cited, as the Rubberized Pavement Market Development Act.(b)In accordance with the tire recycling program authorized by Section 42872, the department shall award grants in the following manner:(1)To cities, counties, and other local governmental agencies for the funding of public works projects that utilize rubberized pavement.(2)To state and local governmental agencies, including regional park districts, for the funding of disability access projects at parks and Class I bikeways as defined in subdivision (a) of Section 890.4, relative to projects that utilize rubberized pavement.(c)(1)Except as provided in paragraph (2), the department shall award the grants pursuant to subdivision (b) in the amount of two dollars ($2) for every 12 pounds of crumb rubber used in a public works or disability access project by a state or local governmental agency, including a regional park district.(2)The department may adjust the amount of grants awarded pursuant to paragraph (1) to an amount that is greater than, or less than, two dollars ($2) for every 12 pounds of crumb rubber if the department finds this adjustment would further the purposes of this article.(d)This section shall become inoperative on June 30, 2019, and, as of January 1, 2020, is repealed, unless a later enacted statute, that becomes operative on or before January 1, 2020, deletes or extends the dates on which it becomes inoperative and is repealed. SECTION 1. Section 42872.1 of the Public Resources Code is repealed. ### SECTION 1. 42872.1.(a)This section shall be known, and may be cited, as the Rubberized Pavement Market Development Act.(b)In accordance with the tire recycling program authorized by Section 42872, the department shall award grants in the following manner:(1)To cities, counties, and other local governmental agencies for the funding of public works projects that utilize rubberized pavement.(2)To state and local governmental agencies, including regional park districts, for the funding of disability access projects at parks and Class I bikeways as defined in subdivision (a) of Section 890.4, relative to projects that utilize rubberized pavement.(c)(1)Except as provided in paragraph (2), the department shall award the grants pursuant to subdivision (b) in the amount of two dollars ($2) for every 12 pounds of crumb rubber used in a public works or disability access project by a state or local governmental agency, including a regional park district.(2)The department may adjust the amount of grants awarded pursuant to paragraph (1) to an amount that is greater than, or less than, two dollars ($2) for every 12 pounds of crumb rubber if the department finds this adjustment would further the purposes of this article.(d)This section shall become inoperative on June 30, 2019, and, as of January 1, 2020, is repealed, unless a later enacted statute, that becomes operative on or before January 1, 2020, deletes or extends the dates on which it becomes inoperative and is repealed. (a)This section shall be known, and may be cited, as the Rubberized Pavement Market Development Act. (b)In accordance with the tire recycling program authorized by Section 42872, the department shall award grants in the following manner: (1)To cities, counties, and other local governmental agencies for the funding of public works projects that utilize rubberized pavement. (2)To state and local governmental agencies, including regional park districts, for the funding of disability access projects at parks and Class I bikeways as defined in subdivision (a) of Section 890.4, relative to projects that utilize rubberized pavement. (c)(1)Except as provided in paragraph (2), the department shall award the grants pursuant to subdivision (b) in the amount of two dollars ($2) for every 12 pounds of crumb rubber used in a public works or disability access project by a state or local governmental agency, including a regional park district. (2)The department may adjust the amount of grants awarded pursuant to paragraph (1) to an amount that is greater than, or less than, two dollars ($2) for every 12 pounds of crumb rubber if the department finds this adjustment would further the purposes of this article. (d)This section shall become inoperative on June 30, 2019, and, as of January 1, 2020, is repealed, unless a later enacted statute, that becomes operative on or before January 1, 2020, deletes or extends the dates on which it becomes inoperative and is repealed. SEC. 2. Section 42872.1 is added to the Public Resources Code, to read:42872.1. (a) This section shall be known, and may be cited, as the Tire Recycling Incentive Program Act.(b) In accordance with Section 42872, the department shall establish a tire recycling incentive program that makes payments to eligible entities.(c) Incentive payments shall be made to eligible entities for incentive-eligible tire products manufactured from California-generated waste tire material that promote the recycling of, the reduction of the disposal of, or the prevention of illegal dumping of California-generated waste tire material.(d) An eligible entity is eligible to receive an incentive payment only upon demonstrating to the department that the entity purchased California-generated waste tire material that was processed in California and sold an incentive-eligible tire product incorporating that material to an end user.(e) For purposes of this section, eligible entity includes, but is not limited to, a manufacturer that produces a product incorporating California-generated waste tire material for purchase by an end user. Eligible entity does not include the entity or person that receives the finished product.(f) For purposes of this section, end user includes, but is not limited to, the following:(1) Cities, counties, and other local governmental agencies, including school districts.(2) State and local governmental agencies, including regional park districts.(3) Private companies and persons.(g) (1) For purposes of this section, incentive-eligible tire product may include, but is not limited to, the following:(A) Pavement-related products, such as rubberized asphalt, asphalt rubber, modified binders, and chip seals.(B) Rubberized asphalt base stock to be used in applications other than pavement.(C) Products used in disability access projects at parks and Class I bikeways, as defined in subdivision (a) of Section 890.4 of the Streets and Highways Code, relative to projects that use recycled tires.(D) Poured in place and tile playground mats.(E) Landscape nuggets and mulch.(F) Walkways and pathways.(G) Running tracks.(H) Tire-derived aggregate applications, including lightweight fill and vibration mitigation.(I) Molded, extruded, injected, and calendered products.(J) Products that use recycled rubber as a substitute for other materials, such as plastic.(K) Paint and coatings.(L) Other products, environmentally safe applications, or treatments determined to be appropriate by the department.(2) Incentive-eligible tire product does not include any of the following:(A) Tire-derived fuel.(B) Alternative daily cover, intermediate cover, erosion, or other landfill uses, except tire-derived aggregates used in landfill engineered projects for landfill gas and leachate control systems and other engineering projects designated by the department.(C) Exports.(D) Synthetic turf infill.(E) Loose rubber nugget or mulch playgrounds.(F) Purchases made to meet procurement requirements established pursuant to Section 42703.(h) The department shall collect data from recipients of incentive payments to be released annually in the California Waste Tire Market Report.(1) Data shall be aggregated to determine the total amount of money paid for each category of incentive-eligible tire products listed in paragraphs (A) to (L), inclusive, of paragraph (1) of subdivision (g) and how many tires, or passenger tire equivalents as defined in subdivision (b) of Section 42961.5, were recycled. The data specified in this paragraph shall be used by the department for purposes of the evaluation required pursuant to subdivision (i).(2) The department shall include in the California Waste Tire Market Report the number of tires, or passenger tire equivalents, as defined in subdivision (b) of Section 42961.5, that were recycled in that year and the annual recycling rate.(3) The report shall also include the number of tires recycled by the Department of Transportation as part of the overall recycling rate.(i) As part of the biennial update of the five-year plan required pursuant to Section 42885.5, the department shall evaluate the tire recycling incentive program established pursuant to subdivision (b) in a public forum and propose changes accordingly.(1) The evaluation required pursuant to this subdivision shall include, but is not limited to, the following elements:(A) The recycling rate of California-generated waste tire material, including waste tire material recycled through funding pursuant to the tire recycling incentive program, and, to the extent the information is available, an estimate of the recycling rate of waste tire material recycled by other state and local agencies and the private sector.(B) The amount of California-generated waste tire material entering each market segment.(C) The amount of waste tire material recycled through expenditures authorized by this chapter.(2) Based on the findings from the evaluation required pursuant to this subdivision, the department shall reevaluate and prioritize funding for the categories of incentive-eligible tire products that recycle the most waste tires.(j) For purposes of this section, recipients of incentive payments shall meet specified criteria, as established by the department, that are consistent with the provisions of this article.(k) No less than 50 percent of the total value of incentive payments made pursuant to this section shall be made for pavement-related products, as described in subparagraph (A) of paragraph (1) of subdivision (g).(l) Nothing in this section is intended to limit the use of waste tire products that are not incentive-eligible tire products. SEC. 2. Section 42872.1 is added to the Public Resources Code, to read: ### SEC. 2. 42872.1. (a) This section shall be known, and may be cited, as the Tire Recycling Incentive Program Act.(b) In accordance with Section 42872, the department shall establish a tire recycling incentive program that makes payments to eligible entities.(c) Incentive payments shall be made to eligible entities for incentive-eligible tire products manufactured from California-generated waste tire material that promote the recycling of, the reduction of the disposal of, or the prevention of illegal dumping of California-generated waste tire material.(d) An eligible entity is eligible to receive an incentive payment only upon demonstrating to the department that the entity purchased California-generated waste tire material that was processed in California and sold an incentive-eligible tire product incorporating that material to an end user.(e) For purposes of this section, eligible entity includes, but is not limited to, a manufacturer that produces a product incorporating California-generated waste tire material for purchase by an end user. Eligible entity does not include the entity or person that receives the finished product.(f) For purposes of this section, end user includes, but is not limited to, the following:(1) Cities, counties, and other local governmental agencies, including school districts.(2) State and local governmental agencies, including regional park districts.(3) Private companies and persons.(g) (1) For purposes of this section, incentive-eligible tire product may include, but is not limited to, the following:(A) Pavement-related products, such as rubberized asphalt, asphalt rubber, modified binders, and chip seals.(B) Rubberized asphalt base stock to be used in applications other than pavement.(C) Products used in disability access projects at parks and Class I bikeways, as defined in subdivision (a) of Section 890.4 of the Streets and Highways Code, relative to projects that use recycled tires.(D) Poured in place and tile playground mats.(E) Landscape nuggets and mulch.(F) Walkways and pathways.(G) Running tracks.(H) Tire-derived aggregate applications, including lightweight fill and vibration mitigation.(I) Molded, extruded, injected, and calendered products.(J) Products that use recycled rubber as a substitute for other materials, such as plastic.(K) Paint and coatings.(L) Other products, environmentally safe applications, or treatments determined to be appropriate by the department.(2) Incentive-eligible tire product does not include any of the following:(A) Tire-derived fuel.(B) Alternative daily cover, intermediate cover, erosion, or other landfill uses, except tire-derived aggregates used in landfill engineered projects for landfill gas and leachate control systems and other engineering projects designated by the department.(C) Exports.(D) Synthetic turf infill.(E) Loose rubber nugget or mulch playgrounds.(F) Purchases made to meet procurement requirements established pursuant to Section 42703.(h) The department shall collect data from recipients of incentive payments to be released annually in the California Waste Tire Market Report.(1) Data shall be aggregated to determine the total amount of money paid for each category of incentive-eligible tire products listed in paragraphs (A) to (L), inclusive, of paragraph (1) of subdivision (g) and how many tires, or passenger tire equivalents as defined in subdivision (b) of Section 42961.5, were recycled. The data specified in this paragraph shall be used by the department for purposes of the evaluation required pursuant to subdivision (i).(2) The department shall include in the California Waste Tire Market Report the number of tires, or passenger tire equivalents, as defined in subdivision (b) of Section 42961.5, that were recycled in that year and the annual recycling rate.(3) The report shall also include the number of tires recycled by the Department of Transportation as part of the overall recycling rate.(i) As part of the biennial update of the five-year plan required pursuant to Section 42885.5, the department shall evaluate the tire recycling incentive program established pursuant to subdivision (b) in a public forum and propose changes accordingly.(1) The evaluation required pursuant to this subdivision shall include, but is not limited to, the following elements:(A) The recycling rate of California-generated waste tire material, including waste tire material recycled through funding pursuant to the tire recycling incentive program, and, to the extent the information is available, an estimate of the recycling rate of waste tire material recycled by other state and local agencies and the private sector.(B) The amount of California-generated waste tire material entering each market segment.(C) The amount of waste tire material recycled through expenditures authorized by this chapter.(2) Based on the findings from the evaluation required pursuant to this subdivision, the department shall reevaluate and prioritize funding for the categories of incentive-eligible tire products that recycle the most waste tires.(j) For purposes of this section, recipients of incentive payments shall meet specified criteria, as established by the department, that are consistent with the provisions of this article.(k) No less than 50 percent of the total value of incentive payments made pursuant to this section shall be made for pavement-related products, as described in subparagraph (A) of paragraph (1) of subdivision (g).(l) Nothing in this section is intended to limit the use of waste tire products that are not incentive-eligible tire products. 42872.1. (a) This section shall be known, and may be cited, as the Tire Recycling Incentive Program Act.(b) In accordance with Section 42872, the department shall establish a tire recycling incentive program that makes payments to eligible entities.(c) Incentive payments shall be made to eligible entities for incentive-eligible tire products manufactured from California-generated waste tire material that promote the recycling of, the reduction of the disposal of, or the prevention of illegal dumping of California-generated waste tire material.(d) An eligible entity is eligible to receive an incentive payment only upon demonstrating to the department that the entity purchased California-generated waste tire material that was processed in California and sold an incentive-eligible tire product incorporating that material to an end user.(e) For purposes of this section, eligible entity includes, but is not limited to, a manufacturer that produces a product incorporating California-generated waste tire material for purchase by an end user. Eligible entity does not include the entity or person that receives the finished product.(f) For purposes of this section, end user includes, but is not limited to, the following:(1) Cities, counties, and other local governmental agencies, including school districts.(2) State and local governmental agencies, including regional park districts.(3) Private companies and persons.(g) (1) For purposes of this section, incentive-eligible tire product may include, but is not limited to, the following:(A) Pavement-related products, such as rubberized asphalt, asphalt rubber, modified binders, and chip seals.(B) Rubberized asphalt base stock to be used in applications other than pavement.(C) Products used in disability access projects at parks and Class I bikeways, as defined in subdivision (a) of Section 890.4 of the Streets and Highways Code, relative to projects that use recycled tires.(D) Poured in place and tile playground mats.(E) Landscape nuggets and mulch.(F) Walkways and pathways.(G) Running tracks.(H) Tire-derived aggregate applications, including lightweight fill and vibration mitigation.(I) Molded, extruded, injected, and calendered products.(J) Products that use recycled rubber as a substitute for other materials, such as plastic.(K) Paint and coatings.(L) Other products, environmentally safe applications, or treatments determined to be appropriate by the department.(2) Incentive-eligible tire product does not include any of the following:(A) Tire-derived fuel.(B) Alternative daily cover, intermediate cover, erosion, or other landfill uses, except tire-derived aggregates used in landfill engineered projects for landfill gas and leachate control systems and other engineering projects designated by the department.(C) Exports.(D) Synthetic turf infill.(E) Loose rubber nugget or mulch playgrounds.(F) Purchases made to meet procurement requirements established pursuant to Section 42703.(h) The department shall collect data from recipients of incentive payments to be released annually in the California Waste Tire Market Report.(1) Data shall be aggregated to determine the total amount of money paid for each category of incentive-eligible tire products listed in paragraphs (A) to (L), inclusive, of paragraph (1) of subdivision (g) and how many tires, or passenger tire equivalents as defined in subdivision (b) of Section 42961.5, were recycled. The data specified in this paragraph shall be used by the department for purposes of the evaluation required pursuant to subdivision (i).(2) The department shall include in the California Waste Tire Market Report the number of tires, or passenger tire equivalents, as defined in subdivision (b) of Section 42961.5, that were recycled in that year and the annual recycling rate.(3) The report shall also include the number of tires recycled by the Department of Transportation as part of the overall recycling rate.(i) As part of the biennial update of the five-year plan required pursuant to Section 42885.5, the department shall evaluate the tire recycling incentive program established pursuant to subdivision (b) in a public forum and propose changes accordingly.(1) The evaluation required pursuant to this subdivision shall include, but is not limited to, the following elements:(A) The recycling rate of California-generated waste tire material, including waste tire material recycled through funding pursuant to the tire recycling incentive program, and, to the extent the information is available, an estimate of the recycling rate of waste tire material recycled by other state and local agencies and the private sector.(B) The amount of California-generated waste tire material entering each market segment.(C) The amount of waste tire material recycled through expenditures authorized by this chapter.(2) Based on the findings from the evaluation required pursuant to this subdivision, the department shall reevaluate and prioritize funding for the categories of incentive-eligible tire products that recycle the most waste tires.(j) For purposes of this section, recipients of incentive payments shall meet specified criteria, as established by the department, that are consistent with the provisions of this article.(k) No less than 50 percent of the total value of incentive payments made pursuant to this section shall be made for pavement-related products, as described in subparagraph (A) of paragraph (1) of subdivision (g).(l) Nothing in this section is intended to limit the use of waste tire products that are not incentive-eligible tire products. 42872.1. (a) This section shall be known, and may be cited, as the Tire Recycling Incentive Program Act.(b) In accordance with Section 42872, the department shall establish a tire recycling incentive program that makes payments to eligible entities.(c) Incentive payments shall be made to eligible entities for incentive-eligible tire products manufactured from California-generated waste tire material that promote the recycling of, the reduction of the disposal of, or the prevention of illegal dumping of California-generated waste tire material.(d) An eligible entity is eligible to receive an incentive payment only upon demonstrating to the department that the entity purchased California-generated waste tire material that was processed in California and sold an incentive-eligible tire product incorporating that material to an end user.(e) For purposes of this section, eligible entity includes, but is not limited to, a manufacturer that produces a product incorporating California-generated waste tire material for purchase by an end user. Eligible entity does not include the entity or person that receives the finished product.(f) For purposes of this section, end user includes, but is not limited to, the following:(1) Cities, counties, and other local governmental agencies, including school districts.(2) State and local governmental agencies, including regional park districts.(3) Private companies and persons.(g) (1) For purposes of this section, incentive-eligible tire product may include, but is not limited to, the following:(A) Pavement-related products, such as rubberized asphalt, asphalt rubber, modified binders, and chip seals.(B) Rubberized asphalt base stock to be used in applications other than pavement.(C) Products used in disability access projects at parks and Class I bikeways, as defined in subdivision (a) of Section 890.4 of the Streets and Highways Code, relative to projects that use recycled tires.(D) Poured in place and tile playground mats.(E) Landscape nuggets and mulch.(F) Walkways and pathways.(G) Running tracks.(H) Tire-derived aggregate applications, including lightweight fill and vibration mitigation.(I) Molded, extruded, injected, and calendered products.(J) Products that use recycled rubber as a substitute for other materials, such as plastic.(K) Paint and coatings.(L) Other products, environmentally safe applications, or treatments determined to be appropriate by the department.(2) Incentive-eligible tire product does not include any of the following:(A) Tire-derived fuel.(B) Alternative daily cover, intermediate cover, erosion, or other landfill uses, except tire-derived aggregates used in landfill engineered projects for landfill gas and leachate control systems and other engineering projects designated by the department.(C) Exports.(D) Synthetic turf infill.(E) Loose rubber nugget or mulch playgrounds.(F) Purchases made to meet procurement requirements established pursuant to Section 42703.(h) The department shall collect data from recipients of incentive payments to be released annually in the California Waste Tire Market Report.(1) Data shall be aggregated to determine the total amount of money paid for each category of incentive-eligible tire products listed in paragraphs (A) to (L), inclusive, of paragraph (1) of subdivision (g) and how many tires, or passenger tire equivalents as defined in subdivision (b) of Section 42961.5, were recycled. The data specified in this paragraph shall be used by the department for purposes of the evaluation required pursuant to subdivision (i).(2) The department shall include in the California Waste Tire Market Report the number of tires, or passenger tire equivalents, as defined in subdivision (b) of Section 42961.5, that were recycled in that year and the annual recycling rate.(3) The report shall also include the number of tires recycled by the Department of Transportation as part of the overall recycling rate.(i) As part of the biennial update of the five-year plan required pursuant to Section 42885.5, the department shall evaluate the tire recycling incentive program established pursuant to subdivision (b) in a public forum and propose changes accordingly.(1) The evaluation required pursuant to this subdivision shall include, but is not limited to, the following elements:(A) The recycling rate of California-generated waste tire material, including waste tire material recycled through funding pursuant to the tire recycling incentive program, and, to the extent the information is available, an estimate of the recycling rate of waste tire material recycled by other state and local agencies and the private sector.(B) The amount of California-generated waste tire material entering each market segment.(C) The amount of waste tire material recycled through expenditures authorized by this chapter.(2) Based on the findings from the evaluation required pursuant to this subdivision, the department shall reevaluate and prioritize funding for the categories of incentive-eligible tire products that recycle the most waste tires.(j) For purposes of this section, recipients of incentive payments shall meet specified criteria, as established by the department, that are consistent with the provisions of this article.(k) No less than 50 percent of the total value of incentive payments made pursuant to this section shall be made for pavement-related products, as described in subparagraph (A) of paragraph (1) of subdivision (g).(l) Nothing in this section is intended to limit the use of waste tire products that are not incentive-eligible tire products. 42872.1. (a) This section shall be known, and may be cited, as the Tire Recycling Incentive Program Act. (b) In accordance with Section 42872, the department shall establish a tire recycling incentive program that makes payments to eligible entities. (c) Incentive payments shall be made to eligible entities for incentive-eligible tire products manufactured from California-generated waste tire material that promote the recycling of, the reduction of the disposal of, or the prevention of illegal dumping of California-generated waste tire material. (d) An eligible entity is eligible to receive an incentive payment only upon demonstrating to the department that the entity purchased California-generated waste tire material that was processed in California and sold an incentive-eligible tire product incorporating that material to an end user. (e) For purposes of this section, eligible entity includes, but is not limited to, a manufacturer that produces a product incorporating California-generated waste tire material for purchase by an end user. Eligible entity does not include the entity or person that receives the finished product. (f) For purposes of this section, end user includes, but is not limited to, the following: (1) Cities, counties, and other local governmental agencies, including school districts. (2) State and local governmental agencies, including regional park districts. (3) Private companies and persons. (g) (1) For purposes of this section, incentive-eligible tire product may include, but is not limited to, the following: (A) Pavement-related products, such as rubberized asphalt, asphalt rubber, modified binders, and chip seals. (B) Rubberized asphalt base stock to be used in applications other than pavement. (C) Products used in disability access projects at parks and Class I bikeways, as defined in subdivision (a) of Section 890.4 of the Streets and Highways Code, relative to projects that use recycled tires. (D) Poured in place and tile playground mats. (E) Landscape nuggets and mulch. (F) Walkways and pathways. (G) Running tracks. (H) Tire-derived aggregate applications, including lightweight fill and vibration mitigation. (I) Molded, extruded, injected, and calendered products. (J) Products that use recycled rubber as a substitute for other materials, such as plastic. (K) Paint and coatings. (L) Other products, environmentally safe applications, or treatments determined to be appropriate by the department. (2) Incentive-eligible tire product does not include any of the following: (A) Tire-derived fuel. (B) Alternative daily cover, intermediate cover, erosion, or other landfill uses, except tire-derived aggregates used in landfill engineered projects for landfill gas and leachate control systems and other engineering projects designated by the department. (C) Exports. (D) Synthetic turf infill. (E) Loose rubber nugget or mulch playgrounds. (F) Purchases made to meet procurement requirements established pursuant to Section 42703. (h) The department shall collect data from recipients of incentive payments to be released annually in the California Waste Tire Market Report. (1) Data shall be aggregated to determine the total amount of money paid for each category of incentive-eligible tire products listed in paragraphs (A) to (L), inclusive, of paragraph (1) of subdivision (g) and how many tires, or passenger tire equivalents as defined in subdivision (b) of Section 42961.5, were recycled. The data specified in this paragraph shall be used by the department for purposes of the evaluation required pursuant to subdivision (i). (2) The department shall include in the California Waste Tire Market Report the number of tires, or passenger tire equivalents, as defined in subdivision (b) of Section 42961.5, that were recycled in that year and the annual recycling rate. (3) The report shall also include the number of tires recycled by the Department of Transportation as part of the overall recycling rate. (i) As part of the biennial update of the five-year plan required pursuant to Section 42885.5, the department shall evaluate the tire recycling incentive program established pursuant to subdivision (b) in a public forum and propose changes accordingly. (1) The evaluation required pursuant to this subdivision shall include, but is not limited to, the following elements: (A) The recycling rate of California-generated waste tire material, including waste tire material recycled through funding pursuant to the tire recycling incentive program, and, to the extent the information is available, an estimate of the recycling rate of waste tire material recycled by other state and local agencies and the private sector. (B) The amount of California-generated waste tire material entering each market segment. (C) The amount of waste tire material recycled through expenditures authorized by this chapter. (2) Based on the findings from the evaluation required pursuant to this subdivision, the department shall reevaluate and prioritize funding for the categories of incentive-eligible tire products that recycle the most waste tires. (j) For purposes of this section, recipients of incentive payments shall meet specified criteria, as established by the department, that are consistent with the provisions of this article. (k) No less than 50 percent of the total value of incentive payments made pursuant to this section shall be made for pavement-related products, as described in subparagraph (A) of paragraph (1) of subdivision (g). (l) Nothing in this section is intended to limit the use of waste tire products that are not incentive-eligible tire products. SEC. 3. Section 42885 of the Public Resources Code, as amended by Section 31 of Chapter 401 of the Statutes of 2013, is amended to read:42885. (a) (1) For purposes of this section, California tire fee means the fee imposed pursuant to subdivision (b) of this section.(2) For purposes of this section, a California tire regulatory fee means a fee imposed pursuant to subdivision (c) of this section. (b) (1) A person who purchases a new tire, as defined in subdivision (g), (h), shall pay a California tire fee of one dollar and seventy-five cents ($1.75) per tire.(2) The retail seller shall charge the retail purchaser the amount of the California tire fee as a charge that is separate from, and not included in, any other fee, charge, or other amount paid by the retail purchaser.(3) The retail seller shall collect the California tire fee from the retail purchaser at the time of sale and may retain 11/2 percent of the fee as reimbursement for any costs associated with the collection of the fee. The retail seller shall remit the remainder to the state on a quarterly schedule for deposit in the California Tire Recycling Management Fund, which is hereby created in the State Treasury.(c) (1) Upon a finding by the department that the California Tire Recycling Management Fund will not have sufficient revenue to fund the reasonable regulatory costs incurred by the department incident to audits, inspections, administrative activities, adjudications, manifesting, registration, and other regulatory activities regarding waste tires, including the regulatory aspects of the programs established pursuant to this chapter, Chapter 16 (commencing with Section 42800), and Chapter 19 (commencing with Section 42950), for the next fiscal year, the department shall establish, and a waste tire generator that is a retail seller of new tires to end user purchasers shall pay, a California tire regulatory fee. The amount of the California tire regulatory fee shall be established and adjusted by the department based on the factors specified in paragraph (3), but that amount shall not exceed one dollar ($1) per new tire sold. The department shall set this fee to collect no more than is necessary for the following fiscal year, including a prudent reserve, as specified in subparagraph (B) of paragraph (3). The department may differentiate in setting fees between waste tire generators who are retail sellers of new tires depending upon the nature of the retail sellers activity generating waste tires, the number of waste tires generated, and other appropriate bases. (2) A waste tire generator that is a retail seller of new tires shall remit the fee assessed pursuant to this subdivision to the state on a quarterly schedule for deposit in the California Tire Recycling Management Fund. The revenue from the California tire regulatory fee shall be tracked separately by the department and shall not be used for activities other than those described in paragraph (1). (3) Prior to establishing or adjusting the California tire regulatory fee, the department shall review at a public hearing the following factors: (A) The amount necessary to fund the reasonable regulatory costs incurred by the department incident to audits, inspections, administrative activities, adjudications, manifesting, registration, and other regulatory activities associated with waste tires pursuant to this chapter, Chapter 16 (commencing with Section 42800), and Chapter 19 (commencing with Section 42950). (B) The sufficiency of revenues in the California Tire Recycling Management Fund for the department to administer, enforce, and promote its regulatory activities regarding waste tires, including the regulatory aspects of the programs established pursuant to this chapter, Chapter 16 (commencing with Section 42800), and Chapter 19 (commencing with Section 42950), plus a prudent reserve. (C) Whether additional revenue is necessary to preserve the departments ability to conduct regulatory activities in the following fiscal year. (D) Whether, at the end of a fiscal year, after making payments pursuant to Sections 42872.1 and 42889, sufficient surplus remains in the California Tire Recycling Management Fund to reduce the California tire regulatory fee. (4) An adjustment to the California tire regulatory fee shall become effective on January 1 of the year following its adoption. (5) (A) The department shall adopt regulations to establish the California tire regulatory fee. (B) The department may adopt regulations to adjust the California tire regulatory fee. These regulations shall be deemed to meet the description in subdivision (g) of Section 11340.9 of the Government Code and may be filed by the department pursuant to Section 11343.8 of the Government Code.(6) The department shall identify the specific programs to be funded by the California tire regulatory fee. (c)(d) The department, or its agent authorized pursuant to Section 42882, shall be reimbursed for its costs of collection, auditing, and making refunds associated with the California Tire Recycling Management Fund, but not to the amount of that reimbursement shall not exceed 3 percent of the total annual revenue deposited in the fund.(d)(e) The California tire fee imposed pursuant to subdivision (b) shall be separately stated by the retail seller on the invoice given to the customer at the time of sale. Any other disposal or transaction fee charged by the retail seller related to the tire purchase shall be identified separately from the California tire fee.(e)(f) A person or business who knowingly, or with reckless disregard, makes a false statement or representation in a document used to comply with this section is liable for a civil penalty for each violation or, for continuing violations, for each day that the violation continues. Liability under this section may be imposed in a civil action and shall not exceed twenty-five thousand dollars ($25,000) for each violation.(f)(g) In addition to the civil penalty that may be imposed pursuant to subdivision (e), (f), the department may impose an administrative penalty in an amount not to exceed five thousand dollars ($5,000) for each violation of a separate provision or, for continuing violations, for each day that the violation continues, on a person who intentionally or negligently violates a permit, rule, regulation, standard, or requirement issued or adopted pursuant to this chapter. The department shall adopt regulations that specify the amount of the administrative penalty and the procedure for imposing an administrative penalty pursuant to this subdivision.(g)(h) For purposes of this section, new tire means a pneumatic or solid tire intended for use with onroad or off-road motor vehicles, motorized equipment, construction equipment, or farm equipment that is sold separately from the motorized equipment, or a new tire sold with a new or used motor vehicle, as defined in Section 42803.5, including the spare tire, construction equipment, or farm equipment. New tire does not include retreaded, reused, or recycled tires.(h)(i) The California tire fee and the California tire regulatory fee shall not be imposed on a tire sold with, or sold separately for use on, any of the following:(1) A self-propelled wheelchair.(2) A motorized tricycle or motorized quadricycle, as defined in Section 407 of the Vehicle Code.(3) A vehicle that is similar to a motorized tricycle or motorized quadricycle and is designed to be operated by a person who, by reason of the persons physical disability, is otherwise unable to move about as a pedestrian.(i)(j) This section shall remain in effect only until January 1, 2024, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2024, deletes or extends that date. SEC. 3. Section 42885 of the Public Resources Code, as amended by Section 31 of Chapter 401 of the Statutes of 2013, is amended to read: ### SEC. 3. 42885. (a) (1) For purposes of this section, California tire fee means the fee imposed pursuant to subdivision (b) of this section.(2) For purposes of this section, a California tire regulatory fee means a fee imposed pursuant to subdivision (c) of this section. (b) (1) A person who purchases a new tire, as defined in subdivision (g), (h), shall pay a California tire fee of one dollar and seventy-five cents ($1.75) per tire.(2) The retail seller shall charge the retail purchaser the amount of the California tire fee as a charge that is separate from, and not included in, any other fee, charge, or other amount paid by the retail purchaser.(3) The retail seller shall collect the California tire fee from the retail purchaser at the time of sale and may retain 11/2 percent of the fee as reimbursement for any costs associated with the collection of the fee. The retail seller shall remit the remainder to the state on a quarterly schedule for deposit in the California Tire Recycling Management Fund, which is hereby created in the State Treasury.(c) (1) Upon a finding by the department that the California Tire Recycling Management Fund will not have sufficient revenue to fund the reasonable regulatory costs incurred by the department incident to audits, inspections, administrative activities, adjudications, manifesting, registration, and other regulatory activities regarding waste tires, including the regulatory aspects of the programs established pursuant to this chapter, Chapter 16 (commencing with Section 42800), and Chapter 19 (commencing with Section 42950), for the next fiscal year, the department shall establish, and a waste tire generator that is a retail seller of new tires to end user purchasers shall pay, a California tire regulatory fee. The amount of the California tire regulatory fee shall be established and adjusted by the department based on the factors specified in paragraph (3), but that amount shall not exceed one dollar ($1) per new tire sold. The department shall set this fee to collect no more than is necessary for the following fiscal year, including a prudent reserve, as specified in subparagraph (B) of paragraph (3). The department may differentiate in setting fees between waste tire generators who are retail sellers of new tires depending upon the nature of the retail sellers activity generating waste tires, the number of waste tires generated, and other appropriate bases. (2) A waste tire generator that is a retail seller of new tires shall remit the fee assessed pursuant to this subdivision to the state on a quarterly schedule for deposit in the California Tire Recycling Management Fund. The revenue from the California tire regulatory fee shall be tracked separately by the department and shall not be used for activities other than those described in paragraph (1). (3) Prior to establishing or adjusting the California tire regulatory fee, the department shall review at a public hearing the following factors: (A) The amount necessary to fund the reasonable regulatory costs incurred by the department incident to audits, inspections, administrative activities, adjudications, manifesting, registration, and other regulatory activities associated with waste tires pursuant to this chapter, Chapter 16 (commencing with Section 42800), and Chapter 19 (commencing with Section 42950). (B) The sufficiency of revenues in the California Tire Recycling Management Fund for the department to administer, enforce, and promote its regulatory activities regarding waste tires, including the regulatory aspects of the programs established pursuant to this chapter, Chapter 16 (commencing with Section 42800), and Chapter 19 (commencing with Section 42950), plus a prudent reserve. (C) Whether additional revenue is necessary to preserve the departments ability to conduct regulatory activities in the following fiscal year. (D) Whether, at the end of a fiscal year, after making payments pursuant to Sections 42872.1 and 42889, sufficient surplus remains in the California Tire Recycling Management Fund to reduce the California tire regulatory fee. (4) An adjustment to the California tire regulatory fee shall become effective on January 1 of the year following its adoption. (5) (A) The department shall adopt regulations to establish the California tire regulatory fee. (B) The department may adopt regulations to adjust the California tire regulatory fee. These regulations shall be deemed to meet the description in subdivision (g) of Section 11340.9 of the Government Code and may be filed by the department pursuant to Section 11343.8 of the Government Code.(6) The department shall identify the specific programs to be funded by the California tire regulatory fee. (c)(d) The department, or its agent authorized pursuant to Section 42882, shall be reimbursed for its costs of collection, auditing, and making refunds associated with the California Tire Recycling Management Fund, but not to the amount of that reimbursement shall not exceed 3 percent of the total annual revenue deposited in the fund.(d)(e) The California tire fee imposed pursuant to subdivision (b) shall be separately stated by the retail seller on the invoice given to the customer at the time of sale. Any other disposal or transaction fee charged by the retail seller related to the tire purchase shall be identified separately from the California tire fee.(e)(f) A person or business who knowingly, or with reckless disregard, makes a false statement or representation in a document used to comply with this section is liable for a civil penalty for each violation or, for continuing violations, for each day that the violation continues. Liability under this section may be imposed in a civil action and shall not exceed twenty-five thousand dollars ($25,000) for each violation.(f)(g) In addition to the civil penalty that may be imposed pursuant to subdivision (e), (f), the department may impose an administrative penalty in an amount not to exceed five thousand dollars ($5,000) for each violation of a separate provision or, for continuing violations, for each day that the violation continues, on a person who intentionally or negligently violates a permit, rule, regulation, standard, or requirement issued or adopted pursuant to this chapter. The department shall adopt regulations that specify the amount of the administrative penalty and the procedure for imposing an administrative penalty pursuant to this subdivision.(g)(h) For purposes of this section, new tire means a pneumatic or solid tire intended for use with onroad or off-road motor vehicles, motorized equipment, construction equipment, or farm equipment that is sold separately from the motorized equipment, or a new tire sold with a new or used motor vehicle, as defined in Section 42803.5, including the spare tire, construction equipment, or farm equipment. New tire does not include retreaded, reused, or recycled tires.(h)(i) The California tire fee and the California tire regulatory fee shall not be imposed on a tire sold with, or sold separately for use on, any of the following:(1) A self-propelled wheelchair.(2) A motorized tricycle or motorized quadricycle, as defined in Section 407 of the Vehicle Code.(3) A vehicle that is similar to a motorized tricycle or motorized quadricycle and is designed to be operated by a person who, by reason of the persons physical disability, is otherwise unable to move about as a pedestrian.(i)(j) This section shall remain in effect only until January 1, 2024, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2024, deletes or extends that date. 42885. (a) (1) For purposes of this section, California tire fee means the fee imposed pursuant to subdivision (b) of this section.(2) For purposes of this section, a California tire regulatory fee means a fee imposed pursuant to subdivision (c) of this section. (b) (1) A person who purchases a new tire, as defined in subdivision (g), (h), shall pay a California tire fee of one dollar and seventy-five cents ($1.75) per tire.(2) The retail seller shall charge the retail purchaser the amount of the California tire fee as a charge that is separate from, and not included in, any other fee, charge, or other amount paid by the retail purchaser.(3) The retail seller shall collect the California tire fee from the retail purchaser at the time of sale and may retain 11/2 percent of the fee as reimbursement for any costs associated with the collection of the fee. The retail seller shall remit the remainder to the state on a quarterly schedule for deposit in the California Tire Recycling Management Fund, which is hereby created in the State Treasury.(c) (1) Upon a finding by the department that the California Tire Recycling Management Fund will not have sufficient revenue to fund the reasonable regulatory costs incurred by the department incident to audits, inspections, administrative activities, adjudications, manifesting, registration, and other regulatory activities regarding waste tires, including the regulatory aspects of the programs established pursuant to this chapter, Chapter 16 (commencing with Section 42800), and Chapter 19 (commencing with Section 42950), for the next fiscal year, the department shall establish, and a waste tire generator that is a retail seller of new tires to end user purchasers shall pay, a California tire regulatory fee. The amount of the California tire regulatory fee shall be established and adjusted by the department based on the factors specified in paragraph (3), but that amount shall not exceed one dollar ($1) per new tire sold. The department shall set this fee to collect no more than is necessary for the following fiscal year, including a prudent reserve, as specified in subparagraph (B) of paragraph (3). The department may differentiate in setting fees between waste tire generators who are retail sellers of new tires depending upon the nature of the retail sellers activity generating waste tires, the number of waste tires generated, and other appropriate bases. (2) A waste tire generator that is a retail seller of new tires shall remit the fee assessed pursuant to this subdivision to the state on a quarterly schedule for deposit in the California Tire Recycling Management Fund. The revenue from the California tire regulatory fee shall be tracked separately by the department and shall not be used for activities other than those described in paragraph (1). (3) Prior to establishing or adjusting the California tire regulatory fee, the department shall review at a public hearing the following factors: (A) The amount necessary to fund the reasonable regulatory costs incurred by the department incident to audits, inspections, administrative activities, adjudications, manifesting, registration, and other regulatory activities associated with waste tires pursuant to this chapter, Chapter 16 (commencing with Section 42800), and Chapter 19 (commencing with Section 42950). (B) The sufficiency of revenues in the California Tire Recycling Management Fund for the department to administer, enforce, and promote its regulatory activities regarding waste tires, including the regulatory aspects of the programs established pursuant to this chapter, Chapter 16 (commencing with Section 42800), and Chapter 19 (commencing with Section 42950), plus a prudent reserve. (C) Whether additional revenue is necessary to preserve the departments ability to conduct regulatory activities in the following fiscal year. (D) Whether, at the end of a fiscal year, after making payments pursuant to Sections 42872.1 and 42889, sufficient surplus remains in the California Tire Recycling Management Fund to reduce the California tire regulatory fee. (4) An adjustment to the California tire regulatory fee shall become effective on January 1 of the year following its adoption. (5) (A) The department shall adopt regulations to establish the California tire regulatory fee. (B) The department may adopt regulations to adjust the California tire regulatory fee. These regulations shall be deemed to meet the description in subdivision (g) of Section 11340.9 of the Government Code and may be filed by the department pursuant to Section 11343.8 of the Government Code.(6) The department shall identify the specific programs to be funded by the California tire regulatory fee. (c)(d) The department, or its agent authorized pursuant to Section 42882, shall be reimbursed for its costs of collection, auditing, and making refunds associated with the California Tire Recycling Management Fund, but not to the amount of that reimbursement shall not exceed 3 percent of the total annual revenue deposited in the fund.(d)(e) The California tire fee imposed pursuant to subdivision (b) shall be separately stated by the retail seller on the invoice given to the customer at the time of sale. Any other disposal or transaction fee charged by the retail seller related to the tire purchase shall be identified separately from the California tire fee.(e)(f) A person or business who knowingly, or with reckless disregard, makes a false statement or representation in a document used to comply with this section is liable for a civil penalty for each violation or, for continuing violations, for each day that the violation continues. Liability under this section may be imposed in a civil action and shall not exceed twenty-five thousand dollars ($25,000) for each violation.(f)(g) In addition to the civil penalty that may be imposed pursuant to subdivision (e), (f), the department may impose an administrative penalty in an amount not to exceed five thousand dollars ($5,000) for each violation of a separate provision or, for continuing violations, for each day that the violation continues, on a person who intentionally or negligently violates a permit, rule, regulation, standard, or requirement issued or adopted pursuant to this chapter. The department shall adopt regulations that specify the amount of the administrative penalty and the procedure for imposing an administrative penalty pursuant to this subdivision.(g)(h) For purposes of this section, new tire means a pneumatic or solid tire intended for use with onroad or off-road motor vehicles, motorized equipment, construction equipment, or farm equipment that is sold separately from the motorized equipment, or a new tire sold with a new or used motor vehicle, as defined in Section 42803.5, including the spare tire, construction equipment, or farm equipment. New tire does not include retreaded, reused, or recycled tires.(h)(i) The California tire fee and the California tire regulatory fee shall not be imposed on a tire sold with, or sold separately for use on, any of the following:(1) A self-propelled wheelchair.(2) A motorized tricycle or motorized quadricycle, as defined in Section 407 of the Vehicle Code.(3) A vehicle that is similar to a motorized tricycle or motorized quadricycle and is designed to be operated by a person who, by reason of the persons physical disability, is otherwise unable to move about as a pedestrian.(i)(j) This section shall remain in effect only until January 1, 2024, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2024, deletes or extends that date. 42885. (a) (1) For purposes of this section, California tire fee means the fee imposed pursuant to subdivision (b) of this section.(2) For purposes of this section, a California tire regulatory fee means a fee imposed pursuant to subdivision (c) of this section. (b) (1) A person who purchases a new tire, as defined in subdivision (g), (h), shall pay a California tire fee of one dollar and seventy-five cents ($1.75) per tire.(2) The retail seller shall charge the retail purchaser the amount of the California tire fee as a charge that is separate from, and not included in, any other fee, charge, or other amount paid by the retail purchaser.(3) The retail seller shall collect the California tire fee from the retail purchaser at the time of sale and may retain 11/2 percent of the fee as reimbursement for any costs associated with the collection of the fee. The retail seller shall remit the remainder to the state on a quarterly schedule for deposit in the California Tire Recycling Management Fund, which is hereby created in the State Treasury.(c) (1) Upon a finding by the department that the California Tire Recycling Management Fund will not have sufficient revenue to fund the reasonable regulatory costs incurred by the department incident to audits, inspections, administrative activities, adjudications, manifesting, registration, and other regulatory activities regarding waste tires, including the regulatory aspects of the programs established pursuant to this chapter, Chapter 16 (commencing with Section 42800), and Chapter 19 (commencing with Section 42950), for the next fiscal year, the department shall establish, and a waste tire generator that is a retail seller of new tires to end user purchasers shall pay, a California tire regulatory fee. The amount of the California tire regulatory fee shall be established and adjusted by the department based on the factors specified in paragraph (3), but that amount shall not exceed one dollar ($1) per new tire sold. The department shall set this fee to collect no more than is necessary for the following fiscal year, including a prudent reserve, as specified in subparagraph (B) of paragraph (3). The department may differentiate in setting fees between waste tire generators who are retail sellers of new tires depending upon the nature of the retail sellers activity generating waste tires, the number of waste tires generated, and other appropriate bases. (2) A waste tire generator that is a retail seller of new tires shall remit the fee assessed pursuant to this subdivision to the state on a quarterly schedule for deposit in the California Tire Recycling Management Fund. The revenue from the California tire regulatory fee shall be tracked separately by the department and shall not be used for activities other than those described in paragraph (1). (3) Prior to establishing or adjusting the California tire regulatory fee, the department shall review at a public hearing the following factors: (A) The amount necessary to fund the reasonable regulatory costs incurred by the department incident to audits, inspections, administrative activities, adjudications, manifesting, registration, and other regulatory activities associated with waste tires pursuant to this chapter, Chapter 16 (commencing with Section 42800), and Chapter 19 (commencing with Section 42950). (B) The sufficiency of revenues in the California Tire Recycling Management Fund for the department to administer, enforce, and promote its regulatory activities regarding waste tires, including the regulatory aspects of the programs established pursuant to this chapter, Chapter 16 (commencing with Section 42800), and Chapter 19 (commencing with Section 42950), plus a prudent reserve. (C) Whether additional revenue is necessary to preserve the departments ability to conduct regulatory activities in the following fiscal year. (D) Whether, at the end of a fiscal year, after making payments pursuant to Sections 42872.1 and 42889, sufficient surplus remains in the California Tire Recycling Management Fund to reduce the California tire regulatory fee. (4) An adjustment to the California tire regulatory fee shall become effective on January 1 of the year following its adoption. (5) (A) The department shall adopt regulations to establish the California tire regulatory fee. (B) The department may adopt regulations to adjust the California tire regulatory fee. These regulations shall be deemed to meet the description in subdivision (g) of Section 11340.9 of the Government Code and may be filed by the department pursuant to Section 11343.8 of the Government Code.(6) The department shall identify the specific programs to be funded by the California tire regulatory fee. (c)(d) The department, or its agent authorized pursuant to Section 42882, shall be reimbursed for its costs of collection, auditing, and making refunds associated with the California Tire Recycling Management Fund, but not to the amount of that reimbursement shall not exceed 3 percent of the total annual revenue deposited in the fund.(d)(e) The California tire fee imposed pursuant to subdivision (b) shall be separately stated by the retail seller on the invoice given to the customer at the time of sale. Any other disposal or transaction fee charged by the retail seller related to the tire purchase shall be identified separately from the California tire fee.(e)(f) A person or business who knowingly, or with reckless disregard, makes a false statement or representation in a document used to comply with this section is liable for a civil penalty for each violation or, for continuing violations, for each day that the violation continues. Liability under this section may be imposed in a civil action and shall not exceed twenty-five thousand dollars ($25,000) for each violation.(f)(g) In addition to the civil penalty that may be imposed pursuant to subdivision (e), (f), the department may impose an administrative penalty in an amount not to exceed five thousand dollars ($5,000) for each violation of a separate provision or, for continuing violations, for each day that the violation continues, on a person who intentionally or negligently violates a permit, rule, regulation, standard, or requirement issued or adopted pursuant to this chapter. The department shall adopt regulations that specify the amount of the administrative penalty and the procedure for imposing an administrative penalty pursuant to this subdivision.(g)(h) For purposes of this section, new tire means a pneumatic or solid tire intended for use with onroad or off-road motor vehicles, motorized equipment, construction equipment, or farm equipment that is sold separately from the motorized equipment, or a new tire sold with a new or used motor vehicle, as defined in Section 42803.5, including the spare tire, construction equipment, or farm equipment. New tire does not include retreaded, reused, or recycled tires.(h)(i) The California tire fee and the California tire regulatory fee shall not be imposed on a tire sold with, or sold separately for use on, any of the following:(1) A self-propelled wheelchair.(2) A motorized tricycle or motorized quadricycle, as defined in Section 407 of the Vehicle Code.(3) A vehicle that is similar to a motorized tricycle or motorized quadricycle and is designed to be operated by a person who, by reason of the persons physical disability, is otherwise unable to move about as a pedestrian.(i)(j) This section shall remain in effect only until January 1, 2024, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2024, deletes or extends that date. 42885. (a) (1) For purposes of this section, California tire fee means the fee imposed pursuant to subdivision (b) of this section. (2) For purposes of this section, a California tire regulatory fee means a fee imposed pursuant to subdivision (c) of this section. (b) (1) A person who purchases a new tire, as defined in subdivision (g), (h), shall pay a California tire fee of one dollar and seventy-five cents ($1.75) per tire. (2) The retail seller shall charge the retail purchaser the amount of the California tire fee as a charge that is separate from, and not included in, any other fee, charge, or other amount paid by the retail purchaser. (3) The retail seller shall collect the California tire fee from the retail purchaser at the time of sale and may retain 11/2 percent of the fee as reimbursement for any costs associated with the collection of the fee. The retail seller shall remit the remainder to the state on a quarterly schedule for deposit in the California Tire Recycling Management Fund, which is hereby created in the State Treasury. (c) (1) Upon a finding by the department that the California Tire Recycling Management Fund will not have sufficient revenue to fund the reasonable regulatory costs incurred by the department incident to audits, inspections, administrative activities, adjudications, manifesting, registration, and other regulatory activities regarding waste tires, including the regulatory aspects of the programs established pursuant to this chapter, Chapter 16 (commencing with Section 42800), and Chapter 19 (commencing with Section 42950), for the next fiscal year, the department shall establish, and a waste tire generator that is a retail seller of new tires to end user purchasers shall pay, a California tire regulatory fee. The amount of the California tire regulatory fee shall be established and adjusted by the department based on the factors specified in paragraph (3), but that amount shall not exceed one dollar ($1) per new tire sold. The department shall set this fee to collect no more than is necessary for the following fiscal year, including a prudent reserve, as specified in subparagraph (B) of paragraph (3). The department may differentiate in setting fees between waste tire generators who are retail sellers of new tires depending upon the nature of the retail sellers activity generating waste tires, the number of waste tires generated, and other appropriate bases. (2) A waste tire generator that is a retail seller of new tires shall remit the fee assessed pursuant to this subdivision to the state on a quarterly schedule for deposit in the California Tire Recycling Management Fund. The revenue from the California tire regulatory fee shall be tracked separately by the department and shall not be used for activities other than those described in paragraph (1). (3) Prior to establishing or adjusting the California tire regulatory fee, the department shall review at a public hearing the following factors: (A) The amount necessary to fund the reasonable regulatory costs incurred by the department incident to audits, inspections, administrative activities, adjudications, manifesting, registration, and other regulatory activities associated with waste tires pursuant to this chapter, Chapter 16 (commencing with Section 42800), and Chapter 19 (commencing with Section 42950). (B) The sufficiency of revenues in the California Tire Recycling Management Fund for the department to administer, enforce, and promote its regulatory activities regarding waste tires, including the regulatory aspects of the programs established pursuant to this chapter, Chapter 16 (commencing with Section 42800), and Chapter 19 (commencing with Section 42950), plus a prudent reserve. (C) Whether additional revenue is necessary to preserve the departments ability to conduct regulatory activities in the following fiscal year. (D) Whether, at the end of a fiscal year, after making payments pursuant to Sections 42872.1 and 42889, sufficient surplus remains in the California Tire Recycling Management Fund to reduce the California tire regulatory fee. (4) An adjustment to the California tire regulatory fee shall become effective on January 1 of the year following its adoption. (5) (A) The department shall adopt regulations to establish the California tire regulatory fee. (B) The department may adopt regulations to adjust the California tire regulatory fee. These regulations shall be deemed to meet the description in subdivision (g) of Section 11340.9 of the Government Code and may be filed by the department pursuant to Section 11343.8 of the Government Code. (6) The department shall identify the specific programs to be funded by the California tire regulatory fee. (c) (d) The department, or its agent authorized pursuant to Section 42882, shall be reimbursed for its costs of collection, auditing, and making refunds associated with the California Tire Recycling Management Fund, but not to the amount of that reimbursement shall not exceed 3 percent of the total annual revenue deposited in the fund. (d) (e) The California tire fee imposed pursuant to subdivision (b) shall be separately stated by the retail seller on the invoice given to the customer at the time of sale. Any other disposal or transaction fee charged by the retail seller related to the tire purchase shall be identified separately from the California tire fee. (e) (f) A person or business who knowingly, or with reckless disregard, makes a false statement or representation in a document used to comply with this section is liable for a civil penalty for each violation or, for continuing violations, for each day that the violation continues. Liability under this section may be imposed in a civil action and shall not exceed twenty-five thousand dollars ($25,000) for each violation. (f) (g) In addition to the civil penalty that may be imposed pursuant to subdivision (e), (f), the department may impose an administrative penalty in an amount not to exceed five thousand dollars ($5,000) for each violation of a separate provision or, for continuing violations, for each day that the violation continues, on a person who intentionally or negligently violates a permit, rule, regulation, standard, or requirement issued or adopted pursuant to this chapter. The department shall adopt regulations that specify the amount of the administrative penalty and the procedure for imposing an administrative penalty pursuant to this subdivision. (g) (h) For purposes of this section, new tire means a pneumatic or solid tire intended for use with onroad or off-road motor vehicles, motorized equipment, construction equipment, or farm equipment that is sold separately from the motorized equipment, or a new tire sold with a new or used motor vehicle, as defined in Section 42803.5, including the spare tire, construction equipment, or farm equipment. New tire does not include retreaded, reused, or recycled tires. (h) (i) The California tire fee and the California tire regulatory fee shall not be imposed on a tire sold with, or sold separately for use on, any of the following: (1) A self-propelled wheelchair. (2) A motorized tricycle or motorized quadricycle, as defined in Section 407 of the Vehicle Code. (3) A vehicle that is similar to a motorized tricycle or motorized quadricycle and is designed to be operated by a person who, by reason of the persons physical disability, is otherwise unable to move about as a pedestrian. (i) (j) This section shall remain in effect only until January 1, 2024, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2024, deletes or extends that date. SEC. 4. Section 42889 of the Public Resources Code, as amended by Section 152 of Chapter 35 of the Statutes of 2014, is amended to read:42889. (a) Of the moneys collected pursuant to subdivision (b) of Section 42885, an amount equal to seventy-five cents ($0.75) per tire on which the fee is imposed shall be transferred by the State Board of Equalization to the Air Pollution Control Fund. The state board shall expend those moneys, or allocate those moneys to the districts for expenditure, to fund programs and projects that mitigate or remediate air pollution caused by tires in the state, to the extent that the state board or the applicable district determines that the program or project remediates air pollution harms created by tires upon which the fee described in subdivision (b) of Section 42885 is imposed.(b) The remaining moneys collected pursuant to subdivision (b) of Section 42885 shall be used to fund the waste tire program, and program and the tire recycling incentive program, pursuant to Section 42872.1, and shall be appropriated to the department in the annual Budget Act in a manner consistent with the five-year plan adopted and updated by the department. These moneys shall be expended for the payment of refunds under this chapter and for the following purposes: purposes, to the extent they are not lawfully payable from funds allocated pursuant to subdivision (c) of Section 42885:(1) To pay the administrative overhead cost of this chapter, not to exceed 6 percent of the total revenue deposited in the fund annually, or an amount otherwise specified in the annual Budget Act.(2) To pay the costs of administration associated with collection, making refunds, and auditing revenues in the fund, not to exceed 3 percent of the total revenue deposited in the fund, as provided in subdivision (c) (d) of Section 42885.(3) To pay the costs associated with operating the tire recycling program specified in Article 3 (commencing with Section 42870).(4) To pay the costs associated with the development and enforcement of regulations relating to the storage of waste tires and used tires. The department shall consider designating a city, county, or city and county as the enforcement authority of regulations relating to the storage of waste tires and used tires, as provided in subdivision (c) of Section 42850, and regulations relating to the hauling of waste and used tires, as provided in subdivision (b) of Section 42963. If the department designates a local entity for that purpose, the department shall provide sufficient, stable, and noncompetitive funding to that entity for that purpose, based on available resources, as provided in the five-year plan adopted and updated as provided in subdivision (a) of Section 42885.5. The department may consider and create, as appropriate, financial incentives for citizens who report the illegal hauling or disposal of waste tires as a means of enhancing local and statewide waste tire and used tire enforcement programs.(5) To pay the costs of cleanup, abatement, removal, or other remedial action related to waste tire stockpiles throughout the state, including all approved costs incurred by other public agencies involved in these activities by contract with the department. Not less than six million five hundred thousand dollars ($6,500,000) shall be expended by the department during each of the following fiscal years for this purpose: 200102 to 200607, inclusive.(6) To make studies and conduct research directed at promoting and developing alternatives to the landfill disposal of waste tires.(7) To assist in developing markets and new technologies for used tires and waste tires. The departments expenditure of funds for purposes of this subdivision shall reflect the priorities for waste management practices specified in subdivision (a) of Section 40051.(8) To pay the costs associated with implementing and operating a waste tire and used tire hauler program and manifest system pursuant to Chapter 19 (commencing with Section 42950).(9) To pay the costs to create and maintain an emergency reserve, which shall not exceed one million dollars ($1,000,000).(10) To pay the costs of cleanup, abatement, or other remedial action related to the disposal of waste tires in implementing and operating the Farm and Ranch Solid Waste Cleanup and Abatement Grant Program established pursuant to Chapter 2.5 (commencing with Section 48100) of Part 7.(11) To fund border region activities specified in paragraph (8) of subdivision (b) of Section 42885.5.(12) For expenditure pursuant to paragraph (3) of subdivision (a) of, and paragraph (3) of subdivision (b) of, Section 17001.(c) This section shall remain in effect only until January 1, 2024, and as of that date is repealed, unless a later enacted statute that is enacted before January 1, 2024, deletes or extends that date. SEC. 4. Section 42889 of the Public Resources Code, as amended by Section 152 of Chapter 35 of the Statutes of 2014, is amended to read: ### SEC. 4. 42889. (a) Of the moneys collected pursuant to subdivision (b) of Section 42885, an amount equal to seventy-five cents ($0.75) per tire on which the fee is imposed shall be transferred by the State Board of Equalization to the Air Pollution Control Fund. The state board shall expend those moneys, or allocate those moneys to the districts for expenditure, to fund programs and projects that mitigate or remediate air pollution caused by tires in the state, to the extent that the state board or the applicable district determines that the program or project remediates air pollution harms created by tires upon which the fee described in subdivision (b) of Section 42885 is imposed.(b) The remaining moneys collected pursuant to subdivision (b) of Section 42885 shall be used to fund the waste tire program, and program and the tire recycling incentive program, pursuant to Section 42872.1, and shall be appropriated to the department in the annual Budget Act in a manner consistent with the five-year plan adopted and updated by the department. These moneys shall be expended for the payment of refunds under this chapter and for the following purposes: purposes, to the extent they are not lawfully payable from funds allocated pursuant to subdivision (c) of Section 42885:(1) To pay the administrative overhead cost of this chapter, not to exceed 6 percent of the total revenue deposited in the fund annually, or an amount otherwise specified in the annual Budget Act.(2) To pay the costs of administration associated with collection, making refunds, and auditing revenues in the fund, not to exceed 3 percent of the total revenue deposited in the fund, as provided in subdivision (c) (d) of Section 42885.(3) To pay the costs associated with operating the tire recycling program specified in Article 3 (commencing with Section 42870).(4) To pay the costs associated with the development and enforcement of regulations relating to the storage of waste tires and used tires. The department shall consider designating a city, county, or city and county as the enforcement authority of regulations relating to the storage of waste tires and used tires, as provided in subdivision (c) of Section 42850, and regulations relating to the hauling of waste and used tires, as provided in subdivision (b) of Section 42963. If the department designates a local entity for that purpose, the department shall provide sufficient, stable, and noncompetitive funding to that entity for that purpose, based on available resources, as provided in the five-year plan adopted and updated as provided in subdivision (a) of Section 42885.5. The department may consider and create, as appropriate, financial incentives for citizens who report the illegal hauling or disposal of waste tires as a means of enhancing local and statewide waste tire and used tire enforcement programs.(5) To pay the costs of cleanup, abatement, removal, or other remedial action related to waste tire stockpiles throughout the state, including all approved costs incurred by other public agencies involved in these activities by contract with the department. Not less than six million five hundred thousand dollars ($6,500,000) shall be expended by the department during each of the following fiscal years for this purpose: 200102 to 200607, inclusive.(6) To make studies and conduct research directed at promoting and developing alternatives to the landfill disposal of waste tires.(7) To assist in developing markets and new technologies for used tires and waste tires. The departments expenditure of funds for purposes of this subdivision shall reflect the priorities for waste management practices specified in subdivision (a) of Section 40051.(8) To pay the costs associated with implementing and operating a waste tire and used tire hauler program and manifest system pursuant to Chapter 19 (commencing with Section 42950).(9) To pay the costs to create and maintain an emergency reserve, which shall not exceed one million dollars ($1,000,000).(10) To pay the costs of cleanup, abatement, or other remedial action related to the disposal of waste tires in implementing and operating the Farm and Ranch Solid Waste Cleanup and Abatement Grant Program established pursuant to Chapter 2.5 (commencing with Section 48100) of Part 7.(11) To fund border region activities specified in paragraph (8) of subdivision (b) of Section 42885.5.(12) For expenditure pursuant to paragraph (3) of subdivision (a) of, and paragraph (3) of subdivision (b) of, Section 17001.(c) This section shall remain in effect only until January 1, 2024, and as of that date is repealed, unless a later enacted statute that is enacted before January 1, 2024, deletes or extends that date. 42889. (a) Of the moneys collected pursuant to subdivision (b) of Section 42885, an amount equal to seventy-five cents ($0.75) per tire on which the fee is imposed shall be transferred by the State Board of Equalization to the Air Pollution Control Fund. The state board shall expend those moneys, or allocate those moneys to the districts for expenditure, to fund programs and projects that mitigate or remediate air pollution caused by tires in the state, to the extent that the state board or the applicable district determines that the program or project remediates air pollution harms created by tires upon which the fee described in subdivision (b) of Section 42885 is imposed.(b) The remaining moneys collected pursuant to subdivision (b) of Section 42885 shall be used to fund the waste tire program, and program and the tire recycling incentive program, pursuant to Section 42872.1, and shall be appropriated to the department in the annual Budget Act in a manner consistent with the five-year plan adopted and updated by the department. These moneys shall be expended for the payment of refunds under this chapter and for the following purposes: purposes, to the extent they are not lawfully payable from funds allocated pursuant to subdivision (c) of Section 42885:(1) To pay the administrative overhead cost of this chapter, not to exceed 6 percent of the total revenue deposited in the fund annually, or an amount otherwise specified in the annual Budget Act.(2) To pay the costs of administration associated with collection, making refunds, and auditing revenues in the fund, not to exceed 3 percent of the total revenue deposited in the fund, as provided in subdivision (c) (d) of Section 42885.(3) To pay the costs associated with operating the tire recycling program specified in Article 3 (commencing with Section 42870).(4) To pay the costs associated with the development and enforcement of regulations relating to the storage of waste tires and used tires. The department shall consider designating a city, county, or city and county as the enforcement authority of regulations relating to the storage of waste tires and used tires, as provided in subdivision (c) of Section 42850, and regulations relating to the hauling of waste and used tires, as provided in subdivision (b) of Section 42963. If the department designates a local entity for that purpose, the department shall provide sufficient, stable, and noncompetitive funding to that entity for that purpose, based on available resources, as provided in the five-year plan adopted and updated as provided in subdivision (a) of Section 42885.5. The department may consider and create, as appropriate, financial incentives for citizens who report the illegal hauling or disposal of waste tires as a means of enhancing local and statewide waste tire and used tire enforcement programs.(5) To pay the costs of cleanup, abatement, removal, or other remedial action related to waste tire stockpiles throughout the state, including all approved costs incurred by other public agencies involved in these activities by contract with the department. Not less than six million five hundred thousand dollars ($6,500,000) shall be expended by the department during each of the following fiscal years for this purpose: 200102 to 200607, inclusive.(6) To make studies and conduct research directed at promoting and developing alternatives to the landfill disposal of waste tires.(7) To assist in developing markets and new technologies for used tires and waste tires. The departments expenditure of funds for purposes of this subdivision shall reflect the priorities for waste management practices specified in subdivision (a) of Section 40051.(8) To pay the costs associated with implementing and operating a waste tire and used tire hauler program and manifest system pursuant to Chapter 19 (commencing with Section 42950).(9) To pay the costs to create and maintain an emergency reserve, which shall not exceed one million dollars ($1,000,000).(10) To pay the costs of cleanup, abatement, or other remedial action related to the disposal of waste tires in implementing and operating the Farm and Ranch Solid Waste Cleanup and Abatement Grant Program established pursuant to Chapter 2.5 (commencing with Section 48100) of Part 7.(11) To fund border region activities specified in paragraph (8) of subdivision (b) of Section 42885.5.(12) For expenditure pursuant to paragraph (3) of subdivision (a) of, and paragraph (3) of subdivision (b) of, Section 17001.(c) This section shall remain in effect only until January 1, 2024, and as of that date is repealed, unless a later enacted statute that is enacted before January 1, 2024, deletes or extends that date. 42889. (a) Of the moneys collected pursuant to subdivision (b) of Section 42885, an amount equal to seventy-five cents ($0.75) per tire on which the fee is imposed shall be transferred by the State Board of Equalization to the Air Pollution Control Fund. The state board shall expend those moneys, or allocate those moneys to the districts for expenditure, to fund programs and projects that mitigate or remediate air pollution caused by tires in the state, to the extent that the state board or the applicable district determines that the program or project remediates air pollution harms created by tires upon which the fee described in subdivision (b) of Section 42885 is imposed.(b) The remaining moneys collected pursuant to subdivision (b) of Section 42885 shall be used to fund the waste tire program, and program and the tire recycling incentive program, pursuant to Section 42872.1, and shall be appropriated to the department in the annual Budget Act in a manner consistent with the five-year plan adopted and updated by the department. These moneys shall be expended for the payment of refunds under this chapter and for the following purposes: purposes, to the extent they are not lawfully payable from funds allocated pursuant to subdivision (c) of Section 42885:(1) To pay the administrative overhead cost of this chapter, not to exceed 6 percent of the total revenue deposited in the fund annually, or an amount otherwise specified in the annual Budget Act.(2) To pay the costs of administration associated with collection, making refunds, and auditing revenues in the fund, not to exceed 3 percent of the total revenue deposited in the fund, as provided in subdivision (c) (d) of Section 42885.(3) To pay the costs associated with operating the tire recycling program specified in Article 3 (commencing with Section 42870).(4) To pay the costs associated with the development and enforcement of regulations relating to the storage of waste tires and used tires. The department shall consider designating a city, county, or city and county as the enforcement authority of regulations relating to the storage of waste tires and used tires, as provided in subdivision (c) of Section 42850, and regulations relating to the hauling of waste and used tires, as provided in subdivision (b) of Section 42963. If the department designates a local entity for that purpose, the department shall provide sufficient, stable, and noncompetitive funding to that entity for that purpose, based on available resources, as provided in the five-year plan adopted and updated as provided in subdivision (a) of Section 42885.5. The department may consider and create, as appropriate, financial incentives for citizens who report the illegal hauling or disposal of waste tires as a means of enhancing local and statewide waste tire and used tire enforcement programs.(5) To pay the costs of cleanup, abatement, removal, or other remedial action related to waste tire stockpiles throughout the state, including all approved costs incurred by other public agencies involved in these activities by contract with the department. Not less than six million five hundred thousand dollars ($6,500,000) shall be expended by the department during each of the following fiscal years for this purpose: 200102 to 200607, inclusive.(6) To make studies and conduct research directed at promoting and developing alternatives to the landfill disposal of waste tires.(7) To assist in developing markets and new technologies for used tires and waste tires. The departments expenditure of funds for purposes of this subdivision shall reflect the priorities for waste management practices specified in subdivision (a) of Section 40051.(8) To pay the costs associated with implementing and operating a waste tire and used tire hauler program and manifest system pursuant to Chapter 19 (commencing with Section 42950).(9) To pay the costs to create and maintain an emergency reserve, which shall not exceed one million dollars ($1,000,000).(10) To pay the costs of cleanup, abatement, or other remedial action related to the disposal of waste tires in implementing and operating the Farm and Ranch Solid Waste Cleanup and Abatement Grant Program established pursuant to Chapter 2.5 (commencing with Section 48100) of Part 7.(11) To fund border region activities specified in paragraph (8) of subdivision (b) of Section 42885.5.(12) For expenditure pursuant to paragraph (3) of subdivision (a) of, and paragraph (3) of subdivision (b) of, Section 17001.(c) This section shall remain in effect only until January 1, 2024, and as of that date is repealed, unless a later enacted statute that is enacted before January 1, 2024, deletes or extends that date. 42889. (a) Of the moneys collected pursuant to subdivision (b) of Section 42885, an amount equal to seventy-five cents ($0.75) per tire on which the fee is imposed shall be transferred by the State Board of Equalization to the Air Pollution Control Fund. The state board shall expend those moneys, or allocate those moneys to the districts for expenditure, to fund programs and projects that mitigate or remediate air pollution caused by tires in the state, to the extent that the state board or the applicable district determines that the program or project remediates air pollution harms created by tires upon which the fee described in subdivision (b) of Section 42885 is imposed. (b) The remaining moneys collected pursuant to subdivision (b) of Section 42885 shall be used to fund the waste tire program, and program and the tire recycling incentive program, pursuant to Section 42872.1, and shall be appropriated to the department in the annual Budget Act in a manner consistent with the five-year plan adopted and updated by the department. These moneys shall be expended for the payment of refunds under this chapter and for the following purposes: purposes, to the extent they are not lawfully payable from funds allocated pursuant to subdivision (c) of Section 42885: (1) To pay the administrative overhead cost of this chapter, not to exceed 6 percent of the total revenue deposited in the fund annually, or an amount otherwise specified in the annual Budget Act. (2) To pay the costs of administration associated with collection, making refunds, and auditing revenues in the fund, not to exceed 3 percent of the total revenue deposited in the fund, as provided in subdivision (c) (d) of Section 42885. (3) To pay the costs associated with operating the tire recycling program specified in Article 3 (commencing with Section 42870). (4) To pay the costs associated with the development and enforcement of regulations relating to the storage of waste tires and used tires. The department shall consider designating a city, county, or city and county as the enforcement authority of regulations relating to the storage of waste tires and used tires, as provided in subdivision (c) of Section 42850, and regulations relating to the hauling of waste and used tires, as provided in subdivision (b) of Section 42963. If the department designates a local entity for that purpose, the department shall provide sufficient, stable, and noncompetitive funding to that entity for that purpose, based on available resources, as provided in the five-year plan adopted and updated as provided in subdivision (a) of Section 42885.5. The department may consider and create, as appropriate, financial incentives for citizens who report the illegal hauling or disposal of waste tires as a means of enhancing local and statewide waste tire and used tire enforcement programs. (5) To pay the costs of cleanup, abatement, removal, or other remedial action related to waste tire stockpiles throughout the state, including all approved costs incurred by other public agencies involved in these activities by contract with the department. Not less than six million five hundred thousand dollars ($6,500,000) shall be expended by the department during each of the following fiscal years for this purpose: 200102 to 200607, inclusive. (6) To make studies and conduct research directed at promoting and developing alternatives to the landfill disposal of waste tires. (7) To assist in developing markets and new technologies for used tires and waste tires. The departments expenditure of funds for purposes of this subdivision shall reflect the priorities for waste management practices specified in subdivision (a) of Section 40051. (8) To pay the costs associated with implementing and operating a waste tire and used tire hauler program and manifest system pursuant to Chapter 19 (commencing with Section 42950). (9) To pay the costs to create and maintain an emergency reserve, which shall not exceed one million dollars ($1,000,000). (10) To pay the costs of cleanup, abatement, or other remedial action related to the disposal of waste tires in implementing and operating the Farm and Ranch Solid Waste Cleanup and Abatement Grant Program established pursuant to Chapter 2.5 (commencing with Section 48100) of Part 7. (11) To fund border region activities specified in paragraph (8) of subdivision (b) of Section 42885.5. (12) For expenditure pursuant to paragraph (3) of subdivision (a) of, and paragraph (3) of subdivision (b) of, Section 17001. (c) This section shall remain in effect only until January 1, 2024, and as of that date is repealed, unless a later enacted statute that is enacted before January 1, 2024, deletes or extends that date. SEC. 5. Section 42961.5 of the Public Resources Code is amended to read:42961.5. (a) For purposes of this chapter, the following definitions shall apply:(1) California Uniform Waste and Used Tire Manifest or manifest means a shipping document signed by a waste or used tire hauler and a generator of waste or used tires, a waste and used tire hauler, or the operator of a waste or used tire facility or other destination that contains all of the information required by the board, department, including, but not limited to, an accurate measurement of the number of tires being shipped, the type or types of the tires, the date the shipment originated, originated or terminated, and the origin and intended final destination of the shipment.(2) Electronic Manifest means a manifest that is submitted to the department electronically in a manner specified by the department. (2)(3) Waste and used tire hauler or hauler means any person required to be registered with the board department pursuant to subdivision (a) of Section 42951.(b) For purposes of this section, Passenger Tire Equivalent or PTE means either of the following: (1) A unit of measurement, such that one PTE equals 20 pounds of waste or used tires, and one PTE equals one waste or used tire. (2) A unit of measurement, such that 10 PTEs equals one cubic yard of waste or used tires, and one PTE equals one waste or used tire. (b)Any person generating(c) (1) A hauler transporting waste or used tires that are transported or submitted for transportation, for offsite handling, altering, storage, or disposal, or for any combination thereof, shall complete a California Uniform Waste and Used Tire Manifest, as required by the board. The generator shall provide the manifest to the waste and used tire hauler at the time of transfer of the tires. Each generator shall submit to the board, on a quarterly schedule, a legible copy of each manifest. The copy submitted to the board shall contain the signatures of the generator and the waste and used tire hauler. manifest.(c)(1)Any waste and used tire(2) A hauler shall have the California Uniform Waste and Used Tire Manifest manifest in his or her possession while transporting waste or used tires. The manifest shall be shown upon demand to any representative of the board, department, any officer of the Department of the California Highway Patrol, or any peace officer, as defined in Section 830.1 or 830.2 of the Penal Code, or any local public officer designated by the board. Code.(2)Any waste and used tire hauler hauling waste or used tires for offsite handling, altering, storage, disposal, or any combination thereof, shall complete the California Uniform Waste and Used Tire Manifest as required by the board. The waste and used tire hauler shall provide the manifest to the(3) A hauler shall provide the manifest, or otherwise provide all required manifest information, to the generator of waste or used tires or to the operator of a waste or used tire facility operator who receives the waste or used tires for handling, altering, storage, disposal, or any combination thereof. Each waste and used tire hauler shall submit to the board, on a quarterly schedule, a legible copy of each manifest. The copy submitted to the board shall contain the signatures of the generator and the facility operator. or other destination at the time of transfer of the tires.(4) Notwithstanding the Uniform Electronic Transactions Act (Title 2.5 (commencing with Section 1633.1) of Part 2 of Division 3 of the Civil Code), the hauler shall submit a manifest to the department for each load of waste or used tires transported within seven days of the date of the pickup or delivery. The department may grant an extension before the seventh day upon a showing of good cause by the hauler. (5) On and after January 1, 2019, the hauler shall submit only an electronic manifest, and not a paper manifest, to the department within seven days of the date of the pickup or delivery for each load of waste or used tires transported. (6) If approved by the department, a hauler may submit an electronic manifest prior to January 1, 2019. The electronic manifest shall include all information required to be on the manifest and any other information required by the department. (d) Each waste or used tire facility operator that receives The authorized representative for the person generating or accepting waste or used tires for handling, altering, storage, disposal, or any combination thereof, that was transported with a manifest pursuant to this section, shall submit copies of each manifest provided by the waste and used tire hauler to the board and the generator on a quarterly schedule. The copy submitted to the board shall contain the signatures of each generator, each transporter, and the facility operator. If approved by the board, in lieu of submitting shall verify that the information on the manifest is correct, including the number of tires and other information specified by the department, and shall sign the manifest. The person generating or accepting waste or used tires shall maintain a copy of each manifest used, a facility operator may submit an electronic report to the board meeting the requirements of Section 42814. the manifest and any other information required that the department deems necessary to track the flow of waste and used tires through the state.(e) The department may require an electronic manifest submitted by a hauler to the department to include verification from a hauler, and a generator of waste or used tires, or the operator of a waste or used tire facility or other destination, that the information on the manifest is correct, including the number of tires and other information specified by the department. (e)(f) The board department shall develop and implement a system for auditing manifests submitted to the board department pursuant to this section, for the purpose of enforcing this section. The board or its agent shall continuously conduct random sampling and matching of manifests submitted by any person generating waste or used tires, hauling waste or used tires, or operating waste or used tire facilities, to assure compliance with this section.(f)(1)If approved by the board, any waste and used tire generator, waste and used tire hauler, or operator of a waste tire facility that is subject to the manifest requirements of this section, may submit an electronic report to the board, in lieu of submitting the copy of the manifest required. The electronic report shall include all information required to be on the California Uniform Waste and Used Tire Manifest, and any other information required by the board.(2)A waste and used tire generator, waste and used tire hauler, or operator of a waste tire facility that is subject to paragraph (1) may submit the electronic reports to the board on a quarterly schedule.(g) If the amount of waste or used tires recorded on a manifest is by weight or volume, the department shall determine the number of waste or used tires being transported by converting the weight or volume into PTEs. (h) The department may require a hauler to attend trainings and demonstrate understanding and proficiency with the provisions of this chapter, Chapter 16 (commencing with Section 42800), Chapter 17 (commencing with Section 42860), and any rules, regulations, or requirements issued or adopted pursuant to this chapter, Chapter 16, or Chapter 17 prior to receiving a waste and used tire hauler registration or a waste and used tire hauler registration renewal. SEC. 5. Section 42961.5 of the Public Resources Code is amended to read: ### SEC. 5. 42961.5. (a) For purposes of this chapter, the following definitions shall apply:(1) California Uniform Waste and Used Tire Manifest or manifest means a shipping document signed by a waste or used tire hauler and a generator of waste or used tires, a waste and used tire hauler, or the operator of a waste or used tire facility or other destination that contains all of the information required by the board, department, including, but not limited to, an accurate measurement of the number of tires being shipped, the type or types of the tires, the date the shipment originated, originated or terminated, and the origin and intended final destination of the shipment.(2) Electronic Manifest means a manifest that is submitted to the department electronically in a manner specified by the department. (2)(3) Waste and used tire hauler or hauler means any person required to be registered with the board department pursuant to subdivision (a) of Section 42951.(b) For purposes of this section, Passenger Tire Equivalent or PTE means either of the following: (1) A unit of measurement, such that one PTE equals 20 pounds of waste or used tires, and one PTE equals one waste or used tire. (2) A unit of measurement, such that 10 PTEs equals one cubic yard of waste or used tires, and one PTE equals one waste or used tire. (b)Any person generating(c) (1) A hauler transporting waste or used tires that are transported or submitted for transportation, for offsite handling, altering, storage, or disposal, or for any combination thereof, shall complete a California Uniform Waste and Used Tire Manifest, as required by the board. The generator shall provide the manifest to the waste and used tire hauler at the time of transfer of the tires. Each generator shall submit to the board, on a quarterly schedule, a legible copy of each manifest. The copy submitted to the board shall contain the signatures of the generator and the waste and used tire hauler. manifest.(c)(1)Any waste and used tire(2) A hauler shall have the California Uniform Waste and Used Tire Manifest manifest in his or her possession while transporting waste or used tires. The manifest shall be shown upon demand to any representative of the board, department, any officer of the Department of the California Highway Patrol, or any peace officer, as defined in Section 830.1 or 830.2 of the Penal Code, or any local public officer designated by the board. Code.(2)Any waste and used tire hauler hauling waste or used tires for offsite handling, altering, storage, disposal, or any combination thereof, shall complete the California Uniform Waste and Used Tire Manifest as required by the board. The waste and used tire hauler shall provide the manifest to the(3) A hauler shall provide the manifest, or otherwise provide all required manifest information, to the generator of waste or used tires or to the operator of a waste or used tire facility operator who receives the waste or used tires for handling, altering, storage, disposal, or any combination thereof. Each waste and used tire hauler shall submit to the board, on a quarterly schedule, a legible copy of each manifest. The copy submitted to the board shall contain the signatures of the generator and the facility operator. or other destination at the time of transfer of the tires.(4) Notwithstanding the Uniform Electronic Transactions Act (Title 2.5 (commencing with Section 1633.1) of Part 2 of Division 3 of the Civil Code), the hauler shall submit a manifest to the department for each load of waste or used tires transported within seven days of the date of the pickup or delivery. The department may grant an extension before the seventh day upon a showing of good cause by the hauler. (5) On and after January 1, 2019, the hauler shall submit only an electronic manifest, and not a paper manifest, to the department within seven days of the date of the pickup or delivery for each load of waste or used tires transported. (6) If approved by the department, a hauler may submit an electronic manifest prior to January 1, 2019. The electronic manifest shall include all information required to be on the manifest and any other information required by the department. (d) Each waste or used tire facility operator that receives The authorized representative for the person generating or accepting waste or used tires for handling, altering, storage, disposal, or any combination thereof, that was transported with a manifest pursuant to this section, shall submit copies of each manifest provided by the waste and used tire hauler to the board and the generator on a quarterly schedule. The copy submitted to the board shall contain the signatures of each generator, each transporter, and the facility operator. If approved by the board, in lieu of submitting shall verify that the information on the manifest is correct, including the number of tires and other information specified by the department, and shall sign the manifest. The person generating or accepting waste or used tires shall maintain a copy of each manifest used, a facility operator may submit an electronic report to the board meeting the requirements of Section 42814. the manifest and any other information required that the department deems necessary to track the flow of waste and used tires through the state.(e) The department may require an electronic manifest submitted by a hauler to the department to include verification from a hauler, and a generator of waste or used tires, or the operator of a waste or used tire facility or other destination, that the information on the manifest is correct, including the number of tires and other information specified by the department. (e)(f) The board department shall develop and implement a system for auditing manifests submitted to the board department pursuant to this section, for the purpose of enforcing this section. The board or its agent shall continuously conduct random sampling and matching of manifests submitted by any person generating waste or used tires, hauling waste or used tires, or operating waste or used tire facilities, to assure compliance with this section.(f)(1)If approved by the board, any waste and used tire generator, waste and used tire hauler, or operator of a waste tire facility that is subject to the manifest requirements of this section, may submit an electronic report to the board, in lieu of submitting the copy of the manifest required. The electronic report shall include all information required to be on the California Uniform Waste and Used Tire Manifest, and any other information required by the board.(2)A waste and used tire generator, waste and used tire hauler, or operator of a waste tire facility that is subject to paragraph (1) may submit the electronic reports to the board on a quarterly schedule.(g) If the amount of waste or used tires recorded on a manifest is by weight or volume, the department shall determine the number of waste or used tires being transported by converting the weight or volume into PTEs. (h) The department may require a hauler to attend trainings and demonstrate understanding and proficiency with the provisions of this chapter, Chapter 16 (commencing with Section 42800), Chapter 17 (commencing with Section 42860), and any rules, regulations, or requirements issued or adopted pursuant to this chapter, Chapter 16, or Chapter 17 prior to receiving a waste and used tire hauler registration or a waste and used tire hauler registration renewal. 42961.5. (a) For purposes of this chapter, the following definitions shall apply:(1) California Uniform Waste and Used Tire Manifest or manifest means a shipping document signed by a waste or used tire hauler and a generator of waste or used tires, a waste and used tire hauler, or the operator of a waste or used tire facility or other destination that contains all of the information required by the board, department, including, but not limited to, an accurate measurement of the number of tires being shipped, the type or types of the tires, the date the shipment originated, originated or terminated, and the origin and intended final destination of the shipment.(2) Electronic Manifest means a manifest that is submitted to the department electronically in a manner specified by the department. (2)(3) Waste and used tire hauler or hauler means any person required to be registered with the board department pursuant to subdivision (a) of Section 42951.(b) For purposes of this section, Passenger Tire Equivalent or PTE means either of the following: (1) A unit of measurement, such that one PTE equals 20 pounds of waste or used tires, and one PTE equals one waste or used tire. (2) A unit of measurement, such that 10 PTEs equals one cubic yard of waste or used tires, and one PTE equals one waste or used tire. (b)Any person generating(c) (1) A hauler transporting waste or used tires that are transported or submitted for transportation, for offsite handling, altering, storage, or disposal, or for any combination thereof, shall complete a California Uniform Waste and Used Tire Manifest, as required by the board. The generator shall provide the manifest to the waste and used tire hauler at the time of transfer of the tires. Each generator shall submit to the board, on a quarterly schedule, a legible copy of each manifest. The copy submitted to the board shall contain the signatures of the generator and the waste and used tire hauler. manifest.(c)(1)Any waste and used tire(2) A hauler shall have the California Uniform Waste and Used Tire Manifest manifest in his or her possession while transporting waste or used tires. The manifest shall be shown upon demand to any representative of the board, department, any officer of the Department of the California Highway Patrol, or any peace officer, as defined in Section 830.1 or 830.2 of the Penal Code, or any local public officer designated by the board. Code.(2)Any waste and used tire hauler hauling waste or used tires for offsite handling, altering, storage, disposal, or any combination thereof, shall complete the California Uniform Waste and Used Tire Manifest as required by the board. The waste and used tire hauler shall provide the manifest to the(3) A hauler shall provide the manifest, or otherwise provide all required manifest information, to the generator of waste or used tires or to the operator of a waste or used tire facility operator who receives the waste or used tires for handling, altering, storage, disposal, or any combination thereof. Each waste and used tire hauler shall submit to the board, on a quarterly schedule, a legible copy of each manifest. The copy submitted to the board shall contain the signatures of the generator and the facility operator. or other destination at the time of transfer of the tires.(4) Notwithstanding the Uniform Electronic Transactions Act (Title 2.5 (commencing with Section 1633.1) of Part 2 of Division 3 of the Civil Code), the hauler shall submit a manifest to the department for each load of waste or used tires transported within seven days of the date of the pickup or delivery. The department may grant an extension before the seventh day upon a showing of good cause by the hauler. (5) On and after January 1, 2019, the hauler shall submit only an electronic manifest, and not a paper manifest, to the department within seven days of the date of the pickup or delivery for each load of waste or used tires transported. (6) If approved by the department, a hauler may submit an electronic manifest prior to January 1, 2019. The electronic manifest shall include all information required to be on the manifest and any other information required by the department. (d) Each waste or used tire facility operator that receives The authorized representative for the person generating or accepting waste or used tires for handling, altering, storage, disposal, or any combination thereof, that was transported with a manifest pursuant to this section, shall submit copies of each manifest provided by the waste and used tire hauler to the board and the generator on a quarterly schedule. The copy submitted to the board shall contain the signatures of each generator, each transporter, and the facility operator. If approved by the board, in lieu of submitting shall verify that the information on the manifest is correct, including the number of tires and other information specified by the department, and shall sign the manifest. The person generating or accepting waste or used tires shall maintain a copy of each manifest used, a facility operator may submit an electronic report to the board meeting the requirements of Section 42814. the manifest and any other information required that the department deems necessary to track the flow of waste and used tires through the state.(e) The department may require an electronic manifest submitted by a hauler to the department to include verification from a hauler, and a generator of waste or used tires, or the operator of a waste or used tire facility or other destination, that the information on the manifest is correct, including the number of tires and other information specified by the department. (e)(f) The board department shall develop and implement a system for auditing manifests submitted to the board department pursuant to this section, for the purpose of enforcing this section. The board or its agent shall continuously conduct random sampling and matching of manifests submitted by any person generating waste or used tires, hauling waste or used tires, or operating waste or used tire facilities, to assure compliance with this section.(f)(1)If approved by the board, any waste and used tire generator, waste and used tire hauler, or operator of a waste tire facility that is subject to the manifest requirements of this section, may submit an electronic report to the board, in lieu of submitting the copy of the manifest required. The electronic report shall include all information required to be on the California Uniform Waste and Used Tire Manifest, and any other information required by the board.(2)A waste and used tire generator, waste and used tire hauler, or operator of a waste tire facility that is subject to paragraph (1) may submit the electronic reports to the board on a quarterly schedule.(g) If the amount of waste or used tires recorded on a manifest is by weight or volume, the department shall determine the number of waste or used tires being transported by converting the weight or volume into PTEs. (h) The department may require a hauler to attend trainings and demonstrate understanding and proficiency with the provisions of this chapter, Chapter 16 (commencing with Section 42800), Chapter 17 (commencing with Section 42860), and any rules, regulations, or requirements issued or adopted pursuant to this chapter, Chapter 16, or Chapter 17 prior to receiving a waste and used tire hauler registration or a waste and used tire hauler registration renewal. 42961.5. (a) For purposes of this chapter, the following definitions shall apply:(1) California Uniform Waste and Used Tire Manifest or manifest means a shipping document signed by a waste or used tire hauler and a generator of waste or used tires, a waste and used tire hauler, or the operator of a waste or used tire facility or other destination that contains all of the information required by the board, department, including, but not limited to, an accurate measurement of the number of tires being shipped, the type or types of the tires, the date the shipment originated, originated or terminated, and the origin and intended final destination of the shipment.(2) Electronic Manifest means a manifest that is submitted to the department electronically in a manner specified by the department. (2)(3) Waste and used tire hauler or hauler means any person required to be registered with the board department pursuant to subdivision (a) of Section 42951.(b) For purposes of this section, Passenger Tire Equivalent or PTE means either of the following: (1) A unit of measurement, such that one PTE equals 20 pounds of waste or used tires, and one PTE equals one waste or used tire. (2) A unit of measurement, such that 10 PTEs equals one cubic yard of waste or used tires, and one PTE equals one waste or used tire. (b)Any person generating(c) (1) A hauler transporting waste or used tires that are transported or submitted for transportation, for offsite handling, altering, storage, or disposal, or for any combination thereof, shall complete a California Uniform Waste and Used Tire Manifest, as required by the board. The generator shall provide the manifest to the waste and used tire hauler at the time of transfer of the tires. Each generator shall submit to the board, on a quarterly schedule, a legible copy of each manifest. The copy submitted to the board shall contain the signatures of the generator and the waste and used tire hauler. manifest.(c)(1)Any waste and used tire(2) A hauler shall have the California Uniform Waste and Used Tire Manifest manifest in his or her possession while transporting waste or used tires. The manifest shall be shown upon demand to any representative of the board, department, any officer of the Department of the California Highway Patrol, or any peace officer, as defined in Section 830.1 or 830.2 of the Penal Code, or any local public officer designated by the board. Code.(2)Any waste and used tire hauler hauling waste or used tires for offsite handling, altering, storage, disposal, or any combination thereof, shall complete the California Uniform Waste and Used Tire Manifest as required by the board. The waste and used tire hauler shall provide the manifest to the(3) A hauler shall provide the manifest, or otherwise provide all required manifest information, to the generator of waste or used tires or to the operator of a waste or used tire facility operator who receives the waste or used tires for handling, altering, storage, disposal, or any combination thereof. Each waste and used tire hauler shall submit to the board, on a quarterly schedule, a legible copy of each manifest. The copy submitted to the board shall contain the signatures of the generator and the facility operator. or other destination at the time of transfer of the tires.(4) Notwithstanding the Uniform Electronic Transactions Act (Title 2.5 (commencing with Section 1633.1) of Part 2 of Division 3 of the Civil Code), the hauler shall submit a manifest to the department for each load of waste or used tires transported within seven days of the date of the pickup or delivery. The department may grant an extension before the seventh day upon a showing of good cause by the hauler. (5) On and after January 1, 2019, the hauler shall submit only an electronic manifest, and not a paper manifest, to the department within seven days of the date of the pickup or delivery for each load of waste or used tires transported. (6) If approved by the department, a hauler may submit an electronic manifest prior to January 1, 2019. The electronic manifest shall include all information required to be on the manifest and any other information required by the department. (d) Each waste or used tire facility operator that receives The authorized representative for the person generating or accepting waste or used tires for handling, altering, storage, disposal, or any combination thereof, that was transported with a manifest pursuant to this section, shall submit copies of each manifest provided by the waste and used tire hauler to the board and the generator on a quarterly schedule. The copy submitted to the board shall contain the signatures of each generator, each transporter, and the facility operator. If approved by the board, in lieu of submitting shall verify that the information on the manifest is correct, including the number of tires and other information specified by the department, and shall sign the manifest. The person generating or accepting waste or used tires shall maintain a copy of each manifest used, a facility operator may submit an electronic report to the board meeting the requirements of Section 42814. the manifest and any other information required that the department deems necessary to track the flow of waste and used tires through the state.(e) The department may require an electronic manifest submitted by a hauler to the department to include verification from a hauler, and a generator of waste or used tires, or the operator of a waste or used tire facility or other destination, that the information on the manifest is correct, including the number of tires and other information specified by the department. (e)(f) The board department shall develop and implement a system for auditing manifests submitted to the board department pursuant to this section, for the purpose of enforcing this section. The board or its agent shall continuously conduct random sampling and matching of manifests submitted by any person generating waste or used tires, hauling waste or used tires, or operating waste or used tire facilities, to assure compliance with this section.(f)(1)If approved by the board, any waste and used tire generator, waste and used tire hauler, or operator of a waste tire facility that is subject to the manifest requirements of this section, may submit an electronic report to the board, in lieu of submitting the copy of the manifest required. The electronic report shall include all information required to be on the California Uniform Waste and Used Tire Manifest, and any other information required by the board.(2)A waste and used tire generator, waste and used tire hauler, or operator of a waste tire facility that is subject to paragraph (1) may submit the electronic reports to the board on a quarterly schedule.(g) If the amount of waste or used tires recorded on a manifest is by weight or volume, the department shall determine the number of waste or used tires being transported by converting the weight or volume into PTEs. (h) The department may require a hauler to attend trainings and demonstrate understanding and proficiency with the provisions of this chapter, Chapter 16 (commencing with Section 42800), Chapter 17 (commencing with Section 42860), and any rules, regulations, or requirements issued or adopted pursuant to this chapter, Chapter 16, or Chapter 17 prior to receiving a waste and used tire hauler registration or a waste and used tire hauler registration renewal. 42961.5. (a) For purposes of this chapter, the following definitions shall apply: (1) California Uniform Waste and Used Tire Manifest or manifest means a shipping document signed by a waste or used tire hauler and a generator of waste or used tires, a waste and used tire hauler, or the operator of a waste or used tire facility or other destination that contains all of the information required by the board, department, including, but not limited to, an accurate measurement of the number of tires being shipped, the type or types of the tires, the date the shipment originated, originated or terminated, and the origin and intended final destination of the shipment. (2) Electronic Manifest means a manifest that is submitted to the department electronically in a manner specified by the department. (2) (3) Waste and used tire hauler or hauler means any person required to be registered with the board department pursuant to subdivision (a) of Section 42951. (b) For purposes of this section, Passenger Tire Equivalent or PTE means either of the following: (1) A unit of measurement, such that one PTE equals 20 pounds of waste or used tires, and one PTE equals one waste or used tire. (2) A unit of measurement, such that 10 PTEs equals one cubic yard of waste or used tires, and one PTE equals one waste or used tire. (b)Any person generating (c) (1) A hauler transporting waste or used tires that are transported or submitted for transportation, for offsite handling, altering, storage, or disposal, or for any combination thereof, shall complete a California Uniform Waste and Used Tire Manifest, as required by the board. The generator shall provide the manifest to the waste and used tire hauler at the time of transfer of the tires. Each generator shall submit to the board, on a quarterly schedule, a legible copy of each manifest. The copy submitted to the board shall contain the signatures of the generator and the waste and used tire hauler. manifest. (c)(1)Any waste and used tire (2) A hauler shall have the California Uniform Waste and Used Tire Manifest manifest in his or her possession while transporting waste or used tires. The manifest shall be shown upon demand to any representative of the board, department, any officer of the Department of the California Highway Patrol, or any peace officer, as defined in Section 830.1 or 830.2 of the Penal Code, or any local public officer designated by the board. Code. (2)Any waste and used tire hauler hauling waste or used tires for offsite handling, altering, storage, disposal, or any combination thereof, shall complete the California Uniform Waste and Used Tire Manifest as required by the board. The waste and used tire hauler shall provide the manifest to the (3) A hauler shall provide the manifest, or otherwise provide all required manifest information, to the generator of waste or used tires or to the operator of a waste or used tire facility operator who receives the waste or used tires for handling, altering, storage, disposal, or any combination thereof. Each waste and used tire hauler shall submit to the board, on a quarterly schedule, a legible copy of each manifest. The copy submitted to the board shall contain the signatures of the generator and the facility operator. or other destination at the time of transfer of the tires. (4) Notwithstanding the Uniform Electronic Transactions Act (Title 2.5 (commencing with Section 1633.1) of Part 2 of Division 3 of the Civil Code), the hauler shall submit a manifest to the department for each load of waste or used tires transported within seven days of the date of the pickup or delivery. The department may grant an extension before the seventh day upon a showing of good cause by the hauler. (5) On and after January 1, 2019, the hauler shall submit only an electronic manifest, and not a paper manifest, to the department within seven days of the date of the pickup or delivery for each load of waste or used tires transported. (6) If approved by the department, a hauler may submit an electronic manifest prior to January 1, 2019. The electronic manifest shall include all information required to be on the manifest and any other information required by the department. (d) Each waste or used tire facility operator that receives The authorized representative for the person generating or accepting waste or used tires for handling, altering, storage, disposal, or any combination thereof, that was transported with a manifest pursuant to this section, shall submit copies of each manifest provided by the waste and used tire hauler to the board and the generator on a quarterly schedule. The copy submitted to the board shall contain the signatures of each generator, each transporter, and the facility operator. If approved by the board, in lieu of submitting shall verify that the information on the manifest is correct, including the number of tires and other information specified by the department, and shall sign the manifest. The person generating or accepting waste or used tires shall maintain a copy of each manifest used, a facility operator may submit an electronic report to the board meeting the requirements of Section 42814. the manifest and any other information required that the department deems necessary to track the flow of waste and used tires through the state. (e) The department may require an electronic manifest submitted by a hauler to the department to include verification from a hauler, and a generator of waste or used tires, or the operator of a waste or used tire facility or other destination, that the information on the manifest is correct, including the number of tires and other information specified by the department. (e) (f) The board department shall develop and implement a system for auditing manifests submitted to the board department pursuant to this section, for the purpose of enforcing this section. The board or its agent shall continuously conduct random sampling and matching of manifests submitted by any person generating waste or used tires, hauling waste or used tires, or operating waste or used tire facilities, to assure compliance with this section. (f)(1)If approved by the board, any waste and used tire generator, waste and used tire hauler, or operator of a waste tire facility that is subject to the manifest requirements of this section, may submit an electronic report to the board, in lieu of submitting the copy of the manifest required. The electronic report shall include all information required to be on the California Uniform Waste and Used Tire Manifest, and any other information required by the board. (2)A waste and used tire generator, waste and used tire hauler, or operator of a waste tire facility that is subject to paragraph (1) may submit the electronic reports to the board on a quarterly schedule. (g) If the amount of waste or used tires recorded on a manifest is by weight or volume, the department shall determine the number of waste or used tires being transported by converting the weight or volume into PTEs. (h) The department may require a hauler to attend trainings and demonstrate understanding and proficiency with the provisions of this chapter, Chapter 16 (commencing with Section 42800), Chapter 17 (commencing with Section 42860), and any rules, regulations, or requirements issued or adopted pursuant to this chapter, Chapter 16, or Chapter 17 prior to receiving a waste and used tire hauler registration or a waste and used tire hauler registration renewal.